Isaca COBIT 2019 Practice Test - Questions Answers, Page 8

Sharing the return on investment (ROI) analysis is the best way to address the concern of business line managers who perceive the cost of governance-required improvements as too expensive. ROI is a financial metric that measures the profitability or efficiency of an investment by comparing its benefits and costs. ROI analysis is a process of calculating and presenting the ROI of a project or program, as well as its assumptions, risks, and uncertainties.Sharing the ROI analysis with business line managers can help to address their concern by showing them how the governance-required improvements will generate value for the enterprise in terms of increased revenue, reduced costs, enhanced performance, improved quality, etc., as well as how they will outweigh their initial and ongoing costs.12Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

Measuring objectives is the next phase in the life cycle of governance after IT governance is implemented. The life cycle of governance is a continuous process that involves designing, implementing, evaluating, and improving the IT governance system. Measuring objectives is the phase that involves assessing and monitoring the performance and outcomes of the IT governance system against predefined metrics and targets.Measuring objectives is the next phase after IT governance is implemented because it helps to determine whether the IT governance system is effective, efficient, and aligned with the enterprise goals.13Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

The key question that should be asked and evaluated one year after IT governance is implemented is whether the enterprise has achieved expected benefits. Benefits are the positive outcomes or value that are derived from a project or program. Benefits can be tangible (such as increased revenue, reduced costs, improved efficiency, etc.) or intangible (such as enhanced reputation, customer satisfaction, employee engagement, etc.). Benefits realization is the process of planning, managing, measuring, and reporting the benefits that are delivered by a project or program.Asking and evaluating whether the enterprise has achieved expected benefits one year after IT governance is implemented is important because it helps to determine whether the IT governance system is effective in creating value for the enterprise and its stakeholders.12Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

IT governance implementation risk is best managed throughout the life cycle of the implementation. IT governance implementation risk is the possibility of negative consequences or outcomes that may arise from the design, execution, evaluation, or improvement of the IT governance system. The life cycle of IT governance implementation is a continuous process that involves four phases: what are the drivers, where are we now, where do we want to be, and how do we get there.IT governance implementation risk should be managed throughout the life cycle by identifying, analyzing, evaluating, treating, monitoring, and communicating the risks that may affect the success of the implementation.12Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

The primary reason for management to conduct a process capability assessment is to better understand the current state as compared to the target state. A process capability assessment is a method of measuring and evaluating how well a process or activity is performed in terms of effectiveness, efficiency, completeness, reliability, etc. A process capability assessment can be done using different models or frameworks, such as CMMI or ISO/IEC 15504. A process capability assessment helps management to better understand the current state of a process by identifying its strengths, weaknesses, gaps, and improvement opportunities.A process capability assessment also helps management to compare the current state with the target state, which is the desired level of performance or outcome for a process.13Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT Process Assessment Model (PAM): Using COBIT 5

A well-developed business case is essential to help ensure that a project's benefits are identified and continually monitored. A business case is a document that provides the rationale and evidence for initiating, continuing, or terminating a project or program. A business case typically consists of several elements, such as problem statement, objectives, scope, benefits, costs, risks, assumptions, etc.A well-developed business case helps to ensure that a project's benefits are identified and continually monitored by defining the expected outcomes or value that will be delivered by the project, as well as the metrics and indicators that will be used to measure and track them.12Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

The primary objective of reviewing the effectiveness of a new IT governance system that has been operational for 6 months is to identify further governance requirements. An IT governance system is a set of components that provide direction, oversight, evaluation, monitoring, assurance, etc., for an enterprise's information and technology. The effectiveness of an IT governance system can be reviewed using different methods or tools, such as audits, assessments, surveys, feedbacks, etc.The primary objective of reviewing the effectiveness of a new IT governance system that has been operational for 6 months is to identify further governance requirements that may arise from changes in the internal or external environment, stakeholder needs, business objectives, etc.12Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

Conducting a capabilities assessment must be done before an enterprise can determine performance measures for a process improvement initiative. A capabilities assessment is a method of measuring and evaluating how well a process or activity is performed in terms of effectiveness, efficiency, completeness, reliability, etc. A capabilities assessment can be done using different models or frameworks, such as CMMI or ISO/IEC 15504.A capabilities assessment helps an enterprise to determine performance measures for a process improvement initiative by providing a baseline or benchmark for the current state of a process, as well as identifying its strengths, weaknesses, gaps, and improvement opportunities.13Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT Process Assessment Model (PAM): Using COBIT 5

Risk management focuses on the preservation of value, while value delivery focuses on the creation of value. Value is the benefit that an enterprise derives from using information and technology. Value can be measured in terms of effectiveness, efficiency, quality, innovation, etc. Value delivery is the process of ensuring that information and technology investments and services contribute to the achievement of enterprise goals and objectives. Value delivery focuses on the creation of value by aligning I&T with business requirements, optimizing costs and resources, enhancing performance and outcomes, etc. Risk management is the process of identifying, analyzing, evaluating, treating, monitoring, and communicating risks that affect the achievement of enterprise objectives.Risk management focuses on the preservation of value by ensuring that risks are within acceptable levels, that opportunities are exploited, that uncertainties are reduced, etc.12Reference:COBIT 2019 Framework: Introduction and Methodology,COBIT 2019 Framework: Governance System