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Question 42 - COBIT Design and Implementation discussion

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It is CRITICAL to perform a due diligence review following which type of event?

A.
Shifts in the market or economy
Answers
A.
Shifts in the market or economy
B.
Merger, acquisition, or divestiture C New business strategy or priority
Answers
B.
Merger, acquisition, or divestiture C New business strategy or priority
C.
External consultant assessment
Answers
C.
External consultant assessment
Suggested answer: B

Explanation:

It is critical to perform a due diligence review following a merger, acquisition, or divestiture. Such events involve significant changes to the organizational structure, assets, and operations, necessitating thorough review to identify risks, synergies, and compliance issues.

Reference in COBIT 2019 Design and Implementation:

COBIT 2019 Framework: Governance and Management Objectives, APO12 (Managed Risk): This objective emphasizes the importance of risk management during significant organizational changes, such as mergers and acquisitions.

COBIT 2019 Implementation Guide, Chapter 3: This chapter outlines the need for due diligence in evaluating potential risks and ensuring that governance and management practices are adapted to new organizational contexts.

A due diligence review ensures that all aspects of the merger, acquisition, or divestiture are carefully assessed, mitigating risks and supporting a smooth transition.

asked 18/09/2024
Kurt Onal
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