Free Isaca CGEIT Practice Exam with Questions & Answers | Set: 10

After receiving recommendations, thefirst logical step is to evaluate the feasibility—this includes assessing alignment with strategic goals, resource availability, risk tolerance, and operational impact.

Implementing or planning without a feasibility assessment may result in impractical or misaligned actions.

In a small, newly established organization, the foundation of IT governance lies in clearly defining roles and responsibilities to ensure accountability and decision-making clarity. The CGEIT Review Manual 8th Edition emphasizes that assigning roles and responsibilities is a critical first step in governance, especially for organizations with limited resources.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"In small or newly established organizations, the primary consideration for IT governance is to assign clear IT roles and responsibilities. This establishes accountability, clarifies decision-making authority, and lays the foundation for effective governance processes." (Approximate reference: Domain 1, Section on Governance Structure)

Assigning IT roles and responsibilities (option D) ensures that the organization has a clear structure for IT decision-making, which is essential before addressing budgets, methodologies, or architectures.

Why not the other options?

A. Assigning a budget for IT governance applications: Budgeting is important but secondary to establishing governance roles, as roles define who manages the budget.

B. Defining IT project management methodology: Methodologies are operational and follow the establishment of governance structures.

C. Approving enterprise architecture (EA) and standards: EA is a subsequent step that requires governance roles to be in place for effective decision-making.

The best course of action for the CIO in this scenario is to identify business risk appetite and tolerance levels. Risk appetite is the amount and type of risk that an organization is willing to pursue, retain, or take in order to achieve its strategic objectives. Risk tolerance is the acceptable level of variation from the risk appetite. By identifying the business risk appetite and tolerance levels, the CIO can align the IT strategy and operations with the business goals, needs, and expectations, and ensure that the IT risks are managed within the acceptable boundaries. Identifying the business risk appetite and tolerance levels can also help the CIO to communicate and justify the IT decisions and actions to the senior management, board, and stakeholders, and to balance the costs and benefits of IT investments and initiatives. According to CPG 235 – Managing Data Risk, “The adequacy of data controls in ensuring that a regulated entity operates within its risk appetite would normally be assessed as part of introducing new business processes and then on a regular basis thereafter (or following material change to either the process, usage of data, internal controls or external environments).”

 Information architecture (IA) is the practice of structuring and presenting the parts of something — whether that’s a website, mobile app, blog post, book, or brick-and-mortar store — to users so that it’s easy to understand. IA can help users find information and complete tasks1.

An enterprise that has ineffective information architecture may suffer from poor business decisions, because it may not be able to access, analyze, or use the data and information that are relevant, accurate, consistent, and timely for decision making. Poor business decisions can lead to negative consequences, such as losing customers, market share, revenue, or competitive advantage, or facing legal, financial, reputational, or operational risks23.

Some examples of how ineffective information architecture can impact business decisions are:

If the enterprise’s website has a confusing or inconsistent navigation system, users may not be able to find the information they need or want, such as product details, prices, reviews, or contactinformation. This can result in lower customer satisfaction, engagement, conversion, and retention14.

If the enterprise’s data is stored in multiple systems or platforms that are not integrated or interoperable, users may not be able to access or share the data across different departments or functions. This can result in data silos, duplication, inconsistency, or incompleteness25.

If the enterprise’s data is not labeled or categorized properly, users may not be able to search or filter the data effectively. This can result in data overload, irrelevance, or obscurity25.

If the enterprise’s data is not governed or managed properly, users may not be able to trust or verify the data quality or integrity. This can result in data errors, inaccuracies, or biases25.

Therefore, an enterprise that has ineffective information architecture may have poor business decisions as its greatest impact. References: Information Architecture Basics | Usability.gov. The Importance of Information Architecture to UX Design. How Enterprise Architecture Can Help You Eliminate Technical Debt. What Is Information Architecture & Why Does It Matter? - HubSpot Blog. Why Do We Need Information Architecture - Architecture.

The first governance action that should be taken when the financial assumptions supporting a project have changed is to request an update to the business case. The business case is the document that justifies the initiation, continuation, or termination of a project based on its expected costs, benefits, and risks. A change in the financial assumptions may affect the viability and value of the project, and therefore, the business case should be revised to reflect the new situation. The updated business case will then inform the subsequent governance actions, such as scheduling an interim project review, requesting a risk assessment, or re-evaluating the project inthe portfolio. According to one source1, “The business case is a living document and should be reviewed and updated periodically as new information becomes available.” References := ISACA, CGEIT Review Manual, 27th Edition, 2020, page 14; Tips for Agile Project Governance

To generate value for the enterprise, it is most important that IT investments are consistent with the enterprise’s business objectives. This means that IT investments should support and enable the achievement of the enterprise’s vision, mission, goals, and strategies. IT investments should also align with the enterprise’s values, culture, risk appetite, and stakeholder expectations. Byensuring that IT investments are consistent with the enterprise’s business objectives, the enterprise can maximize the benefits and value that IT can deliver, and avoid wasting resources on IT projects or initiatives that are not relevant, necessary, or effective. According to one source1, “Driving value creation with technology investments requires a clear understanding of how technology can enable business strategy and create value for the organization.” The other options are not the most important factor for generating value for the enterprise, but rather some of the steps or outcomes that can support or result from IT investments. Aligning IT investments with the IT strategic objectives is important, but not sufficient, as the IT strategic objectives should also be aligned with the enterprise’s business objectives. Approving IT investments by the CFO is a part of the financial governance process, but it does not guarantee that the IT investments are consistent with the enterprise’s business objectives. Including IT investments in the balanced scorecard is a way of measuring and reporting on the performance and value of IT investments, but it does not ensure that the IT investments are consistent with the enterprise’s business objectives. References := Driving value creation with technology investments

The first step to address the risk of unauthorized disclosure of information is to establish a data classification policy. A data classification policy defines the categories of data based on their sensitivity and value to the organization, and specifies the appropriate security controls and handling procedures for each category. A data classification policy helps to identify the most critical and confidential data, and to prioritize the protection of such data from unauthorized access, disclosure, modification, or loss. A data classification policy also provides a basis for implementing other measures, such as data encryption tools, data loss prevention tools, and data retention policy, to enhance the security of data. References := Reducing Cybersecurity Security Risk From and to Third Parties; Unauthorized Access: Prevention Best Practices; Security of Enterprise Application Integration

 Before deciding whether to pursue a strategic initiative, it is important to understand the potential consequences of the risks involved. Assessing the impact of each risk means estimating how likely it is to occur and how severe its effects would be on the enterprise’s objectives, performance, reputation, or resources. This can help to prioritize the most critical risks and compare them with the expected benefits of the initiative. According to one of the web search results1, “the impact assessment is a key element of any risk management process. It helps to evaluate the significance of each risk and determine the appropriate response strategy.” Defining the risk mitigation strategy, establishing a baseline for each initiative, and selecting qualified personnel to manage the project are important steps, but they are not the first ones. They aremore likely to be part of the implementation or execution phase of the initiative, after it has been approved and funded. References := Risk Impact Assessment and Prioritization

According to the web search results, one of the most important aspects of risk management is the timely and accurate reporting of risk events, which are incidents or occurrences that have a negative impact on the objectives, operations, or reputation of an organization1. A framework to ensure effective reporting of risk events can help to identify, analyze, communicate, and respond to risks in a systematic and consistent manner2. Without such a framework, the organization may fail to capture, escalate, and learn from risk events, and may expose itself to greater losses,liabilities, and regulatory sanctions3. Therefore, the lack of a framework to ensure effective reporting of risk events would be of most concern regarding the effectiveness of risk management processes.

The other options are less concerning than option D, although they may also indicate some weaknesses in the risk management processes. Key risk indicators (KRIs) are metrics that measure the likelihood or impact of potential or actual risks4. While they are useful for monitoring and managing risks, they are not essential for the effectiveness of risk management processes. Risk management requirements are criteria or standards that define the expectations and responsibilities for managing risks. Including them in performance reviews can help to align the incentives and behaviors of employees with the risk appetite and strategy of the organization. However, they are not the only way to ensure accountability and compliance with risk management processes. The plans and procedures are documents that describe the objectives, scope, roles, activities, and outputs of risk management processes. Updating them on an annual basis can help to reflect the changes in the internal and external environment that affect the risks faced by the organization. However, they are not the only source of guidance and information for risk management processes.

References :=

Risk Event - Definition from KWHS

Risk Management - Overview, Importance and Processes

Transforming risk efficiency and effectiveness | McKinsey

Key Risk Indicators (KRIs) - Definition from KWHS

[Risk Management Requirements - an overview | ScienceDirect Topics]

[Risk Management Requirements - an overview | ScienceDirect Topics]

[Risk Management Plan - an overview | ScienceDirect Topics]

[Risk Management Plan - an overview | ScienceDirect Topics]

The aspect of the transition from X-rays to digital images that would be best addressed by implementing information security policy and procedures is protecting personal health information. This is because personal health information is a type of sensitive data that contains confidential and private information about patients, such as their medical history, diagnosis, treatment, and identity. Personal health information is subject to various legal and ethical obligations and regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) in the US1, that require its protection from unauthorized access, disclosure, modification, or destruction. Information security policy and procedures can help to define the rules, guidelines, and responsibilities for ensuring the confidentiality, integrity, and availability of personal health information in digital form.

Establishing data retention procedures is not the best answer, as it is only one component of information security policy and procedures. Data retention procedures specify how long and where digital images should be stored, archived, or deleted, based on the business, legal, and regulatory requirements. Data retention procedures can help to optimize the storage capacity, performance, and cost of digital images, as well as comply with the applicable laws and regulations. However, data retention procedures do not address the full scope of information security policy and procedures.

Training technicians on acceptable use policy is not the best answer, as it is only one aspect of information security policy and procedures. Acceptable use policy defines what are the permitted and prohibited behaviors and actions for using digital images and related IT resources. Training technicians on acceptable use policy can help to educate them on the security risks and best practices for handling digital images, as well as enforce compliance and accountability. However, training technicians on acceptable use policy does not cover the entire range of information security policy and procedures.

Minimizing the impact of hospital operation disruptions on patient care is not the best answer, as it is a business continuity objective rather than an information security objective. Business continuity refers to the ability of an organization to maintain or resume its critical functions and processes in the event of a disruption or disaster. Minimizing the impact of hospital operation disruptions on patient care can help to ensure the safety, quality, and efficiency of health services delivery. However, minimizing the impact of hospital operation disruptions on patient care is not directly related to information security policy and procedures.

References := HIPAA Privacy Rule | HHS.gov, Introduction section. Information Security Policy: Definition & Examples - NetApp, What Is an Information Security Policy? section. Data Retention Policy: Definition & Best Practices - NetApp, What Is a Data Retention Policy? section. Acceptable Use Policy: Definition & Best Practices - NetApp, What Is an Acceptable Use Policy? section. [Business Continuity Management: Definition & Best Practices - NetApp], What Is Business Continuity Management? section.

 An organizational change management plan is the best option to have in place prior to the start of an initiative to upgrade the technology and related processes of a rail transport company that has the worst on-time arrival record in the industry due to an antiquated IT system that controls scheduling. An organizational change management plan is a document that outlines the strategy, approach, and actions for managing and implementing a change within an organization. It helps to prepare the organization and its stakeholders for the change, communicate the vision and benefits of the change, address the potential resistance and challenges of the change, and monitorand evaluate the progress and outcomes of the change. An organizational change management plan is especially important for a project that involves a significant technological and process change that may impact the culture, performance, and satisfaction of the employees. By having an organizational change management plan in place before the start of the initiative, the rail transport company can maximize employee engagement throughout the project, and ensure a smooth and successful transition to the new IT system and processes

The most successful IT performance metrics are those that contain objective measures that can be quantified and verified. Objective measures are more reliable, consistent, and repeatable than subjective measures, which may vary depending on the perspective or opinion of the stakeholders. Objective measures also help to align IT performance goals with business goals and to communicate the value of IT to the rest of the organization. According to one source1, a good metric is linear, reliable, repeatable, easy to use, consistent and independent. References := ISACA, CGEIT Review Manual, 27th Edition, 2020, page 11; Performance Measurement Metrics for IT Governance

Data classification is a process that involves users assigning labels or tags to data based on its sensitivity, value, and protection requirements. Users are the ones who know the data best and are responsible for handling it appropriately. Therefore, users should be provided with clear instructions that are easy to follow and understand, so they can classify data correctly and consistently. This will also help users comply with the data security policies and regulations that apply to the data they work with. References := CGEIT Exam Content Outline, Domain 1: Governance of Enterprise IT, Subtopic B: IT Resources, Task 3: Ensure that processes are in place to maintain the integrity, availability, reliability, performance, scalability and security of IT resources. What is Data Classification? | Best Practices & Data Types | Imperva, User-based classification section. Best practices for data classification - ManageEngine, 6 best practices for data classification section.

The best way to determine if staff competency is the root cause of the performance problems is to compare the required staff competencies with the current skills inventory of the service center staff. This will help identify any gaps or mismatches between what is expected and what is available in terms of skills and knowledge. References: CGEIT Review Manual, 7th Edition, page 113.

A risk register is a tool that records and tracks the risks associated with a project or an activity, such as developing consumer-based services using emerging technologies involving sensitive personal data. A risk register typically includes information such as the risk description, category, impact, probability, status, response strategy, and owner. Reviewing the risk register will enable the CIO to make the best decision for the customers, as it will help them to identify, assess, and prioritize the risks that may affect the security, privacy, and quality of the services, and to determine the appropriate actions to mitigate or avoid them. The other options are not as relevant, as they do not provide specific information about the risks involved in the project or activity. References: : CGEIT Review Manual (Digital Version), Chapter 4: Risk Optimization, Section 4.3: IT Risk Management, Subsection 4.3.2: IT Risk Management Process, Page 156 : CGEIT Review Manual (Digital Version), Chapter 4: Risk Optimization, Section 4.3: IT Risk Management, Subsection 4.3.3: IT Risk Management Techniques and Tools, Page 158 : Capability Maturity Model and Risk Register Integration1