Isaca Updated CGEIT Exam Questions and Answers by rome

A steering committee involving business and IT is the best approach to enable effective communication to senior management regarding the project status for a strategic enterpriseresource management system implementation. This is because a steering committee is a group of senior executives, stakeholders, and experts who provide strategic direction, guidance, and oversight for the project1. A steering committee can help to:

Communicate the project vision, goals, benefits, and risks to senior management and other stakeholders1

Monitor and review the project progress, performance, quality, and deliverables1

Resolve any issues, conflicts, or changes that may arise during the project1

Ensure the alignment of the project with the business strategy, objectives, and priorities1

Provide support, resources, and sponsorship for the project1

A steering committee involving business and IT can ensure that both the functional and technical aspects of the project are well represented and communicated to senior management. This can help to avoid any misunderstandings, gaps, or misalignments between the business and IT perspectives. A steering committee can also facilitate effective communication among senior management, project team, and other stakeholders, and foster a collaborative and supportive environment for the project success2.

The other options, project management office with business and IT representatives, weekly project reports reviewed by business and IT management, and project status updates on the intranet are not as effective as a steering committee for enabling communication to senior management regarding the project status. A project management office is a centralized unit that provides standards, methodologies, tools, and support for project management3. A project management office can help to improve the efficiency and consistency of project delivery, but it does not have the authority or responsibility to communicate directly with senior management or influence their decisions3. Weekly project reports are documents that summarize the progress, performance, issues, and risks of a project in a given period4. Weekly project reports can help to keep senior management informed of the project status, but they may not be sufficient to address their concerns or expectations. Weekly project reports may also be too frequent or detailed for senior management who may prefer a higher-level or less frequent view of the project4. Project status updates on the intranet are web-based messages that provide information about the current state of a project5. Project status updates on the intranet can help to increase the visibility and transparency of the project status to senior management and other stakeholders, but they may not be effective in engaging them or soliciting their feedback. Project status updates on the intranet may also be overlooked or ignored by senior management who may have limited time or access to the intranet5. References := What is a Project Steering Committee? | Clarizen, How To Run An Effective Steering Committee Meeting - BrightWork, What Is a Project Management Office (PMO)? | Smartsheet, How To Write A Project Status Report: The Ultimate Guide, Project Status Update Email Sample : Templates and Examples

Business risk has the greatest impact on the design of an IT governance framework, as it determines the level of control, oversight, and alignment that is required for the IT function to support the business objectives and mitigate the potential threats and vulnerabilities. Business risk is influenced by various factors, such as the industry, market, customer, competitor, regulatory, and environmental context of the enterprise. Therefore, the IT governance framework should be tailored to suit the specific risk profile and appetite of the enterprise, and to address the key risk areas and scenarios that could affect the business performance and value. According to COBIT 2019, one of the design factors that can influence the design of an enterprise’s governance system is the risk profile1. This design factor reflects the degree of risk exposure and tolerance that the enterprise has in relation to its use of information and technology1. The risk profile can be assessed by considering various aspects, such as the likelihood and impact of risk events, the sources and types of risks, the risk appetite and thresholds, the risk management capabilities and maturity, and the risk culture and awareness1. Based on the risk profile, the enterprise can decide on the appropriate governance objectives, components, enablers, practices, and activities that are needed to manage and mitigate the risks effectively1. The other options, IT performance metrics, resource allocation, and business leadership, are also important for the design of an IT governance framework, but they are not as impactful as business risk. IT performance metrics are used to measure and monitor the effectiveness and efficiency of the IT function in delivering value to the business2. Resource allocation is a process that optimizes the use of IT resources across multiple programs and projects in alignment with the business goalsand priorities3. Business leadership is a role that provides strategic direction, guidance, and support for the IT function in achieving its objectives4. However, these factors are more related to the implementation and execution of the IT governance framework, rather than its design. They are also influenced by the business risk factor, as they depend on the level of risk exposure and tolerance that the enterprise has. References := IT Governance: Definitions, Frameworks and Planning - ProjectManager, Resource Allocation Done Right: Best Practices for 2022 & Beyond, The Role of Business Leadership in Effective IT Governance, COBIT Design Factors: A Dynamic Approach to Tailoring Governance in … - ISACA

New legislation introduces compliance requirements that must be clearly understood before taking action. The CGEIT Review Manual 8th Edition emphasizes that the first step in addressing regulatory changes is to thoroughly understand the requirements, including definitions, scope, and timelines, to ensure compliance and avoid penalties.

Extract from CGEIT Review Manual 8th Edition (Domain 3: Risk Optimization):"When new regulations are introduced, the first step is to understand the specific requirements, including what constitutes a reportable incident, the timeline for reporting, and the format required. This ensures that subsequent actions are aligned with regulatory expectations." (Approximate reference: Domain 3, Section on Regulatory Compliance)

Understanding the requirements and definitions for reportable incidents (option D) is critical to ensure that the enterprise knows what incidents must be reported, within what timeframe, and in what manner. This step informs the design of systems, roles, or processes to meet the legislation’s demands.

Why not the other options?

A. Establish an incident reporting system and hotline: A reporting system is a subsequent step that depends on understanding what incidents need to be reported.

B. Require automation of incident reporting to agencies: Automation is premature without knowing the specific reporting requirements and formats.

C. Establish a cybersecurity incident manager role: While a dedicated role may be needed, it is not the first step, as the role’s responsibilities depend on the regulatory requirements.

After receiving recommendations to improve the IT governance framework, the CIO must assess their feasibility to ensure they are practical and aligned with the enterprise’s resources and goals. The CGEIT Review Manual 8th Edition advises evaluating the feasibility of recommendations as the next step to prioritize and plan implementation.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"Following a benchmark analysis, the CIO should evaluate the feasibility of recommendations, considering factors such as cost, resource availability, organizational readiness, and alignment with strategic objectives. This assessment informs the prioritization and planning of implementation efforts." (Approximate reference: Domain 1, Section on Governance Framework Improvement)

Evaluating the feasibility of the recommendations (option A) ensures that the CIO selects recommendations that are viable and beneficial, setting the stage for planning and approval.

Why not the other options?

B. Obtain approval from the IT steering committee to implement the recommendations: Approval is needed but follows feasibility assessment to ensure informed decision-making.

C. Develop a plan to integrate the recommendations: Planning is premature without confirming which recommendations are feasible.

D. Appoint a project manager to implement the recommendations: Appointing a project manager is a later step, after feasibility and planning.