Isaca Updated CGEIT Exam Questions and Answers by salman

The best approach to ensure global regulatory compliance when implementing a new business process is to ensure the appropriate involvement of the legal department. The legal department is the function that provides legal advice and guidance to the organization on various matters, such as contracts, transactions, disputes, regulations, and compliance. By involving the legal department in the implementation of a new business process, the organization can ensure that the business process complies with the relevant laws, policies, and standards that apply in different countries and jurisdictions. The legal department can also help to identify and mitigate any legal risks or issues that may arise from the new business process, such as liability, litigation, or sanctions.

The other options are not as effective as ensuring the appropriate involvement of the legal department for ensuring global regulatory compliance when implementing a new business process. Using a balanced scorecard to track the business process is a good practice for measuring and evaluating the performance and value of the business process, but it does not guarantee compliance with global regulations. Reviewing and revising the business architecture is a necessary step for designing and aligning the business process with the business strategy and objectives, but it does not address the legal aspects of the business process. Seeking approval from the change management board is a relevant procedure for implementing a new business process, but it does not ensure that the change management board has the expertise or authority to assess and approve the global regulatory compliance of the business process.

A periodic service provider audit is a process of conducting an independent and objective assessment of the service provider’s performance, quality, compliance, and security in relation to the agreed service level agreement (SLA) and the enterprise’s expectations and requirements. A periodic service provider audit can help provide quality of service oversight by:

• Verifying and validating the service provider’s claims and credentials, and ensuring that they meet the contractual obligations and standards
• Identifying and evaluating the strengths, weaknesses, opportunities, and threats of the service provider’s services, processes, and controls
• Detecting and reporting any issues, gaps, or risks that may affect the quality of service delivery or the enterprise’s objectives and value
• Recommending and implementing corrective and preventive actions to address and resolve the issues, gaps, or risks
• Monitoring and measuring the outcomes and effectiveness of the corrective and preventive actions, and ensuring their alignment with the SLA

References:

• According to the CGEIT Review Manual 20221, “Service provider audits are a key mechanism for ensuring that service providers are meeting their contractual obligations and delivering value to the enterprise. Service provider audits should be conducted periodically or as needed to assess the performance, quality, compliance, and security of the service provider’s services, processes, and controls.”
• According to the ISACA article on IT Outsourcing: Audit Considerations2, “IT outsourcing audit is a process of examining and evaluating the IT outsourcing arrangements between an enterprise and its service providers. IT outsourcing audit aims to provide assurance that the IT outsourcing arrangements are aligned with the enterprise’s strategy, objectives, and risk appetite; that the service providers are delivering the expected services in accordance with the SLAs; that the service providers are complying with the applicable laws, regulations, and standards; and that the service providers are managing and mitigating the IT outsourcing risks effectively.”
• According to the PwC article on Service Provider Audits3, “Service provider audits are an essential tool for organizations to gain insight into their service providers’ operations, controls, risks, and compliance status. Service provider audits can help organizations ensure that their service providers are meeting their expectations and obligations; identify any areas of improvement or concern; enhance their relationship and communication with their service providers; and optimize their IT outsourcing strategy.”

The most important consideration regarding IT measures as part of an IT strategic plan is that the metrics can be traced to enterprise goals. This alignment ensures that IT initiatives and performance metrics directly contribute to achieving the broader objectives of the organization, demonstrating the value of IT in supporting strategic outcomes. While data collection automation, realistic minimum target levels, and thresholds aligned to KRIs are important attributes of effective metrics, the ability to trace metrics back to enterprise goals is fundamental to ensuring strategic alignment and justifying IT investments.

Following a re-prioritization of business objectives by management, the first step to allocate resources to IT processes should be to update the IT strategy. This ensures that the IT strategic plan remains aligned with the overall business direction and objectives. An updated IT strategy will reflect the new priorities and guide the allocation of resources to support the revised business goals effectively. Refining the human resource management plan, implementing a RACI model, and performing a maturity assessment are important actions but should follow the strategic alignment to ensure that all IT efforts and resources are directed towards achieving the updated business objectives.