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ISACA Certified in the Governance of Enterprise IT Exam Sample Questions (Q530-Q535):

NEW QUESTION # 530
Following a strategic planning session, new IT objectives were announced. Which of the following is the MOST effective way for the CIO to ensure these objectives are cascaded to IT personnel?

A. Update the IT balanced scorecard to align with the new IT objectives.
B. Communicate the new IT objectives during a staff meeting.
C. Define individual performance measures related to the IT objectives.
D. Establish IT management's performance measures based on the IT objectives.

Answer: C

Explanation:
The MOST effective way for the CIO to ensure that the new IT objectives are cascaded to IT personnel is to define individual performance measures related to the IT objectives. Cascading goals is a framework to get everyone in an organization aligned with the big picture organizational goal, and to make sure they know what to do by breaking strategy into clear tasks and deliverables1. By defining individual performance measures related to the IT objectives, the CIO can:
* Communicate the expectations and priorities of the IT function to each IT staff member2
* Link the individual goals and activities to the IT objectives and the organizational strategy3
* Motivate and empower the IT staff to take ownership and responsibility for their work4
* Monitor and evaluate the progress and performance of the IT staff and provide feedback and recognition5 The other options are not as effective as option B. While it is important to communicate the new IT objectives, establish IT management's performance measures, and update the IT balanced scorecard, these are not sufficient to ensure that the IT objectives are cascaded to IT personnel. They are rather means to achieve the end goal of aligning and measuring the IT objectives at different levels of the organization. They do not necessarily translate into clear and specific actions and outcomes for each individual IT staff member.

NEW QUESTION # 531
Beth is a project team member on the JHG Project. Beth has added extra features to the project and this has introduced new risks to the project work. The project manager of the JHG project elects to remove the features Beth has added. The process of removing the extra features to remove the risks is called what?

A. Corrective action
B. Scope creep
C. Preventive action
D. Defect repair

Answer: C

NEW QUESTION # 532
From an IT governance perspective, which of the following would be the MOST significant impact of moving all IT applications to an external Software as a Service (SaaS) cloud provider?

A. The integration of the IT department with business lines
B. The shift from service delivery to service management
C. The necessity to update key risk indicators (KRIs)
D. The improvement Of IT service alignment with business

Answer: B

Explanation:
This is because moving all IT applications to an external SaaS cloud provider means that the organization is outsourcing the development, deployment, maintenance, and operation of its IT applications to a third-party vendor. This implies that the organization is relinquishing some control and ownership over its IT applications, and relying on the vendor to provide the required functionality, performance, quality, and security1. Therefore, the organization needs to shift its focus from delivering IT services internally to managing IT services externally. This involves the following activities2:
Establishing and maintaining a clear and comprehensive contract or service level agreement (SLA) with the SaaS vendor that defines the roles, responsibilities, expectations, and outcomes of both parties2 Monitoring and measuring the SaaS vendor's compliance with the contract or SLA, and ensuring that the vendor meets the agreed service levels, standards, and metrics2 Communicating and collaborating with the SaaS vendor regularly, and resolving any issues, conflicts, or changes that may arise during the service delivery2 Evaluating and improving the effectiveness and efficiency of the SaaS vendor's service delivery, and identifying and implementing any opportunities for innovation or optimization2 Managing the risks and challenges associated with outsourcing IT services to a SaaS vendor, such as data privacy, security, availability, compatibility, integration, dependency, cost, and performance issues2 The shift from service delivery to service management can have a significant impact on the IT governance framework, processes, policies, and practices of the organization. It can also affect the IT skills, roles, and responsibilities of the IT staff and stakeholders. Therefore, the organization needs to adapt and adjust its IT governance approach accordingly to ensure that it can effectively oversee and optimize its IT services in a SaaS environment3.
The other options, the integration of the IT department with business lines, the improvement of IT service alignment with business, and the necessity to update key risk indicators (KRIs) are not as significant as the shift from service delivery to service management for moving all IT applications to an external SaaS cloud provider from an IT governance perspective. They are more related to the outcomes or consequences of moving to a SaaS environment, rather than the impact or change itself. They may also not be unique or specific to a SaaS environment, as they may apply to other types or models of IT service delivery as well.

NEW QUESTION # 533
Which of the following would be of MOST concern regarding the effectiveness of risk management processes?

A. There is no framework to ensure effective reporting of risk events.
B. Key risk indicators (KRIs) are not established.
C. The plans and procedures are not updated on an annual basis.
D. Risk management requirements are not included in performance reviews.

Answer: A

Explanation:
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.
Reference:
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]

NEW QUESTION # 534
A service provider guarantees for end-to-end network traffic performance to a customer.
Which of the following types of agreement is this?

A. LA
B. VPN
C. NDA
D. SLA

Answer: D

NEW QUESTION # 535
......

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