CGEIT Exam Questions Tutorials

According to the CGEIT exam guide, one of the roles of the CIO is to develop and maintain a high-performing IT workforce that can deliver value to the enterprise. To enhance the competencies of an IT business analytics team, the CIO should first understand the current staff skill sets and identify the gaps between the existing and desired capabilities. This will help the CIO to plan and implement appropriate training, coaching, mentoring, and career development programs for the team members. The other options are not directly related to enhancing the competencies of an IT business analytics team, but rather to other aspects of IT governance and management. References: CGEIT Exam Candidate Guide, page 14. CGEIT Certification, Enhancing Competencies of IT Business Analytics Team

This is because a portfolio review is a process of evaluating the performance and value of IT investments in relation to the business objectives and strategy. A portfolio review can help to identify the alignment, contribution, and optimization of IT investments, as well as the risks, issues, and opportunities for improvement. A portfolio review can also help to communicate and demonstrate the value of IT to the board and other stakeholders, as well as to support decision-making and prioritization of IT resources.

Some of the sources that support this answer are:

1: This source explains the value of IT governance and how it can help to optimize risk and manage resources to support the organization’s mission, goals, and objectives. It also discusses some of the governance enablers, such as principles, processes, and policies, that can help to align IT with the business context.

2: This source provides a research-based methodology to improve IT governance and drive business results. It suggests that conducting a portfolio review is one of the steps to redesign the governance framework and ensure that IT investments are aligned with the business strategy and deliver value.

3: This source defines IT portfolio management as a discipline that enables organizations to manage their IT investments as a collection of projects, programs, and services that contribute to the enterprise’s strategic goals. It also describes some of the benefits of IT portfolio management, such as improving alignment, optimizing value, reducing risk, and enhancing transparency.

A risk assessment is the process of identifying, analyzing, and evaluating the potential risks that may affect the achievement of an objective or the performance of an activity. A risk assessment should be done first when concerns have been identified regarding the financial viability of a potential software supplier, as it can help determine the likelihood and impact of the supplier’s failure or default on the enterprise’s IT project or operation. A risk assessment can also help identify and prioritize the mitigation strategies or contingency plans that can be implemented to reduce or avoid the negative consequences of the supplier’s financial instability.

Implementing an escrow agreement, including a right-to-audit clause in the contract, and licensing the intellectual property are possible actions to take after performing a risk assessment, but they are not the first step. An escrow agreement is a legal arrangement that involves a third party holding and releasing the software source code or other critical assets of the supplier in case of a dispute or termination of the contract. An escrow agreement can help protect the enterprise’s access and rights to the software in case of the supplier’s bankruptcy or insolvency. Including a right-to-audit clause in the contract is a provision that allows the enterprise to inspect and verify the financial records and statements of the supplier, as well as their compliance with the contract terms and conditions. A right-to-audit clause can help monitor and evaluate the supplier’s financial performance and stability, as well as detect any fraud or misrepresentation. Licensing the intellectual property is a process that grants the enterprise a legal permission to use, modify, or distribute the software or other creations of the supplier, subject to certain limitations and obligations. Licensing the intellectual property can help secure the enterprise’s ownership and control over the software, as well as prevent any infringement or violation by other parties.

References := How to check the viability of your suppliers; Financial Viability - Business Model Viability - Aktia Solutions; How to Assess Manufacturing Vendors’ Viability; Assessing Financial Viability.

 Key performance indicators (KPIs) are the best source of information for the IT steering committee to evaluate whether a third-party supplier is delivering the correct level of service, as they are metrics that measure the achievement of specific goals or objectives. KPIs can help the committee assess the quality, efficiency, effectiveness, and value of the supplier’s services, as well as their alignment with the enterprise’s strategy and expectations. KPIs can also help the committee identify and address any issues or gaps in the supplier’s performance, as well as monitor and report on their progress and improvement.

Service portfolio management, vendor status reports, and operational cost reduction reports are also useful sources of information for the IT steering committee, but they are not as comprehensive and reliable as KPIs. Service portfolio management is the process of managing the lifecycle of IT services, from conception to retirement. Service portfolio management can help the committee understand the scope, objectives, and benefits of the supplier’s services, as well as their interdependencies and risks. Vendor status reports are documents that provide updates on the supplier’s activities, deliverables, milestones, and issues. Vendor status reports can help the committee track and communicate the status of the supplier’s services, as well as identify and resolve any problems or conflicts. Operational cost reduction reports are documents that show how the supplier’s services have reduced or optimized the enterprise’s operationalcosts. Operational cost reduction reports can help the committee evaluate the financial impact and return on investment (ROI) of the supplier’s services.

References := Performance Measurement Metrics for IT Governance; KPIs for Corporate Governance Dashboard - BSC Designer; feature Performance Measurement Metrics for IT Governance - ISACA; Performance Measurement Metrics for IT Governance - ISACA.