CGEIT Isaca Certified in the Governance of Enterprise IT Exam Free Practice Exam Questions (2025 Updated)

According to the web search results, the CEO is accountable for providing sponsorship for the IT-enabled change across the enterprise. The CEO is the highest-ranking executive in the organization, and has the authority and responsibility to lead the strategic direction and vision of the enterprise. The CEO also has the power and influence to allocate resources, prioritize initiatives, resolve conflicts, and communicate with stakeholders. Therefore, the CEO is the best person to provide sponsorship for the ERP implementation, which is a major and complex IT-enabled change that affects the entire enterprise12.

The other options are not as accountable as the CEO for providing sponsorship for the IT-enabled change across the enterprise. The HR director is responsible for managing the human resources functions of the organization, such as recruitment, training, compensation, and performance management. The HR director may support the ERP implementation by facilitating change management, employee engagement, and organizational development, but does not have the same level of authority and accountability as the CEO3. The IT strategy committee is a group of senior executives from different business units that provide guidance and oversight for the IT strategy and governance of the organization. The IT strategy committee may advise and approve the ERP implementation, but does not have the same level of leadership and visibility as the CEO4. The CIO is responsible for managing the IT functions of the organization, such as planning, implementing, and operating the IT systems and services. The CIO may lead and execute the ERP implementation, but does not have the same level of responsibility and influence as the CEO.

When faced with new regulations, the first step is to assess the risk they pose to the enterprise, including the likelihood and impact of noncompliance, even if enforcement is historically weak. The CGEIT Review Manual 8th Edition underscores that risk evaluation is the initial step in addressing emerging risks to prioritize actions and allocate resources effectively.

Extract from CGEIT Review Manual 8th Edition (Domain 3: Risk Optimization):"Evaluating the impact of emerging risks, such as new regulations, is the first step in the risk management process. This involves assessing the potential consequences of noncompliance, including financial, operational, and reputational impacts, as well as the likelihood of enforcement." (Approximate reference: Domain 3, Section on Risk Assessment)

Evaluating the impact of the emerging risk (option C) allows the enterprise to understand the potential penalties, operational disruptions, and reputational damage, as well as the likelihood of enforcement given the agency’s history. This assessment informs whether mitigation plans, architecture updates, or other actions are necessary.

Why not the other options?

A. Develop mitigation plans for noncompliance: Mitigation plans are developed after assessing the risk’s impact and likelihood, as the assessment determines the scope and urgency of mitigation.

B. Update the enterprise architecture (EA): Updating the EA may be a subsequent action if the risk assessment identifies specific architectural gaps, but it is not the first step.

D. Perform benchmarking activities: Benchmarking is not directly relevant to assessing regulatory risk and is a secondary activity at best.

An IT skills inventory is a list of the skills, competencies, and qualifications of the IT staff in an organization. It can help to identify the current and potential capabilities of the IT workforce, as well as the gaps and needs for improvement. An IT skills inventory would be most helpful to review when determining how to allocate IT resources during a resource shortage, because it canhelp to match the right people with the right tasks, optimize the utilization and productivity of the existing IT staff, and prioritize the critical and urgent IT activities. The other options are not as helpful as an IT skills inventory for allocating IT resources during a resource shortage. An IT strategic plan is a document that defines the vision, mission, goals, and objectives of the IT function and how they align with the business strategy. It can help to guide the direction and scope of the IT activities and investments, but it does not provide detailed information on the availability and suitability of the IT resources. An IT organizational structure is a diagram that shows the hierarchy, roles, and responsibilities of the IT staff in an organization. It can help to clarify the reporting lines and communication channels of the IT function, but it does not reflect the skills and competencies of the IT staff. An IT skill development plan is a document that outlines the learning and training opportunities for the IT staff to enhance their skills and competencies. It can help to improve the performance and career progression of the IT staff, but it does not address the immediate needs and challenges of allocating IT resources during a resource shortage. References := What is an IT Skills Inventory?, How to Conduct an Effective Skills Gap Analysis, Resource allocation 101: How to manage your team’s resources | Planio

The best way to ensure that security risk is properly addressed when implementing an information security policy exception process is to confirm process owners’ acceptance of residual risk. Residual risk is the risk that remains after applying controls or mitigating measures to reduce the original risk1. Process owners are the individuals or groups that are responsible for the design, execution, and performance of a business process2. By confirming process owners’ acceptance of residual risk, the enterprise can ensure that the security risk associated with the policy exception is understood, acknowledged, and agreed upon by the relevant stakeholders. This can also help to assign accountability and liability for the potential consequences of the policy exception, as well as to monitor and review the risk level and the effectiveness of the controls or mitigating measures. The other options are not as effective as confirming process owners’ acceptance of residual risk for ensuring that security risk is properly addressed when implementing an information security policy exception process. Performing an internal and external network penetration test is a useful technique for identifying and exploiting vulnerabilities in the network infrastructure, but it does not address the specific security risk related to the policy exception. Obtaining IT security approval on security policy exceptions is a necessary step for validating and authorizing the policy exception, but it does not ensure that the process owners are aware of and accept the residual risk. Benchmarking policy against industry best practice is a good practice for comparing and improving the policy quality and performance, but it does not address the security risk associated with the policy exception.

 A common risk management taxonomy is a set of terms and definitions that are used consistently across the enterprise to describe, measure, and report on risks. A common risk management taxonomy is essential for integrating IT risk with the ERM framework, as it enables a common understanding of risk concepts, categories, and levels among different stakeholders and functions. A common risk management taxonomy also facilitates the aggregation and comparison of risks across the enterprise, and supports the alignment of risk appetite and tolerance with business objectives12. References: 1: Integrated Enterprise IT Risk Management (ERM) Programs - CohnReznick3 2: Introducing Risk Taxonomy - ISACA4

The best way for a CIO to ensure that the work of IT employees is aligned with approved IT directives is to include relevant IT goals in individual performance objectives. This means that the CIO should communicate the IT vision, mission, strategy and objectives to the IT staff and link them to their personal and professional development plans. By doing so, the CIO can motivate the IT employees to work toward the desired outcomes, monitor their progress and performance, provide feedback and recognition, and address any issues or gaps. Including relevant IT goals in individual performance objectives can also help to align the IT employees with the business needs and expectations, foster a culture of accountability and collaboration, and improve the quality and value of IT services12. References := How to Align Employee Performance With Organizational Goals, The Importance And Challenges Of Employee Alignment

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Governance of Enterprise IT domain, covers the governance of information assets, including their management across the entire lifecycle (creation, storage, use, archival, disposal). A life cycle approach ensures that information assets are managed systematically to align with business needs, reduce risks, and optimize resources.

Option D: Overall costs are optimized is the greatest benefit. By governing information assets through their lifecycle, enterprises can minimize costs associated with storage, maintenance, and compliance (e.g., avoiding penalties for improper data retention). For example, the approach identifies redundant data for deletion, optimizes storage solutions, and ensures cost-effective compliance with regulations. The manual likely references COBIT 2019’s BAI09-Managed Assets, which emphasizes lifecycle management to achieve cost efficiency.

Option A: Information availability is improved is a benefit, but it’s not the greatest, as availability is just one aspect of governance (e.g., via access controls).

Option B: Operational costs are maintained is inaccurate, as the goal is to reduce, not merely maintain, costs.

Option C: Compliance with regulatory requirements is ensured is a significant benefit, but cost optimization encompasses compliance (e.g., avoiding fines) and other savings, making it broader.

Double Verification: The answer aligns with COBIT’s focus on asset management and the CGEIT domain’s emphasis on cost-effective governance. Cost optimization is a recurring theme in ISACA’s frameworks for lifecycle management.

ISACA CGEIT Review Manual 8th Edition, Domain 1: Governance of Enterprise IT (focus on information asset management).

COBIT 2019, BAI09-Managed Assets.

ISACA Glossary (for definitions of lifecycle management), available at https://www.isaca.org/resources/glossary.

When assessing the implications of new external regulations on IT compliance, the first consideration should be the IT policies and procedures that need revision. This initial focus ensures that the foundational guidelines governing IT operations are aligned with the new regulatory requirements, forming the basis for compliance. While the resource burden for implementation, gaps in skills and experience of IT employees, and the impact on contracts with service providers are important considerations, they follow the primary step of ensuring that IT policies and procedures are in compliance with new regulations.

Comprehensive and Detailed Explanation:

The CGEIT Review Manual 8th Edition, in its Strategic Management domain, emphasizes aligning IT projects with business objectives through structured frameworks. Enterprise architecture (EA) provides a blueprint that maps IT projects to long-term business strategies, ensuring alignment with goals like digital transformation or market expansion. For example, EA ensures a new IT system supports strategic objectives by defining standards and roadmaps. The manual likely references COBIT 2019’s APO03-Managed Enterprise Architecture, which focuses on strategic alignment.

Option A: SLAs focus on operational performance, not strategic alignment.

Option B: Portfolio management prioritizes projects but doesn’t inherently demonstrate alignment.

Option D: BIA assesses impacts, not strategic alignment.

Double Verification: The answer aligns with COBIT’s APO03 and the CGEIT domain’s focus on strategic alignment. EA is the primary ISACA tool for demonstrating alignment.

ISACA CGEIT Review Manual 8th Edition, Domain 1: Governance of Enterprise IT (focus on enterprise architecture).

COBIT 2019, APO03-Managed Enterprise Architecture.

ISACA Glossary (for definitions of EA), available at https://www.isaca.org/resources/glossary.

A maturity assessment evaluates the current state of IT governance processes to identify gaps in capability that need improvement. The CGEIT Review Manual 8th Edition states that the primary purpose of a maturity assessment is to identify capability gaps to guide governance framework enhancements.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"The primary purpose of a maturity assessment is to identify gaps in IT governance capabilities, such as processes, skills, or controls, relative to desired maturity levels. This enables the enterprise to prioritize improvements and enhance governance effectiveness." (Approximate reference: Domain 1, Section on Maturity Assessment)

Identifying gaps in capability (option D) focuses on assessing the maturity of governance processes and determining where enhancements are needed to achieve desired outcomes.

Why not the other options?

A. Benchmark IT performance: Benchmarking compares performance, not capability maturity.

B. Identify gaps in performance: Performance gaps are a secondary outcome, while capability gaps are the primary focus.

C. Support impact analysis: Impact analysis is not the primary purpose of maturity assessments.

A third-party audit report is the most comprehensive source of information regarding the current status and effectiveness of a cloud provider’s controls. A third-party audit report is an independent and objective assessment of the cloud provider’s security, compliance, and performance by a qualified and reputable auditor. A third-party audit report can provide assurance to the cloud customers that the cloud provider has implemented adequate and effectivecontrols to meet the industry standards and best practices, as well as the contractual obligations and customer expectations12.

A globally recognized certification is a credential that demonstrates that a cloud provider has met certain criteria or standards for security, quality, or performance. A globally recognized certification can provide some level of confidence to the cloud customers that the cloud provider has achieved a minimum level of compliance or competence, but it may not provide enough details or evidence about the current status and effectiveness of the cloud provider’s controls3.

A control self-assessment (CSA) is a process that enables a cloud provider to evaluate its own controls internally, without involving an external auditor. A CSA can help a cloud provider to identify and address any gaps or weaknesses in its controls, as well as to monitor and improve its performance. However, a CSA may not provide sufficient assurance to the cloud customers, as it may lack objectivity, transparency, and validity4.

A maturity assessment is a process that measures the level of maturity or capability of a cloud provider’s processes or practices. A maturity assessment can help a cloud provider to benchmark its performance against industry standards or best practices, as well as to identify areas for improvement or innovation. However, a maturity assessment may not provide enough information about the current status and effectiveness of the cloud provider’s controls, as it may focus more on the process rather than the outcome5.

The board’s concern about the total cost of IT requires a clear explanation of how IT spending is structured. The CGEIT Review Manual 8th Edition notes that providing a breakdown of operational versus capital expenditures is critical to helping stakeholders understand IT costs and their alignment with business value.

Extract from CGEIT Review Manual 8th Edition (Domain 5: Benefits Realization):"When addressing concerns about IT costs, the CIO should provide a clear breakdown of operational expenditures (e.g., maintenance, salaries) versus capital expenditures (e.g., new systems, infrastructure). This transparency helps the board understand cost drivers and their contribution to business value." (Approximate reference: Domain 5, Section on Cost Management)

A breakdown of operational versus capital expenditures (option D) directly addresses the board’s concern by showing how IT funds are allocated, distinguishing between ongoing costs and investments in new capabilities.

Why not the other options?

A. A summary of benefits that will be achieved once key IT initiatives are completed: While benefits are important, they do not directly address the total cost concern, which requires cost transparency first.

B. A mapping of IT employee roles to the balanced scorecard: This is a performance management tool, not directly relevant to explaining total IT costs.

C. A benchmark of IT employee salary costs against comparable organizations: Benchmarking salaries is a narrow focus and does not provide a comprehensive view of total IT costs.

Understanding the root causeis the essential first step. The CEO shouldwork with regional leadershipto gather context before applying solutions or imposing changes. This collaborative approach ensures that corrective actions are informed, targeted, and not based on assumptions.

Other steps like reviewing business cases or revising benefits calculations may follow, butdiagnosis must come before treatment.

The correct approach is toagree on target maturity levels in response to need—this ensures that the maturity level supports enterprise objectives, risk appetite, and strategic priorities. The maturity should be fit-for-purpose, rather than arbitrarily benchmarked or driven solely by cost or strengths.

While competitor benchmarks and cost considerations can provide insight, they are secondary to ensuring that the governance processes meetspecific business and governance needs.

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.

The primary goal of an IT risk optimization process from a governance perspective is to ensure that the impact of IT risk to the enterprise is managed in alignment with the enterprise risk management (ERM) framework and the enterprise objectives. IT risk optimization is not only about defining thresholds, approving strategies or mapping metrics, but about ensuring that IT risk is effectively mitigated, monitored and communicated to support the achievement of enterprise goals. References := CGEIT Exam Content Outline, Domain 4: Risk Optimization1; Certified in Governance of Enterprise IT (CGEIT) Course, Learning Tree2

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

 According to the CGEIT certification guide, the most effective approach to ensure senior management sponsorship of IT risk management is to integrate IT risk into enterprise risk management (ERM). This is because ERM is a holistic and strategic approach that considers all types of risks that may affect the achievement of the enterprise’s objectives. By integrating IT risk into ERM, senior management can better understand the impact and interdependencies of IT risks on the enterprise’s performance and value, and can provide more effective oversight and guidance to the IT risk management processes1. The other options are less effective than option D, as they do not address the alignment and integration of IT risk with the enterprise’s strategy and objectives. References:= CGEIT certification guide, domain 3: Risk Optimization, section 3.1: Risk Governance, page 86.

According to the CGEIT certification guide, the CEO’s first course of action should be to ensure that there is a clear governance framework for outsourcing and that the roles and responsibilities for managing service providers are defined and assigned. This will help to establish accountability, oversight and control over the SaaS solution and its provider. References := CGEIT certification guide, domain 1: Governance of Enterprise IT, section 1.3: Governance Frameworks, page 17.

 According to the CGEIT certification guide, key risk indicators (KRIs) are the best way to provide ongoing assurance that significant IT risk is being proactively monitored and does not exceed agreed risk tolerance levels. KRIs are metrics that measure the likelihood or impact of potential or actual risks, and provide early warning signals of increasing risk exposures1. KRIs can help IT management to track and report the status and trends of IT risks, and to trigger timely responses and actions when the risk levels approach or exceed the predefined thresholds2. The other options are less suitable than option C, as they do not provide ongoing assurance or proactive monitoring of IT risk. An IT risk appetite statement is a document that expresses the amount and type of risk that an organization is willing to take in order to meet their strategic objectives3. A risk management policy is a document that defines the principles, framework, and processes for managing risks in an organization. A risk register is a tool that records and tracks the identified risks, their causes, impacts, likelihood, responses, and owners.

References :=

CGEIT certification guide, domain 3: Risk Optimization, section 3.4: Risk Monitoring and Assurance, page 98.

Key Risk Indicators (KRIs) - Definition from KWHS

Risk Appetite - an overview | ScienceDirect Topics

Risk Management Policy - an overview | ScienceDirect Topics

Risk Register - an overview | ScienceDirect Topics

 A change management program is the best option to prevent the problem of a lack of stakeholder buy-in to the innovation improvement initiatives, because it is a systematic and structured approach to managing the human side of change and ensuring that the stakeholders are engaged, informed, and committed to the change process. A change management program can help to identify and analyze the stakeholders, their needs, expectations, and concerns, and develop appropriate strategies and actions to communicate, educate, involve, and support them throughout the change journey. A change management program can also help to assess and address the potential risks, barriers, and resistance to change, and monitor and measure the effectiveness and outcomes of the change initiatives. According to Making Change Happen: 5 Keys to Driving Successful Change Initiatives, “Stakeholders are all the people who affect or are affected by the change initiative. Project participants can’t make the change happen by themselves. They need champions and supporters. It’s important to align stakeholders around the overall vision and then actively engage them throughout the process.”

 Quality management is the process of ensuring that the products and services delivered by an organization meet or exceed the expectations and requirements of the customers and stakeholders. Quality management practices include planning, implementing, monitoring, and improving the quality standards and processes for an organization. Applying effective quality management practices can help to manage continuous improvement of governance-related processes, by ensuring that the processes are aligned with the organizational goals and objectives, that the processes are performed consistently and efficiently, that the processes are measured and evaluated for their effectiveness and value, and that the processes are continuously reviewed and enhanced for improvement123. References: What is Quality Management? Definition, Principles, Tools & Examples. Quality Management: The Importance of ISO. Continuous Improvement and a Business Process Governance Framework.

An operational risk assessment is the most effective way of assessing enterprise risk, as it evaluates the potential losses and impacts that may arise from inadequate or failed internal processes, people, systems, or external events. An operational risk assessment also helps to identify and prioritize the key risk indicators (KRIs), risk scenarios, and mitigation strategies for the enterprise12. References := CGEIT Exam Content Outline, Domain 4, Subtopic B: IT Risk Management, Task 1: Ensure that an IT risk management framework exists to identify, analyze, mitigate, manage, monitor, and communicate IT-related business risk, and that the framework for IT risk management is in alignment with the enterprise risk management (ERM) framework.

Prior to setting IT objectives, an enterprise must have established its strategies. Strategies are the high-level plans that define the direction and goals of the enterprise and how it will achieve them. Strategies provide the context and guidance for setting IT objectives, which are the specific and measurable outcomes that IT will deliver to support the strategies. IT objectives should be aligned with and derived from the enterprise strategies, as well as the enterprise vision, mission, and values

 Continuous monitoring provides the best assurance on the effectiveness of IT service management processes because it involves collecting, analyzing, and reporting data on the performance, quality, and outcomes of the IT services on an ongoing basis. Continuous monitoring helps to identify and address any issues, gaps, or deviations from the expected standards and goals of the IT service management processes. It also helps to measure and demonstrate the value and impact of the IT services to the customers and stakeholders. Continuous monitoring can also support continuous improvement and innovation of the IT service management processes by providing feedback and insights for decision-making and planning

Data definition and mapping sources from applications is the greatest challenge to implementing a business intelligence (BI) tool with data sources from various enterprise applications because it involves ensuring the consistency, accuracy, and quality of data across different systems and formats. Data definition and mapping requires defining common data elements, identifying data sources and targets, establishing data transformation rules, and resolving data conflicts and discrepancies. This is a complex and time-consuming process that requires a high level of coordination and collaboration among different stakeholders and data owners.

The primary reason this situation should be escalated to the IT steering committee is B. Ethical concerns. This is because using data for a purpose that is outside the original intention may violate the principle of purpose limitation, which states that personal data should be collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes1. Using data for a different purpose may also breach the trust and expectations of the individuals who provided the data, and may harm their rights and interests. Therefore, the IT director should consult the IT steering committee, which is a group of senior executives who are responsible for developing and enforcing the organization’s IT priorities and policies2, to determine whether the new use of data is ethical, lawful, and transparent. The IT steering committee should also consider the following aspects before making a decision:

The link between the original purpose and the new/upcoming purpose: How closely related are the two purposes? Is the new purpose compatible with the original purpose or does it contradict it?

The context in which the data was collected: What was the relationship between the organization and the individuals at the time of data collection? What did the individuals consent to or expect from the data processing?

The type and nature of the data: Is the data sensitive, personal, or confidential? Does it reveal any information about the individuals’ identity, preferences, behavior, or opinions?

The possible consequences of the intended further processing: How will the new use of data affect the individuals and the organization? Will it benefit or harm them? Will it create any risks or opportunities?

The existence of appropriate safeguards: What measures are in place to protect and manage the data according to the data protection principles and standards? How can the data quality, security, privacy, and compliance be ensured or improved?

By escalating this situation to the IT steering committee, the IT director can ensure that the ethical implications of using data for another purpose are properly assessed and addressed.

The finding that should be of greatest concern to senior management is that response decisions were made without consulting the appropriate authority. This is because response decisions are critical actions that can affect the outcome and impact of a security incident, and they should be made by the designated authority who has the responsibility and accountability for the incident response. According to CISA, the Department of Justice, through the FBI and the NCIJTF, is thelead agency for threat response during a significant incident, with DHS’s investigative agencies—the Secret Service and ICE/HSI - playing a crucial role in criminal investigations1. If response decisions are made without consulting the appropriate authority, it may result in:

Legal or regulatory violations: The response actions may not comply with the applicable laws or regulations, such as data breach notification, evidence preservation, or privacy protection. This may expose the organization to legal or regulatory penalties, lawsuits, or reputational damage.

Ineffective or counterproductive actions: The response actions may not be aligned with the incident response plan, best practices, or standard operating procedures. This may cause more harm than good, such as escalating the incident, destroying evidence, or compromising recovery efforts.

Lack of coordination and communication: The response actions may not be coordinated or communicated with the relevant stakeholders, such as senior management, legal counsel, public relations, or external partners. This may lead to confusion, inconsistency, or mistrust among the parties involved in the incident response.

Therefore, senior management should be most concerned about the finding that response decisions were made without consulting the appropriate authority, and they should take corrective actions to prevent this from happening again in the future. References: Cybersecurity Incident Response | CISA1

 Goals-based performance appraisals are a method of evaluating employees based on their achievement of specific and measurable objectives that are aligned with the organization’s strategy and vision. Goals-based performance appraisals can help to identify the most capable staff who have contributed to the organization’s success, demonstrated high performance and potential, and shown commitment and engagement. Reviewing current goals-based performance appraisals across the enterprise can help management to retain the most capable staff regardless of their location, compensation, or length of service12. References: Performance Appraisal Methods: Traditional and Modern Methods (with example). How to Conduct a Performance Appraisal.