Benefits Governance and Reporting CGEIT Practice Questions (Page 6)

Questions 26–29

1. 26expert · hard

   A financial services firm has implemented a new customer onboarding system. The expected benefit is a 30% reduction in onboarding time. The governance board receives monthly reports showing the onboarding time metric. However, the board notices that the metric has been consistently at 28% reduction for the past three months, but the report does not explain why the target has not been fully achieved. The board is concerned that the report is not providing enough insight. What is the most appropriate governance action?

   • AConduct a one-time deep-dive analysis and then return to the current reporting.
   • BRequire the report to include variance analysis and explanations for deviations from the target.
   • CAccept the report as sufficient because the benefit is close to the target.
   • DIncrease the frequency of reports to weekly to get more data points.
   Reveal Solution Discussion Select an answer first
2. 27foundation · easy

   What is a key characteristic of a value-based assessment of benefits?

   • AIt calculates the internal rate of return for the project
   • BIt focuses exclusively on the payback period of the investment
   • CIt considers both financial and non-financial benefits, such as customer satisfaction and strategic alignment
   • DIt is only applicable to regulatory compliance projects
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A retail chain has implemented a new inventory management system. The expected benefit is a 20% reduction in stockouts. After four months, the system shows a 10% reduction. The governance board is considering whether to conduct a post-implementation review now or wait until the six-month mark. The system is still being optimized, and the vendor has promised additional features that may improve performance. The board is under pressure from shareholders to show results. What is the most appropriate action?

   • AAdjust the benefit target to 10% to reflect current performance.
   • BConduct the post-implementation review now to identify issues early and take corrective action.
   • CWait until the six-month mark to allow the system to stabilize and the vendor's additional features to be implemented.
   • DCancel the project because the benefit is not being realized as expected.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   What is the primary purpose of governance monitoring in the context of benefit realization?

   • ATo create a one-time report for the board at the end of the project
   • BTo track the progress of benefit realization against established objectives and take corrective action when needed
   • CTo ensure that all projects are completed within their original budget and schedule
   • DTo assign financial value to all benefits before project initiation
   Reveal Solution Discussion Select an answer first