Benefits Identification and Planning CGEIT Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   An organization has limited IT budget and must choose between two projects: one with a high potential return but high risk, and another with a moderate return but low risk. The organization's risk appetite is conservative. Which project should be prioritized?

   • ANeither project until the risk appetite is revised
   • BThe moderate-return project because it aligns with the risk appetite
   • CBoth projects, splitting the budget equally
   • DThe high-return project because it maximizes value
   Reveal Solution Discussion Select an answer first
2. 12expert · hard

   A project sponsor requests a report on the benefits realized from an IT investment. The report must show the financial return and the improvement in operational efficiency. The project team has collected data on cost savings and process cycle times. Which reporting approach is most appropriate?

   • AA report showing only the original business case benefits
   • BA financial report showing cost savings
   • CAn operational report showing cycle time improvements
   • DA combined report showing both cost savings and cycle time improvements
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   An organization is evaluating a business case for a new CRM system. The business case includes a payback period of three years, but the organization's policy requires a payback period of two years or less. What should the organization do?

   • AApprove the business case if other benefits justify the longer payback period
   • BApprove the business case because the payback period is a guideline, not a hard limit
   • CReject the business case because it does not meet the payback period criterion
   • DRevise the payback period calculation to make it two years
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A CIO needs to report to the board on the value delivered by the IT investment portfolio. The board is interested in both financial performance and the achievement of strategic objectives. Which set of metrics would be most appropriate for this report?

   • AROI, payback period, and net present value
   • BCustomer satisfaction, employee productivity, and market share
   • CSystem uptime, response time, and number of help desk tickets
   • DROI, customer satisfaction, and alignment with strategic goals
   Reveal Solution Discussion Select an answer first
6. 15foundation · easy

   Which of the following is an example of a non-financial metric used in IT investment reporting?

   • ACustomer satisfaction score
   • BNet present value (NPV)
   • CReturn on investment (ROI)
   • DPayback period
   Reveal Solution Discussion Select an answer first