What is the primary purpose of reporting on IT investment performance to stakeholders?

To assign blame for underperforming projects

To provide transparency and enable informed decision-making

To justify the IT department's budget increase

To comply with external financial reporting standards

Which set of elements is typically included in a business case for an IT initiative?

Costs, benefits, risks, and alignment with strategic objectives

A list of all potential vendors and their pricing

A detailed project schedule and resource allocation plan

Only the technical specifications and system architecture

Which activity is part of the 'monitoring' phase of IT investment management?

Tracking the realization of expected benefits against planned targets

Defining the organization's strategic objectives

Selecting which projects to fund

An organization has two competing business cases: Project A has a high NPV but requires a large upfront investment, while Project B has a lower NPV but aligns with a new regulatory requirement. The organization has limited capital and must comply with the regulation. What is the most appropriate decision?

Select Project B because regulatory compliance is a mandatory requirement

Delay both projects until more information is available

Select both projects by securing additional funding

Select Project A because NPV is the primary financial criterion

A company has a portfolio of IT investments. The portfolio manager notices that some projects are consuming more resources than planned but are not delivering the expected benefits. The company's strategy is to focus on digital transformation. What should the portfolio manager do?

Reallocate resources to new digital transformation projects

Continue the projects because resources have already been allocated

Terminate the projects immediately to free up resources

Review each project's alignment with digital transformation and its benefit realization status

Certified in the Governance of Enterprise IT

Domain 3Objective 1

Benefits Identification and Planning CGEIT Practice Questions (Page 5)

Part of the Benefits Realization domain, which accounts for 26% of the CGEIT exam.

25questions here

5free pages

4concepts

26%of the exam

Questions 21–25

21foundation · easy
What is the primary purpose of reporting on IT investment performance to stakeholders?
Select an answer first
22foundation · easy
Which set of elements is typically included in a business case for an IT initiative?
Select an answer first
23foundation · easy
Which activity is part of the 'monitoring' phase of IT investment management?
Select an answer first
24expert · hard
An organization has two competing business cases: Project A has a high NPV but requires a large upfront investment, while Project B has a lower NPV but aligns with a new regulatory requirement. The organization has limited capital and must comply with the regulation. What is the most appropriate decision?
Select an answer first
25expert · hard
A company has a portfolio of IT investments. The portfolio manager notices that some projects are consuming more resources than planned but are not delivering the expected benefits. The company's strategy is to focus on digital transformation. What should the portfolio manager do?
Select an answer first

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