CGEIT IT Governance Performance Measurement 2 — Questions and Answers
Question 1: Which type of metric measures outcomes rather than activities in IT governance?
- Lagging indicator (Correct answer)
- Leading indicator
- Activity metric
- Input metric
Correct answer: Lagging indicator
Lagging indicators measure outcomes that have already occurred, such as business value realized, making them direct evidence of governance results.
Question 2: A 'leading indicator' in IT governance performance measurement BEST helps to:
- Predict future governance outcomes so corrective action can be taken proactively (Correct answer)
- Report historical IT spending trends
- Audit completed IT projects for compliance
- Compare actual costs to vendor quotes
Correct answer: Predict future governance outcomes so corrective action can be taken proactively
Leading indicators signal future performance, allowing governance bodies to intervene before problems fully materialize.
Question 3: An organization measures IT governance effectiveness solely through financial metrics. The PRIMARY risk is:
- Missing critical performance dimensions such as risk, customer value, and organizational learning (Correct answer)
- Overspending on IT governance reporting tools
- Producing reports that are too complex for executives
- Aligning too closely with external audit requirements
Correct answer: Missing critical performance dimensions such as risk, customer value, and organizational learning
Financial-only metrics create blind spots in governance effectiveness because they ignore risk exposure, stakeholder value, and capability development dimensions.
Question 4: Which CGEIT concept BEST describes the practice of comparing IT governance performance against industry peers?
- Benchmarking (Correct answer)
- Baselining
- Variance analysis
- Capability assessment
Correct answer: Benchmarking
Benchmarking compares an organization's IT governance performance metrics against industry peers or best practices to identify gaps and improvement targets.
Question 5: A governance review reveals that a KPI has been stable for two years but the underlying business condition it measures has changed significantly. The BEST action is to:
- Retire or redesign the KPI to reflect the current business reality (Correct answer)
- Continue tracking the KPI for historical continuity
- Increase the reporting frequency of the existing KPI
- Escalate the issue to the external auditor
Correct answer: Retire or redesign the KPI to reflect the current business reality
A KPI that no longer reflects current business conditions provides misleading signals and should be redesigned or retired to maintain governance relevance.
Question 6: IT governance performance measurement MOST supports which COBIT principle?
- Meeting stakeholder needs through the delivery of measurable value (Correct answer)
- Separating IT management from business operations
- Standardizing all IT procurement processes
- Centralizing IT decision-making authority
Correct answer: Meeting stakeholder needs through the delivery of measurable value
COBIT's core principle of meeting stakeholder needs is directly supported by performance measurement, which verifies that IT is delivering the value stakeholders require.
CGEIT IT Governance Performance Measurement 2
Which type of metric measures outcomes rather than activities in IT governance?