CGEIT IT Governance Performance Measurement 2

Question 1

Which type of metric measures outcomes rather than activities in IT governance?

Accepted Answer

Lagging indicator

Answer

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:

Accepted Answer

Predict future governance outcomes so corrective action can be taken proactively

Answer

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:

Accepted Answer

Missing critical performance dimensions such as risk, customer value, and organizational learning

Answer

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?

Accepted Answer

Benchmarking

Answer

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:

Accepted Answer

Retire or redesign the KPI to reflect the current business reality

Answer

A KPI that no longer reflects current business conditions provides misleading signals and should be redesigned or retired to maintain governance relevance.

CGEIT - Certified in the Governance of Enterprise IT Practice Test

CGEIT - Certified in the Governance of Enterprise IT Practice Test

CGEIT IT Governance Performance Measurement 2