CGEIT IT Value Delivery and Portfolio Management 2 — Questions and Answers
Question 1: IT value delivery governance MOST requires that business cases include:
- Clearly defined benefits, costs, risks, and success metrics before approval (Correct answer)
- Only technical specifications and delivery timelines
- Vendor qualifications and pricing comparisons
- Historical data from similar projects at competitor organizations
Correct answer: Clearly defined benefits, costs, risks, and success metrics before approval
A complete business case with benefits, costs, risks, and success metrics gives governance bodies the information needed to make informed investment decisions.
Question 2: Which practice BEST demonstrates effective IT value delivery governance?
- Stage-gate reviews that confirm business value at each major phase before proceeding (Correct answer)
- Approving all projects submitted by the IT department
- Delegating investment decisions to individual project managers
- Measuring success solely by project delivery speed
Correct answer: Stage-gate reviews that confirm business value at each major phase before proceeding
Stage-gate reviews create checkpoints where governance confirms that value is on track before committing further investment, preventing value erosion.
Question 3: The 'demand management' function in IT portfolio governance PRIMARILY manages:
- The intake and prioritization of IT investment requests against strategic criteria (Correct answer)
- Server capacity planning for peak business periods
- Vendor service request queues
- IT employee workload assignments
Correct answer: The intake and prioritization of IT investment requests against strategic criteria
Demand management governs how IT investment requests are received, evaluated, and prioritized to ensure resources are applied to the highest-value work.
Question 4: A 'run vs. grow vs. transform' investment categorization in IT portfolio management MOST helps to:
- Balance spending between maintaining operations, enhancing capabilities, and driving innovation (Correct answer)
- Compare IT spending across different business units
- Track vendor contract renewal cycles
- Measure IT project manager performance
Correct answer: Balance spending between maintaining operations, enhancing capabilities, and driving innovation
Categorizing investments as run, grow, or transform enables governance bodies to deliberately balance maintaining the business, growing it, and transforming it.
Question 5: An IT investment delivers on time and on budget but the business reports no improvement in outcomes. From a governance perspective, this investment was:
- Unsuccessful, because value delivery — not project metrics — is the ultimate measure (Correct answer)
- Successful, because it met all project management criteria
- Partially successful and should be considered adequate
- A vendor failure that should trigger contract penalties
Correct answer: Unsuccessful, because value delivery — not project metrics — is the ultimate measure
IT governance defines success by business outcomes, not project delivery metrics — an on-time, on-budget project that delivers no business value has failed its governance purpose.
Question 6: Which IT governance mechanism BEST prevents individual business units from making uncoordinated IT investments?
- A centralized IT investment governance process with mandatory portfolio review (Correct answer)
- Giving each business unit its own IT budget and approval authority
- Delegating all IT spending decisions to external auditors
- Requiring all IT projects to use the same software vendor
Correct answer: A centralized IT investment governance process with mandatory portfolio review
Centralized portfolio governance with mandatory review prevents duplicative, misaligned investments by coordinating IT spending across the enterprise.
CGEIT IT Value Delivery and Portfolio Management 2
IT value delivery governance MOST requires that business cases include: