In a small, newly established organization, the foundation of IT governance lies in clearly defining roles and responsibilities to ensure accountability and decision-making clarity. The CGEIT Review Manual 8th Edition emphasizes that assigning roles and responsibilities is a critical first step in governance, especially for organizations with limited resources.

Extract from CGEIT Review Manual 8th Edition (Domain 1: Governance of Enterprise IT):"In small or newly established organizations, the primary consideration for IT governance is to assign clear IT roles and responsibilities. This establishes accountability, clarifies decision-making authority, and lays the foundation for effective governance processes." (Approximate reference: Domain 1, Section on Governance Structure)

Assigning IT roles and responsibilities (option D) ensures that the organization has a clear structure for IT decision-making, which is essential before addressing budgets, methodologies, or architectures.

Why not the other options?

A. Assigning a budget for IT governance applications: Budgeting is important but secondary to establishing governance roles, as roles define who manages the budget.

B. Defining IT project management methodology: Methodologies are operational and follow the establishment of governance structures.

C. Approving enterprise architecture (EA) and standards: EA is a subsequent step that requires governance roles to be in place for effective decision-making.