Pass the Isaca Isaca Certification COBIT-2019 Questions and answers with CertsForce

The enterprise strategy archetype is a design factor that describes how an enterprise uses information and technology to achieve its goals and objectives. There are six enterprise strategy archetypes defined in COBIT 2019: growth/acquisition; operational excellence; customer intimacy; product leadership; data-driven; innovation-driven. Each archetype has different implications for the governance and management of information and technology in terms of focus areas, processes, practices, roles, structures, and metrics. One of the important components for an enterprise strategy archetype of growth/acquisition is support for the portfolio management role with an investment office. Growth/acquisition is a strategy archetype that emphasizes expanding market share, revenue, customer base, or product range through organic growth or acquisition of other businesses or assets. This strategy archetype requires effective portfolio management of information and technology investments and initiatives that support business growth or acquisition objectives. Portfolio management involves selecting, prioritizing, balancing, monitoring, evaluating, and optimizing information and technology investments and initiatives based on their alignment with business strategy, value delivery potential, risk exposure, resource availability, interdependencies, etc. Portfolio management also involves ensuring that information and technology investments and initiatives are integrated with business processes, systems, structures, culture, etc., especially in case of mergers or acquisitions.  Support for the portfolio management role with an investment office means providing a dedicated function or unit that assists the portfolio manager in performing portfolio management activities such as planning, analysis, decision making, reporting, etc., as well as providing guidance, tools, methods, frameworks, standards, best practices etc., for portfolio management 5   References:   5 : COBIT 2019 Design Guide: page 35-36 : COBIT 2019 Process Reference Guide: page 59-61

 An actionable strategy and governance system enables an enterprise to maximize value from the use of I & T by providing direction, alignment, oversight, and performance measurement. A strategy defines the enterprise’s vision, mission, goals, and objectives, and how I & T can support them. A governance system ensures that the strategy is implemented effectively and efficiently, and that the outcomes are monitored and evaluated.  COBIT provides a comprehensive governance system for enterprise I & T that covers all aspects of governance, management, and enablers. 1 3   References:   COBIT 2019 Framework: Introduction and Methodology ,  COBIT 2019 Framework: Governance and Management Objectives

The number of business processing hours lost due to unplanned service interruptions would be an appropriate metric associated with an enterprise goal of business service continuity and availability. A metric is a quantifiable measure that is used to track and assess the status of a specific process or activity. Business service continuity and availability is one of the 17 generic enterprise goals defined by COBIT that describes the desired outcome of ensuring that critical business services are delivered at agreed levels and are resilient to disruptions.  The number of business processing hours lost due to unplanned service interruptions is a metric that reflects how well this outcome is achieved. 1 3   References:   COBIT 2019 Framework: Introduction and Methodology ,  COBIT 2019 Framework: Governance and Management Objectives

 The figure in option C best illustrates the context of an enterprise governance of information and technology (EGIT) system because it shows how the EGIT system is influenced by the enterprise’s internal and external environment, and how it influences the enterprise’s governance system and IT-related goals. The figure also shows the four EGIT domains: Evaluate, Direct and Monitor (EDM), Align, Plan and Organize (APO), Build, Acquire and Implement (BAI), and Deliver, Service and Support (DSS).  The figure is based on the COBIT 2019 Framework 1 , page 23.  References:   1 : COBIT 2019 Framework | Digital | English

The enterprise goal titled quality of management information is within the customer dimension of the IT balanced scorecard. The customer dimension focuses on how well the enterprise meets the needs and expectations of its customers and stakeholders. Quality of management information is one of the 17 generic enterprise goals defined by COBIT that supports the customer dimension.  It describes the desired outcome of providing accurate, timely, relevant, and reliable information to support decision making and performance management. 1 3   References:   COBIT 2019 Framework: Introduction and Methodology ,  COBIT 2019 Framework: Governance and Management Objectives

 According to Capability Maturity Model Integration (CMMI), Level 2 within the five maturity levels for processes best describes the outcome of the process achieving its purpose through the application of a basic, yet complete, set of activities that can be characterized as performed. CMMI is a process improvement approach that provides organizations with the essential elements of effective processes. CMMI defines five maturity levels for processes, from 1 (initial) to 5 (optimizing).  Level 2 (managed) means that the process is planned and executed in accordance with policy; employs skilled people who have adequate resources to produce controlled outputs; involves relevant stakeholders; is monitored, controlled, and reviewed; and is evaluated for adherence to its process description. 1 2   References:   CMMI for Development, Version 1.3 ,  CMMI Institute - Capability Maturity Model Integration

The process practices that include inputs and outputs comprise the information flow component of a governance system. A governance system is a set of components that provide direction, oversight, evaluation, monitoring, assurance, etc., for an enterprise’s information and technology. A governance system consists of seven components: governance components (such as structures, processes, principles, policies, etc.), governance enablers (such as people, skills, culture, information, services, etc.), governance outcomes (such as value creation, risk optimization, resource optimization, etc.), information flow (the exchange of information among components), culture (the shared values, beliefs, norms, and attitudes), ethical behavior (the conduct that conforms to moral principles), stakeholder needs (the requirements or expectations of internal or external stakeholders).  The information flow component comprises the process practices that include inputs and outputs that enable the exchange of information among components. 1 4   References:   COBIT 2019 Framework: Introduction and Methodology ,  COBIT 2019 Framework: Governance System

COBIT 2019 explicitly states that enterprise goals are defined in the COBIT framework and are structured along the balanced scorecard (BSC) dimensions .

Exact Extract (COBIT 2019 Framework: Introduction and Methodology):

“These goals are defined in the COBIT framework, structured along the balanced scorecard (BSC) dimensions , and include the elements shown in figure 4.6.”

This is also reinforced in the COBIT 2019 Design Guide, using the same wording when describing the enterprise goals design factor.

Exact Extract (COBIT 2019 Design Guide):

“These goals are defined in the COBIT framework, structured along the balanced scorecard (BSC) dimensions , and include the following (figure 2.6)…”

Therefore, the correct choice is C. Balanced scorecard .

 Sharing the return on investment (ROI) analysis is the best way to address the concern of business line managers who perceive the cost of governance-required improvements as too expensive. ROI is a financial metric that measures the profitability or efficiency of an investment by comparing its benefits and costs. ROI analysis is a process of calculating and presenting the ROI of a project or program, as well as its assumptions, risks, and uncertainties.  Sharing the ROI analysis with business line managers can help to address their concern by showing them how the governance-required improvements will generate value for the enterprise in terms of increased revenue, reduced costs, enhanced performance, improved quality, etc., as well as how they will outweigh their initial and ongoing costs. 1 2   References:   COBIT 2019 Framework: Introduction and Methodology ,  COBIT 2019 Implementation Guide: Implementing an Information and Technology Governance Solution

 The threat landscape is a design factor that describes the types and levels of threats that an enterprise faces from internal and external sources that could compromise its information and technology assets. The threat landscape helps to determine the level of security and resilience that an enterprise needs to protect its information and technology assets from unauthorized access, use, disclosure, modification, destruction, or disruption. When tailoring a governance system for an enterprise, one of the most important factors to consider for an operating environment with a high compliance requirement is the threat landscape. The compliance requirement is another design factor that describes the extent and nature of laws, regulations, standards, guidelines, contracts, or agreements that an enterprise must comply with regarding its information and technology activities. The compliance requirement influences the level of control and assurance that an enterprise needs to demonstrate its adherence to the applicable rules and obligations.  By considering the threat landscape in relation to the compliance requirement, an enterprise can ensure that its governance system is appropriate for its risk profile and context, and that it can effectively manage the potential impacts of threats on its compliance status 3 4   References:   3 : COBIT 2019 Design Guide: page 41-43  4 : COBIT 2019 Design Guide: page 47-48