Isaca Certification CGEIT Exam Dumps

Risk management is the process of identifying, analyzing, evaluating, and treating the uncertainties that may affect the achievement of objectives. Risk management helps to ensure that decisions are made with an awareness of probability and impact, which means that the likelihood and consequences of potential events are considered and weighed against the benefits and costs of the actions. This can help to optimize the risk-reward balance, enhance the quality and consistency of decision-making, and support the achievement of desired outcomes. References:

• CGEIT Review Manual 2021, Chapter 2: IT Risk Management, Section 2.1: Risk Management Overview, page 551
• CGEIT Review Questions, Answers & Explanations Manual 2021, Question 1, page 152
• The Benefits of Risk Management - PMI3

When assessing the implications of new external regulations on IT compliance, the first consideration should be the IT policies and procedures that need revision. This initial focus ensures that the foundational guidelines governing IT operations are aligned with the new regulatory requirements, forming the basis for compliance. While the resource burden for implementation, gaps in skills and experience of IT employees, and the impact on contracts with service providers are important considerations, they follow the primary step of ensuring that IT policies and procedures are in compliance with new regulations.

Key performance indicators (KPIs) are metrics that measure the performance of a project, program, or investment against a set of targets, objectives, or benchmarks. KPIs can help an enterprise to determine whether a current program for IT infrastructure migration to the cloud is continuing to provide benefits by tracking the progress, efficiency, quality, and outcomes of the program. KPIs can also help to identify any gaps, issues, or risks that may affect the program’s success and enable timely corrective actions12.

Total cost of ownership (TCO) is the purchase price of an asset plus the costs of operation over its life span. TCO can help an enterprise to compare the costs and benefits of different IT infrastructure options, such as cloud versus on-premise, but it does not measure the ongoing performance or benefits of a chosen option3.

Key risk indicators (KRIs) are metrics that monitor and predict potential risks that may negatively impact an enterprise’s objectives or operations. KRIs can help an enterprise to identify and mitigate any risks associated with IT infrastructure migration to the cloud, such as security breaches, data loss, or service disruptions, but they do not measure the benefits or value of the program45.

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used to evaluate the profitability or return on investment of a project or investment by discounting the future cash flows to their present value. NPV can help an enterprise to decide whether to undertake an IT infrastructure migration to the cloud based on its expected net value, but it does not measure the actual performance or benefits of the program16. References :=

• 3: Total Cost of Ownership: How It’s Calculated With Example - Investopedia
• 4: Key Risk Indicators (KRIs) - National Treasury
• 2: How to Develop Key Risk Indicators (KRIs) to Fortify Your Business | AuditBoard
• 5: How to Develop Effective Key Risk Indicators - Secureframe
• 1: Net Present Value (NPV) - Definition, Examples, How to Do NPV Analysis
• 6: NPV Formula - Learn How Net Present Value Really Works, Examples

According to the CGEIT exam content outline1, one of the subtopics under the domain of Risk Optimization is “Risk Ownership and Accountability”. This subtopic covers the process of assigning and communicating the roles and responsibilities for risk management to the appropriate stakeholders, such as business owners, process owners, or risk owners. Risk ownership is the best way to enable effective enterprise risk management (ERM), as it ensures that the risks are identified, assessed, treated, monitored, and reported by the people who have the authority, knowledge, and interest to manage them. Risk ownership also fosters a risk-aware culture and promotes accountability and transparency for risk management23.

The other options are not as effective as risk ownership to enable ERM. A risk register is a tool that records and tracks the information about the risks, such as their description, category, impact, likelihood, status, and action plan. A risk register is useful for documenting and communicating the risks, but it does not ensure that the risks are managed properly by the responsible parties4. A risk tolerance is a measure that defines the acceptable level of variation from the expected outcome or objective. A risk tolerance is important for setting the boundaries and criteria for risk management, but it does not guarantee that the risks are aligned with the business strategy and objectives5. A risk training is a program that provides education and awareness on risk management concepts, methods, and tools. A risk training is beneficial for enhancing the skills and competencies of the risk management staff and stakeholders, but it does not ensure that they perform their roles and responsibilities effectively6.

References: 1: CGEIT Exam Content Outline | ISACA1 2: Risk Ownership - ISACA2 3: Risk Ownership: The First Step in Enterprise Risk Management - ERM3 4: What Is a Risk Register? Explanation & Free Template - ProjectManager.com 5: What Is Risk Tolerance? Definition & Examples - Talend 6: IT Risk Management Training | ISACA