Isaca Certification CGEIT Updated Exam

The BEST time for the enterprise to plan for the event of contract termination is when developing the initial contract. Contract termination is the process of ending a contractual relationship between two parties, either by mutual agreement or by exercising a right to terminate under the contract terms1. Contract termination can have significant impacts and implications for both parties, such as loss of revenue, loss of service, loss of data, legal disputes, reputational damage, etc.2 Therefore, it is important to plan for the event of contract termination in advance, and include appropriate provisions and mechanisms in the contract to ensure a smooth and orderly exit3.

Some of the benefits of planning for contract termination when developing the initial contract are4:

• It clarifies the expectations and obligations of both parties in case of contract termination, such as the notice period, the termination fees, the transition services, the data return or destruction, etc.
• It reduces the risks and costs associated with contract termination, such as service disruption, data loss, litigation, penalties, etc.
• It enables faster and more effective resolution of contract termination issues, such as dispute resolution, arbitration, mediation, etc.
• It fosters a positive and professional relationship between the parties, even in case of contract termination, by avoiding surprises, conflicts, or misunderstandings.

Therefore, planning for contract termination when developing the initial contract is the best time for the enterprise to ensure a successful and beneficial outsourcing engagement.

The best way for the IT director to address the concern of other departments about the outsourced services is to develop a comprehensive vendor management plan. A vendor management plan is a document that details how the IT director and the vendor will work together to achieve the objectives and expectations of the contract. A vendor management plan can include the following elements1:

• Scope of work: This defines the services, deliverables, and outcomes that the vendor will provide, as well as the roles and responsibilities of both parties.
• Service level agreements (SLAs): These specify the performance standards, metrics, and targets that the vendor will adhere to, as well as the penalties or rewards for meeting or exceeding them.
• Operational level agreements (OLAs): These describe the internal processes and procedures that the IT director and the vendor will follow to support the SLAs, such as communication, escalation, reporting, and issue resolution.
• Risk management: This identifies and assesses the potential risks that may affect the delivery of the outsourced services, such as security, compliance, quality, or continuity, and defines the mitigation strategies and contingency plans to address them.
• Governance: This establishes the governance structure and mechanisms that will oversee and monitor the vendor relationship, such as steering committees, audits, reviews, and feedback.

A comprehensive vendor management plan can help to ensure that the outsourced services are delivered successfully by providing clarity, transparency, accountability, and alignment between the IT director and the vendor. It can also help to address the concerns of other departments by demonstrating that the IT director has taken adequate measures to manage and control the vendor performance and risk. Additionally, a vendor management plan can help to foster a collaborative and trusting relationship between the IT director and the vendor, which can lead to improved service quality, efficiency, and innovation.

1: 3 Steps to Improve Strategic Vendor Management

 An information steward is a person who is responsible for ensuring the quality, accuracy, consistency, and usability of the data in an organization. An information steward works with the business users and stakeholders to understand their data needs, requirements, and expectations, and to define and implement the data policies, standards, and rules that govern the data lifecycle. An information steward also monitors and reports on the data quality issues and trends, and initiates and coordinates the data improvement actions and projects12.

From a governance perspective, the role of an information steward is most important for an enterprise to keep in-house, because it requires a close alignment with the business function, a deep knowledge of the data sources and systems, and a high level of trust and accountability. An information steward is the guardian of the business data, which is a valuable asset and a competitive advantage for any organization. Outsourcing the role of an information steward may pose significant risks to the data security, privacy, quality, and compliance12.

An information auditor is a person who performs independent and objective assessments of the data quality, integrity, and compliance in an organization. An information auditor evaluates the data governance policies, standards, and processes, as well as the data controls and safeguards. An information auditor also provides recommendations for improving the data management practices and mitigating the data risks3. An information auditor can be outsourced to provide an external and unbiased perspective on the data governance performance and issues.

An information architect is a person who designs and maintains the data structures, models, and standards in an organization. An information architect ensures that the data is organized, integrated, accessible, and consistent across different systems and platforms. An information architect also supports the data analysis, reporting, and visualization needs of the organization4. An information architect can be outsourced to leverage the expertise and experience of external consultants or vendors.

An information analyst is a person who collects, processes, analyzes, and interprets the data in an organization. An information analyst uses various tools and techniques to extract insights and value from the data. An information analyst also communicates and presents the data findings and recommendations to support decision making and problem solving in the organization. An information analyst can be outsourced to access specialized skills or technologies that may not be available in-house. References: What is Information Audit? Definition & Process. What is Information Architecture? Definition & Examples. What is an Information Steward? Definition & Role. 6 Key Responsibilities of the Invaluable Data Steward - Dun & Bradstreet. [What is an Information Analyst? Definition & Skills].

The best way to address the issue of duplicate purchases caused by different acquisition methods of business and IT is to establish a centralized procurement approval process. A centralized procurement approval process is a process that organizations use to obtain approval for purchases that they intend to make. The process typically involves several steps, such as identifying a need, requesting a quote, obtaining quotes, and obtaining approval from a designated authority. By centralizing the procurement approval process, the organization can avoid duplication, inconsistency, and inefficiency in purchasing decisions. A centralized procurement approval process can also help the organization to achieve the following benefits :

• Visibility and control: The organization can have a clear view of all purchase requests and transactions, and can monitor and manage the budgets, requesters, and suppliers.
• Better purchasing power: The organization can leverage its volume and history to negotiate better prices and discounts with vendors, and can establish long-term relationships with preferred suppliers.
• Standardization: The organization can implement and enforce policies and standards for data quality, security, privacy, and usage, and can create a single source of truth for purchasing information.
• Eliminates maverick spending: The organization can identify and prevent individual spending that goes against the purchasing policies or that results in duplicate or unnecessary purchases.

Therefore, establishing a centralized procurement approval process is the best way to address the issue of duplicate purchases caused by different acquisition methods of business and IT. References: Centralized vs. Decentralized Purchasing: Key Differences | Pipefy, Centralizing Procurement: What Companies Need to Consider, What is the Procurement Approval Process: Detailed Guide