Free Certified in the Governance of Enterprise IT® (CGEIT®) exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Certified in the Governance of Enterprise IT® (CGEIT®) exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Who normally holds ultimate responsibility for enterprise governance under the ISACA governance model?

   1. A. The internal audit director
   2. B. The board of directors
   3. C. The technology operations manager
   4. D. The external assurance provider

   Answer: B

   Explanation: ISACA states, "The board of directors is responsible for the governance of their enterprise." Audit and operations contribute without assuming this ultimate responsibility.

   Reference: ISACA Interactive Glossary — Corporate governance

2. 2Which sourcing arrangement meets the definition of outsourcing an enterprise function?

   1. A. Moving an application between two internal departments
   2. B. Purchasing additional storage for an existing internal team
   3. C. Formally engaging a third party to perform an enterprise function
   4. D. Assigning a new business owner to an internally operated service

   Answer: C

   Explanation: Outsourcing is "A formal agreement with a third party to perform IS or other business functions for an enterprise". Internal reassignment alone is not outsourcing.

   Reference: ISACA Interactive Glossary — Outsourcing

3. 3A team collects monthly performance measurements but never reviews them or takes corrective action. Which essential aspect of performance management is missing?

   1. A. More frequent collection of performance measurements
   2. B. Closed-loop control and regular monitoring
   3. C. More granular definitions for performance measurements
   4. D. Centralized storage of historical performance measurements

   Answer: B

   Explanation: Performance management "connotes closed-loop control and regular monitoring of the measurement." Collection alone does not close the management loop.

   Reference: ISACA Interactive Glossary — Performance management

4. 4Which term describes the broad amount of risk an enterprise is willing to accept in pursuing its mission?

   1. A. Risk capacity
   2. B. Risk appetite
   3. C. Residual risk
   4. D. Risk aggregation

   Answer: B

   Explanation: Risk appetite is "The amount of risk, on a broad level, that an entity is willing to accept in pursuit of its mission". It expresses willingness rather than the maximum loss the enterprise can survive.

   Reference: ISACA Interactive Glossary — Risk appetite

5. 5An executive team plans, builds and runs IT activities within the direction already set by the board. Which function is the team performing?

   1. A. Independent assurance
   2. B. External regulation
   3. C. Enterprise management
   4. D. Governance direction setting

   Answer: C

   Explanation: Management is "The planning, building, running and monitoring of activities in alignment with the direction set by the governance body to achieve the enterprise objectives". The team implements established direction.

   Reference: ISACA Interactive Glossary — Management

6. 6Which procurement document invites software vendors to propose how they would develop or provide the required product?

   1. A. Request for proposal
   2. B. Request for information
   3. C. Request for quotation
   4. D. Statement of work

   Answer: A

   Explanation: An RFP is "A document distributed to software vendors requesting them to submit a proposal to develop or provide a software product". It solicits supplier proposals.

   Reference: ISACA Interactive Glossary — Request for proposal (RFP)

7. 7A report shows whether an IT process achieved its business requirements during the completed quarter. Which type of measure is this?

   1. A. A leading performance driver
   2. B. A key risk indicator
   3. C. A key control indicator
   4. D. A key goal indicator

   Answer: D

   Explanation: A key goal indicator tells management "after the fact whether an IT process has achieved its business requirements". It reports achieved outcomes rather than predicting them.

   Reference: ISACA Interactive Glossary — Key goal indicator (KGI)

8. 8Management allows a specified level of variation for a particular risk while pursuing objectives. Which concept does this express?

   1. A. Risk universe
   2. B. Risk taxonomy
   3. C. Risk transfer
   4. D. Risk tolerance

   Answer: D

   Explanation: Risk tolerance is "The acceptable level of variation that management is willing to allow for any particular risk as the enterprise pursues its objectives". It applies acceptable variation to a particular risk.

   Reference: ISACA Interactive Glossary — Risk tolerance

9. 9A governance design documents practices and activities, their objectives, and the outputs they produce. Which COBIT 2019 component does this describe?

   1. A. Processes
   2. B. Organizational structures
   3. C. People, skills and competencies
   4. D. Culture, ethics and behavior

   Answer: A

   Explanation: The guidance states, "Processes describe an organized set of practices and activities to achieve certain objectives and produce a set of outputs that support the success of overall information and technology (I&T)-related goals." This describes the process component.

   Reference: A Systematic Approach to Implementing a Governance System Using COBIT 2019: A COVID-19 Case Study — Component: Processes

10. 10Before acquiring a proposed system, which analysis assesses whether its requirements, designs or plans can be implemented?

    1. A. A requirements analysis
    2. B. A cost-benefit analysis
    3. C. A business impact analysis
    4. D. A feasibility study

    Answer: D

    Explanation: A feasibility study assesses "the degree to which the requirements, designs or plans can be implemented". This tests implementability before committing to the proposed solution.

    Reference: ISACA Interactive Glossary — Feasibility study