Governance of Enterprise IT (CGEIT) Certification Practice Exam

What drives IT governance in an enterprise?

1. Value creation

2. Benefits realization

3. Risk optimization

4. Resource optimization

The correct answer is: Value creation

The driving force behind IT governance in an enterprise is primarily concerned with value creation. This concept emphasizes that IT should not only support business processes but also actively contribute to the overall value of the organization. Effective IT governance ensures that IT aligns with the organization's strategic objectives and enhances its capabilities, leading to improved performance and competitive advantage. When IT is geared towards creating value, it focuses on how technology can be leveraged to generate revenue, improve customer satisfaction, and achieve operational efficiencies. By prioritizing value creation, organizations can ensure that their investments in IT yield meaningful business outcomes and help realize their strategic goals. While other factors like benefits realization, risk optimization, and resource optimization also play important roles in IT governance, they are often seen as components or outcomes of a broader value creation strategy. Benefits realization is about ensuring the expected benefits of IT investments are achieved, risk optimization involves managing the risks associated with IT, and resource optimization focuses on the efficient use of IT resources. However, the overarching goal that drives these elements is the creation of value for the enterprise.