Governance of Enterprise IT (CGEIT) Certification Practice Exam

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What are the two key dimensions of enterprise governance?

Conformance and Compliance
Conformance and Performance
Security and Management
Performance and Efficiency

The correct answer is: Conformance and Performance

The two key dimensions of enterprise governance are conformance and performance. Conformance refers to the adherence to laws, regulations, and organizational policies. It ensures that the enterprise's actions align with required standards and best practices. This dimension is critical in governance because it helps organizations avoid risks and legal repercussions while maintaining integrity and accountability. Performance, on the other hand, focuses on achieving the organization's objectives and delivering value. This aspect of governance concentrates on how effectively and efficiently an organization can utilize its resources to meet its goals and enhance stakeholder satisfaction. Performance measures how well the enterprise achieves its strategy and manages its resources to drive success. Both dimensions are essential for a well-rounded governance framework, ensuring that organizations not only comply with regulations but also pursue their strategic goals effectively. While the other options touch upon relevant aspects of enterprise governance, they do not encompass the fundamental duality of conformance and performance that drives effective governance practices.