Governance of Enterprise IT (CGEIT) Certification Practice Exam

What aspect of Executive Management's role focuses on risks and accountability?

1. Budgeting processes

2. IT risk management

3. Staff performance measurements

4. Market analysis

The correct answer is: IT risk management

The focus of Executive Management's role on risks and accountability is fundamentally rooted in IT risk management. This aspect emphasizes the identification, assessment, and prioritization of risks that might affect the organization's IT systems, services, and overall business operations. By implementing robust IT risk management practices, Executive Management ensures that potential risks are not only recognized but also managed effectively. This involves establishing a governance framework that holds accountability for the risks taken during information technology operations, ensuring that stakeholders are aware of their responsibilities and the implications of their decisions. Furthermore, it aligns IT risk management with the organization’s strategic objectives, allowing for informed decision-making that supports business goals while minimizing adverse effects. The other options, while important in their own right, do not directly address the specific focus on risks and accountability in the context mentioned. Budgeting processes deal more with financial management and resource allocation, while staff performance measurements assess individual or team effectiveness, and market analysis evaluates competitive positioning and opportunities rather than addressing risks directly. Thus, IT risk management stands out as the correct choice, highlighting how executive leadership must navigate and govern risks to maintain accountability and safeguard the organization.