Governance of Enterprise IT (CGEIT) Certification Practice Exam

What are the primary focus areas of IT Governance?

1. Budget Management and Compliance

2. Quality Assurance and Risk Analysis

3. Value Creation and Performance Measurement

4. Market Research and Innovation

The correct answer is: Value Creation and Performance Measurement

The primary focus areas of IT Governance center around ensuring that IT investments align with business objectives, deliver value, and measure performance effectively. These aspects are captured in the concept of value creation, whereby IT governance aims to maximize the return on IT investments by closely linking IT strategies with overall business goals. Performance measurement is also critical, as it provides a framework for assessing how well IT contributes to business success. It helps organizations evaluate whether their IT resources are being used efficiently and effectively to support business processes and objectives, leading to informed decisions about future IT initiatives. While other areas like budget management, compliance, quality assurance, risk analysis, market research, and innovation are essential to different aspects of organizational management, they are not the primary focus of IT Governance. Instead, IT Governance emphasizes creating value from IT investments and ensuring that IT aligns with the strategic direction of the organization, which is crucial for long-term success.