Governance of Enterprise IT (CGEIT) Certification Practice Exam

What best describes the role of good governance in project management?

1. Ensures a focused IT strategy.

2. Improves employee skill sets.

3. Reduces project turnaround time.

4. Increases project success rates.

The correct answer is: Increases project success rates.

Good governance in project management is primarily about establishing a framework that promotes effective decision-making, accountability, and risk management, which ultimately leads to increased project success rates. When organizations implement strong governance practices, they ensure that projects align with strategic objectives and adhere to industry standards. This alignment helps to clarify project scope, objectives, and stakeholders' responsibilities, reducing ambiguity and enhancing overall effectiveness. Moreover, good governance facilitates better communication and collaboration among team members and stakeholders, leading to a more coordinated approach to project execution. By promoting transparency and accountability, governance also helps in identifying and addressing risks and issues proactively, contributing to the project's likelihood of achieving its goals. While the other options may play a role in the project management environment, they do not encapsulate the essence of governance as thoroughly. A focused IT strategy and improved employee skill sets are beneficial, but they are more about strategy and training rather than the overarching structure of governance. Reducing project turnaround time can be impacted by several factors, but this is a byproduct of efficient governance rather than a direct description of its role. Hence, the best descriptor of the role of good governance in project management is its ability to increase project success rates.