Governance of Enterprise IT (CGEIT) Certification Practice Exam

What is a primary outcome expected from effective IT Governance?

1. Reduction in IT Costs

2. Improved Organizational Reputation

3. Increased Business Value Return

4. Higher Employee Morale

The correct answer is: Increased Business Value Return

A primary outcome expected from effective IT Governance is an increase in business value return. Effective IT governance aligns IT strategy with business objectives, ensuring that investments in technology are directly contributing to the organization’s goals and enhancing overall performance. This alignment enables organizations to maximize the returns from their IT investments by prioritizing projects that add the most value and managing resources effectively. When IT governance frameworks are carefully integrated into the organizational structure, they can guide decision-making processes that lead to better utilization of IT capabilities, encouraging innovation and responsiveness to market demands. This focus translates into outcomes that drive greater business value, thus making it a critical objective of successful governance practices. Reduction in IT costs, improved organizational reputation, and higher employee morale are also positive outcomes that may arise from effective IT governance but are often secondary benefits resulting from the overarching goal of maximizing business value. Ultimately, the central aim is to ensure IT initiatives deliver tangible benefits that contribute directly to the organization’s success and strategic objectives.