Governance of Enterprise IT (CGEIT) Certification Practice Exam

What is crucial to measure in order to ensure that IT governance activities are effective?

1. Stakeholder satisfaction

2. Current capability

3. Cost reductions

4. Employee retention

The correct answer is: Current capability

Measuring current capability is crucial for ensuring the effectiveness of IT governance activities because it provides a baseline understanding of the organization's existing skills, resources, and processes. Assessing current capability allows organizations to identify gaps between where they are and where they need to be in terms of IT governance objectives. This information is vital for making informed decisions about resource allocation, strategic planning, and prioritizing initiatives that align with business goals. By having a clear picture of current capabilities, organizations can effectively evaluate the performance of their IT governance framework, adjust strategies as needed, and ensure that governance activities are driving the intended outcomes. This measurement also helps in tracking progress over time and making necessary adjustments to enhance alignment with organizational goals, thereby fostering continuous improvement in governance practices. The other options, while important in various contexts, do not directly measure the effectiveness of IT governance activities in the same foundational way that understanding current capability does. Stakeholder satisfaction, cost reductions, and employee retention can all provide valuable insights, but they are typically considered outcomes of effective governance rather than measures of its foundational effectiveness.