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IT executives and the board of directors are responsible for imposing an IT governance model encompassing IT strategy, information security, and formal enterprise architectural mandates Strategic planning is accomplished by the steering committee, addressing the near-term and long-term requirements aligning business objectives and technology strategies Policies, procedures, and standards allow validation of business practices against acceptable measures of regulatory compliance, performance, and standard operational guidelines Risk management involves the identification of potential risk and the appropriate response for each threat based on impact assessment using qualitative and/or quantitative measures for an enterprisewide risk management strategy
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Assigned IT management roles ensure that resource allocation, enterprise performance, and operational capabilities coordinate with business requirements by validating alignment with standards and procedures for change management and compliance with sourcing, financial, quality, and security controls Formal organizational structure ensures alignment between operational roles and responsibilities within the enterprise, where a separation of duties ensures individual accountability and validation of policy alignment between coordinated team members Regular audit of the IT governance process ensures alignment with regulatory and business mandates in the evolving enterprise by ensuring all documentation, contracts, and sourcing policies are reviewed and updated to meet changes in the living enterprise
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1 IT governance is most concerned with: A Security policy B IT policy C IT strategy D IT executive compensation 2 One of the advantages of outsourcing is: A It permits the organization to focus on core competencies B Reduced costs C Greater control over work performed by the outsourcing agency D Elimination of segregation of duties issues 3 An external IS auditor has discovered a segregation of duties issue in a highvalue process What is the best action for the auditor to take A Implement a preventive control B Implement a detective control C Implement a compensating control D Document the matter in the audit report 4 An organization has chosen to open a business office in another country where labor costs are lower and has hired workers to perform business functions there This organization has: A Outsourced the function B Outsourced the function offshore
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2: IT Governance and Risk Management
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C Insourced the function on-site D Insourced the function at a remote location 5 An organization has discovered that some of its employees have criminal records What is the best course of action for the organization to take A Terminate the employees with criminal records B Immediately perform background checks, including criminal history, on all existing employees C Immediately perform background checks, including criminal history, on all new employees D Immediately perform background checks on those employees with criminal records 6 The options for risk treatment are: A Risk mitigation, risk reduction, and risk acceptance B Risk mitigation, risk reduction, risk transfer, and risk acceptance C Risk mitigation, risk avoidance, risk transfer, and risk acceptance D Risk mitigation, risk avoidance, risk transfer, and risk conveyance 7 Annualized loss expectancy (ALE) is defined as: A Single loss expectancy (SLE) times annualized rate of occurrence (ARO) B Exposure factor (EF) times the annualized rate of occurrence (ARO) C Single loss expectancy (SLE) times the exposure factor (EF) D Asset value (AV) times the single loss expectancy (SLE) 8 A quantitative risk analysis is more difficult to perform because: A It is difficult to get accurate figures on the impact of a realized threat B It is difficult to get accurate figures on the frequency of specific threats C It is difficult to get accurate figures on the value of assets D It is difficult to calculate the annualized loss expectancy of a specific threat 9 An IS auditor is examining the IT standards document for an organization that was last reviewed two years earlier The best course of action for the IS auditor is: A Locate the IT policy document and see how frequently IT standards should be reviewed B Compare the standards with current practices and make a determination of adequacy C Report that IT standards are not being reviewed often enough D Report that IT standards are adequate
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