Governance of Enterprise IT (CGEIT) Certification Practice Exam

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What is the major benefit of preparing a business case for a system development project?

Mitigation of IT risk involved in the project
Identification of relevant business stakeholders
Elimination of contending solution options
Confirmation of management sponsorship

The correct answer is: Confirmation of management sponsorship

Preparing a business case for a system development project serves as a critical tool in securing management buy-in and support for the initiative. By outlining the project's objectives, benefits, costs, risks, and how it aligns with the organization's strategic goals, the business case provides a comprehensive justification that helps confirm sponsorship from management. Their endorsement is vital for mobilizing resources, aligning priorities, and fostering stakeholder commitment throughout the project lifecycle. Management sponsorship ensures that there is necessary authority and support behind the project, which can significantly ease decision-making processes and resource allocation. Without this confirmation, projects may struggle to gain traction or may face challenges when charting their course, as managerial assistance is often essential for navigating organizational complexities. The focus on management sponsorship through the business case is particularly important in ensuring that the project's direction has the backing needed to overcome obstacles, making it a primary benefit of this document.