Governance of Enterprise IT (CGEIT) Certification Practice Exam

Which of the following is a key objective for IT governance?

1. Maximizing regulatory compliance

2. Enhancing communication channels

3. Creating stakeholder value

4. Establishing IT best practices

The correct answer is: Creating stakeholder value

Creating stakeholder value is a fundamental objective of IT governance because it encompasses the alignment of IT strategies with the overall goals of the enterprise. This alignment ensures that IT investments contribute to the business's success and meet the needs of all stakeholders, including customers, employees, shareholders, and the community. By focusing on stakeholder value, organizations can prioritize initiatives that lead to improved performance, innovation, and competitive advantage. IT governance frameworks emphasize the importance of delivering value through effective resource management, risk management, and performance measurement, which all support the overarching goal of maximizing stakeholder satisfaction and trust. This focus on value helps ensure that IT serves as a true enabler of business objectives rather than just a support function. In contrast, while maximizing regulatory compliance, enhancing communication channels, and establishing IT best practices can be important aspects of an IT governance strategy, they serve more as means to achieve the ultimate goal of creating value for stakeholders. Without a clear focus on stakeholder value, these objectives might not effectively contribute to the broader aims of the organization.