Governance of Enterprise IT (CGEIT) Certification Practice Exam

What is the primary driver of IT Governance?

1. Compliance with regulations

2. Risk minimization

3. Value creation

4. Cost reduction

The correct answer is: Value creation

The primary driver of IT Governance is centered around value creation. This concept emphasizes that the ultimate objective of IT investments and initiatives should be to enhance the overall value delivered by the organization. IT Governance establishes frameworks and processes that ensure that IT strategies align with business goals, enabling organizations to make informed decisions that drive innovation, improve efficiency, and enhance service delivery. Value creation involves not only maximizing the return on IT investments but also ensuring that IT capabilities support the organization’s mission and objectives effectively. By focusing on value creation, organizations can prioritize projects that align with strategic goals, thus leveraging technology to improve competitive advantage and achieve greater business outcomes. While elements such as compliance, risk minimization, and cost reduction are indeed important aspects of IT Governance, they are often seen as means to an end rather than the primary goal itself. Compliance ensures that the organization adheres to laws and regulations, risk minimization focuses on managing IT-related risks, and cost reduction aims to improve financial efficiency. However, these should all serve to support the overarching aim of value creation within the IT governance framework.