Certified in the Governance of Enterprise IT (CGEIT) — Question 199

What is the PRIMARY objective for performing an IT due diligence review prior to the acquisition of a competitor?

Answer options

• A. Document the competitor's governance structure.
• B. Determine whether the competitor is using industry-accepted practices.
• C. Assess the status of the risk profile of the competitor.
• D. Ensure that the competitor understands significant IT risks.

Correct answer: C

Explanation

The primary objective of an IT due diligence review is to assess the status of the risk profile of the competitor to identify any potential liabilities that could affect the acquiring company. While understanding governance structures, industry practices, and significant IT risks are important, they are secondary to directly evaluating the competitor's risk exposure.