Certified in the Governance of Enterprise IT (CGEIT) — Question 77

Facing financial struggles, a CEO mandated severe budget cuts. A decision was also made to immediately change the enterprise strategic focus to put more reliance on mobile, cloud, and wireless services in an effort to boost revenue. The IT steering committee has asked the CIO to suggest adjustments to the current
IT project portfolio to allow support for the new direction despite fewer funds. What should the CIO advise the committee to do FIRST?

Answer options

• A. Start re-allocating budget to projects involving mobile or cloud
• B. Cancel projects with a net present value (NPV) below a defined threshold
• C. Conduct a risk assessment against the potential new services
• D. Ask business stakeholders to discuss their vision for the new strategy

Correct answer: D

Explanation

The correct answer is D because engaging business stakeholders allows the CIO to align IT projects with the strategic goals of the organization, ensuring that the new direction is well-understood and supported. The other options, while potentially beneficial, focus on reallocating resources or evaluating risks without first clarifying the vision and requirements of the new strategy.