Governance Frameworks & Best Practices Flashcards

Which COBIT 2019 design factor primarily considers the organization's strategy for using IT — ranging from IT avoider to first mover?

Answer: IT strategy

COBIT 2019's 'IT strategy' design factor categorizes organizations on a spectrum from IT avoider (minimal IT use) to first mover (IT as competitive differentiator).

In ISO/IEC 38500, which principle requires that IT performance be monitored against plans and policies?

Answer: Performance

ISO/IEC 38500's 'Performance' principle requires directors to ensure IT supports the organization and monitor delivery against plans.

The ITIL 4 guiding principle 'Focus on Value' most directly aligns with which governance objective?

Answer: Linking all activities to stakeholder benefit

The 'Focus on Value' principle requires that every action and decision be traced back to value creation for stakeholders.

Under the NIST Cybersecurity Framework 2.0, which new function was added compared to the original five?

Answer: Govern

NIST CSF 2.0 added 'Govern' as a sixth function to emphasize cybersecurity governance at the organizational level.

A board committee responsible for overseeing financial reporting accuracy and internal audit functions is called a(n):

Answer: Audit committee

The audit committee oversees financial reporting integrity, internal controls, and the internal/external audit relationship.

Which Three Lines Model component is responsible for providing independent assurance to the board?

Answer: Third line (internal audit)

The third line (internal audit) provides independent, objective assurance and advice to the board on governance, risk, and control.

In the context of corporate governance, 'stewardship theory' suggests that managers should be treated as:

Answer: Trustworthy stewards aligned with owner interests

Stewardship theory holds that managers are inherently motivated to act in the best interests of the organization and its owners.