Isaca COBIT 2019 Exam Dumps & Practice Test Questions
Question 1:
Which Balanced Scorecard (BSC) perspective is most closely associated with the goal of reducing business process costs?
A. Growth
B. Customer
C. Internal
Answer: C
Explanation:
In the Balanced Scorecard (BSC) framework, the Internal perspective focuses on improving internal processes and efficiencies, which directly impacts the ability to reduce business process costs. This perspective is concerned with identifying and improving key internal processes that drive performance, including cost management, quality control, and innovation in operations. By focusing on internal process improvements, an organization can streamline workflows, optimize resource usage, and reduce costs, aligning with the goal of improving business process efficiency.
The Growth perspective (option A) focuses on expanding the business, such as through new products, markets, or customer acquisition, which doesn't directly relate to cost reduction. Similarly, the Customer perspective (option B) focuses on customer satisfaction, retention, and value, which again is not directly tied to internal cost management.
Thus, the Internal perspective is most closely related to reducing business process costs, as it emphasizes internal operations and their efficiency.
Question 2:
When a company adopts a cost leadership strategy, what is its primary strategic focus?
A. Long-term cost optimization
B. Medium-term cost balancing
C. Short-term cost reduction
Answer: A
Explanation:
A cost leadership strategy focuses on becoming the lowest-cost producer in an industry, which generally involves achieving cost efficiency over the long-term. Companies employing this strategy aim to streamline operations, eliminate waste, and leverage economies of scale to lower costs while maintaining acceptable quality levels. The focus is on maintaining competitive pricing by continually optimizing processes, reducing unnecessary expenditures, and ensuring efficient resource management.
Option B (medium-term cost balancing) suggests a focus on adjusting costs over a shorter time horizon, which is less aligned with the long-term strategic approach of cost leadership. Option C (short-term cost reduction) could apply to cost-cutting measures in the immediate term, but a cost leadership strategy is typically more about sustained efficiency gains over time rather than quick, short-term fixes.
Thus, the correct answer is A, as the primary strategic focus of a cost leadership strategy is long-term cost optimization.
Question 3:
According to the COBIT goals cascade model, stakeholder drivers ultimately result in which of the following?
A. The organization’s actionable strategy
B. Business unit performance indicators
C. The organization’s governance structure
Answer: A
Explanation:
In the COBIT goals cascade model, stakeholder drivers are the primary starting point for determining the overall direction and priorities of the organization. These drivers stem from the needs and expectations of key stakeholders, such as shareholders, customers, regulators, and employees. Once these drivers are identified, they are translated into actionable strategies that guide the organization’s objectives and decision-making. This ensures that the organization's strategies are aligned with stakeholder interests, facilitating more effective governance and operational outcomes.
The other options are less directly tied to the stakeholder drivers in the goals cascade:
B (Business unit performance indicators) are important for tracking progress at the operational level but are typically defined after the organization’s overarching strategy has been set.
C (The organization’s governance structure) is a fundamental aspect of how the organization operates but is shaped by governance and management goals rather than being a direct result of stakeholder drivers.
Therefore, A (The organization’s actionable strategy) is the correct answer, as stakeholder drivers lead to strategic decisions that can be translated into concrete actions.
Question 4:
What must be identified first in the COBIT framework before alignment goals can be defined?
A. External regulations and compliance requirements
B. Stakeholder needs and drivers
C. Governance and management goals
Answer: B
Explanation:
Before alignment goals can be defined in the COBIT framework, it is essential to first identify stakeholder needs and drivers. These are the factors that reflect the expectations, priorities, and concerns of the organization’s key stakeholders, including customers, shareholders, regulators, and employees. Understanding these drivers is fundamental because they shape the goals and objectives that the organization seeks to achieve. Once stakeholder needs are identified, alignment goals can then be defined to ensure the organization's processes, policies, and strategies support these needs.
The other options are not the first step:
A (External regulations and compliance requirements) are important to consider but come after understanding the stakeholder drivers, as compliance is often a response to specific stakeholder needs.
C (Governance and management goals) are critical for guiding organizational behavior, but these goals are shaped based on the identification of stakeholder needs first.
Therefore, B (Stakeholder needs and drivers) must be identified first, as they form the foundation for defining alignment goals in the COBIT framework.
Question 5:
The concept of time-to-market is most directly linked to which enterprise goal?
A. Improving internal business process efficiency
B. Offering a portfolio of competitive products and services
C. Managing digital transformation initiatives
Answer: B
Explanation:
The concept of time-to-market refers to the time it takes for a company to develop a product or service and make it available to the market. This metric is most directly associated with the goal of offering a portfolio of competitive products and services (option B). In today's competitive business environment, being able to quickly introduce new products and services gives companies a significant advantage, allowing them to capture market share and respond to customer needs faster than competitors.
While internal business process efficiency (option A) may help reduce time-to-market, it is not the primary driver. Time-to-market is more about how quickly a company can innovate and get products to customers rather than just improving internal processes. Similarly, managing digital transformation initiatives (option C) is related to broad technological changes within the organization, but it is not as directly connected to the specific goal of reducing the time it takes to bring products to market.
Thus, B is the most accurate answer as time-to-market is closely linked to a company's ability to offer competitive products and services.
Question 6:
Which metric best reflects the enterprise goal of ensuring business service continuity and availability?
A. Executive satisfaction with process effectiveness
B. Ratio of unanticipated critical incidents to total incidents
C. Number of business hours lost due to unplanned outages
Answer: C
Explanation:
The enterprise goal of ensuring business service continuity and availability focuses on maintaining the consistent operation of business services and minimizing downtime. The most direct metric for this goal is the number of business hours lost due to unplanned outages (option C). This metric tracks how much time the business is unable to operate due to unexpected disruptions or service failures, which is a key indicator of service continuity and availability. The fewer business hours lost, the better the company is at ensuring its services are continuously available.
Option A (executive satisfaction with process effectiveness) is more about overall satisfaction with process performance but doesn't directly address business continuity. Option B (ratio of unanticipated critical incidents to total incidents) focuses on incident frequency and severity but doesn't provide a direct measure of service downtime, which is more relevant to availability and continuity.
Therefore, the most suitable metric for tracking business service continuity and availability is C, as it directly measures downtime and disruptions.
Question 7:
Which enterprise goal aligns with the Customer perspective in the IT Balanced Scorecard?
A. Timely and budget-compliant program delivery
B. Innovation in products and business models
C. Accuracy of management information
Answer: B
Explanation:
In the IT Balanced Scorecard, the Customer perspective focuses on delivering value to customers and ensuring that their needs and expectations are met. Innovation in products and business models aligns with the Customer perspective because it emphasizes creating new, valuable offerings that drive customer satisfaction and competitive advantage. When an organization innovates, it enhances its ability to meet customer demands and adapt to changing market conditions, which directly impacts customer perception and loyalty.
Let’s review the other options:
A (Timely and budget-compliant program delivery) is more aligned with the Internal Processes perspective, as it focuses on the efficient execution of internal projects, which indirectly supports customer satisfaction but isn’t specifically targeted at the customer.
C (Accuracy of management information) aligns more with the Internal Processes or Learning and Growth perspectives, as it relates to improving internal capabilities to generate accurate data for decision-making, which is important but not directly related to customer satisfaction.
Thus, B is the correct answer, as innovation is a key driver for customer value in the IT Balanced Scorecard.
Question 8:
In the COBIT framework, which element directly influences the formulation of enterprise goals?
A. Stakeholder needs
B. Departmental objectives
C. Business strategy
Answer: A
Explanation:
In the COBIT framework, the formulation of enterprise goals is directly influenced by stakeholder needs. Stakeholders, such as customers, shareholders, regulators, and employees, have different expectations and priorities. These needs must be understood and addressed in order to define the overall goals and objectives of the organization. Stakeholder needs provide the foundation for setting enterprise goals, which in turn guide the organization’s strategic direction and decision-making.
The other options are important but do not directly influence the formulation of enterprise goals in the same way:
B (Departmental objectives) are derived from the enterprise goals but do not directly influence the creation of the overarching enterprise goals.
C (Business strategy) is influenced by stakeholder needs and is a key component of the goals but comes after understanding those needs.
Therefore, A (Stakeholder needs) is the correct answer, as they serve as the starting point for defining the enterprise goals in the COBIT framework.
Question 9:
Which of the following is the most appropriate metric for evaluating the alignment goal of ensuring information security and privacy?
A. Proportion of decisions affected by inaccurate IT data
B. Number of key processes using up-to-date systems
C. Number of confidentiality breaches causing harm or disruption
Answer: C
Explanation:
The most appropriate metric for evaluating the alignment goal of ensuring information security and privacy is the number of confidentiality breaches causing harm or disruption (option C). Information security and privacy goals are primarily concerned with protecting sensitive data from unauthorized access and ensuring that any breaches do not have severe consequences for the business or individuals. Tracking the number of breaches, particularly those that result in harm or disruption, provides a direct measure of how well the organization is safeguarding its confidential information.
Option A (proportion of decisions affected by inaccurate IT data) is more related to data integrity or data quality rather than security and privacy. Option B (number of key processes using up-to-date systems) may reflect how current and secure the systems are, but it does not directly measure security breaches or privacy violations, which are the core concerns for information security and privacy.
Thus, the best metric to assess information security and privacy is C, as it directly relates to the occurrence of confidentiality breaches and their impact.
Question 10:
Which metric is best suited to assess the achievement of the enterprise goal: "Delivering programs on time, within budget, and meeting expected quality"?
A. Percentage of stakeholders satisfied with program/project outcomes
B. Satisfaction of business users with IT service delivery levels
C. Satisfaction with availability and quality of IT management information
Answer: A
Explanation:
To assess the achievement of the enterprise goal of delivering programs on time, within budget, and meeting expected quality, the percentage of stakeholders satisfied with program/project outcomes (option A) is the most relevant metric. Stakeholder satisfaction directly reflects the overall success of a program or project in terms of delivering what was promised—on time, within the allocated budget, and meeting the agreed-upon quality standards. If stakeholders are satisfied, it generally indicates that the program was executed successfully in all aspects.
Option B (satisfaction of business users with IT service delivery levels) focuses on IT service delivery but is not directly related to the broader program management goals of delivering programs on time, within budget, and meeting quality expectations. Option C (satisfaction with availability and quality of IT management information) addresses the quality of IT management information, which may not directly reflect the outcomes of the program or project itself.
Therefore, the best metric to assess the achievement of the enterprise goal of delivering successful programs is A, as it captures the stakeholders' perception of whether the program met its objectives in terms of time, budget, and quality.
