CGEIT · Question #18
Which of the following is the MOST comprehensive method to report on overall IT performance to the board of directors?
The correct answer is A. Balanced scorecard. The balanced scorecard offers the most comprehensive approach to reporting overall IT performance to the board of directors by integrating financial and non-financial perspectives.
Question
Which of the following is the MOST comprehensive method to report on overall IT performance to the board of directors?
Options
- ABalanced scorecard
- BNet present value (NPV)
- CPerformance-based payments
- DReturn on investment (ROI)
How the community answered
(46 responses)- A87% (40)
- B4% (2)
- C7% (3)
- D2% (1)
Why each option
The balanced scorecard offers the most comprehensive approach to reporting overall IT performance to the board of directors by integrating financial and non-financial perspectives.
A balanced scorecard offers a holistic view of performance, encompassing financial, customer, internal business processes, and learning and growth perspectives, which is ideal for a comprehensive report to the board on overall IT performance.
Net present value (NPV) is a financial metric used for project valuation, not a comprehensive IT performance reporting tool.
Performance-based payments are a compensation or contract mechanism, not a method for reporting overall IT performance.
Return on investment (ROI) is a financial profitability metric and does not provide a comprehensive view of overall IT performance across various dimensions.
Concept tested: IT Performance Reporting and Measurement
Source: https://www.isaca.org/resources/isaca-journal/issues/2005/volume-6/a-balanced-scorecard-approach-to-it-governance
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