CGEIT · Question #41
An enterprise is planning a change in business direction. As a result, IT risk will significantly increase. Which of the following should be the GO'S FIRST course of action?
The correct answer is C. Report the risk to executive management. When a planned business direction change is identified to significantly increase IT risk, the GO's immediate priority should be to report this increased risk to executive management.
Question
An enterprise is planning a change in business direction. As a result, IT risk will significantly increase. Which of the following should be the GO'S FIRST course of action?
Options
- ARecommend delaying the business change.
- BImplement IT changes to align with the plan.
- CReport the risk to executive management
- DPlan for the corresponding IT reorganization.
How the community answered
(30 responses)- A7% (2)
- B10% (3)
- C80% (24)
- D3% (1)
Why each option
When a planned business direction change is identified to significantly increase IT risk, the GO's immediate priority should be to report this increased risk to executive management.
Recommending delaying the business change is an overreach of the GO's role, which is to inform management, not dictate business strategy.
Implementing IT changes is premature before executive management has acknowledged and provided direction on the identified significant risks.
Reporting significant IT risk to executive management is crucial as it enables them to make informed strategic decisions, understand the potential impact on business objectives, and allocate resources for risk mitigation or acceptance. Executive awareness ensures the business change proceeds with full understanding of its associated IT risk profile and allows for top-level guidance on how to proceed.
Planning for IT reorganization is a consequence or mitigation action, not the immediate first step in addressing a newly identified significant risk from a business change.
Concept tested: IT risk reporting to executive management
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