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CGEIT · Question #632
CGEIT Question #632: Real Exam Question with Answer & Explanation
The correct answer is C: Expected monetary value. The Expected Monetary Value (EMV) method best enables an enterprise to estimate the benefits of a new SaaS application by quantifying the potential financial outcomes, considering both probabilities and impacts.
Submitted by haru.x· Apr 18, 2026Benefits Realization
Question
Which method BEST enables an enterprise to estimate the benefits of a new Software as a Service (SaaS) application?
Options
- AMonte Carlo analysis
- BTotal cost of ownership (TCO)
- CExpected monetary value
- DHeuristic methods
Explanation
The Expected Monetary Value (EMV) method best enables an enterprise to estimate the benefits of a new SaaS application by quantifying the potential financial outcomes, considering both probabilities and impacts.
Common mistakes.
- A. Monte Carlo analysis is a simulation technique used to model the probability of different outcomes in a process that cannot easily be predicted due to random variables, often used for risk assessment rather than directly for benefit estimation.
- B. Total cost of ownership (TCO) focuses on calculating the full cost of an asset over its lifetime, which is important for investment decisions but does not directly estimate the benefits or value generated.
- D. Heuristic methods involve practical, experience-based approaches for problem-solving, which are often quick but may not provide a rigorous or quantitative estimation of benefits.
Concept tested. SaaS benefit estimation
Topics
#SaaS evaluation#Benefit estimation#Expected Monetary Value (EMV)#IT investment appraisal
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