CGEIT · Question #659
A publicly traded enterprise wants to demonstrate that its board of directors is providing adequate strategic oversight of IT. Which of the following BEST supports this objective?
The correct answer is C. Inclusion of IT governance reporting in the annual report. Including IT governance reporting in the annual report publicly demonstrates the board's strategic oversight of IT to shareholders and other stakeholders, fulfilling transparency and accountability requirements for publicly traded enterprises.
Question
A publicly traded enterprise wants to demonstrate that its board of directors is providing adequate strategic oversight of IT. Which of the following BEST supports this objective?
Options
- AAnnual IT governance communication to all staff.
- BPress releases targeted at large investors.
- CInclusion of IT governance reporting in the annual report.
- DAnnual presentation of IT performance metrics.
How the community answered
(31 responses)- A3% (1)
- B10% (3)
- C84% (26)
- D3% (1)
Why each option
Including IT governance reporting in the annual report publicly demonstrates the board's strategic oversight of IT to shareholders and other stakeholders, fulfilling transparency and accountability requirements for publicly traded enterprises.
Annual IT governance communication to staff is an internal communication practice, not a formal external demonstration of board oversight to shareholders.
While press releases target investors, an annual report provides a much more comprehensive and formally audited view of governance and strategic oversight.
For a publicly traded enterprise, the annual report is a formal, public document presented to shareholders and regulatory bodies that summarizes the company's performance and governance. Including IT governance reporting in this document formally demonstrates the board's strategic oversight and accountability for IT to external stakeholders, explicitly showing it as a key part of overall corporate governance.
An annual presentation of IT performance metrics is important for internal management and potentially for some external reporting, but its inclusion in the formal annual report provides a stronger, more official, and auditable demonstration of board oversight.
Concept tested: Board's IT oversight and public reporting
Topics
Community Discussion
No community discussion yet for this question.