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COBIT-2019 · Question #303

It is CRITICAL to perform a due diligence review following which type of event?

The correct answer is A. Merger, acquisition, or divestiture. Performing a due diligence review following a merger, acquisition, or divestiture is critical to ensure that the new organizational structure is well-thought out, secure, and compliant with applicable regulations. The review should include an evaluation of the organization's IT…

Governance System and Components

Question

It is CRITICAL to perform a due diligence review following which type of event?

Options

  • AMerger, acquisition, or divestiture
  • BShifts in the market or economy
  • CExternal consultant assessment
  • DNew business strategy or priority

How the community answered

(50 responses)
  • A
    80% (40)
  • B
    6% (3)
  • C
    12% (6)
  • D
    2% (1)

Explanation

Performing a due diligence review following a merger, acquisition, or divestiture is critical to ensure that the new organizational structure is well-thought out, secure, and compliant with applicable regulations. The review should include an evaluation of the organization's IT assets, processes, and policies to ensure that they are appropriate for the new organization. Additionally, the review should evaluate the IT security and data privacy requirements for the new organization, as well as the potential impact of the change on the organization's IT services.

Topics

#due diligence#M&A#governance triggers#divestiture

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