Question 1

The decision about approval and justification of new technologies would fall into which one of the five major IT decision categories?

Accepted Answer

The decision about approval and justification of new technologies typically falls under IT investment and prioritization. This category involves determining the value, costs, and benefits of IT projects and deciding which projects to pursue based on strategic goals and available resources.

Question 2

IT organizations implement powerful information systems like ERP and SCM that provide centralized data repositories. In addition, business units have tools for their particular units that individuals can use to report on and analyze collected data. This IT governance approach is best described as:

Accepted Answer

This approach is best described as Federalism because it combines elements of both centralized control (with powerful, centralized information systems like ERP and SCM) and decentralized control (with tools for individual business units to report on and analyze data). This hybrid model allows for a central oversight while also empowering individual units or departments.

Question 3

In which type of organization management does IT control most of its IT infrastructure in one location?

Accepted Answer

In a Centralized IS organization, IT control most of its IT infrastructure in one location.

Question 4

________ of the 1980s allowed computing power to spread and gave rise to a decentralized approach to IT governance.

Accepted Answer

PCs (personal computers) allowed computing power to become more affordable and accessible for individuals and businesses, leading to a decentralized approach to IT governance. This allowed for more flexibility and innovation in the use of technology.

Question 5

The archetype that is represented by IT executives and one other group is:

Accepted Answer

The IT duopoly archetype is represented by IT executives and one other group, typically business unit leaders or senior management, who share decision-making responsibilities.

Question 6

The archetype that is represented by a group of business executives that might or might not include the CIO is:

Accepted Answer

The "Business Monarchy" archetype refers to decision-making that is led by business executives, which may or may not include the Chief Information Officer (CIO). This model emphasizes the leadership of business over IT decisions, distinguishing it from models where IT or a mix of IT and business leaders share decision-making power.

Question 7

The Sarbanes-Oxley Act of 2002 was primarily aimed at which functional unit of a corporation?

Accepted Answer

The Sarbanes-Oxley Act of 2002 was primarily aimed at the finance unit of a corporation. It was enacted to improve the accuracy and reliability of corporate disclosures and prevent accounting fraud. It established new or expanded requirements for public companies and accounting firms, including requirements for financial reporting, internal controls, and auditing.

Question 8

All of the following are mechanisms that can be created to ensure good IT governance EXCEPT:

Accepted Answer

Consultants can provide guidance and support for IT governance, but they are not a mechanism that can be created within the organization to ensure good IT governance.

Question 9

Which of the following is an IT governance for ensuring that IT provides the systematic rigor needed for the strong internal controls and SoX compliance?

Accepted Answer

COBIT (Control Objectives for Information and Related Technology) is an IT governance framework used to ensure IT provides the systematic rigor needed for strong internal controls and SoX (Sarbanes-Oxley) compliance. HIPPA (Health Insurance Portability and Accountability Act) is a regulation for protecting sensitive patient health information. SoX is a law for financial reporting and disclosure requirements. ISACA (Information Systems Audit and Control Association) is a professional organization for IT governance and security professionals. ISO (International Organization for Standardization) is a standard-setting organization for various industries.

Question 10

Which IT governance archetype consists of IT individuals or groups of IT executives?

Accepted Answer

The IT monarchy archetype consists of IT individuals or groups of IT executives who control and make decisions for the organization's IT assets and resources. They have complete authority over IT-related matters and are responsible for ensuring that IT aligns with the business goals and objectives. This archetype is common in organizations where IT is considered a separate entity and is not integrated into the overall business strategy.

Question 11

Which of the following is a balanced approach to managing a company's IT organization?

Accepted Answer

Federalism is a balanced approach as it combines elements of both centralization and decentralization, allowing for shared control and decision-making between central IT and individual business units.

Question 12

The IT Governance Council reports directly to the board of directors or the ________.

Accepted Answer

The board of directors is the highest governing body of a company, and therefore the IT Governance Council would report directly to them. While the other choices are also high-level executives within a company, they do not necessarily have the same level of authority as the board of directors.

Question 13

All of the following are frameworks for implementing Sarbanes-Oxley compliance EXCEPT:

Accepted Answer

BCP (Business Continuity Planning) is not a framework specifically designed for implementing Sarbanes-Oxley compliance. COSO (Committee of Sponsoring Organizations of the Treadway Commission), COBIT (Control Objectives for Information and Related Technology), ITIL (Information Technology Infrastructure Library), and ISO (International Organization for Standardization) are all recognized frameworks for Sarbanes-Oxley compliance implementation.

Question 14

The decisions that determine how IT assets are structured fall into which one of the five major IT decision categories?

Accepted Answer

The decisions on how IT assets are structured fall under the IT architecture category. The IT architecture decision category involves decisions on the overall design and arrangement of IT systems, including hardware, software, data, and communication infrastructure.

Question 15

Most companies would like to obtain the advantages derived from both centralized and decentralized organizational paradigms. What type of IT governance model would best help them to achieve this goal?

Accepted Answer

The federalism IT governance model allows for a balance between centralized and decentralized decision-making. It allows for different levels of control and decision-making power to be distributed throughout the organization, while also maintaining a central authority to oversee and coordinate activities. This model allows for flexibility in decision-making and promotes innovation, while also ensuring consistency and alignment with organizational goals.

Question 16

After Intel faced strong shifts in technologies, such as cloud services, social networking, mobile devices, etc., Intel realized that it needed to establish better governance, creating:

Accepted Answer

Intel needed to establish better governance for information and data, which led to the creation of information governance boards. This was necessary in order to effectively manage and secure the vast amount of data that was being generated and shared across various technologies and platforms.

Question 17

IT governance has two major components: the assignment of decision-making authority and responsibility, and the:

Accepted Answer

The two major components of IT governance are the assignment of decision-making authority and responsibility, and the decision-making mechanisms, which define how decisions are made and enforced.

Question 18

________ of the 1960s dictated a centralized approach to IT governance.

Accepted Answer

In the 1960s, the mainframes were the primary computing devices used in organizations. Their large and expensive systems dictated a centralized approach to IT governance, as they were often shared across multiple departments and applications.

Question 19

______________ organizations scatter IT components in different locations to address local business needs.

Accepted Answer

Decentralized organizations scatter IT components in different locations to address local business needs.

Question 20

IT decisions have been categorized by Peter Weill and Jeanne Ross and include all of the following EXCEPT:

Accepted Answer

Peter Weill and Jeanne Ross categorize IT decisions into four main areas: IT Principles, IT Architecture, IT Infrastructure, and Business Application Needs. IT Security, while crucial, is not listed as a separate category in their framework but is often considered a part of IT Infrastructure and IT Architecture.

Quiz 10: Governance of the Information Systems Organization