COBIT-2019 practice question 19 of 25

A CIO of a global enterprise has been mandated by the board to change the IT organizational structure from a divisional model to a centralized model and adopt outsourcing as required. The CIO identifies specific design factors that increase the importance of certain governance and management objectives. Which of the following is MOST likely to increase as a result?

Full set: 194 questions
Answer options
A: Risk appetite and tolerance
B: Capability levels Correct answer
C: Threat landscape
D: IT deployment
Correct Answer:
B. Capability levels
Explanation

The change from a divisional to a centralized IT model that incorporates outsourcing directly relates to the COBIT 2019 design factor "IT Sourcing Model." According to the COBIT 2019 Design Guide, when an enterprise adopts an outsourcing model, the importance of specific governance and management objectives, such as APO09 (Managed Service Agreements) and APO10 (Managed Vendors), increases significantly. To successfully execute these newly prioritized objectives, the enterprise must ensure it has the necessary process capabilities. Therefore, the target capability levels for these specific processes will need to increase to effectively manage the new sourcing arrangement and associated risks.

Why Incorrect

A. Risk appetite and tolerance: Risk appetite is a strategic decision set by senior leadership and the board; it is an input to the governance system design, not a direct outcome of changing the IT sourcing model.
C. Threat landscape: The threat landscape refers to the external environment of threats. While outsourcing may introduce new vendor-related risks, it does not fundamentally change the overall external threat landscape itself.
D. IT deployment: The IT deployment method (e.g., Agile, DevOps) concerns how solutions are implemented. While a centralized model might influence this, the most direct and significant impact of outsourcing is on managing vendor performance and capabilities.

References

1. ISACA, COBIT® 2019 Design Guide: Designing an Information and Governance Solution, 2018, Chapter 3, p. 29, Section 3.4.7 "Design Factor 7: IT Sourcing Model." This section explains how different sourcing models, including outsourcing, influence the priority of governance and management objectives.

2. ISACA, COBIT® 2019 Design Guide: Designing an Information and Governance Solution, 2018, Chapter 3, p. 30, Table 3.8 "Mapping of IT Sourcing Model to Governance and Management Objectives." This table explicitly shows that for an "Outsourced" model, the importance of objectives like APO09 and APO10 is rated as "High."

3. ISACA, COBIT® 2019 Design Guide: Designing an Information and Governance Solution, 2018, Chapter 3, p. 35, Section 3.4.11 "Design Factor 11: Capability Levels." This section describes how target capability levels are determined for prioritized governance and management objectives. An increase in an objective's importance (as driven by the sourcing model change) necessitates a corresponding focus on achieving a higher target capability level.

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