Governance of Enterprise IT (CGEIT) Certification Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The principle that states investments should be managed as a portfolio is based on the concept of portfolio management. This principle emphasizes that organizations should view and manage their investments collectively rather than in isolation, which allows for a comprehensive assessment of risk, return, and resource allocation. By treating investments as a portfolio, organizations can better understand interdependencies among projects, optimize resource distribution, and enhance decision-making in line with strategic goals.

Managing investments as a portfolio helps to balance risks and returns across various initiatives, enabling organizations to prioritize projects based on overall performance rather than assessing each project independently. This integrated perspective is critical for maximizing value and ensuring alignment with broader business objectives.

In contrast, the other concepts do not focus on managing investments in this holistic manner. The full economic life cycle pertains to considering the entire lifespan of an asset, cost-benefit analysis evaluates the financial viability of individual projects, and risk assessment involves identifying and analyzing potential risks associated with investments, but none of these explicitly advocate for the collective management of all investments as a portfolio does.