Governance of Enterprise IT (CGEIT) Certification Practice Exam

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How can IT portfolio management optimize an enterprise's IT investments?

  1. By assessing employee productivity.

  2. By managing a grouping of IT assets.

  3. By defining IT strategies.

  4. By aligning with business objectives.

The correct answer is: By managing a grouping of IT assets.

IT portfolio management optimizes an enterprise's IT investments by managing a grouping of IT assets. This approach enables organizations to identify, prioritize, and control their IT resources effectively. Through careful management of the portfolio, enterprises can ensure that they are investing in the right technologies and projects that align with their overall goals and strategies. By evaluating the performance and relevance of different IT assets, organizations can make informed decisions about where to allocate resources. This includes understanding the return on investment (ROI) for various IT projects, assessing risks, and determining which assets should be enhanced, maintained, or retired. This holistic view allows for better management of budgets and resources, ultimately leading to greater efficiency and effectiveness of IT initiatives across the enterprise. Other options, while relevant in different contexts, do not specifically capture the essence of how IT portfolio management functions. For instance, assessing employee productivity is more about workforce performance rather than managing IT investments. Defining IT strategies focuses on setting the direction for IT initiatives, and aligning with business objectives is important but is often a result of effective IT portfolio management rather than the mechanism itself.