Governance of Enterprise IT (CGEIT) Certification Practice Exam

What differentiates Governance from Management?

1. Governance involves Detailed Planning

2. Governance focuses on Strategy and Stakeholder Needs

3. Management involves High-Level Decision Making

4. Governance is Short-term Focused

The correct answer is: Governance focuses on Strategy and Stakeholder Needs

The distinction between governance and management is fundamental to understanding how organizations operate effectively, especially in the realm of enterprise IT. Governance primarily focuses on the strategic direction of an organization and aligns its objectives with the needs of stakeholders. This encompasses establishing policies, making high-level decisions, and ensuring that the organization adheres to regulations and best practices. By emphasizing strategy and stakeholder needs, governance helps create a framework that guides management in executing day-to-day operations while also aligning those operations with the overarching goals of the organization. In contrast, governance is not oriented towards detailed planning or short-term goals, which is where management typically takes the lead. Management involves operational tasks, implementation, and direct oversight of resources to achieve specific objectives. It is often more tactical and focuses on how to achieve the strategic goals laid out by governance. Thus, the emphasis on strategy and stakeholder needs makes this choice clearly aligned with the role of governance in an organization.