CGEIT: Certified in the Governance of Enterprise ITDemo

By Isaca · Question Mode

QuestionQ193

Risk Optimization

After moving from leasing to purchasing IT infrastructure and software licenses, an enterprise must pay for unanticipated lease extensions that result in significant cost overruns. The BEST guidance for the IT steering committee is to establish:

  • A a program to annually review financial policy on overruns.
  • B an end-of-life program to remove aging infrastructure from the environment.
  • C budget cuts to compensate for the cost overruns.
  • D a policy to consider total cost of ownership in investment decisions.
Explanation

A total cost of ownership policy ensures investment decisions account for the full lifecycle cost of infrastructure and software, including acquisition, maintenance, renewal or extension, replacement, and retirement costs. This supports more reliable budgeting and reduces unexpected overruns caused by lease extensions.

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