Discuss Isaca CGEIT Exam Topic 4 Question 59

What is the PRIMARY objective for performing an IT due diligence review prior to the acquisition of a competitor?

ADocument the competitor's governance structure.

BEnsure that the competitor understands significant IT risks.

CAssess the status of the risk profile of the competitor.

DDetermine whether the competitor is using industry-accepted practices.

Suggested Answer: C

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41 comments · newest first

Zona 11 months ago

I disagree, understanding IT risks is crucial too!

Winifred 11 months ago

Surprised that people think it's just about risks!

Walton 11 months ago

I thought it was more about governance, but C makes sense.

Vivan 11 months ago

Totally agree, option C is the way to go.

Leanora 12 months ago

It's all about assessing the risk profile!

Terrilyn 12 months ago

I lean towards option C because knowing the risk profile seems crucial before an acquisition, but I could be wrong.

Ronny 12 months ago

I feel like documenting governance is important too, but it might not be the primary objective.

Novella 1 year ago

I remember a practice question that emphasized understanding IT risks, so maybe option B is the right choice?

Jose 1 year ago

I think the main goal is to assess the competitor's risk profile, but I'm not entirely sure if that's the primary focus.

Ayesha 1 year ago

I'm a bit confused on the differences between the options. I'll need to review my security concepts to make sure I understand which one is the best solution.

Sommer 1 year ago

I'm not sure, but I remember something about 3PL and how it helps with logistics—maybe that's relevant here?

Ona 1 year ago

I remember practicing a similar question on VPN types, but I'm not sure if this one is just about Meraki.

Victor 1 year ago

I'm not entirely sure about this one. I know integration testing comes after unit testing, but I'm not certain about the relationship to system testing. I'll have to think it through more carefully.

Franklyn 1 year ago

Okay, but what if the competitor is using a totally rad, cutting-edge IT system that's not 'industry-accepted'? Shouldn't we still look into that?

Casie 1 year ago

Haha, I bet the IT team is going to have a field day with this one. 'Cause you know they're just dying to document the competitor's governance structure. Real groundbreaking stuff.

Margurite 1 year ago

↳ replying to Casie

D) Determine whether the competitor is using industry-accepted practices.

Tricia 1 year ago

↳ replying to Casie

C) Assess the status of the risk profile of the competitor.

Carlee 1 year ago

↳ replying to Casie

A) Document the competitor's governance structure.

Tambra 1 year ago

D seems like the most logical choice to me. Determining if they're using industry-accepted practices is crucial for evaluating their compatibility with our company.

Gerardo 1 year ago

↳ replying to Tambra

Documenting their governance structure can also provide valuable insights, so A is not to be overlooked.

Hobert 1 year ago

↳ replying to Tambra

It's also important to assess their risk profile, so C is crucial as well.

Ahmed 1 year ago

↳ replying to Tambra

I agree, D is important for ensuring a smooth integration.

Noe 1 year ago

I think B is the way to go. Ensuring the competitor understands the risks is key to making an informed decision, right? Can't have any surprises down the line.

Albina 1 year ago

↳ replying to Noe

C) Assess the status of the risk profile of the competitor.

Alva 1 year ago

↳ replying to Noe

B) Ensure that the competitor understands significant IT risks.

Oretha 1 year ago

↳ replying to Noe

A) Document the competitor's governance structure.

Susana 1 year ago

C'mon, the answer is obviously C. I mean, why else would we do a due diligence review if not to assess the risk profile of the competitor? Duh.

Annabelle 1 year ago

↳ replying to Susana

Definitely, assessing the risk profile is the primary objective of an IT due diligence review.

Karol 1 year ago

↳ replying to Susana

I agree, it's crucial to understand the risk profile before making any decisions.

Joseph 1 year ago

↳ replying to Susana

Yeah, that makes sense. It's important to know what risks we might be taking on.

Emily 1 year ago

↳ replying to Susana

I think the answer is C, we need to assess the risk profile of the competitor.

Sherill 1 year ago

↳ replying to Susana

I agree, C is definitely the main focus of the IT due diligence review.

Devora 1 year ago

↳ replying to Susana

That's a good point, but I still think assessing the risk profile is the primary objective.

Karl 1 year ago

↳ replying to Susana

But what about D? Don't we also need to make sure they are using industry-accepted practices?

Nakita 1 year ago

↳ replying to Susana

I think you're right, C does seem like the most logical choice.

Brunilda 1 year ago

I agree with Tiffiny. It's important to understand the IT risks involved before making the acquisition.

Tiffiny 1 year ago

I think the primary objective is to assess the status of the risk profile of the competitor.

Sage 1 year ago

What is the PRIMARY objective for performing an IT due diligence review prior to the acquisition of a competitor?

Fannie 1 year ago

I believe it's also crucial to determine whether the competitor is using industry-accepted practices to ensure a smooth integration process.

Lavera 1 year ago

I agree with Adelle. It's important to understand the potential risks involved in the acquisition.

Adelle 2 years ago

I think the primary objective is to assess the status of the risk profile of the competitor.

Isaca CGEIT Exam - Topic 4 Question 59 Discussion