Determining Effectiveness of IT Balanced Scorecard | CISA Exam

D.

An IT balanced scorecard is a tool that measures the performance of an organization's IT department against a set of predefined metrics and objectives. The scorecard typically contains a mix of financial and non-financial metrics, and it is used to assess the effectiveness of IT processes, services, and systems in supporting the overall business strategy.

Out of the given options, the IT balanced scorecard is most useful in determining the effectiveness of governance of enterprise IT (option D). Governance of enterprise IT refers to the processes and structures that ensure the alignment of IT strategy with the overall business strategy, as well as the management of IT-related risks and compliance.

The IT balanced scorecard can help evaluate the effectiveness of governance of enterprise IT by measuring the performance of IT against strategic objectives, risk management, and compliance. For example, the scorecard can include metrics such as:

• Alignment of IT strategy with the overall business strategy
• The effectiveness of IT risk management processes
• Compliance with regulatory requirements and industry standards
• The quality and availability of IT services
• The efficiency and effectiveness of IT operations
• The level of customer satisfaction with IT services

By measuring these metrics and comparing them to predefined targets, the IT balanced scorecard provides insights into the effectiveness of IT governance and helps identify areas for improvement. It can also be used to communicate IT performance to senior management and stakeholders and to track progress over time.

In summary, while the IT balanced scorecard can be useful in assessing the effectiveness of other areas such as key IT controls, change management processes, and the IT department's financial position, it is most useful in determining the effectiveness of governance of enterprise IT (option D).