Primary Concern of the IT Steering Committee
Question
An enterprise has made the strategic decision to reduce operating costs for the next year and is taking advantage of cost reductions offered by an external cloud service provider.
Which of the following should be the IT steering committee's PRIMARY concern?
Answers
Explanations
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A. B. C. D.D.
The IT steering committee is responsible for ensuring that the organization's IT resources are aligned with its overall business strategy and goals. Given the scenario presented, the enterprise has made a strategic decision to reduce operating costs for the next year, and the IT department has chosen to take advantage of cost reductions offered by an external cloud service provider. In this context, the primary concern of the IT steering committee should be to update the business risk profile (Option D).
Here's why:
External cloud service providers offer significant cost savings to organizations by eliminating the need for on-premises IT infrastructure and personnel. However, the move to an external cloud service provider also introduces new risks to the organization. Risks such as data privacy and security, compliance, vendor lock-in, and service availability must be carefully evaluated and addressed in the organization's risk management plan.
Therefore, the IT steering committee should update the organization's risk profile to reflect the new risks introduced by the move to an external cloud service provider. This involves identifying and assessing the risks, developing risk mitigation strategies, and monitoring the effectiveness of the risk management plan.
Option A, calculating the cost of the current solution, is not the primary concern of the IT steering committee in this scenario. While it is important to understand the cost of the current solution, the focus should be on identifying and managing the risks associated with the new solution.
Option B, changing the IT steering committee charter, is not relevant to the scenario. The IT steering committee charter defines the committee's purpose, authority, and responsibilities, and it should not be changed in response to a specific business decision.
Option C, revising the business's balanced scorecard, is also not relevant to the scenario. The balanced scorecard is a strategic planning and management tool that helps organizations align their activities with their vision and strategy. While it may be necessary to adjust the balanced scorecard in response to changes in the business environment, this is not the primary concern of the IT steering committee in this scenario.
