(ISC)2 Certified in Cybersecurity Practice Exam

Which of the following is a result of implementing effective governance in an organization?

1. Increased fraud

2. Enhanced decision-making

3. Higher risks

4. Decreased privacy

The correct answer is: Enhanced decision-making

Implementing effective governance in an organization leads to enhanced decision-making by establishing a clear framework of policies, procedures, and accountability. This structure ensures that decisions are made systematically and with greater consideration of the organization’s objectives, risks, and compliance requirements. Good governance cultivates a culture of transparency and shared responsibility, empowering individuals within the organization to make informed decisions that align with the organization's goals. Effective governance also involves oversight mechanisms that help gather and analyze relevant data, facilitating better understanding and judgment. As a result, teams can respond more swiftly and appropriately to challenges, increasing overall operational efficiency. In the context of the other options, it’s clear that increased fraud, higher risks, and decreased privacy would imply poor governance rather than effective governance. Effective governance aims to reduce risks, limit opportunities for fraud, and protect privacy by adhering to regulations and ethical standards. Thus, the relationship between governance and decision-making is fundamentally tied to the organization's success and risk management capabilities.