ITIL 4 Foundation Practice Exam

Which of the following best describes the role of governance in an organization?

1. To ensure compliance with external regulations

2. To direct and control the organization's operations

3. To manage staff performance

4. To oversee financial transactions

The correct answer is: To direct and control the organization's operations

The role of governance in an organization encompasses directing and controlling its operations, which involves establishing frameworks and rules that guide decision-making processes and behaviors. Governance ensures that the organization achieves its objectives effectively and efficiently while aligning with its strategy and stakeholder interests. This comprehensive oversight allows for effective risk management, enhances accountability, and fosters a culture of transparency. In governance, leadership must ensure that the organization adheres to both its internal policies and external requirements. This holistic approach helps in steering the organization towards its goals while maintaining compliance and ethical standards. While ensuring compliance with external regulations, managing staff performance, and overseeing financial transactions are also important aspects of organizational oversight, they are more specific functions that operate under the broader umbrella of governance. Governance provides the essential structure and direction that enables these specific activities to align and support the overall objectives of the organization.