ITIL 4 Foundation Practice Exam

Which term describes the means by which an organization is directed and controlled?

1. Governance

2. Management

3. Leadership

4. Oversight

The correct answer is: Governance

The term governance refers to the framework and processes through which an organization is directed and controlled. It encompasses the structures, policies, and guidelines that ensure the organization operates effectively, meets its objectives, and complies with relevant laws and regulations. Governance establishes the strategic direction of the organization and makes sure that resources are used responsibly and that stakeholder interests are taken into account. In the context of ITIL, effective governance aligns the IT strategy with the business strategy, ensuring that IT services deliver value to the organization. It involves the balance of power, authority, and accountability among different stakeholders, promoting transparency, ethical behavior, and robust decision-making processes. While management focuses on the execution of policies and the achievement of organizational goals, and leadership involves inspiring and guiding individuals within the organization, neither encompasses the full scope of governance. Oversight typically refers to the monitoring and evaluation functions but does not capture the comprehensive nature of how an organization is governed. Therefore, governance is the most accurate term for describing how an organization is directed and controlled.