Which term best describes the risk that I&T investment is wasteful or does not provide value relative to its cost?

Which term best describes the risk that I&T investment is wasteful or does not provide value relative to its cost?

• A. Investment (Or Expense) Risk
• B. Asset Value
• C. Integrity Risk
• D. Relevance Risk

Answer: (A)

The main idea here is whether IT spending will deliver value that justifies its cost. This is described by Investment risk. It covers the chance that an IT investment ends up wasteful or underdelivers relative to what was spent, including benefits not materializing, costs exceeding projections, or ROI falling short. Asset value focuses on how much the assets themselves are worth, not on whether the investment to acquire or implement them is worthwhile. Integrity risk is about data accuracy and trustworthiness, not the value of spending. Relevance risk concerns whether the project remains aligned with business needs, but the description of value relative to cost points most directly to investment risk.

The main idea here is whether IT spending will deliver value that justifies its cost. This is described by Investment risk. It covers the chance that an IT investment ends up wasteful or underdelivers relative to what was spent, including benefits not materializing, costs exceeding projections, or ROI falling short.

Asset value focuses on how much the assets themselves are worth, not on whether the investment to acquire or implement them is worthwhile. Integrity risk is about data accuracy and trustworthiness, not the value of spending. Relevance risk concerns whether the project remains aligned with business needs, but the description of value relative to cost points most directly to investment risk.