ITIL-4-Foundation ITIL 4 Foundation Exam Question and Answers

A set of interconnected activities that an organization performs to deliver a valuable product or service to its consumers and to facilitate value realization

https://www.bmc.com/blogs/itil-service-value-system/#:~:text=The%20key%20inputs%20to%20the,or%20otherwise%20improve%20the%20organization.

In ITIL 4, the service level management practice is responsible for:

Setting clear, business-based targets for service performance

Monitoring and reporting on service delivery

Conducting regular reviews with customers and stakeholders

Ensuring that services and service performance meet agreed needs and expectations

Part of this practice explicitly involves reviewing services with customers to validate that the services are still meeting their needs and agreed service levels. These reviews are used to confirm whether the services remain fit for purpose and to identify improvement opportunities.

The other options have different focuses:

Monitoring and event management focuses on observing services and infrastructure, identifying events, and determining their significance.

Change enablement controls risks related to changes and ensures that changes are properly assessed and authorized.

Service desk is the main point of contact between service provider and users, handling incidents and service requests, but it is not primarily responsible for formal reviews of service coverage against customer needs.

Because the described activity—conducting reviews to ensure services cover customer needs—is a core responsibility of service level management, the correct answer is B.

In ITIL 4, the guiding principle “Keep it simple and practical” advises organizations to:

Always use the minimum number of steps necessary to achieve objectives

Eliminate activities that do not create value

Avoid over-complication and unnecessary work

This principle explicitly supports removing unnecessary processes, steps, or documentation that do not contribute to value. That is exactly what the question describes as “the elimination of unnecessary work,” so A is correct.

Why the others are not correct in this context:

B. Think and work holistically focuses on seeing the organization as an integrated system and considering end-to-end value creation, not specifically on eliminating unnecessary work.

C. Start where you are emphasizes using and understanding existing practices, capabilities, and data before creating something new, but it does not directly focus on removing unnecessary work.

D. Progress iteratively with feedback promotes working in small, manageable iterations and learning from feedback; it is about how to approach change, not specifically about eliminating unnecessary work.

Therefore, the guiding principle that proposes eliminating unnecessary work is “Keep it simple and practical”, making A the correct answer.

The second step is to conduct an objective current-state assessment of existing services and service management practices. This should include consideration of the users’ perception of the value being received, along with a review of people’s competencies and skills, the processes and procedures involved, the capabilities of the available technological solutions and the prevailing organizational culture. The success of an improvement initiative depends on a clear and accurate understanding of the starting point and the required impact of the initiative.

For example, an organization can measure the current net promoter score (NPS) from a customer satisfaction survey, conduct a benchmark survey against its competitors or review findings of operational statistics or audit reports to understand its current state. If this step is skipped, the current state will not be understood and there will not be an objective baseline measurement against which improvement can be measured.

https://www.bmc.com/blogs/itil-continual-improvement/

A service relationship is defined as the cooperation between a service provider and service consumer. Service relationships are established between two or more organizations to co-create value. An organization can play the role of provider or consumer interchangeably, depending on the situation.

https://www.bmc.com/blogs/itil-key-concepts-service-management/#:~:text=and%20stakeholder%20management.-,Service%20Relationships,interchangeably%2C%20depending%20on%20the%20situation.

Error control also regularly re-assesses the status of known errors that have not been resolved, taking account of the overall impact on customers and/or service availability, and the cost of permanent resolutions, and effectiveness of workarounds

https://www.bmc.com/blogs/itil-problem-management/#:~:text=Error%20control%20also%20regularly%20re,resolutions%2C%20and%20effectiveness%20of%20workarounds.

Individual metrics without a specified service context are unhelpful. They should relate to defined outcomes and not simply operational metrics. This can be achieved with balanced bundles of metrics, such as customer satisfaction and key business outcomes.

https://www.bmc.com/blogs/itil-service-level-management/#:~:text=Service%20Level%20Agreements%20(SLAs) &text=Individual%20metrics%20without%20a%20specified,satisfaction%20and%20key%20business%20outcomes.

In ITIL 4, the service value chain is a central element of the service value system and is composed of six activities. Each activity transforms inputs into outputs, contributing to the overall creation of value.

Key points:

Every value chain activity takes one or more inputs (such as information, resources, or outputs from other activities).

It then performs work that transforms these inputs.

It produces one or more outputs that are used by other activities or delivered to stakeholders.

Why the other options are incorrect:

A. Inputs and outputs are fixed for each value chain activity – ITIL 4 explicitly allows for flexibility; inputs and outputs vary depending on the value stream and context.

B. Some value chain activities only have inputs, whereas others only have outputs – This contradicts the model; each activity must receive inputs and produce outputs.

C. Governance determines the inputs and outputs – Governance influences direction and controls but does not prescribe specific inputs and outputs for the value chain activities.

Therefore, the correct statement is that each value chain activity receives inputs and provides outputs.

No service, practice, process, department, or supplier stands alone. The outputs that the organization delivers to itself, its customers, and other stakeholders will suffer unless it works in an integrated way to handle its activities as a whole, rather than as separate parts.

Taking a holistic approach to service management includes establishing an understanding of how all the parts of an organization work together in an integrated way (remember the four dimensions of service management?), including having an end-to-end visibility of how demand is captured and translated into outcomes. In a complex system, the alteration of one element can impact others and, where possible, these impacts need to be identified, analysed and planned for.

To apply this principle successfully, consider this advice:

Recognize the complexity of the systems

Collaboration is key to thinking and working holistically

Where possible, look for patterns in the needs of and interactions between system elements

Automation can facilitate working holistically

https://www.bmc.com/blogs/itil-guiding-principles/

In ITIL 4, the continual improvement practice focuses on:

Aligning services and practices with changing business needs

Identifying and prioritizing improvement opportunities

Using appropriate methods and tools to assess and plan improvements

ITIL 4 explicitly notes that organizations should develop skills in assessment and improvement techniques, such as SWOT analysis and balanced scorecard reviews, to support continual improvement. These methods help assess the current state, opportunities, risks, and performance from multiple perspectives, and they feed into the continual improvement model.

Why the others are incorrect:

Incident management concentrates on restoring service after incidents; it does not specifically emphasize methodologies like SWOT or balanced scorecard.

Service request management deals with handling user requests efficiently and effectively, not with improvement analysis techniques.

Change enablement is about controlling and enabling beneficial changes; while it may use some analysis, it is not the practice highlighted for competencies in SWOT and balanced scorecard.

Therefore, the practice that encourages organizations to develop competencies in techniques such as SWOT analysis and balanced scorecard review is continual improvement, making B the correct answer.

The purpose of the supplier management practice is to ensure that the organization’s suppliers and their performances are managed appropriately to support the seamless provision of quality products and services1. This practice involves creating closer, more collaborative relationships with key suppliers to improve efficiency, effectiveness, and innovation2. References: ITIL Foundation - ITIL 4 Edition, page 16; ITIL® 4 – A Pocket Guide, page 38.

Value Streams & Processes

The value streams and processes dimension is concerned with how the various parts of the organization work in an integrated and coordinated way to enable value creation through products and services. This dimension defines the activities, workflows, controls and procedures needed to achieve agreed objectives. What matters in service management is that an organization establishes an operating model that that effectively organizes the key activities needed to manage products and services.

Value streams

A value stream is defined as a series of steps an organization undertakes to create and deliver products and services to consumers.

Structuring the organization’s service and product portfolios around value streams allows it to have a clear picture of what it delivers and how, and to make continual improvements to its services. By mapping its value streams, an organization can identify what is critical, what introduces waste and what can be improved upon.

Processes

A process is defined as a set of interrelated or interacting activities that transform inputs into outputs.

Processes define the sequence of actions and their dependencies, as well as describe what is done to accomplish an objective. Processes are underpinned by policies and can be broken down further through procedures which outline what is done, when, and by whom.

https://www.bmc.com/blogs/itil-four-dimensions-service-management/

Comprehensive and Detailed Explanation From Exact Extract:

In ITIL 4, the monitoring and event management practice is concerned with the systematic observation of services and service components. Its purpose is described as:

Continuously monitoring services and infrastructure.

Identifying and capturing changes of state in these components.

Classifying certain changes of state as events, which are then recorded, reported, and, where necessary, acted upon.

This practice enables early detection of issues, supports automated responses where appropriate, and helps maintain the normal operation and performance of services.

Option C accurately reflects this purpose, so it is correct.

The other options describe the purposes of different ITIL practices:

A – This is the purpose of incident management (restoring normal service operation quickly to minimize impact).

B – This is the purpose of service request management (handling user-initiated service requests effectively).

D – This is the purpose of change enablement (ensuring successful changes through proper risk assessment and authorization).

Relevant ITIL 4 Foundation references:

Monitoring and event management practice: purpose and key activities.

Purpose statements for incident management, service request management, and change enablement practices (for comparison).

The first important step is identifying and managing all the stakeholder groups that an organization deals with. The first and most obvious stakeholder group is the customers, as in service management the organization’s main goal is to facilitate customer outcomes. Other examples of stakeholder collaboration include:

Developers working with other internal teams

Suppliers collaborating with the organization

Relationship managers collaborating with service consumers

Customers collaborating with each other

Internal and external suppliers collaborating with each other

The contribution to improvement of each stakeholder group at each level should be understood, as should the most effective methods to engage with them. Depending on the service and the relationship between the service provider and the service consumer, the expectations about the level and type of collaboration can vary significantly. It is important to involve stakeholders, and address their needs at all levels. Determining the type, method, and frequency of such messaging is one of the central activities related to communication.

https://www.bmc.com/blogs/itil-guiding-principles/

In ITIL 4, guiding principles are defined as recommendations that can guide an organization in all circumstances, regardless of changes in its goals, strategies, type of work, or management structure.

Their purpose is to provide a stable, enduring foundation for decision-making and behavior. Even when an organization changes its objectives (for example, shifting markets, changing strategies, or restructuring), the guiding principles remain applicable and relevant. They help ensure consistency, alignment, and good practices over time, even as other elements evolve.

That is why, according to ITIL 4, guiding principles should remain constant within an organization, even when objectives change.

Why the other options are incorrect:

A. OutputsOutputs are tangible deliverables produced by activities (e.g., reports, software releases, documentation). These will naturally change as objectives, projects, and priorities change, so they are not constant.

C. Service offeringsService offerings (combinations of goods, access to resources, and service actions) are designed to meet customer needs. As markets, customer demands, and business strategies change, the organization’s service offerings are expected to change as well.

D. OutcomesOutcomes are the results achieved for a stakeholder, enabled by outputs and services. When business objectives change, the desired outcomes also change, so they are not fixed.

Therefore, the only element that is designed to remain constant despite changing objectives is the set of guiding principles.

This question is testing your understanding of the ITIL 4 guiding principle “Start where you are.”

The essence of this principle is that an organization should not start from scratch when making improvements. Instead, it should first look at and assess what already exists — current services, processes, tools, and methods — before deciding what to keep, change, or replace.

The ITIL 4 Foundation guidance explains that organizations should carefully consider the existing state before designing the future state. It stresses that existing practices, services, and tools may already contain value, and that blindly discarding them can lead to waste, increased risk, or loss of useful knowledge.

In that context, the most accurate word to complete the sentence is:

An organization which is undertaking an improvement initiative should consider the existing methods and services when building for the future.

“Consider” reflects the idea of evaluating and understanding what already exists before making decisions.

The principle does not state that everything must be re-used or improved; some things may be retained, some modified, and some removed. But the key is that they must be considered first.

B. DiscardThis directly contradicts the principle “Start where you are.” ITIL explicitly warns against discarding existing methods and services without first understanding and assessing them.

C. Re-useWhile re-use is often a possible outcome of applying this principle, it is not mandatory that all existing methods and services be re-used. The principle is about assessing and considering them first, then deciding what to keep, change, or retire. Therefore, “re-use” is too narrow for the sentence.

D. ImproveImprovement may be needed, but you cannot decide how to improve something until you have considered and understood its current state. The guiding principle’s wording focuses first on consideration/evaluation of what already exists.

Therefore, the correct choice that best matches the intent and wording of the ITIL 4 guiding principle “Start where you are” is:

A. Consider

References (Aligned with ITIL 4 Foundation Concepts)

ITIL 4 Foundation: Guiding principles – Start where you are (discussion on assessing and considering existing services, processes, and methods before designing the future state)

ITIL 4 Foundation: Emphasis on avoiding starting from scratch and avoiding unnecessary waste by considering the current situation before making changes.

Costs are the amount of money spent on a specific activity or resource. From the service consumer’s perspective, there are two types of cost involved in service relationships:

Costs removed from the consumer by the service (a part of the value proposition). For example, for a car sharing service, the customer does not pay for the actual cost of purchasing the car.

https://www.bmc.com/blogs/itil-key-concepts-service-management/

The purpose of the continual improvement practice is to align the organization’s practices and services with changing business needs through the ongoing identification and improvement of services, service components, practices, or any element involved in the efficient and effective management of products and services1. This practice needs the right culture to be embedded across the entire organization, as it requires a shared vision, commitment, empowerment, collaboration, learning, and measurement2. References: ITIL Foundation - ITIL 4 Edition, page 15; ITIL® 4 – A Pocket Guide, page 34; ITIL® 4 Practice Guide: Continual Improvement, page 7.

In ITIL 4, the ‘improve’ value chain activity is part of the service value chain within the service value system. Its official purpose is to ensure continual improvement of products, services, and practices across all value chain activities and the four dimensions of service management.

Option A matches the core wording of this purpose:

“Ensure the continual improvement of practices across all value chain activities.”

Even though the full ITIL statement also mentions products, services, and the four dimensions of service management, this option is the only one that directly reflects the continual improvement focus of the improve activity across the value chain.

Why the other options are not correct:

B. Ensure services continually meet expectations for quality, costs, and time to marketThis is more aligned with design and transition, obtain/build, and deliver and support, which focus on planning, building, and delivering services that meet agreed requirements, costs, and time constraints.

C. Ensure a shared understanding of the improvement direction for services across the organizationThis sounds closer to guiding principles or governance, and to some aspects of service level management and continual improvement planning, but it is not the formal purpose statement of the improve value chain activity.

D. Ensure continual engagement and good relationships with all stakeholdersThis aligns strongly with the engage value chain activity, whose purpose is about understanding stakeholder needs, ensuring transparency, and maintaining relationships.

Therefore, A is the correct option because it directly reflects the official purpose of the ‘improve’ value chain activity in ITIL 4.

References (ITIL 4 Foundation):

ITIL® Foundation: ITIL 4 Edition – Service Value System, Service Value Chain – Improve activity (purpose)

ITIL® Foundation: ITIL 4 Edition – Overview of service value chain activities

You need to use all of your resources as effectively and efficiently as you can. This means that you should automate wherever you can, and use people only for tasks that can’t be automated. It also means that you need to think carefully about what you can automate and about the circumstances where only a person will do; and about simplifying those processes you do decide to automate to eliminate wasteful or inefficient steps.

You should always optimize the work BEFORE you automate it, as automating something that is inefficient or ineffective may just result in you doing the wrong thing faster!

https://www.sysaid.com/blog/itil/the-7-guiding-principles-of-itil-4-practical-advice-to-help-you-make-decisions

In ITIL 4, guiding principles are defined as recommendations that guide an organization in all circumstances, regardless of changes in goals, strategies, work type, or management structure. They are explicitly intended to support decision-making and actions at all levels of the organization.

The guiding principles help people decide:

How to approach work

How to prioritize activities

How to respond to challenges or opportunities

How to adapt service management practices to the organization’s context

The other options are important ITIL concepts, but they do not primarily exist to guide decisions in every situation:

Four dimensions of service management give a holistic view of what must be considered, but do not themselves provide decision rules.

Service value chain describes core activities that create value, not a decision framework.

Practices describe how specific types of work are organized, not general decision guidance.

Therefore, the ITIL concept that helps an organization make good decisions in all circumstances is the guiding principles.

The incident management practice aims to minimize the negative impact of incidents by restoring normal service operation as quickly as possible1. A major incident is an incident that has a significant impact or urgency for the business and requires a high level of coordination and resources to resolve2. The most likely way of resolving major incidents is by forming a temporary team working together to identify a resolution, such as a major incident team or a swarming team3. The other statements are not true because:

Users establishing a resolution using self-help: Self-help is an option for users to resolve their own incidents with minimal or no assistance from the service provider, but it is not suitable for major incidents that require urgent and expert attention3.

The service desk identifying the cause and a resolution: The service desk is responsible for logging, categorizing, prioritizing, and escalating incidents, but it may not have the skills or authority to identify the cause and a resolution for major incidents that involve multiple teams or suppliers3.

A support team following detailed procedures for investigating the incident: A support team may follow detailed procedures for investigating the incident, but it may not be able to resolve major incidents that require cross-functional collaboration or escalation3. References: ITIL Foundation - ITIL 4 Edition, page 14; ITIL® 4 – A Pocket Guide, page 32; ITIL® 4 Practice Guide: Incident Management, page 8.

In ITIL 4, service relationships involve shared risks between service provider and service consumer. Both parties contribute to risk management.

Service consumers help mitigate risk by:

Clearly understanding and communicating their requirements

Being explicit about constraints, acceptable levels of performance, and critical outcomes

Ensuring that the provider knows what is truly needed, so services can be designed and delivered appropriately

Option C: “By being fully aware of their own requirements for the service” aligns with this: when consumers understand and clearly state their requirements, ambiguity and misalignment are reduced, which directly reduces risk in the service relationship.

Why the other options are incorrect:

A. Through the provision of services according to predefined needsProvision of services is the role of the service provider, not the consumer.

B. By ensuring that the service provider has configured correctly its resourcesResource configuration is the provider’s responsibility. The consumer may give feedback, but they don’t “ensure” correct configuration.

D. By controlling the specific level of risk on the service provider’s behalfThe provider manages its own risks. Risks are shared, but the consumer does not control the provider’s internal risk levels. The consumer contributes by clarifying requirements and using services as agreed.

References (Aligned with ITIL 4 Foundation concepts)

ITIL 4 Foundation: Service relationships – shared responsibility and shared risks between provider and consumer

ITIL 4 Foundation: Importance of clear requirements and expectations in reducing risks and enabling value co-creation

In ITIL 4, several service consumer roles are defined to clarify how different stakeholders interact with services. These roles include customer, user, and sponsor, all of which fall under the broader term service consumer.

A user is defined as the role that uses services.

A customer is the role that defines the requirements for a service and takes responsibility for the outcomes of service consumption.

A sponsor is the role that authorizes the budget for service consumption.

A service consumer is a generic term for one or more of these roles (customer, user, sponsor).

Because the exact phrase in the question is “the role that uses services”, this matches the ITIL 4 definition of “user”, so:

C. User is the correct answer.

The other options do not match that definition:

A. Service consumer – an umbrella term, not specifically “the role that uses services”.

B. Customer – focuses on requirements and outcomes, not direct use.

D. Sponsor – focuses on funding and authorization, not use of services.

ITIL 4 Foundation: Definitions of service consumer roles – customer, user, sponsor

ITIL 4 Foundation: Key concepts of service relationships and service consumption

In ITIL 4, the continual improvement practice is focused on aligning the organization’s services, practices, and all elements of the service value system with changing business needs by identifying and making improvements on an ongoing basis.

ITIL 4 explicitly mentions that, to support continual improvement, organizations can use and build competencies in a variety of methods and techniques, such as:

SWOT analysis (strengths, weaknesses, opportunities, and threats)

Balanced scorecard

Lean, Six Sigma, and other improvement and measurement tools

The guidance explains that such techniques help organizations to evaluate current performance, identify improvement opportunities, and measure progress. This is directly linked to the continual improvement practice.

Why the other options are not correct:

A. Incident managementFocuses on managing incidents and restoring service quickly. While it may use some analysis tools, it is not the practice that explicitly promotes SWOT or balanced scorecards as general organizational competencies.

C. Service request managementManages user requests for services (like access, information, or standard changes). Its focus is on handling requests efficiently, not on strategic improvement techniques.

D. Change enablementEnsures that changes are properly assessed and authorized. It may use risk and impact assessment methods, but the explicit recommendation to develop skills in SWOT and balanced scorecard belongs to continual improvement.

Therefore, B. Continual improvement is the correct option.

References (ITIL 4 Foundation):

ITIL® Foundation: ITIL 4 Edition – Continual improvement practice (purpose, key activities, and methods)

ITIL® Foundation: ITIL 4 Edition – Mention of SWOT analysis, balanced scorecard, and other improvement techniques as supporting tools for continual improvement

Customers are one of the key stakeholder groups that service providers should cooperate with. Customers are the persons who define the requirements for a service and take responsibility for the outcomes of service consumption1. Customers can be internal or external to the service provider’s organization2. Customers are essential for value co-creation, as they provide feedback, resources, and demand for services3. References: ITIL Foundation - ITIL 4 Edition, page 5; ITIL® 4 – A Pocket Guide, page 18; [ITIL® 4 Practice Guide: Customer Relationship Management], page 7.

A guiding principle is a recommendation that provides universal and enduring guidance to an organization, which applies in all circumstances, regardless of changes in its goals, strategies, type of work, or management structure.

https://www.bmc.com/blogs/itil-guiding-principles/#:~:text=A%20guiding%20principle%20is%20a,of%20work%2C%20or%20management%20structure.

The purpose of the problem management practice is to reduce the likelihood and impact of incidents by identifying actual and potential causes of incidents and managing workarounds and known errors1. Workarounds are temporary solutions that reduce or eliminate the impact of an incident or problem for which a full resolution is not yet available2. Known errors are problems that have a documented root cause and a workaround3. References: ITIL Foundation - ITIL 4 Edition, page 15; ITIL® 4 – A Pocket Guide, page 35; ITIL® 4 Practice Guide: Problem Management, page 7.

To set clear business-based targets for service performance, so that the delivery of a service can be properly assessed, monitored, and managed against these targets.

https://www.bmc.com/blogs/itil-management-practices/

Think and work holistically

No service, practice, process, department, or supplier stands alone. The outputs that the organization delivers to itself, its customers, and other stakeholders will suffer unless it works in an integrated way to handle its activities as a whole, rather than as separate parts.

https://www.bmc.com/blogs/itil-guiding-principles/#:~:text=5.,rather%20than%20as%20separate%20parts.

Emergency changes. These are changes that must be implemented as soon as possible; for example, to resolve an incident or implement a security patch. Emergency changes are not typically included in a change schedule, and the process for assessment and authorization is expedited to ensure they can be implemented quickly. As far as possible, emergency changes should be subject to the same testing, assessment, and authorization as normal changes, but it may be acceptable to defer some documentation until after the change has been implemented, and sometimes it will be necessary to implement the change with less testing due to time constraints. There may also be a separate change authority for emergency changes, typically including a small number of senior managers who understand the business risks involved.”

https://itsm.tools/why-what-change-management/#:~:text=Emergency%20changes. &text=Emergency%20changes%20are%20not%20typically,they%20can%20be%20implemented%20quickly.

A known error is a problem that has been analysed but not resolved1. This means that the root cause of the problem has been identified, but a permanent solution has not been implemented yet2. A known error can be recorded in a known error database (KEDB) and linked to related incidents and problems3. References: ITIL Foundation - ITIL 4 Edition, page 15; ITIL® 4 – A Pocket Guide, page 35; ITIL® 4 Practice Guide: Problem Management, page 8.