The board of directors approves a new digital strategy and instructs management to prioritize investment...

In ITIL governance, the governing body performs three core activities: evaluate, direct, and monitor. The scenario in the question is about the board approving a strategy and instructing management to prioritize investment. That is a classic example of direction-setting. ITIL explains that governance ensures that the organization’s activities are aligned with objectives and controlled through oversight. Evaluation involves assessing the organization’s environment, options, and stakeholder needs. Monitoring is about tracking performance, conformance, and progress. Direct, by contrast, is the activity of setting direction, assigning priorities, and instructing management on what should be pursued. The board’s decision in this question is not merely an assessment and it is not a review of implementation results. It is a decision that establishes priorities and gives management a clear mandate. That is exactly what “direct” means in a governance context. ITIL distinguishes governance from day-to-day management, and this example is clearly at the governance level because it comes from the board of directors. Therefore, option C is the fully verified answer.