Tutorial 5

Q1-

IT governance is the ability to direct, measure and evaluate the use of the organizational IT
resources to support in achieving the organizational strategic goals.

Q2-

 Governance is the key to align the IT allocations and use of the resources to the organization’s
strategic goals.
 IT governance is concerned with ensuring that organizational investments in IT deliver full value.
 IT has a pivotal role to play in improving corporate governance practices.
 Management’s awareness of IT related risks has increased.
 There is a focus on IT costs in all organizations.
 The benefits of good IT risk management, oversight and clear communication not only reduce
the cost and damage caused by IT failures – but also engenders greater trust, teamwork and
confidence in the use of IT itself and the people trusted with IT services.
 There is a growing realization that more management commitment is needed to improve the
management and control of IT activities.
 It is an integral part of corporate governance focused on improving the management and
control of IT.

3. State some issues that drive the need for IT Governance?

 •Organizations are subject to many regulations governing –The

protection of confidential information, –financial accountability, –data retention and –
disaster recovery, among others.
 •Orgafnizations are under pressure from shareholders, stakeholders and customers.
•To ensure they meet internal and external requirements, organizations need to implement a fo
rmal IT governance program that provides a framework of best practices and controls.

4. What are the key Areas of IT Governance?

 Value delivery. -
Confirms that the IT/business organization is designed to derive maximum business value from
IT. Oversee the delivery of value by IT to the business, and assess ROI.
 Strategic alignment. Provide strategic direction of IT and link the business and the IT plan.
 Resource management. - Provides high‐
level direction for sourcing and use of IT resources effectively and efficiently. Oversees funding
of IT at the enterprise level. Ensures that there is an adequate IT capability and infrastructure t
o support current and expected business requirements.
 Risk management. -
Confirms that processes are in place to ensure that risks have been adequately managed. Inclu
des assessment of the risk of IT investments.
 Performance management. -
Verifies strategic compliance, or the achievement of strategic IT objectives. Review the measur
 ement of IT performance and the contribution of IT to the business (i.e. delivery of promised b
usiness value).

Q5-

It is the duty of the board of directors (BOD) to ensure that IT and other critical activities are effectively
governed

Q6-

• Top level business leaders such as the Board, Executive, non‐Execs, and and IT.
• Those that have a responsibility for investor and public relations.
• Internal and external auditors and regulators.
• Middle level business and IT management.
• Key business partners and suppliers.
• Shareholders.
• Customers

7. List down some IT governance framework.

- COBIT

- ITIL

- ISO/IEC 20000

- TOGAF

- CMMI

- FAIR

- ISO/IEC 27001, 27002

8. What are the things that you have to consider when choosing a IT governance framework for your
organization?

Consider corporate culture of your organization. An organization should select the framework that gives
the best support to its business strategy. The framework should facilitate decision making, ensure the
alignment of the business strategic goals with IT, and communicate the governance principals and
decisions.

Q9.

 IT has to be fully aligned to business strategies and direction.

 Key risks have to be identified and controlled.
 Compliance with laws, industry rules, and regulatory agencies must be demonstrated.

Q10.
  An enterprise wide approach should be adopted
 Top level commitment backed up by clear accountability is a necessity
 An agreed IT governance and control framework is required
 Trust needs to be gained for the IT function (in house and/or external)
 Measurement systems will ensure objectives are owned and monitored
 Focus on costs

Q11-

 Accountable
 Follow the rules of Law
 Responsive
 Effective & Efficient

Q12-

 Transparency and Accountability

 Return on Investment/Stakeholder Value
 Opportunities and Partnerships
 Performance Improvement
 External Compliance

Q13-

 An IT steering committee comprised of IT and functional business executives – one among the
best practices for strategic alignment
 Successful IT steering committees concentrate their attention on all of the governance
alternatives
 Makes decisions regarding organizational investments & use of IT
 Many large organizations have adopted executive steering committees at different
organizational levels