IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the information technology function facilitates the achievement of the enterprise's goals and strategies. IT governance encompasses the three key components of governance, risk and compliance (GRC).
Why is IT Governance Critical?
The effective management of information, systems and communications is of critical importance to the success and survival of all enterprises as the result of the following:
- The pervasiveness of and dependence on information and the services and infrastructure that process and deliver the information
- The increasing scale and cost of current and future technology-related investments
- Information technology costs typically represent 5 to 15% of annual revenues
- Information technology investments average 50% of annual capital investments.
- The potential for technologies to enable the transformation of enterprises and business practices
- The need to reduce the losses caused by failed projects, security incidents and operational outages.
- The need to increase the financial and intangible benefits created by IT-enabled operational efficiencies and competitive advantages.
With effective IT Governance Executive management can answer "yes" to the following questions:
- Are IT and business strategies aligned?
- Are IT risks understood and being managed?
- Is the quality of IT systems appropriate for business needs?
- Is there a sound business case for each IT investment?
- Are responsibilities and accountabilities assigned for IT investments?
- Is the IT investment portfolio managed adequately?
- Are new projects likely to deliver solutions that meet business needs?
- Are the new projects likely to deliver on time and on budget?
- Will the new systems work properly when implemented?
- Will changes be made without upsetting the current business operation?
- Is the workforce able to use the IT systems productively and safely?
- Are internal controls operating effectively?
- Is the enterprise in compliance with regulatory requirements?
How Process Partners can help you establish effective IT Governance:
IT Governance Assessment
IT SAS 70 Assistance
IT Internal Audit
IT Sarbanes-Oxley Assistance
Technology Evaluation & Selection
IT Process Optimization
Interim IT Management
IT Polices & Procedures