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IT governance is the term used to describe how

those persons entrusted with governance of an entitywill consider IT in their supervision, monitoring,control and direction of the entity. How IT is appliedwithin the entity will have an immense impact onwhether the entity will attain its vision, mission or strategic goals.

ROBERT S. ROUSSEY, CPA, PROFESSOR,

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Top Management. ( Executive Management &Board Of Directors)

Understanding & Leveraging IT.

Competitive Advantage.Understand the risk and Exploit benefits.

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IT governance is not an isolated discipline.

Integrate IT governance with overallgovernance.

IT sustains and extends the enterprise sstrategies and objectives.

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IT is essential to manage the transactions,information and knowledge.

To Support, Sustain & Grow the Business.

Strategic importance of IT.

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Take advantage of IT s enabling capacity for newbusiness models and changing business practices.

Balance IT s increasing costs and information sincreasing value to obtain an appropriate return fromIT investments.

Manage the risks of doing business in aninterconnected digital world and the dependence onentities beyond the direct control of the enterprise.

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Manage IT s impact on business continuity dueto increasing reliance .on information and IT in

all aspects of the enterprise.Maintain IT s ability to build and maintainknowledge essential to sustain and grow the

business.

Avoid the failures of IT, increasingly impactingthe enterprise s value and reputation.

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A summarized background on governance.

Where IT governance fits in the larger context of

enterprise governance.A simple framework with which to think about ITgovernance and the different domains it covers:

Strategic alignment of IT with the business. Value delivery of IT. Management of IT risks. IT resource management. Performance measurement of IT.

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IT governance is the responsibility of the boardof directors and executive management,

It is an integral part of enterprise governance,

Consists of the leadership and organizational

structures and processes that ensure that

organization's IT sustains and extends theorganization's strategies and objectives.

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IT s performance meets the followingobjectives:

Alignment of IT with the enterprise andrealization of the promised benefits.Use of IT to enable the enterprise by exploitingopportunities and maximizing benefits.Responsible use of IT resources.Appropriate management of IT-related risks.

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To help enable this:

Board members should take an active role in ITstrategy or similar committees.CEOs should provide organizational structuresto support the implementation of IT strategy.

CIOs must be business-oriented and provide abridge between IT and the business.All executives should become involved in ITsteering or similar committees.

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IT s delivery of value to the business.i.e.(Strategic Alignment)

Mitigation of IT risks.i.e.(Accountability)

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IT Governance Should Be Integrated withinEnterprise Governance.

IT Governance Roles and Responsibilities Need to be Defined.

An IT Governance Implementation Plan IsRequired

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Set up a governance organizational framework.

Align IT strategy with business goals.

Understand/define the risks.

Define target areas.

Analyze current capability and identify gaps.

Develop improvement strategies.

Measure results.

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