Importance Of IT Governance

IT Governance consists of the leadership, organizational structure and processes that ensure that the organization’s IT sustains and extend the organizational strategies and goals. IT governance makes sure that IT related decision should match company objectives.

Structure IT governance committee works along with corporate managers to ensure that IT is well synchronized with the business and delivers value to organization. IT governance also aid companies in project approval and performance management plans.

Relation between IT execution and IT governance

1) Risk: Risk is the major factor why IT governance is required. Risk is an uncertainty which can come anytime. There are so many risk factors which can come during execution of plans like

To control these IT risk COBIT framework was formed. COBIT stands for Control Objective for Information and related Technology. COBIT framework is developed by IT Governance institute which helps organization to balance their risks vs. returns in an IT environment and ensure proper alignment of business needs with overall IT processes. COBIT provides a set of recommended best practices for control process and governance of IT in order to align IT with business. IT best practices have become important because of following

 Need of meeting regulatory requirements for IT controls in financial reporting and specific sectors like finance, healthcare and pharmaceutical.

 There is an increase in complex IT related risk for example network security.

 IT governance initiatives that adoption of control frameworks and best practices will help in monitoring and improving critical IT activities to increase business value and reduce business risk.

 Enterprises want to know their performance. They want to know how they are performing against generally expected standards against their competitors.

COBIT is illustrated by a process model in which IT is divided into 4 domains and 4 domains are subdivided in 34 processes in line with the responsibility area of plan, build, and run and monitor providing an end-to-end view IT.

COBIT DOMAINS

Plan and Organize (PO)

This domain includes identification of strategy and tactics and concerns, how IT can best contribute in achieving business objectives. This domain addresses the following management questions.

 Is IT and business strategy aligned?

 Is the organization achieving optimum use of its