IT Governance is “a framework for the leadership, organizational structures and business processes, standards and compliance to these standards, which ensure that the organization’s IT supports and enables the achievement of its strategies and objectives.”
Implementing an effective IT Governance Framework will help boards, and the individual directors on boards, to meet Shareholder expectations, which are clear:
- The board of directors will actually direct the management of the company, including strategic and IT business plans and fundamental structural changes;
- The board will see to the hiring of competent and honest business and IT managers;
- The board will understand the business of the firm and develop and monitor a business and IT strategy;
- The board will monitor the managers as they carry out the strategy and the operations of the company;
- When making a business decision, the board will develop a thorough understanding of the transaction and act in good faith, on an informed basis, and with a rational business purpose;
- The board will operate with basic honesty, care, and loyalty; and
- The board will take good-faith steps to make sure the company complies with the law.
These IT governance expectations demand an appropriate IT governance framework. That can be difficult and time-consuming to do from scratch.
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