IT governance is an important aspect of corporate governance. It focuses on the IT system of the business organization to improve overall performance. It involves computer audit, information security management and IT risk management.
Recently there has been an increase in interest towards IT governance, due to compliance management initiatives. The implementation of Basel II in Europe and Sarbanes-Oxley Act in USA has also contributed to bringing IT governance into perspective. Moreover, the want for improvements in decision-making and accountability also contributes to the need for better IT systems. This particularly benefits stakeholders in companies.
Traditionally, executives and business owners make decisions in any firm. However, IT decisions are made by IT professionals, not by executives of the company. Therefore, it is only logical that IT compatibility affects the outcome of decisions taken by top management in any firm. In the long term, stakeholders get negatively affected by poor decisions. Hence, their involvement in business best practices is crucial.
IT governance involves everyone in the company. Involvement of customers, employees, stakeholders, management and directors is equally important for the success of IT governance. Therefore, IT governance provides a module or framework that ensures transparence and accountability. Through proper IT governance, it is possible to trace decisions made. This is because IT governance requires allocation of duties and responsibilities of key players in the firm’s system.
This includes the following best practices:
Conclusively, IT governance best practices are the key to proper risk management and good management decision-making. It improves business performance at various levels.