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Governance of Enterprise IT

TOPIC 1: INTRODUCTION

Introduction

It is important for organizations to take a strategic approach to implementing IT governance.
Effective IT governance contributes to the efficiency and effectiveness of controls, and allows the
organization to realize the value and benefits that IT investments can provide.

Absent or poor IT governance can have significant negative impacts on an organization, both
financially and reputationally. Recovery from such impacts requires time, energy, and money.

Effective IT governance assists the organization in realizing how critical IT is to the development of
the organization’s competitive edge and the achievement of the organization’s goals and strategic
objectives. It can also repair the disconnect that may exist between senior management and IT due
to the old belief that IT exists solely to deliver day-to-day IT services.

Learning Objectives

 Describe the importance of IT governance.

 Identify the relationship between organizational governance and IT governance.

 Explore the five areas of a sample IT governance framework.

 Discuss the desired outcomes and challenges of implementing an IT governance framework.

 Identify internal audit’s role in IT governance.

 Recognize the components of IT governance.

Governance Definitions

The following definitions are from The IIA’s International Professional Practices Framework (IPPF)
Glossary:

Governance – The combination of processes and structures implemented by the board to inform,
direct, manage, and monitor the activities of the organization toward the achievement of its
objectives.

Information Technology Governance – Consists of the leadership, organizational structures, and
processes that ensure that the enterprise’s information technology supports the organization’s
strategies and objectives.

Copyright © 2021 by The Institute of Internal Auditors, Inc. All rights reserved.