What is IT Governance: Frameworks and Best Practices

Organizations have grown increasingly reliant on IT systems. To sustain its efficacy over time, organizations need a clearly defined structure to ensure that these IT systems deliver the desired outcomes. A systematic IT governance program then supports organizations in synchronizing IT initiatives and investments with short and long-term business goals.

What is IT governance?

IT governance is a defined framework describing how organizations should invest in IT initiatives to meet and support specific business goals. IT governance definitions go beyond the simple reporting of results and compliance. Instead, it is a framework with defined leadership and organizational structures and specific processes that allow organizations to achieve and extend their business objectives using technology.

Why do companies need IT governance?

Poor IT governance can expose an organization to a multitude of vulnerabilities like data breaches, cyberattacks, and non-compliance with rules and regulations. The enactment of legislation such as GDPR and DPA, demands that organizations develop robust IT governance frameworks and business continuity plans.

This framework allows organizations to track how their IT investments can contribute to achieving their business goals. This can be done through comprehensive board reports that document the progress of IT projects, identify risks, and maintain accountability and transparency.

How does IT governance relate to corporate governance?

Corporate governance specifies how leaders should interact with departments to foster compliance, transparency, and accountability that leads to the organization’s long-term success. IT governance works in support of the organization’s overall goals, with a focus on mitigating risks and ensuring compliance.

Effective corporate governance is supported by robust IT programs. As organizations increasingly transition to digital, the role of IT governance becomes even more critical. With the right framework, organizations can mitigate risk and assure compliance better.

What are the examples of IT governance frameworks?

There are many standardized IT governance frameworks available that companies can use and adapt to their needs. Some of the most popular frameworks include:

ITIL

The ITIL (Information Technology Infrastructure Library) framework includes five management best practices that define how IT services should support core business processes. The framework helps companies identify regulatory limitations and build a compliant service.

The best practices included in the ITIL comprise design, operation, service strategy, transition, and continual service improvement. Through these, companies can enhance IT service and track effectiveness.

However, the ITIL lacks a comprehensive set of best practices on digital risk management, thus, requiring companies to pair it with other frameworks to build a thorough IT governance program.

COBIT

Control Objectives for Information and Related Technology, or COBIT, is a solid IT governance framework developed to manage corporate IT. COBIT makes it easier for compliance officers to bridge gaps between technical issues, business risks, and control requirements.

Because COBIT provides broad support for risk management and mitigation, it can be used together with ITIL to build a comprehensive IT governance program.

CMMI

The CMMI (Capability Maturity Model Integration) is a framework in the past that was used only in software engineering. However, the CMMI evolved to include models for service and product development across all industries.

The framework gives companies tools to streamline the measurement, development, and improvement of IT capabilities. The goal of CMMI is to increase customer satisfaction through quality services and products. With its background in software engineering, the model sets out guidance on how to integrate functions and evaluate existing processes.

The model features five maturity levels that help evaluate a company’s service capability and prioritize improvement initiatives. Furthermore, each level in this framework comprises process goals that strengthen different software, product, or service processes.

COSO

COSO (the Committee of Sponsoring Organizations) provides comprehensive risk management to internal controls. It was developed to help companies improve internal processes and achieve sustainable reporting capability.

The framework enables companies to include risk considerations in the strategic planning of internal controls. Furthermore, the COSO framework focuses more on overall enterprise risk management and fraud deterrence rather than strictly on the IT side of business infrastructure.

This framework has five components that provide a complete set of guidelines on risk assessment, continuous monitoring, internal audits, and information sharing.

FAIR

The FAIR (Factor Analysis of Information Risk) framework aims to evaluate cybersecurity risk and factors contributing to IT risk. FAIR helps organizations quantify risk and measure the probability and severity of data loss. To enable them to analyze and understand risk, companies can also integrate the FAIR framework into existing information security programs and risk management strategies.

Additionally, FAIR compartmentalizes risk factors and facilitates the precision of the risk model. With a defined risk model, companies can then make better, data-based decisions on cybersecurity.

ISO 27001 and 27002

ISO (International Organization for Standardization) certifications are rules that help companies establish a defined and organized method for doing a variety of activities. For instance, ISO 27001 provides requirements in IT security matters. ISO 27002, on the other hand, gives guidance on the implementation of requirements described in ISO 27001.

That said, participation in ISO programs is voluntary. Companies engage in different ISO certifications to increase credibility and transparency. Certification is then accredited after a company successfully goes through an audit.

NIST CSF

The NIST CSF (National Institute of Standards and Technology Cybersecurity Framework) framework comprises standards, guidelines, and best practices for managing cybersecurity strategies. Additionally, the NIST CSF framework holds at its core a set of five functions designed to help companies identify, protect, detect, respond, and recover assets.

NIST CSF also includes Implementation Tiers that aid in evaluating an organization’s existing cybersecurity programs based on risk management programs and processes. The first cybersecurity maturity tier is partial (limited awareness and informal practices) and is followed by the risk-informed tier (increased awareness and defined risk management process); the repeatable tier (regular coordination and broad awareness); and the adaptive tier (IT security is an inherent part of company culture and evolves with the business environment).

How to choose the right IT governance framework?

With numerous IT governance frameworks to choose from, deciding which one to integrate into your IT governance program can be difficult. The best way to start the implementation is to figure out the primary intent of IT governance for the organization. Frameworks should then be chosen based on the identification of specific areas in need of improvement. For example, COBIT, COSO, and FAIR help evaluate risk and existing cybersecurity measures. ITIL and CMMI, on the other hand, facilitate the organization of processes and services, from their development to delivery.

One of the main objectives in employing any of the frameworks should be to evaluate the level of maturity of existing controls, processes, and services to determine the overall level of IT governance.

As IT governance processes mature, other standards might become more important, and a different framework will provide value. Ultimately, the goal is to develop a future-proof framework that is scalable and versatile, and can support the organization’s future growth.

Note: IT governance frameworks can and even be combined to achieve the optimum level of standardization across different areas of business infrastructure.

How to successfully implement IT governance in the company

To develop an effective IT governance process, you first need to understand what role IT governance will play in the company. Ultimately, all IT governance plans should directly help achieve long and short-term business goals.

Other elements necessary for the successful implementation of IT governance are:

• Executive buy-in: The board and top management should drive the creation of the IT governance program.
• Clear strategic goals: Without defined goals, it’s close to impossible to pick IT governance frameworks that support their execution.
• Regular review of governance practices: To ensure the right IT governance program is in place, you should regularly review its performance at meeting goals.
• Defined data governance responsibilities: There should be a committee with IT and business acumen responsible for implementing and evaluating IT governance initiatives.

Frequently Asked Questions about IT Governance

Implementing IT governance can be complicated, and people often get hampered by questions along the way. Here are some top frequently asked IT governance questions:

Why is IT governance important?

Implementing IT governance best practices can provide a number of benefits including:

• Aligned IT initiatives with business goals: IT governance can help organizations achieve their business goals by directing IT investments to critical areas where operations need support.
• Managed risks and threats: A robust IT governance detects risks and threats proactively. Organizations can then mitigate vulnerabilities and better secure their assets, reputation, and data. Hence, avoiding costly disruptions and legal consequences.
• Assured compliance: With specified security rules and processes, IT governance helps to secure data and privacy. This makes it easier for organizations to comply with legislations, such as the General Data Protection Regulation (GDPR) and Data Privacy laws.

What are the risks of poor IT Governance?

Poor IT governance is a critical stumbling block for organizations. It can result in data breaches, cyberattacks, and legal penalties for noncompliance. To avoid these pitfalls, leaders need to develop resilient IT governance best practices. These involve applying the right IT governance framework, setting up defined roles and responsibilities, and robust monitoring of IT performance.

Who is involved in IT governance?

The Chief Information Officer or CIO is an executive who heads the IT systems of organizations and assures they are coherent with business goals and objectives. Their core duties include guiding the development and execution of IT initiatives, managing IT assets, establishing IT security strategies, and upholding related regulatory compliance.

Can IT governance frameworks be customized?

Yes. Organizations can and should tailor IT governance frameworks to match their unique needs. What works well for one organization may not work well for another.

Effectively Manage IT Governance in Your Organization with Convene

IT governance is a critical component of corporate governance, and its successful implementation is essential for enhancing an organization’s credibility and competitiveness. Implementation of such a process involves high-level decision-making, often requiring confidentiality among the board of directors and senior management.

Board management software can support decision-makers in carrying out projects by providing them with a secure and intuitive platform. Convene is a leading board management software that is GDPR-compliant with robust security features. The platform has multiple secure user authentication features compatible with ID username and password, biometric authentication, active directory integration, and multi-factor authentication.

Additionally, leaders can be confident that their data in Convene is secure because it utilizes multi-level encryption that protects documents in transit and at rest. Lastly, Convene is also available on iOS, Android, MAC, and Windows, making it accessible to leaders on the go.

At Azeus, we develop our products with utmost care. As a CMMI Level 5 accredited company, we can assure clients that we consistently deliver quality solutions and services. Learn more about our ISO 27001, 27017, and 27018 accredited and award-winning board portal.

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