ITM 700 Lecture Notes - External Auditor, Corporate Governance Of Information Technology, Management System
31 views2 pages
Ch 9 – Governance of the IT Function
1. As CIO, what are some governance policies and guidelines you would put together so that IT is
fully used by different departments – structural issues?
Internal Control mechanisms
o Estabilishing lines of responsibility (who is in charge), authority and communication
o Governance has a lot to do with the hierarchy in each company.
o How each level will share/communicate issues with other levels
Homogeneity in IT among levels of hierarchy
Escape clauses, articulation of these clauses – when doing business must have these in contracts
2. What is governance in a business enterprise?
It is the process of structuring, operating and controlling the organization aligning to strategic
goals and legal and regulatory requirements.
3. What is the agency problem?
The reason why we need governance
It is the physical separation b/w owners of a company and its managers (or agents). It provides
those managers the opportunity to act in ways that are advantageous to themselves but bad for
4. What are certain control and monitoring systems to promote conformance (and reduce
Board of directors to see org strategies, structures and systems on behalf of shareholders
External auditor who offers insight based on financial statements
5. What are some governance mechanisms?
Value management systems – ensure commitment to core organizational values and corp
Risk management systems –shows acceptable/unacceptable risks and stds of business conduct
Strategic control systems – focus and communicating and implementing the org strategy
6. What is the purpose of IT governance
Ensure resources according to initiatives are appropriate for risk and return and align with org
Increase investment value – ie. Budgeting for new IT systems
Service Delivery- SLA
Resource management – How IT staff and systems are utilized
Measurement of IT structure
7. The business value of IT is:
a. Decreasing costs by automation
b. Providing new customers
c. Improving business models