In this rapidly changing technological age, any business, whether it is large or small, requires an effective IT team to help it sustain its goals, objectives and strategies. With the kind of evolving sophistication every business needs, a good IT team will need a leader who will make good decisions.
IT governance is the term used for the system an organization uses to manage IT risks. It is used to boost the value of the organization’s IT investments. It’s how business organizations align their corporate strategies with their IT strategies in order to achieve their goals and to determine how well their IT performs.
An optimally designed IT governance system has both a governance framework and governance process. The former lays out the guidelines for strategy and risk management by which an organization bases its IT investment decisions on. The latter’s role is to implement the framework’s guidelines. A clear-cut and precise governance framework will result in a more straightforward and less complex governance process.
The Chief Information Officer (CIO) plays a crucial role in the delivery of one of the most important assets of any organization – information. To be able to do this, a CIO will need to have an effective governance strategy with regards to his or her role in the organization:
- Attitude towards data governance – since data is a critical asset that requires constant protection and regulated use, a CIO will need to provide both business intelligence and intuitive reporting of this data. Proper data governance will help a CIO understand the company’s performance, and acquire the kind of good quality data the organization needs to make the necessary IT risk decisions.
- IT governance decisions – a CIO can ensure faster facilitation and better execution of IT governance by recommending where and when to make IT investments, provide IT analytics-powered insights and support risk management decisions by providing consistent and compliant data.
- Risk management strategies – what’s a business without risk? The CIO needs to understand that IT and data control are critical components of the overall corporate governance. By investing in the right quality data and implementing the said data, a CIO can use it to put together better risk management strategies. These, in turn, support the organization’s goals and objectives and give the company a more competitive advantage.
- Support corporate governance – the CIO needs to support the organization by incorporating technologies that can improve the business model and train staff to be more effective.
When it is done properly, IT governance can actually strengthen the perceived and actual value of an organization’s IT portfolio. It can go a long way to helping manage IT-related risks while maximizing the business’ IT investments.
If you want to know more about IT governance and how to handle risks within your company, contact Four Cornerstone now. We have a team of experts ready to serve you 24/7. We also offer comprehensive solutions for enterprise business intelligence and enterprise business applications.
Photo courtesy of Oracle – CIO of the Year Award.