Transcript IT Governance GSI 615

IT GOVERNANCE
GSI 615
Carmen R. Cintrón Ferrer © 2014
IT Governance
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Why?, What?, How?
Employee engagement – Who’s Sinking Your Boat?
 Applicable
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lessons:
Governance
IT Governance
Ethics & Social Responsibility
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IT Governance
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Scope
Governance
Risk Management
Compliance
IT Resources Management
IT Governance
IT Leadership and Innovation
Governance and Ethics
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Introduction
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Conceptual Definitions:
 Information
Resources (ITC)
 ITC
Value
 GRC or ECRG
 Strategic Planning
 Manage vs. Lead
 Innovation
 Social Responsibility
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Social
Evolution
Property and Economic
Transformation
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Agrarian
Industrial
Services
Knowledge
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Structural and Legal Comparison
Period
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Structure
Economy
Legal
Governance
(Power & Justice)
Property
Nomads
Tribal/
Closed
Informal
Agrarian
Natural Law
Informal Centralized
Collective
Primitive
Societies &
Early
Empires
Larger
Clusters
Agrarian
NaturalPositive Law
Formal
Hierarchical Partially
Decentralized
Private &
Collective
Medieval
Cities &
Kingdoms
Closed with
some trade
Agrarian
Incipient
small scale
industries
Positive Law
Codes
Formal
Hierarchical
Centralized
Private
Slavery &
Property Rights
Renaissance
Kingdoms &
Countries
Modern
Empires
Ample trade
Semi-Open
Agrarian
Pre-Industrial
Professions
Services
Constitutional
Nation State
Trade
Agreements
Partially
Decentralized
(Limited Sharing)
Natural/Legal Person
Private
Slavery &
Property Rights
Modern
Countries
Republican
Nations
Open Trend
Agrarian
Industrial
Service
Corporations
Globalization
Segregation of Power
Citizenship &
Individual Liberty
Private
Common
Privacy/Personal
Knowledge
Society
Virtual Open Carmen
Knowledge
Decentralized
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Collectives
Digital
Cyber Law
Networked
Semi-Closed
Knowledge (IP)
Prioritizing Exercise
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Society
Land
Equipment
Personnel
Agrarian
Industrial
Services
Knowledge
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Information
Technology
Information Resources
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IT Infrastructure
Telecommunications Technologies
Data/Data Repositories & Intellectual Property
Business & IT Processes - Business Intelligence
Personnel (IT and Knowledge workers)
Is the enterprise reliant on these resources?
Is IT management doing the right things? Doing them the
right way?
Is the enterprise getting the benefits?
Is there Value added into IT investments?
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Why IT Governance?
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Information Resources:
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is critical to the operation of any organization
is strategic to business
involves a significant investment
is a major risk component
Information Resources (IT) requires more
attention from top management
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ITC – Governance
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Increase efficiency
Increase effectiveness
Increase value/benefits
Reduce Risk
Perform an impact analysis of achieving all, from
the perspective of each type of resource.
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IT Governance Exercise
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Governance
Objective
Personnel
Time/Effort
Information
Technology
Fiscal
Investment
Increase
Efficiency
Increase
Effectiveness
Increase
Value/Benefits
Reduce Risk
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Controls
Governance
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Plato first used the Greek term that means to steer
Inserted into organizational management for:
 Implementing
an internal control system
 Monitoring executive’s performance
 Assuring stakeholders objectives are met:
 Internal
(Board, management, personnel …)
 External (Shareholders, debt holders, community, et al.)
 Mitigating
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risks
Relevance is due to major corporate scandals
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Governance
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The Governance Problem: How it started (Video)
What is Governance (BrownDog Consulting)
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General standards for Governance:
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Enron
Tyco International
WorldCom
Adelphia
Peregrine Systems
Cadbury Report (PDF)
OECD Principles of Corporate Governance (Reference site)
SOX (Sarbanes-Oxley) (PL- 107-204, 2002)
SOX Best Practices (Video)
Inyathelo on Governance (YouTube Video)
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Governance
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Leadership capabilities
Structural support (Roles/Responsibilities)
Decision making processes
Information and Technology infrastructure:
Integration
 Support
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Results assessment
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Governance principles
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Rights and equitable treatment of shareholders
Interests of other stakeholders
Role and responsibilities of the board
Integrity and ethical behaviour
Disclosure and transparency
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OECD principles for Governance
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Auditing
Board and management structure and process
Corporate responsibility and compliance
Financial transparency and information disclosure
Ownership structure and exercise of control rights
Are there other European Models?
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Governance principles in US
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Shareholder interests
Investor interests
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Market (i.e.: NYSE, NASDAQ & Credit Rating Services)
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Governance standards provided by:
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 Securities
and Exchange Commission (SEC)
 Financial Accounting Standards Board (FASB)
 Legislation (SOX, Dodd Frank Act)
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Trust Governance Model (CRCF,2007)
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Governance, Risk, Compliance & Ethics Model
Ethics
Risk
Management
Governance
Compliance
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OCEG Model – Combined compliance metrics
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Governance Exercise
Models & Principles comparison
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What does the different models have in common? (See Note)
Are there any significant differences?
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Emphasis
Interests
Controls (Internal/External)
Regulatory compliance – coercive effect
Which are the expected benefits?
What role does Trust play?
Is IT a key factor?
Note: D.F. Larcker, International Corporate Governance, Center for Leadership & Research,
Stanford Graduate School of Business
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