Being much more than just a simple way to make life easier for organizations, Information Technology (IT) can be used as a reliable ally for the success of business processes in the same way. It is because through this technology we can implement a methodology that enables the achievement of business objectives and strategies – IT governance and risk management.
According to an expert in Governance, IT Governance and risk management is an effective collaboration to control risks and information within organizations, which is a feature of successful businesses.
“For many companies, information and the technology that supports the availability of it are the most valuable assets, but are often the least understood, characterized as simple assets. Successful companies recognize the benefits of information technology and use it to show added value to their sponsors and investors.”
For a company to stand out in the competitive market scenario today, it needs to be attentive to the benefits that IT can add to business processes and seek to use a differential that is increasingly necessary to reach its previously defined goals, both on an operational and strategic level.
“IT Governance and risk management proposes responsible management to optimize the availability of IT resources (Applications, Information, Infrastructure, People and IT environment performance monitoring in the business) in order to define the needs of Governance and Control”
According to Monaco, the successful implementation of IT governance and risk management implies the participation of all involved in the process from the management team of the company to the operational level.
“IT governance and risk management is the responsibility of board executives and the entire staff. This practice consists of leadership, organizational structure and processes to ensure that IT organizations maintain and exceed strategies and goals in the business. IT Governance and risk management is responsible for integrating and institutionalizing best practices to ensure that IT supports business objectives. It also takes advantage of information in order to maximize aggregate benefits, capitalizing on opportunities and gaining competitive advantage“
What are the specific tasks of IT Governance and Risk Management?
- Strategic Alignment: Definition, maintenance, and IT value validation, through the alignment of IT operations with other business operations;
- Value Delivery: Ensures the delivery of strategic benefits, with cost optimization and the intrinsic value of IT;
- Resource Management: Investment optimization and management of critical IT resources such as Applications, Information, Infrastructure, and People;
- Risk Management: Understanding the corporate appetite for risk, regulatory compliance requirements, and transparency. Understanding of the significant risks to the business and implementing risk management responsibilities within the organization;
- Performance Measurement: Monitor implementation strategies, project closures, and resource utilization. Perform the process of delivering IT services in a Balanced Scorecard framework that transforms strategy into effective action, for achieving measurable objectives (indicators).
See more on Balanced Scorecard: 3 examples of balanced scorecard and their application in business
Monaco also highlights that companies need to understand the value of IT as an essential factor for its performance, given the new trends and market demands, to achieve excellent results and be successful.
“The need to ensure the recognition of the value of IT, the risk management related to it and the greater control requirements over information are now understood as key elements of IT governance and risk management. Core IT governance and risk management is aimed at the recognition of the value of IT to the business, implementing it, understanding and managing the risks involved in information technology. It can be exploited in order to contribute to the organization and control internal activities to ensure the continuous improvement of services and strategic effectiveness of the corporation”
Want to know more about BPM? Check out: Process reliability optimization with BPM.