What is IT governance and why is it important? Let's first start with corporate governance. Corporate governance is a set of responsibilities and practices used by an organization’s management to provide strategic direction to the business. Governance ensures that goals are achievable, risks are properly addressed, and organizational resources are properly utilized.
IT governance is an integral part of corporate governance and consists of the leadership, structures, and processes that ensure IT extends the organization’s strategy and objectives. IT governance is the responsibility of the board of directors and executive management.
IT governance helps ensure the alignment of IT with business objectives. Fundamentally, IT governance is concerned with:
- Value - IT delivers value to the business by strategic alignment of IT with the business
- Risks - IT risks are mitigated by embedding accountability into the business