Ch.1
1.) Its a requirement by regulators.
2.) Because of increasing use of information technology in each business process.
Why???????
Because with increasing use of IT there is more risk of errors and frauds. That is why governance is needed.
3.) Enterprise exist for delivering values to shareholders which is achieved by operating within values, risk parameters that are acceptable. i.e why governance.
4.) There should by right structure of decision making accountability and when accountability is shared (i.e. jobs are divided) governance comes into play.
Concepts of Governance and Management of Information Systems
Basics
WHAT IS GOVERNANCE??????
Governance= To Control, To Regulate, To Rule
Establishment of polices and continuous monitoring of their proper implementation by the members of governing body of an organisation. It includes the mechanisms required to balance the powers of the members (with the associated accountability) and their primary duty of enhancing the prosperity and viability of the organisation.
Analyse from the point of view of government. Govt. is basically for governance. Govt. establish polices and then monitor their implementation.They also have some powers and responsibilities.
Now we need to understand the difference between three terms
*Governance
*Corporate Governance
*Enterprise Governance
Enterprise Governance is set of Responsibilities and practices exercised by the Board and Executive management (i.e. BOD and CEO) for
1.) providing strategic direction
2.) ensuring objectives are achieved (objective of value creation)
3.) risks are managed
4.) resources used responsibly (optimal utilization)
Corporate Governance is a system by which company is directed and controlled to achieve objectives of increasing shareholder value by increasing economic performance i.e. business economic performance.
The Term Enterprise Governance is somewhat broader than Corporate Governance and refers not only to business but also to other organisation such as Government Agencies, Financial Reporting Standards and other standards.
Generally these terms used interchangeably.
Now the question is why is there is a need for governance?
1.) Its a requirement by regulators.
2.) Because of increasing use of information technology in each business process.
Why???????
Because with increasing use of IT there is more risk of errors and frauds. That is why governance is needed.
3.) Enterprise exist for delivering values to shareholders which is achieved by operating within values, risk parameters that are acceptable. i.e why governance.
4.) There should by right structure of decision making accountability and when accountability is shared (i.e. jobs are divided) governance comes into play.
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