Regulatory changes affected the composition, role and responsibilities of boards of directors are worldwide. While stronger frameworks for directors’ fiduciary responsibilities have led to significantly less attention has been devoted to understanding the nature and the concomitant duty-of-care direction, information systems and technology assets in the organization or IT governance. As a result, boards do not have the skills or that good IT governance requirements demonstrated. IT … Read more »

Regulatory changes affected the composition, role and responsibilities of boards of directors are worldwide. While stronger frameworks for directors’ fiduciary responsibilities have led to significantly less attention has been devoted to understanding the nature and the concomitant duty-of-care direction, information systems and technology assets in the organization or IT governance. As a result, boards do not have the skills or that good IT governance requirements demonstrated. IT Governance takes two forms: a defensive form, IT risk governance, ie the organization of the consequences of IT disasters to protect examined, and a strategic form, value IT Governance that creates sustainable shareholder value. This article focuses on IT risk governance. Based on a scientific and technical literature review and interviews with the boards of six international companies, it provides a model that IT risk governance chain, and a dashboard, which outlines the critical areas of IT risk and the key questions directors should to properly safeguard the information and technology assets of their companies.
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Michael Parent
Blaize Horner Reich
Source: California Management Review
20 pages.
Release date: 01 Begin May 2009. Prod #: CMR431-PDF-ENG
Governing Information Technology Risk HBR case solution