IT governance establishes a framework for aligning IT and business strategies. Organizations can produce measurable results toward achieving their strategies and goals by following a formal framework. A formal program also considers the interests of stakeholders, as well as the needs of employees and the procedures they follow. Thus, IT governance is an essential component of overall enterprise governance. <h2 class="ql-align-justify">Why Is IT Governance Important for Organizations?</h2>Nowadays, many regulations govern the protection of confidential information, financial accountability, data retention, and disaster recovery, among other things. Shareholders, stakeholders, and customers are also putting pressure on them. Therefore, many organizations implement a formal IT governance program that provides a framework of best practices and controls to ensure they meet internal and external requirements. Furthermore, IT governance enables organizations to:1. Show measurable results in relation to larger business strategies and goals2. Comply with applicable legal and regulatory requirements3. Assure stakeholders that your organization's IT services are reliable4. Comply with certain corporate governance or public listing rules or requirements5. Facilitate an increase in the return on IT investment <h2 class="ql-align-justify">How Can Organizations Implement IT Governance?</h2>The simplest way is to start with a framework developed by industry experts and used by thousands of businesses. Below are the most common IT Governance frameworks.•&nbsp;<a href="https://localhost:44352/training/isaca/cobit-2019-foundation.aspx" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 148, 255); font-family: Poppins; font-size: 18px;">COBIT</a>: Designed for enterprise IT governance and management, COBIT is a comprehensive framework of globally accepted practices, analytical tools, and models published by ISACA.•&nbsp;<a href="https://localhost:44352/training/axelos/itil-4-foundation.aspx" rel="noopener noreferrer" target="_blank" style="color: rgb(0, 148, 255); font-family: Poppins; font-size: 18px;">ITIL</a>: ITIL is an acronym for Information Technology Infrastructure Library, which focuses on IT service management. Its goal is to ensure that IT services support the company's core processes.•&nbsp;COSO&nbsp;: The Committee of Sponsoring Organizations of the Treadway Commission developed this model for evaluating internal controls (COSO). COSO is less IT-focused than the other frameworks, focusing instead on business aspects such as enterprise risk management (ERM) and fraud prevention.•&nbsp;CMMI: The Software Engineering Institute's Capability Maturity Model Integration method is a performance improvement approach. The CMMI maturity model rates an organization's performance, quality, and profitability on a scale of 1 to 5.•&nbsp;FAIR: Factor Analysis of Information Risk (FAIR) is a new model for quantifying risk in organizations. With the goal of making better-informed decisions, the focus is on cyber security and operational risk. <h2 class="ql-align-justify">The 5 Domains of IT Governance</h2>• Value DeliveryValue delivery is an important part of IT governance because it ensures that the value of information technology investments is realized. It entails making sound investment decisions and managing them throughout their entire life cycle, from inception to retirement, ensuring that IT delivers appropriate quality on time and on budget, as well as investigating how actual costs are managed and ROI is calculated. Value deliver includes:1. Identifying project value drivers2. Identifying service value drivers3. Project management4. External benchmarking • Strategic AlignmentStrategic alignment is concerned with how IT supports the enterprise strategy and how IT operations are aligned with current enterprise operations. Strategic alignment is how IT supports the enterprise strategy and how IT operations are aligned with current enterprise operations. Strategic alignment includes:1. Understanding the needs of the business2. Developing IT strategy and objectives3. Resource allocation – portfolio management4. Demand management5. Communication • Performance ManagementPerformance management examines how IT tracks and monitors implementation strategy, how project success is determined, resource utilization, and the resulting process and service delivery. Performance management includes:1. Customer satisfaction2. Service level management3. Business value measurement4. Process improvement• Resource ManagementResource management refers to how IT optimizes and manages critical IT assets. Resource management includes:1. Hardware and software asset management2. Third party service providers &amp; Outsourcing3. Standardized architecture4. Financial management – service costing • Risk ManagementRisk management is concerned with the protection of IT assets, disaster recovery, and business continuity - including information security and integrity. Risk management includes:1. Organizational risk appetite2. Project and investment risk mitigation3. Information security risk mitigation4. Operational risk mitigation5. Compliance regulatory mandates6. Audit IT governance is important because it ensures that organizations’ desired outcomes and behaviour are achieved. The link between IT governance and effective value creation from IT investments has long been recognized as a reason for IT management excellence, making IT governance more crucial to be implemented.Learn more about IT Governance at Multimatics! Reference:IT Governance Ltd. (n.d.). What is IT Governance? Definition &amp; Best Practices. https://www.itgovernance.co.uk/it_governanceChristian, F. (2014, February 22). 5 Domain dari IT Governance. Daya Cipta Mandiri Group. http://blog.dayaciptamandiri.com/2014/02/5-domain-dari-it-governance.html

IT governance establishes a framework for aligning IT and business strategies.

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Get Deeper about IT Governance: Why It Is Important, How to Implement It, and 5 Domains of IT Governance