Why Companies Should Have IT Governance

The continuity of the company’s operations cannot be separated from the role of corporate IT Support London in the internal organization. The company has standards and carries out operational procedures to achieve goals that have strategic value. IT governance is a responsibility and a form of work practice that business executives usually use to gain insight into company goals. IT governance can be used by organizations at the executive level to control risks that can occur and ensure that all forms of company resources can be used appropriately. In the end, good corporate governance can affect the level of trust and investment protection in a more secure future.

The definition according to the IT Governance Institute (ITGI) explains that IT governance is the responsibility of executive management or directors, and is part of enterprise governance. IT governance focuses on two things, namely how IT efforts provide added value to the business and risk management when it is implemented. The implementation of information technology governance in an organization is built by providing added value that may be beneficial to stakeholders. A real example that may be applied is in the form of guarantees in terms of accuracy and timeliness of management reports during the process of developing information technology. In addition, the development of information technology must be able to reduce the risk of possible fraud.

What is fraud? Fraud is a term that means fraudulent acts that violate the law (illegal acts) that are carried out intentionally and can harm other parties in the IT field. The forms of this fraud are acts of theft, theft, extortion, plagiarism, embezzlement, and others.

Fraud prevention efforts are closely related to IT Governance practices that apply the selection and development of IT to be adequate. The number of cases of fraud that occurred due to weakness in the selection and development of IT resulting in an unreliable MIS (Management Information System). This unreliability can create opportunities for small frauds that are initially carried out on a whim and then grow into large frauds because of the “opportunity” so that the perpetrators know the weaknesses in terms of supervision that exist within the organization. In essence, fraud is a condition that can damage, harm, and threaten the survival of the company in the future.

Companies can anticipate this opportunity for fraud with good governance because the reasons in it are quite important, especially for management in the organization. Here are some reasons why IT governance is good and must be done by companies, including:

Good IT governance can reduce costs

Companies that implement good ICT governance are proven to be able to reduce costs by at least between 20% when they have set strategies such as operational excellence which can be achieved within 3 years of being implemented.

IT is something expensive

Investment in IT infrastructure must be flexible, which means that investment must be made by maintaining a balance between current and future business needs while still paying attention to the effectiveness and efficiency of costs that have been spent to achieve business goals.

Widespread use of IT

In an effort to achieve success, good cooperation and relationships are needed from all parties, including the IT department. On that basis, good management actions are needed because IT management in the company does not rely on one department within the company organization.

IT provides both opportunities and threats for companies

Opportunities and threats always go hand in hand, just like IT. If IT can be implemented by adopting good things for business development purposes and well managed, then threats can be avoided early.

Good IT governance is a critical thing for companies

The role of IT is quite important in the company if it can be managed properly to get its benefits. Good IT management will have a good impact on the company in the form of performance and a good image from the public.

The value of IT is more than just good technology

Business success is not solely assisted by the presence of IT in the company, good ICT governance is the key to achieving the goal in order to create an expected condition. One of the steps to success is the placement of appropriate human and infrastructure resources when handling a particular process.

Senior Management has limitations

Not all things have to wait for action from the executive level of the company, this is due to limitations in ability and time under certain conditions. Therefore, it is necessary to have good ICT governance so that the decision-making process related to IT investment can be carried out quickly and responsibly but still in line according to the goals and directions desired by the company’s executive level.

Advanced companies manage IT in a different way

The goals to be achieved certainly make companies have to think about the steps they take. Therefore, each company has a tendency to manage IT in its own way. This is adjusted to the company’s main goals and strategies to achieve these goals.

That was the important reason to have good ICT governance in a company because it is related to operational continuity. ICT governance is the responsibility and form of business executives’ work practices in an effort to achieve the company’s goals and objectives in order to have a more secure future

Rachel Maria

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