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Align IT with business strategy
 It
is crucial for IT to be built into the business plan, says Judge Mervyn
King.
King III recommends that IT should be integrated with company strategy,
according to Judge Mervyn King, chairman of the King Committee.
During his keynote address at the ITWeb IT Governance, Risk and
Compliance conference in Johannesburg, yesterday, King pointed out that
companies no longer look at business in silos.
“It is crucial for IT to be built into the business plan, as its main
role is to facilitate the achievement of business strategy and add
value.”
He said the King III report recommends that all departments within
organisations be aligned to strategy, so performance and sustainability
can be achieved. “For this to be effective, there should be proper
management in place for all the structures, processes, and mechanisms,”
King added.
Management needs to execute the IT frameworks and make sure IT is on
track to achieve its objective, as well as check if it is resilient
enough to adapt to the strategy, he advised. “When management is in
place, it is usually easy to see if IT is adequately protecting the
business from the risks it faces, and if opportunities can be
proactively recognised and acted upon.”
King also urged delegates to develop an information security management
system (ISMS) for their businesses. “This ISMS should ensure the
confidentiality of information, the integrity of information, and the
availability of information, as well as information systems, in a timely
manner,” he stressed.
Weakest link
“The risks involved in IT governance have become significant, as IT
systems have become integral to a company's strategy and business,” King
stated. Risk also includes the involvement of outside parties, such as
service providers, so this makes IT risks form part of the company's
risk management.
Click here
“Organisations should make sure there are adequate arrangements for
disaster recovery and if there are IT legal risks involved,” he said.
Above all, the company should make sure it is complying with applicable
IT law.
King suggested that organisations form a risk committee, to ensure IT
risks are adequately addressed and, if necessary, call on expert advice.
“The committee or the expert hired should understand the overall
exposure to IT risks from a strategic and business perspective, ensuring
that controls are in place to address IT risks.”
On board
The report suggests that a company's management, or even the board,
should be directly involved in IT governance. King pointed out that
company boards that have had little understanding of IT systems, and
their associated costs, have had to rely on expert advisors, who are now
being appointed as CIOs.
“It is crucial that these CIOs sit on the board, like other directors,
as they have a better understanding of IT.”
He said the report stresses that CIOs understand the long-term strategy
of the business, so they can align it with efficient and effective IT
solutions. “This will eventually strategically integrate IT into the
business strategy.” CIOs will be able to see to it that the amount spent
on IT is being measured and managed at all times, he added.
At all times, an organisation should see to it that there is independent
assurance on the quality of outsourced IT, King said. “They should also
see to it that there are effective review processes by independent
experts.”
Compliance evolution
In 1994, the King committee issued its report on corporate governance.
King I, as it is now known, incorporated a code of corporate practices
and conduct that looked beyond the corporation itself, taking into
account its impact on the larger community.
A second King Committee report – King II – was issued in 2002, taking
this inclusive approach considerably further. The review of King II was
prompted by changes in international governance trends and the reform of
SA's company laws with the promulgation of the new Companies Act, 2008,
expected to come into effect on 1 July 2010.
The revised King Code and Report on Governance for SA (King III) was
unveiled on 1 September, 2009. It will come into effect and replace the
existing King II Code and Report on Corporate Governance on 1 March
2010. |
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The speaker
presentations are now available for delegates to download on
ITWeb's vCards.
vCards are
virtual networking tools,
which offer delegates, speakers and sponsors an interactive
communications platform to engage, interact and exchange
information.
To get started click on the link below:
http://www.itweb.co.za/events/vcards/
To view the IT Governance 2010
conference vCards
simply enter the username, and
password which was sent to you via email.
Should you need any additional information regarding the use of
your vCard, contact Maggie on
maggie@itweb.co.za or
(011) 807-3294. |
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