IT Governance: Implementing Frameworks and Standards for the Corporate Governance of IT

CHAPTER 1: IT GOVERNANCE DEFINED

Governance, as explained in the Introduction, is distinct from management. Any governance framework—including an IT governance framework—must identify the role of an organisation’s governing body, and align that with the governing body’s role as described in the OECD Principles of Corporate Governance, revised in 2004, and as originally described in the Cadbury Report on Corporate Governance of 1992.

The UK’s revised Combined Code (2004) now explicitly states that all directors are required to ‘provide entrepreneurial leadership of the company within a framework of prudent and effective controls which enable risk to be assessed and managed’¹⁶. This statement recognises the need for a risk management framework ...