What Are The Five Elements of IT Governance? 

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Your company’s IT department is essential for the company to function effectively. They can detect online threats, optimize your company’s website, and help safeguard your company’s private information. However, it is also important to recognize the importance of proper IT governance. Here are the five main elements of IT governance.

The First Element is Value Delivery

As IT experts like Alex Raymond from Michigan would tell you, the first element of IT governance is value delivery. Value delivery is simpler than it may seem. Essentially, value delivery means that you base your IT plan on reality. There are a number of ways that you can evaluate your IT plan. Financial measures such as return on investment and an internal rate of return can help you evaluate this strategy.

Strategic Alignment Is Another Element of IT Governance

Strategic alignment is one more element of effective IT governance. In this case, strategic alignment means that the objective is for the IT department to support the achievement of the company’s goals. It is ideal if this support happens on tactical, strategic, structural, and operational levels. Additionally, strategic alignment means that you ensure that the company and the IT department are totally integrated. This is even more important if the company operates in many different countries.

Resource Management is Part of IT Governance

Resource management is a key component of effective IT governance, according to IT governance experts like Michigan’s Alex Raymond. In a general sense, resource management refers to allocating resources so that you can make sure that a project or program provides the company with the greatest amount of organizational value. Resource management in IT governance means planning, controlling, and allocating IT resources to make the company’s business solutions more effective and efficient. It also refers to how your company’s IT department manages and optimizes its most important resources.

Risk Management Is A Crucial Component of IT Governance

The basics of risk management as it pertains to IT governance is that it requires component collaboration within the company to manage risks and information. Risk management in IT governance also means that your company comprehends the requirements for complying with regulations and takes action to ensure you comply with these regulations to minimize any risk due to violating regulations. Transparency is another part of risk management in IT governance. It is critical that your IT department is transparent about the risks the company faces so you can deal with them effectively. One example of risk management in IT governance is ensuring that the IT department has made the company website secure to safeguard it against any form of online attack.

Performance Management Allows for Effective IT Governance

As with any part of your company, it is critical to evaluate the performance of your IT department. You can do so by taking a look at their implementation strategies and how well they utilize the resources that they have. Alex Raymond of Michigan believes it is best if you have some measurable objectives for your IT department to meet in a specific timeframe. One example of a measurable objective is employee satisfaction with the IT department. You can evaluate how well your IT department helps your employees with technology issues and take action from there.