6 Principles for a Governance System

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Let's start off with the six principles for a government system as defined by co bit.

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So in this video, we're going to cover the six principles needed for a governance system

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cope. It defined six principles needed for a successful governance system.

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Keep in mind we're talking about the system and not the framework.

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Ah, governance system is the way in which the enterprise will govern and manage its I T resource is to derive business value.

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The principles listed will be necessary to ensure that your I T governance framework is both useful and effective. So let's start with principal. One

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principle, one states that each enterprise requires a governance system to satisfy stakeholder needs.

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So what does that mean exactly?

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It means we need a government system to derive value from the I T department, as opposed to costs being excessively high without bringing in much business value.

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On the other hand, it also means that you need to use I T to get business value from the information and business processes that support the organization's goals and objectives.

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The value that is derived should result in benefits, lowered risks or a risk a line to the risk appetite of the business

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and resource optimization.

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Thus, businesses need an actionable strategy to realize that value

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actionable is the key word here.

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If you have a strategy, but there's no way to implement it, it doesn't add much value.

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Principle. Two states that a government system should be built from components that can be different types and that it should work together.

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Components can be processes, structures, infrastructures, architectures, information, people and more.

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These components can be different.

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So, for example, people and process that should work together. You don't want technology running independently from organizational structures and people. It should work together for a smooth and comprehensive way to manage business assets such as information

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principle. Three addresses the fact that the government system should be dynamic.

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Let's talk about why that is, when you change something in an organization, it usually has ripple effects.

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If a person leaves a certain position, it could affect the entire department who relied on that person for certain information.

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The same goes for technology. If you take out a part of the infrastructure, you need to consider the effect it can have on the entire architecture ER and other processes or systems that use that component.

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So when something has changed in the I T infrastructure, consider the impact it can have on different components, like automated processes.

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Subsequently, we're talking. We're taking on a dynamic view of the I T infrastructure and treating it as such, so creating a dynamic governance system will reflect the actual state of things. And then this dynamic view will create a system that is both viable and lowers risk because it can

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less in future issues. If you take a dynamic view

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of the entire enterprise and its I T systems,

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So why do you think an I T governance framework should be dynamic?

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Can you think of a time when you're governance, when your organization was not dynamic and what problems that caused and created for you?

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So then let's talk about the fourth principle for a governance system that is to distinguish between management and governance activities and structures.

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Remember how we went over the difference between governance and management?

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This is where governance sets the strategic direction for an enterprising man, and then management plans, bills and executes that vision.

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So it's important to distinguish between the two and have activities and structures be differentiated within your governance system.

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Principal five means that the government system should be customized and tailored to the specific business needs.

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Businesses within the same industry will have different needs, objectives and goals.

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No two businesses are the same.

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Thus the governance system needs to be customized to the specific businesses needs.

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Design factors should be parameters in which to customize the governance system.

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It's also important to remember to prioritize your decisions, parameters and customize ations. So you're doing the most pertinent actions first.

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Lastly, the six principle dictates that the governance system should inquire should cover the entire enterprise end to end.

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Don't only focus on the I T department in this government system.

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Include all technology and information located within the company and utilized within the business. Thio achieve business goals and objectives

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cope. It provides ah, holistic and comprehensive way in which to implement I t. Governance

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and naturally you're going to want to cover the enterprise from end to end to ensure that it is effectively governing and managing your I T infrastructures.