ITPEC IP April 2023 Question 64
Types of governance within a company include IT governance and corporate governance. Which of the following is an appropriate explanation of the positioning of IT governance?
Explanation
IT governance is an indispensable element of corporate governance — it is corporate governance applied to the company's use of IT.
Corporate governance is the mechanism by which the board and top management direct and control the whole company for its stakeholders. Because business now depends on information systems, directing and controlling IT (aligning the IT strategy with the business strategy, deciding IT investment, managing IT risk and checking that IT delivers value) is a necessary part of it. So IT governance sits inside corporate governance and supports it.
Answer (d)
Why not others:
- •(a) — they are not the same: corporate governance covers the whole company, IT governance only the IT side
- •(b) — they are not opposed; IT governance serves the aims of corporate governance
- •(c) — reverses the relationship: IT governance is a component of corporate governance, not the other way round
Key rule: Corporate governance is the whole; IT governance is the part of it that directs and controls IT, exercised by top management.
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