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How to Avoid IT Governance Mistakes in 2022

June 21, 2022 0 By Madole Labs

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how to avoid IT governance mistkes

Often, bad IT governance has three root causes: it is not in sync with business priorities, it is not in tune with risk management, and it fails to align with IT enterprise governance. Regardless of why IT governance is so important, there are a number of mistakes to avoid. The following article breaks out six key areas on how to avoid IT Governance mistakes.

IT Not Keeping Pace with Evolving Business Priorities

While ensuring that IT teams are delivering business value is essential, many IT departments fail to keep pace with changing business priorities and focus on the right metrics. Many IT leaders focus on completing projects quickly and do not involve their enterprise governance counterparts. This can lead to mistakes that have damaging effects on the enterprise as a whole. To avoid this, it is crucial that CIOs encourage IT, representatives, to collaborate with their enterprise governance counterparts on strategic projects. Enterprise governance teams should regularly communicate with each other and share new tools and features and should coordinate potential solutions for identified risks.

Poor Risk Planning

Without proper risk management, IT cannot effectively deal with cultural differences in the organization. Risk management tools such as dashboards and automated processes are helpful in lowering risk.  However, a lack of buy-in can shift from adherence to failing. This lack of leadership is a major reason why many companies don’t use risk management tools. Two key IT governance mistakes that could lead to poor performance are:

avoid it governance mistakes

1. Ineffective Risk Planning: A poor risk management process often results in poor project outcomes. Assumptions are made by project managers early in a project. The team may need to review them or add new ones. Assumptions should be documented and reviewed as frequently as possible to avoid mistakes.

2. Poor Risk Management: The project manager’s failure to consider risks and respond to them is a major IT governance misstep. One of the best examples of this type of project management is OS/2, which was released to the public before it was ready. It was not ready and the team could not have imagined the risks involved with a pre-mature launch. Ultimately, the project was not a success, as a result.

Insufficient Operational Visibility

Although most CIOs and enterprise leaders are very familiar with IT governance policies, a number of leaders today are still lacking in producing and acting on these policies. This is particularly important because they are not able to assess how effective their organization is at defining and adhering to these policies. A common example of insufficient operational visibility is a lack of IT governance team members at a committee level with business knowledge and sufficient technology focus. As such, it is critical to ensure that your governance team includes members from each of the enterprise’s business segments.

Fail To Align IT Enterprise Governance

Failure to align IT governance with enterprise strategy can lead to serious problems. IT leaders often aim to complete projects quickly and without engaging governance teams. However, this is a mistake because ineffective IT governance can lead to substandard security controls and improper identification of sensitive data. Improper alignment between enterprise strategy and IT can also lead to poor communication and resource allocation. To avoid these problems, CIOs should encourage their IT teams to partner with enterprise operations. The two sides of the organization should educate each other on new features and tools and coordinate potential solutions to identified risks.

Managing IT and the business is critical to the success of an enterprise strategy, but there is a need to integrate IT and business governance processes into your enterprise strategy. When done right, IT governance should free up IT leaders to focus on managing business objectives. The role of IT governance should be to provide business leaders with the framework for making decisions, and the accountability for related processes. IT governance should also foster business-IT collaboration and ensure that the organization gets high value for its investment and satisfaction from IT. The board should ensure that the IT organization is working in harmony with business managers and the company’s strategic goals.

Treating Data Like Waste – Avoid IT Governance Mistakes

It’s a common misconception that IT governance and data quality are separate, and they can negatively impact a business. This misconception is far from true. IT governance should involve all key stakeholders, including team members working within the enterprise’s business segments. If not, it can result in poor decisions that negatively impact the business. In the case of data quality, the business should always own their own data.

Overlooking Insider IT Threats

A recent study showed that 60 percent of attacks were carried out by insiders, who deliberately stole valuable information from organizations. Insiders also put organizations at risk through phishing attempts and poor security practices. While the threat from insiders is rarely 100% preventable, addressing it is an ongoing process. Giving anyone access to your systems and data can cause loss.  It is important to always be on alert. 

Malicious insiders are also a growing problem. As the work-from-home trend continues, so does the risk from malicious insiders. These authorized users can steal sensitive company information and cause extensive damage to your business. Insider threats aren’t always as obvious as cyber attacks, but they’re still dangerous. Malicious insiders may be motivated by financial gain. Likewise, disgruntled employees may be motivated by discontent or emotional stress.

If you don’t properly train employees on proper cybersecurity behavior, you’re inviting internal sabotage. Employees are likely to install apps and plugins to boost productivity, but they’re also portals for malware. Using security software to block these insiders is a key part of securing your IT environment. But the best method of prevention remains education and alertness.

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