COBIT 40 EXECUTIVE SUMMARY in .NET

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COBIT 40 EXECUTIVE SUMMARY
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PERFORMANCE MEASUREMENT Goals and metrics are defined in COBIT at three levels: IT goals and metrics that define what the business expects from IT (what the business would use to measure IT) Process goals and metrics that define what the IT process must deliver to support IT s objectives (how the IT process owner would be measured) Process performance metrics (to measure how well the process is performing to indicate if the goals are likely to be met) COBIT uses two types of metrics: goal indicators and performance indicators The goal indicators of the lower level become performance indicators for the higher level Key goal indicators (KGI) define measures that tell management after the fact whether an IT process has achieved its business requirements, usually expressed in terms of information criteria: Availability of information needed to support the business needs Absence of integrity and confidentiality risks Cost-efficiency of processes and operations Confirmation of reliability, effectiveness and compliance Key performance indicators (KPI) define measures that determine how well the IT process is performing in enabling the goal to be reached They are lead indicators of whether a goal will likely be reached or not, and are good indicators of capabilities, practices and skills They measure the activity goals, which are the actions the process owner must take to achieve effective process performance Effective metrics should meet the following characteristics: A high insight-to-effort ratio (ie, insight into performance and the achievement of goals as compared to effort to capture them) Be comparable internally (eg, percent against a base or numbers over time) Be comparable externally irrespective of enterprise size or industry Better to have a few good metrics (may even be one very good one that could be influenced by different means) than a longer list of lower quality Should be easy to measure and should not be confused with targets Figure 13 illustrates the relationship among process, IT and business goals, and among the different metrics, with examples from DS5 Ensure systems security
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Figure 13 Relationship Among Process, Goals and Metrics (DS5)
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Define goals
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Activity Goal Understand security requirements, vulnerabilities and threats Process Goal Detect and resolve unauthorised access to information, applications and infrastructure
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D r i v e D r i v e
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IT Goal Ensure IT services can resist and recover from attacks
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D r i v e
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Business Goal Maintain enterprise reputation and leadership
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Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission
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Measure achievement
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is measured by Frequency of review of the type of security events to be monitored
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is measured by Number of access violations
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is measured by Number of actual IT incidents with business impact
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is measured by Number of incidents causing public embarrassment
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KPI KPI KPI Process Metric KGI IT Metric KGI
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Business Metric KGI
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Drive performance
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Cobit 40 Executive Summary
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Goals are defined top-down in that business goals will determine a number of IT goals to support them, IT goals will decide the different process goals needed, and each process goal will establish the activity goals The achievement of goals is measured by outcome metrics (called key goal indicators, or KGIs) and drives the higher-level goal For example, the metric that measured the achievement of the activity goal is a performance driver (called key performance indicator, or KPI) for the process goal Metrics allow management to correct performance and realign with the goals
The COBIT Framework Model
The COBIT framework, therefore, ties the businesses requirements for information and governance to the objectives of the IT services function The COBIT process model enables IT activities and the resources that support them to be properly managed and controlled based on COBIT s control objectives, and aligned and monitored using COBIT s KGI and KPI metrics, as illustrated in figure 14
Figure 14 COBIT Management, Control, Alignment and Monitoring
Business Goals
Governance Drivers Business Outcomes
Information Criteria
Infrastructure
Applications
Information
People
IT Resources
IT Processes
IT Processes
Key Performance Indicators
IT Goals
Key Goal Indicators High-level Control Objectives
To summarise, IT resources are managed by IT processes to achieve IT goals that respond to the business requirements This is the basic principle of the COBIT framework, as illustrated by the COBIT cube (figure 15) Figure 15 The COBIT Cube
Business Requirements
y s es ncy tialit rity bility ance ility e en li ab tiv ffici iden Integ vaila mp Reli ec E onf A Co Eff C
Infrastructure
DOMAINS
IT Processes
PROCESSES
ACTIVITIES
Applications
Information
s Re IT
Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission