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COBIT 40 EXECUTIVE SUMMARY
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DELIVER AND SUPPORT (DS) This domain is concerned with the actual delivery of required services, which includes service delivery, management of security and continuity, service support for users, and management of data and the operational facilities It typically addresses the following management questions: Are IT services being delivered in line with business priorities Are IT costs optimised Is the workforce able to use the IT systems productively and safely Are adequate confidentiality, integrity and availability in place MONITOR AND EVALUATE (ME) All IT processes need to be regularly assessed over time for their quality and compliance with control requirements This domain addresses performance management, monitoring of internal control, regulatory compliance and providing governance It typically addresses the following management questions: Is IT s performance measured to detect problems before it is too late Does management ensure that internal controls are effective and efficient Can IT performance be linked back to business goals Are risk, control, compliance and performance measured and reported
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PROCESSES NEED CONTROLS Control is defined as the policies, procedures, practices and organisational structures designed to provide reasonable assurance that business objectives will be achieved and undesired events will be prevented or detected and corrected An IT control objective is a statement of the desired result or purpose to be achieved by implementing control procedures in a particular IT activity COBIT s control objectives are the minimum requirements for effective control of each IT process Guidance can be obtained from the standard control model shown in figure 8 It follows the principles evident in this analogy: when the room temperature (standard) for the heating system (process) is set, the system will constantly check (compare) ambient room temperature (control information) and will signal (act) the heating system to provide more or less heat
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Figure 8 Control Model
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Operational management uses processes to organise and manage ongoing IT activities COBIT provides a generic process model that represents all the processes normally found in IT functions, providing a common reference model understandable to operational IT and business managers To achieve effective governance, controls need to be implemented by operational managers within a defined control framework for all IT processes Since COBIT s IT control objectives are organised by IT process, the framework provides clear links among IT governance requirements, IT processes and IT controls Each of COBIT s IT processes has a high-level control objective and a number of detailed control objectives As a whole, they are the characteristics of a well-managed process The detailed control objectives are identified by a two-character domain reference plus a process number and a control objective number In addition to the detailed control objectives, each COBIT process has generic control requirements that are identified by PCn, for Process Control number They should be considered together with the detailed process control objectives to have a complete view of control requirements PC1 Process Owner Assign an owner for each COBIT process such that responsibility is clear PC2 Repeatability Define each COBIT process such that it is repeatable PC3 Goals and Objectives Establish clear goals and objectives for each COBIT process for effective execution
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Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission
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Cobit 40 Executive Summary
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PC4 Roles and Responsibilities Define unambiguous roles, activities and responsibilities for each COBIT process for efficient execution PC5 Process Performance Measure the performance of each COBIT process against its goals PC6 Policy, Plans and Procedures Document, review, keep up to date, sign off on and communicate to all involved parties any policy, plan or procedure that drives a COBIT process Effective controls reduce risk, increase the likelihood of value delivery and improve efficiency because there will be fewer errors and a more consistent management approach In addition, COBIT provides examples for each process that are illustrative, but not prescriptive or exhaustive, of: Generic inputs and outputs Activities and guidance on roles and responsibilities in a RACI chart Key activity goals (the most important things to do) Metrics In addition to appreciating what controls are required, process owners need to understand what inputs they require from others and what others require from their process COBIT provides generic examples of the key inputs and outputs for each process including external IT requirements There are some outputs that are input to all other processes, marked as ALL in the output tables, but they are not mentioned as inputs in all processes, and typically include quality standards and metrics requirements, the IT process framework, documented roles and responsibilities, the enterprise IT control framework, IT policies, and personnel roles and responsibilities Understanding the roles and responsibilities for each process is key to effective governance COBIT provides a RACI chart (who is Responsible, Accountable, Consulted and Informed) for each process Accountable means the buck stops here this is the person who provides direction and authorises an activity Responsibility means the person who gets the task done The other two roles (consulted and informed) ensure that everyone who needs to be is involved and supports the process
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BUSINESS CONTROLS AND IT CONTROLS The enterprise s system of internal controls impacts IT at three levels: At the executive management level, business objectives are set, policies are established and decisions are made on how to deploy and manage the resources of the enterprise to execute the enterprise strategy The overall approach to governance and control is established by the board and communicated throughout the enterprise The IT control environment is directed by this top-level set of objectives and policies At the business process level, controls are applied to specific business activities Most business processes are automated and integrated with IT application systems, resulting in many of the controls at this level being automated as well These controls are known as application controls However, some controls within the business process remain as manual procedures, such as authorisation for transactions, separation of duties and manual reconciliations Controls at the business process level are, therefore, a combination of manual controls operated by the business, business controls and automated application controls Both are the responsibility of the business to define and manage although the application controls require the IT function to support their design and development To support the business processes, IT provides IT services, usually in a shared service to many business processes, as many of the development and operational IT processes are provided to the whole enterprise, and much of the IT infrastructure is provided as a common service (eg, networks, databases, operating systems and storage) The controls applied to all IT service activities are known as IT general controls The reliable operation of these general controls is necessary for reliance to be placed on application controls For example, poor change management could jeopardise (by accident or deliberate act) the reliability of automated integrity checks IT GENERAL CONTROLS AND APPLICATION CONTROLS General controls are those controls embedded in IT processes and services Examples include: Systems development Change management Security Computer operations
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Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission
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