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All of these COBIT components interrelate, providing support for the governance, management, control and audit needs of the different audiences, as shown in figure 4
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Figure 4 Interrelationships of COBIT Components
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COBIT is a framework and supporting toolset that allow managers to bridge the gap with respect to control requirements, technical issues and business risks, and communicate that level of control to stakeholders COBIT enables the development of clear policy and good practice for IT control throughout enterprises COBIT is continuously kept up to date and harmonised with other standards Hence, COBIT has become the integrator for IT best practices and the umbrella framework for IT governance that helps in understanding and managing the risks and benefits associated with IT The process structure of COBIT and its high-level business-oriented approach provide an end-to-end view of IT and the decisions to be made about IT The benefits of implementing COBIT as a governance framework over IT include: Better alignment, based on a business focus A view, understandable to management, of what IT does Clear ownership and responsibilities, based on process orientation General acceptability with third parties and regulators Shared understanding amongst all stakeholders, based on a common language Fulfillment of the COSO requirements for the IT control environment The rest of this document provides a description of the COBIT framework, and all of the core COBIT components organised by COBIT s IT domains and 34 IT processes This provides a handy reference book for all of the main COBIT guidance Several appendices are also provided as useful references Implementation is supported by a number of ISACA/ITGI products including online tools, implementation guides, reference guides and educational materials The latest information on these products can be found at wwwisacaorg/cobit
Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission
COBIT 40 EXECUTIVE SUMMARY
FRAMEWORK
Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission
Cobit 40 Executive Summary
COBIT FRAMEWORK
THE NEED FOR A CONTROL FRAMEWORK FOR IT GOVERNANCE
Increasingly, top management is realising the significant impact that information can have on the success of the enterprise Management expects heightened understanding of the way information technology (IT) is operated and the likelihood of its being leveraged successfully for competitive advantage In particular, top management needs to know if information is being managed by the enterprise so that it is: Likely to achieve its objectives Resilient enough to learn and adapt Judiciously managing the risks it faces Appropriately recognising opportunities and acting upon them Successful enterprises understand the risks and exploit the benefits of IT, and find ways to deal with: Aligning IT strategy with the business strategy Cascading IT strategy and goals down into the enterprise Providing organisational structures that facilitate the implementation of strategy and goals Creating constructive relationships and effective communications between the business and IT, and with external partners Measuring IT s performance Enterprises cannot deliver effectively against these business and governance requirements without adopting and implementing a governance and control framework for IT to: Make a link to the business requirements Make performance against these requirements transparent Organise its activities into a generally accepted process model Identify the major resources to be leveraged Define the management control objectives to be considered Furthermore, governance and control frameworks are becoming a part of IT management best practice and are an enabler for establishing IT governance and complying with continually increasing regulatory requirements IT best practices have become significant due to a number of factors: Business managers and boards demanding a better return from IT investments, ie, that IT delivers what the business needs to enhance stakeholder value Concern over the generally increasing level of IT expenditure The need to meet regulatory requirements for IT controls in areas such as privacy and financial reporting (eg, the Sarbanes-Oxley Act, Basel II) and in specific sectors such as finance, pharmaceutical and healthcare The selection of service providers and the management of service outsourcing and acquisition Increasingly complex IT-related risks such as network security IT governance initiatives that include adoption of control frameworks and best practices to help monitor and improve critical IT activities to increase business value and reduce business risk The need to optimise costs by following, where possible, standardised rather than specially developed approaches The growing maturity and consequent acceptance of well-regarded frameworks such as COBIT, ITIL, ISO 17799, ISO 9001, CMM and PRINCE2 The need for enterprises to assess how they are performing against generally accepted standards and against their peers (benchmarking)
Source: 1996, 1998, 2000, 2005 IT Governance Institute (ITGI) All rights reserved Used by permission