Now let’s identify the participants in IT governance. First, there is the board of directors. Similar to the internal control and ERM frameworks, the board of directors should oversee the process of IT governance. The board also needs to ensure that IT governance aligns with the company’s overall strategy.

Next, we have the executive management (CEO, CFO). Executive management ensures that the plan is implemented and functioning. Unlike the board of directors, the executive management is more involved in the day-to-day operations. Management should emphasize the tone at the top, implying that the example set by management will determine how seriously employees approach the IT structure.

The next participant in IT governance is the steering committee. The steering committee essentially directs the company in the right direction for its IT needs. The steering committee, a group of senior executives, directs, reviews, and approves strategic IT plans. They oversee major initiatives and allocate resources. They make high-level decisions about IT governance and help define the future of the company’s IT structure. 

Study Tip: The steering committee directs the company in the right direction for its IT needs.

Who makes up the steering committee? The Chief Information Officer could be part of the steering committee, or maybe an Accounting Controller, or a Senior Member of the IT department.