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What is Corporate Governance?

Australian Corporate Governance Standards

• Good Governance Principles (AS8000 )
• Fraud and Corruption Control (AS8001)
• Organisational Codes of Conduct (AS8002)
• Corporate Social Responsibility (AS8003)
• Whistle Blower protection programs (AS8004)
• Risk Management (AS4360)
• Corporate Governance of ICT (AS8015)

Information and Communication Technology

• Anyone not use a Telephone, Computer, The Internet?
• Anyone satisfied with the reports from their finance system?
• Do you know who to turn to, when these do not work?
• How do you know you are getting value for money?

Risks from poor Governance of ICT

• Failure to comply with Financial Disclosure Requirements
• Alienate Members and Stakeholders by poor use of email and website
• Breach Privacy Legislation by misuse of personal information eg email addresses
• Impact on strategic direction and operations, when anticipated returns on investment are not realised

Questions/Comments

Review, Discussion, Questions

• Governing the Use of ICT by an organisation is a core part of corporate governance.
• The success or failure of organisation depends on how well it Directors, deal with opportunities and threats.
• Comments/Questions?

To implement Effective Governance of ICT

Adopt AS8015 Corporate Governance of ICT Framework

• Model
• Principles
• Vocabulary

AS8015 Framework - Principles

1. Establish Clearly Understood Responsibilities for ICT
2. Plan ICT to best support the organisation
3. Acquire ICT validly
4. Ensure that ICT performs well, whenever required
5. Ensure ICT conforms with formal rules
6. Ensure ICT respects human factors

AS8015 Framework
Principle 1. Establish Clearly Understood Responsibilities

• Board, CEO, CIO/CTO and advisers
• Management, Steering Committees, Champions
• Reports, Measures and Indicators
• Competence

AS8015 Framework
Principle 2. Plan ICT to best support the organisation

• Organisational Strategies - requirements for ICT
• Evaluate Opportunities and Threats
• Direct development of plans and policies

AS8015 Framework
Principle 3. Acquire ICT validly

• Throughout life cycle
• Pull the plug/change course in timely/cost effective manner
• Are benefits understood and related to investment - is the financial case sound
• Achieve Benefits - changes to business practices - impact on individual and organisation

AS8015 Framework - Vocabulary

• Investment
• Risk
• Director
• Stakeholders

Summary & Questions

• ICT is a source of Risk to Organisations
• Adoption of Good Principles enables organisations to deal with threats and realise benefits
• However, effective Governance requires ongoing Monitoring, Evaluation and Direction of ICT

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