Blog 1 - Tone From the Top

The key focus of IT governance revolves around the concept of managing risk and security to safeguard IT information and systems (ISACA, 2015). Senior executives/managers have the power to create a tone from the top that will ultimately minimize IT related risk in their business (LoParrino & Jaros, 2014).

Good workplace culture, ethics, and behaviour is the answer. Outlined in COBIT 5, this enabler focuses on creating, encouraging, and maintaining desired behaviour. This includes senior management setting an example of what to do, and what not to do.

I work for Australia’s biggest retail company, and managers have always been straight with us about the consequences of stealing, which happens to be immediate termination of employment. After seeing people that I’ve worked with for years just make one mistake and go, I’d say it works as a deterrent to try anything similar. 

"Foil Fraudsters with Strong Internal Controls"

We only have to look as far as Enron (The Economist, 2002), or Worldcom (Atlas, 2015), to know that unethical practices within businesses aren't uncommon, even in large corporations. As we’ve seen a significant rise in the use of technology and social media in the past decade, it would be silly to avoid the topic of IT governance, and the vital role it plays in our society.

References

Atlas, S. (2015). WORLDCOM'S COLLAPSE: THE OVERVIEW; WORLDCOM FILES FOR BANKRUPTCY; LARGEST U.S. CASE. [online] Nytimes.com. Available at: http://www.nytimes.com/2002/07/22/us/worldcom-s-collapse-the-overview-worldcom-files-for-bankruptcy-largest-us-case.html [Accessed 12 Mar. 2015].

Jaros, N. LoParrino, M. (2014). Tone From the Top. Ernst & Young. Available at: http://www.ey.com/Publication/vwLUAssets/EY_-_The_value_of_an_active_board_of_directors/$FILE/EY-tone-from-the-top.pdf [Accessed 12 Mar. 2015].

The Economist, (2002). The real scandal. [online] Available at: http://www.economist.com/node/940091 [Accessed 12 Mar. 2015].

Carrriggs. (2011, March 18). Foil Fraudsters with Strong Internal Controls [Video File]. Retrieved from https://www.youtube.com/watch?v=0BBXWkxwo_0

ISACA.(2015). Cobit 5 Framework. Retrieved from http://www.isaca.org/COBIT/Pages/COBIT-5-Framework-product-page.aspx