Information Technology Governance, IT Governance is a subset discipline of Corporate Governance focused on information technology (IT) systems and their performance and risk management. The rising interest in IT governance is partly due to compliance initiatives, for instance Sarbanes-Oxley in the USA and Basel II in Europe, but more so because of the need for greater accountability for decision-making around the use of IT in the best interest of all stakeholders.
IT capability is directly related to the long term consequences of decisions made by top management. Traditionally, board-level executives deferred key IT decisions to the company's IT professionals. This cannot ensure the best interests of all stakeholders unless deliberate action involves all stakeholders. IT governance systematically involves everyone: board members, executive management, staff and customers. It establishes the framework (see below) used by the organization to establish transparent accountability of individual decisions, and ensures the traceability of decisions to assigned responsibilities.
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