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Information Governance : Business Clients

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Information Governance : Business Clients

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Describe about the Information Governance for Business Clients.

The concept of Information governance has become a key element in government activities for many countries like Australia. It is because the information governance provides directing, evaluating as well as the monitoring framework to the government of a country. As companies have to manage important information related to their client or the employees, they need to have Information Governance which is considered very important tool in operating today’s business environment. Most of the organizations have adopted and applied IT governance practices and principles in order to successfully carry out their business operations which have positive impact on organizational performance. IT governance plays a vital role in enterprise governance. It also helps in improvement of business performance along with the competitiveness.
Yaokumah and Brown (2014) states that IT helps to provide control and direction to the companies in ensuring the return on IT’s investment. In a similar manner Wu, Straub and Liang (2015) exhibit that IT highly enhance the organizational competitive ability in a global market. Information governance plays a significant role because it effectively impacts the I.T. investment by the generated value of a firm. Due to the reason, that information governance helps the companies to provide required information quickly as well as on time. From the research articles of Yaokumah and Brown states that (2014) Information governance scope includes two key components namely the Trust Information Governance Policy, and annual action plan.
The objectives for Information Governance are outlined by the Trust Information Governance Policy. On the other hand, annual action plan indicates the baseline assessment against the NHS Connecting for Health Information Governance Toolkit set standards with the various initiatives. These initiatives include management of information governance, assurance of data protection. In a similar way; Wu, Straub and Lian (2015) stated assurance of information security, assurance of corporate information, and assurance of clinical information are also some of the initiatives in an annual action plan.
Moreover, as per Mohamed and Gaur (2012) aim and objectives of information governance are to support the high-quality provision by appropriate use of information, support and motivate staff in order to work as a team, considering the duplication avoidance along with efficient use of the resource. Additionally, to develop arrangements of supports and provide staff with appropriate tools which enable them to carry out consistently high standard with their responsibilities and last is that organizations should understand about their own performance in order to manage improvement in an effective and organized manner.
Amali, Mahmuddin and Ahmad (2014) points out towards Yaokumah and Brown and explain that although IT governance is important but one must also consider it domain areas which include strategic alignment, IT strategy alignment, value delivery, performance measurement, risk and resource management. Strategic alignment is important to ensure planning of a corporation while strategy alignment of IT is important alignment for solving business collaboration and to achieve business objectives. (See figure 1). Supporting this, Wu, Straub and Liang (2015) further mention that value delivery ensures the IT value make sure the cost of IT is optimized effectively by a firm which helps them to indicate the benefits of IT.

Figure 1: Strategic Alignment

Figure 2: Scope of IT governance
At the same time, Wu, Straub and Liang (2015) mention that Information governance supports businesses to achieve competitive advantages along with their performance improvements. It is because the company can implement IT strategies with the help of IG which will result in an effective relationship among business performance and IS strategic alignment. Researchers have used Resource-Based View (RBC) to define this impact in this research and mention that IT strategies are not implemented in a better way by the IT managers which limit the benefits to the entire organization.
According to Amali, Mahmuddin and Ahmad (2014) risk management is important to ensure understanding and awareness of protecting and handling IT assets in the organization. Resource management ensures optimum utilization of IT infrastructure and knowledge while performance measurement is important in implementation monitoring of the project plan, IT services, and utilization of resources. The structure of IT governance is an entity to determine the roles and see how governance is served in the IT process of the management. Good governance ensures the capacity of leadership and working relationships between work units in planning, system operating and realizing, budgeting along with the implementation of IT evaluation.
Allocation of its resources and optimal investment is the main success of IT implementation in serving the organizational needs. Ability to store information through IT helps in quick response to the queries asked within time. However, arguing against this Boron and Boron (2014) states there are weak security breaches information system of the business especially when it is accessible via the Internet. Also, suggest that if appropriate measures are not taken to deal with it then, unauthorized individuals will get success in accessing confidential data of the company. This may result in changed information, or information used for unpleasant purposes as seen in the year 2014, 56 million customer’s payment card details along with email addresses of Home Depot Company was stolen for an unpleasant purpose.
In contrast to this, from the study of Amali, Mahmuddin, and Ahmad (2014) company well manage risk as to ensure data are safe and secure of their clients or the employees along with the shareholders and stakeholders. Risk management can be successfully achieved as and when the boards of directors make sure that the mitigation and assessment of risk strategies. Also, ensure that risk strategies are set into the business operations that may result in quick reporting and response at the time of risk challenges. Supporting this Wu, Straub and Liang (2015) risk management is the objective of any organization and it is intent to lessen risks or to minimize or reduce negative impacts at a satisfactory level by the use of good strategic alignment.

Figure 3: Relationship between Strategic Alignment and Domain areas of Information Security Governance
Additionally, Amali, Mahmuddin, and Ahmad, M (2014) highlights the various keys of Information Governance which helps companies to define its objectives and policies. Some of these regulations include The Foreign Account Tax Compliance Act (FATCA), Health Insurance Portability and Accountability Act (HIPAA). Besides this, Payment Card Industry Data Security Standard (PCI Compliance), Federal Rules of Civil Procedure, Sarbanes–Oxley Act of 2002 (Sarbox or SOX), and Financial Services Modernization Act of 1999 (GLBA). In contrast to this, Yaokumah, and Brown (2014) states besides these regulations, company has to face various issues such as poor risk management, data quality issues, failure to implement information governance in an effective manner, along with the companies not able to deal with change management.
From the above discussion, it can be concluded that information governance is important to consider by organizations in order to make effective policies and infrastructure. It is noted that IT governance and information governance are different terms. Effective IT system is needed by information governance in order to have right information and effectively utilize it. Additionally, Information governance facilitates intelligence of business, process management along with risk management. IT governance helps in guiding strategic alignment of IT governance to advance the performance of business.
Amali, L.N., Mahmuddin, M., and Ahmad, M. (2014) Information Technology Governance Framework in the Public Sector Organizations. Telkomnika, 12 (2), pp. 429 – 436.
Boron, B.B., and Boron, R. J., (2014) Finding the Signal in the Noise: Information Governance, Analytics, and the Future of Legal Practice. Richmond Journal of Law & Technology, 20 (2), pp. 7-14.         
Mohamed, N., and Gaur, J. (2012) A conceptual framework for information technology governance effectiveness in private organizations. Information Security and Computer Security, 20 (2), pp. 88-106.               
Wu, S. P., Straub, D. W., and Liang, T. P. (2015) How Information Technology Governance Mechanisms and Strategic Alignment Influence Organizational Performance: Insights From a Matched Survey of Business and IT Managers. MIS Quarterly, 39 (2), pp. 497-518.
Yaokumah, W., and Brown, S. (2014) An empirical examination of the relationship between information security/business strategic alignment and information security governance domain areas. Journal of Business Systems, Governance and Ethics, 9 (2), pp. 50-65.

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