Ch 10 Flashcards
What is information systems governance
set of decisions rights and the guideing accountability framework to ensure that IT resources are employed appropriately in the organization
What are the IT governance two principle aspects
the management of downside risk and the fostering of upside potiential (IT value governance)
What is IT risk governance concerned with
decisions for minimizing threats security risks and failures, unsuccessful project implementations
What is IT value governance concerned with
maximizing the value of IT investments and the firm’s ability to leverage its information system resources
What are the 5 Categories of Risk the BOD must address?
IT Competence Risk, Infrastructure Risk, It Project Risk, Business Continuity Risk, informaiton Risk P. 386
What are the 3 ways Information Systems are funded?
Chargeback, Allocation & Overhead
What is Chargeback
direct billing of IS resources and services to the organization function or department that uses them. Usually treated as a cost center
What is Allocation
direct billing of IS resources and services to the organization function or department that uses them…HOWEVER, it’s not pay per use like in chargeback, its based on other indicators such as size, revenues, and number of users
What is Overhead
treats IS as a shared expense to be drawn from the organization overall budget
Whats the main advantage of chargeback?
percieved fairness, accountability they create for both user and the IS function
What’s the main drawback of overhead method
lack of accountability for both the frunctional area and the IS department
What is TCO, Total cost of ownership
finicial estimate designed to explicity recongnize the full life cycle costs of IT assets: more than just selection, licensing and implementation…including ongoing training, support personnel, maintennace, upgrades, security.
List the 3 individual project risks
Project size, experience with technology, & organizational change
What is project size
monetary investment
What is experience with technology
degree of experience the firm has with the technology
