Cobit Introduction

Introductory COBIT
Presentation
Overview of IT Governance and
the COBIT Framework
©2007 IT Governance Institute. All rights reserved. 1

The Need for IT Governance
Security Keeping
IT Running
Aligning Managing
IT with Complexity
Business
Regulatory
Value/Cost
Compliance
Organisations require a structured approach for managing these and other

challenges.
This will ensure that there are agreed objectives for IT, good management
controls in place and effective monitoring of performance to keep on track
and avoid unexpected outcomes.

The Need for IT Governance
Enterprise governance is a set of

responsibilities and practices exercised by the
board and executive management with the goal
of:
• Providing strategic direction
• Ensuring that objectives are achieved
www.itgi.org
www.itgi.org • Ascertaining that risks are managed appropriately
• Verifying that the enterprise’s resources are used
responsibly
RESOURCE
MANAGEMENT

IT Governance, as Defined by ITGI
IT governance is:
• The responsibility of the board of directors and
executive management
• An integral part of enterprise governance,
consisting of the leadership, organisational
structures and processes that ensure that the
enterprise’s IT sustains and extends the
organisation’s strategies and objectives
www.itgi.org
www.itgi.org
RESOURCE 2005 64% Doing something about it 36%

MANAGEMENT
2003 58% 42% Not doing something about it
Source: Surveys by PwC for the IT Governance Institute Sep-Oct 2003 and Sep-Oct 2005

Enterprise Governance Drives IT Governance
Enterprise governance is about:

 Conformance
• Adhering to legislation, internal policies,
audit requirements, etc.
 Performance Performance
• Improving profitability, efficiency,
effectiveness, growth, etc.
Conformance
Enterprise governance and IT governance require a balance between conformance

and performance goals directed by the board.

IT Governance Focus Areas
Strategic Focuses on ensuring the linkage of business and IT plans;

on defining, maintaining and validating the IT value proposition;
alignment and on aligning IT operations with enterprise operations
Is about executing the value proposition throughout the delivery cycle, ensuring
Value delivery that IT delivers the promised benefits against the strategy, concentrating on
optimising costs and proving the intrinsic value of IT
Is about the optimal investment in, and the proper management of, critical IT
Resource resources: applications, information, infrastructure and people. Key issues
management relate to the optimisation of knowledge and infrastructure.
Requires risk awareness by senior corporate officers, a clear understanding of

Risk management the enterprise’s appetite for risk, understanding of compliance
requirements, transparency about the significant risks to the enterprise, and
embedding of risk management responsibilities in the organisation
Performance Tracks and monitors strategy implementation, project completion, resource

usage, process performance and service delivery, using, for example,
measurement balanced scorecards that translate strategy into action to achieve goals
measurable beyond conventional accounting

Making IT Governance Work
To make an IT governance implementation project successful:
 Make IT governance a workable solution—able to deal with the challenges and pitfalls presented by
IT.
 Focus as much on improving performance and enabling competitive advantage as preventing
problems.
 Make IT governance a shared responsibility between the business (customer) and the IT service
provider, with the full commitment and direction of the board.
 Align IT governance within a wider enterprise governance scheme.
 Boards and executive management need to extend enterprise governance to include IT, provide the
necessary leadership and organisational structures, and insist on well-managed and properly
controlled processes.

IT Governance Stakeholders
Board and Set direction for IT, monitor results and insist on corrective
measures
executive
Defines business requirements for IT and ensures that value
Business management is delivered and risks are managed
Delivers and improves IT services as required by the

IT management business
Provides independent assurance to demonstrate that IT

IT audit delivers what is needed
Risk and Measures compliance with policies and focuses on alerts to

new risks
compliance

COBIT Provides a Framework for IT Governance
COBIT helps bridge the gaps between business risks, control needs and technical issues.
It provides good practices across a domain and process framework and presents
activities in a manageable and logical structure.
COBIT:
 Starts from business requirements
 Is process-oriented, organising IT activities into a generally
accepted process model
 Identifies the major IT resources to be leveraged
 Defines the management control objectives to be considered
 Incorporates major international standards
 Has become the de facto standard for overall control of IT
IT resources need to be managed by a set of naturally grouped

processes. COBIT provides a framework that achieves this
objective.

How Does COBIT Help Implement Effective IT Governance?
COBIT brings the following

advantages to an IT governance
implementation effort:
 Enables mapping of IT goals to business goals and

vice versa
 Better alignment, based on a business focus
 A view of what IT does that is understandable to
management
 Clear ownership and responsibilities based on
process orientation
 General acceptability with third parties and
regulators
 Shared understanding amongst all stakeholders,
based on a common language
 Fulfilment of the COSO requirements for the IT
control environment

COBIT and Other IT Management Frameworks
Organisations will consider and use a variety of IT models, standards and best
practices. These must be understood in order to consider how they can be used
together, with COBIT acting as the consolidator (‘umbrella’).
COSO
COBIT
ISO 17799
ISO 9000
WHAT ITIL HOW
SCOPE OF COVERAGE

Where Does COBIT Fit?
CONFORMANCE
Drivers PERFORMANCE: Basel II, Sarbanes-
Business Goals Oxley Act, etc.
Balanced
Enterprise Governance COSO
Scorecard
IT Governance COBIT
ISO ISO ISO

Best Practice Standards 9001:2000 17799 20000
Processes and Procedures QA Security ITIL

Procedures Principles

COBIT Framework
► The COBIT framework was created with the main characteristics:

 Business-focused
 Process-oriented
 Controls-based
 Measurement-driven
► The acronym COBIT stands for Control Objectives for Information and related Technology.
COBIT Framework Characteristics

COBIT: An IT Control Framework
Governance
Management
Evolution
Control
Audit
COBIT 1 COBIT 2 COBIT 3 COBIT 4
1996 1998 2000 2005
For latest updates on COBIT, log on to www.isaca.org/cobit.

COBIT: Value and Limitations
COBIT:
► Has internationally accepted good practices
► Is management-oriented
► Is supported by tools and training
► Is freely downloadable
► Allows the knowledge of expert volunteers to be shared and leveraged
► Continually evolves
► Is maintained by a reputable not-for-profit organisation
► Maps 100 percent to COSO
► Maps strongly to all major, related standards
► Is a reference, not an ‘off-the-shelf’ cure
Enterprises still need to analyse control requirements and customise COBIT based on their:
► Value drivers
► Risk profile
► IT infrastructure, organisation and project portfolio

COBIT Components
An organisation depends on reliable and timely data and information. C OBIT components provide a
comprehensive framework for delivering value while managing risk and control over data and
information.
IT Resources
Business Strategy
IT Processes
Information
Criteria

COBIT: Advantages
Some of the advantages of adopting COBIT are:

► COBIT is aligned with other standards and good practices and should be used together with them.
► COBIT’s framework and supporting best practices provide a well-managed and flexible IT
environment in an organisation.
► COBIT provides a control environment that is responsive to business needs and serves
management and audit functions in terms of their control responsibilities.
► COBIT provides tools to help manage IT activities.

COBIT and IT Governance
► COBIT focuses on improving IT governance in organisations.

► COBIT provides a framework to manage and control IT activities and supports five requirements
for a control framework.
Provides Defines a
sharper common
business language
focus
Ensures Helps meet

Control
process regulatory
Framework
orientation requirements
Has general
acceptability
amongst
organisations

COBIT and IT Governance (Cont.)
Business Focus
► COBIT achieves sharper business focus
by aligning IT with business objectives. Provides
Defines a
sharper
► The measurement of IT performance common
business
should focus on IT’s contribution to language
focus
enabling and extending the business
strategy.
► COBIT, supported by appropriate
business-focused metrics, can ensure Ensures Helps meet
that the primary focus is value delivery process Control regulatory
orientation Framework requirements
and not technical excellence as an end
in itself.
Has general
acceptability
amongst
organisations

Process Orientation
► When organisations implement COBIT,
their focus is more process-oriented. Provides
Defines a
sharper
► Incidents and problems no longer common
business
language
divert attention from processes. focus
► Exceptions can be clearly defined as
part of standard processes.
► With process ownership defined, Ensures Helps meet
assigned and accepted, the organisation process Control regulatory
is better able to maintain control orientation Framework requirements
through periods of rapid change or
organisational crisis.
Has general
acceptability
amongst
organisations

General Acceptability
► COBIT is a proven and globally
accepted standard for increasing the Provides
Defines a
contribution of IT to organisational sharper
common
business
success. focus language
► The framework continues to improve
and develop to keep pace with good
practices.
► IT professionals from all over the Ensures Helps meet
process Control regulatory
world contribute their ideas and time to
regular review meetings.
Has general
acceptability
amongst
organisations

Regulatory Requirements
► Recent corporate scandals have
increased regulatory pressures on Provides
Defines a
boards of directors to report their status sharper
common
business
and ensure that internal controls are language
focus
appropriate. This pressure covers IT
controls as well.
► Organisations constantly need to
improve IT performance and Ensures Helps meet
demonstrate adequate controls over process Control regulatory
their IT activities. orientation Framework requirements
► Many IT managers, advisors and
auditors are turning to COBIT as the de
facto response to regulatory IT Has general
requirements. acceptability
amongst
organisations

Common Language
► A framework helps get everybody on
the same page by defining critical Provides
Defines a
terms and providing a glossary. sharper
common
business
► Co-ordination within and across project language
focus
teams and organisations can play a key
role in the success of any project.
► Common language helps build
confidence and trust. Ensures Helps meet
process Control regulatory
Has general
acceptability
amongst
organisations

COBIT: Premise
► The COBIT framework is based on the premise that IT needs to deliver the information that an
enterprise requires to achieve its objectives.
for achieving Business

Objectives
i to
Business
Processes
Information
provide
IT Resources
and Processes
► The COBIT framework helps align IT with the business by focusing on business information
requirements and organising IT resources. COBIT provides the framework and guidance to
implement IT governance.

COBIT: Principle
The principle of the COBIT framework is to link management’s IT expectations with management’s IT
responsibilities. The objective is to facilitate IT governance to deliver IT value whilst managing IT
risks.
IT Resources
Business Strategy
IT Processes
Information
Criteria

COBIT Framework
As a control and governance framework for IT, COBIT focuses on two key areas:
► Providing the information required to support business objectives and requirements
► Treating information as the result of the combined application of IT-related resources that need
to be managed by IT processes
Information Criteria
Effectiveness
IT Process Efficiency
Confidentiality
Integrity
Availability
Business Requirement Compliance
Reliability
Control Approach
IT Resources
IT Processes Applications
Domains
Consideration Information
Processes
• ……………………………
Activities Infrastructure
• ……………………………
• ……………………..…….. People

COBIT Cube
The COBIT framework describes how IT processes deliver the information that the business needs to
achieve its objectives.
For controlling this delivery, COBIT provides three key components, each forming a dimension of the
COBIT cube.
Business Requirements for Information Criteria
IT Resources
IT Processes

COBIT Cube: IT Processes
► COBIT describes the IT life cycle with the help of four domains:
 Plan and Organise
 Acquire and Implement
 Deliver and Support
 Monitor and Evaluate
► Processes are series of activities with natural control breaks. There are 34 processes across the four
domains. These processes specify what the business needs to achieve its objectives. The delivery of
information is controlled through 34 IT processes.
► Activities are actions that are required to achieve measurable results. Moreover, activities have life
cycles and include many discrete tasks.
Domains IT Resources
Processes
Activities
IT Processes

COBIT Cube: IT Domains
Plan and Organise (PO)

► Objectives:
 Formulating strategy and tactics
 Identifying how IT can best contribute to achieving business objectives
 Planning, communicating and managing the realisation of the strategic vision
 Implementing organisational and technological infrastructure
► Scope:
 Are IT and the business strategically aligned?
 Is the enterprise achieving optimum use of its resources?
 Does everyone in the organisation understand the IT objectives?
 Are IT risks understood and being managed?
 Is the quality of IT systems appropriate for business needs?
IT and Business

COBIT Cube: IT Domains (Cont.)
Let’s look at the COBIT process model, which consists of 34 IT processes defined within the four IT
domains.
Plan and Organise
PO1 Define a strategic IT plan.

PO2 Define the information architecture.
Plan and Acquire and
Organise Implement PO3 Determine technological direction.
IT Processes
PO4 Define the IT processes, organisation
and relationships.
PO5 Manage the IT investment.
PO6 Communicate management aims and
Deliver and Monitor and
Support Evaluate direction.
PO7 Manage IT human resources.
PO8 Manage quality.
PO9 Assess and manage IT risks.
PO10 Manage projects.

Acquire and Implement (AI)

► Objectives:
 Identifying, developing or acquiring, implementing, and integrating IT solutions
 Changes in and maintenance of existing systems
► Scope:
 Are new projects likely to deliver solutions that meet business needs?
 Are new projects likely to be delivered on time and within budget?
 Will the new systems work properly when implemented?
 Will changes be made without upsetting current business operations?
?
New Projects Organisation

Acquire and Implement

AI1 Identify automated solutions.
AI2 Acquire and maintain application
Organise Implement software.
AI3 Acquire and maintain technology
IT Processes
infrastructure.
AI4 Enable operation and use.
AI5 Procure IT resources.
Support Evaluate
AI6 Manage changes.
AI7 Install and accredit solutions and
changes.

Deliver and Support (DS)

► Objectives:
 The actual delivery of required services, including service delivery
 The management of security, continuity, data and operational facilities
 Service support for users
► Scope:
 Are IT services being delivered in line with business priorities?
 Are IT costs optimised?
 Is the workforce able to use IT systems productively and safely?
 Are adequate confidentiality, integrity and availability in place?
IT Services Business Priorities

Deliver and Support
DS1 Define and manage service levels.

DS2 Manage third-party services.
DS3 Manage performance and capacity.
DS4 Ensure continuous service. Implement
Organise
DS5 Ensure systems security.
IT Processes
DS6 Identify and allocate costs.
DS7 Educate and train users.
DS8 Manage service desk and incidents.
DS9 Manage the configuration. Deliver and Monitor and
Support Evaluate
DS10 Manage problems.
DS11 Manage data.
DS12 Manage the physical environment.
DS13 Manage operations.

Monitor and Evaluate (ME)

► Objectives:
 Performance management
 Monitoring of internal control
 Regulatory compliance
 Governance
► Scope:
 Is IT’s performance measured to detect problems before it is too late?
 Does management ensure that internal controls are effective and efficient?
 Can IT performance be linked to business goals?
 Are risk, control, compliance and performance measured and reported?
IT Performance

Monitor and Evaluate Plan and Acquire and

Organise Implement
ME1 Monitor and evaluate IT performance. IT Processes

ME2 Monitor and evaluate internal control.
ME3 Ensure compliance with external requirements.
ME4 Provide IT governance.
Support Evaluate

COBIT Cube: Information Criteria
► To satisfy business objectives, information needs to conform to specific control criteria, which
COBIT refers to as business requirements for information.
► Broadly, information criteria are based on the following requirements:
 Quality
 Fiduciary
 Security
Quality Requirements
Fiduciary Requirements
Security Requirements
IT Resources
IT Processes

COBIT Cube: Information Criteria (Cont.)
Deals with information being relevant and pertinent to the business

Effectiveness process as well as being delivered in a timely, correct, consistent Quality Requirements
and usable manner Fiduciary Requirements
Concerns the provision of information through the optimal Security Requirements
Efficiency (most productive and economical) use of resources

Concerns the protection of sensitive information IT Resources

Confidentiality
from unauthorised disclosure IT Processes
Relates to the accuracy and completeness of information as

Integrity well as to its validity in accordance with business values
and expectations
Relates to information being available when required by the business process
Availability now and in the future. It also concerns the safeguarding of necessary resources
and associated capabilities.
Deals with complying with those laws, regulations and contractual arrangements to which the
Compliance business process is subject, i.e., externally imposed business criteria as well as internal policies
Relates to the provision of appropriate information for management to operate the entity and to
Reliability
exercise its fiduciary and governance responsibilities

COBIT Cube: IT Resources
► IT processes manage IT resources to generate, deliver and store the information that the
organisation needs to achieve its objectives.
► The IT resources identified in COBIT are defined as:
 Applications are automated user systems and manual procedures that process information.
 Information is data that are input, processed and output by information systems, in whatever
form used by the business.
 Infrastructure includes the technology and facilities, such as hardware, operating systems
and networking, that enable the processing of applications.
 People are the personnel required to plan, organise, acquire, implement, deliver, support,
monitor and evaluate information systems and services. They may be internal, outsourced or
contracted, as required.
Applications
Information
Infrastructure
People
IT Processes
IT Resources

COBIT Framework
BUSINESS OBJECTIVES AND

GOVERNANCE OBJECTIVES
C O B I T
ME1 Monitor and evaluate IT FRAMEWORK
PO1 Define a strategic IT plan.
performance. INFORMATION
PO2 Define the information
ME2 Monitor and evaluate internal
architecture.
control.
Efficiency Integrity PO3 Determine technological
ME3 Ensure compliance with
Effectiveness Availability direction.
external requirements.
Compliance PO4 Define the IT processes,
ME4 Provide IT governance. Confidentiality
organisation and relationships.
Reliability PO5 Manage the IT investment.
MONITOR PLAN PO6 Communicate management aims
AND AND and direction.
EVALUATE ORGANISE PO7 Manage IT human resources.
IT PO8 Manage quality.
DS1 Define and manage service RESOURCES PO9 Assess and manage IT risks.
levels.
PO10 Manage projects.
DS2 Manage third-party services.
DS3 Manage performance and
capacity.
DS4 Ensure continuous service. Applications
Information
DS5 Ensure systems security. AI1 Identify automated solutions.
Infrastructure
DS6 Identify and allocate costs. People AI2 Acquire and maintain application
DS7 Educate and train users. software.
DELIVER ACQUIRE
DS8 Manage service desk and AND AI3 Acquire and maintain technology
AND
incidents. SUPPORT IMPLEMENT infrastructure.
DS9 Manage the configuration. AI4 Enable operation and use.
DS10 Manage problems. AI5 Procure IT resources.
DS11 Manage data. AI6 Manage changes.
DS12 Manage the physical AI7 Install and accredit solutions and
environment. changes.
DS13 Manage operations.

COBIT Cube
IT resources are managed by IT processes to achieve IT goals that respond to the

business requirements. This is the basic principle of the COBIT framework, as
illustrated by the COBIT cube.

Interrelationship of the COBIT Components

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Introductory COBIT

©2007 IT Governance Institute. All rights reserved. 1

Organisations require a structured approach for managing these and other

©2007 IT Governance Institute. All rights reserved. 2

Enterprise governance is a set of

©2007 IT Governance Institute. All rights reserved. 3

RESOURCE 2005 64% Doing something about it 36%

©2007 IT Governance Institute. All rights reserved. 4

Enterprise governance is about:

Enterprise governance and IT governance require a balance between conformance

©2007 IT Governance Institute. All rights reserved. 5

Strategic Focuses on ensuring the linkage of business and IT plans;

Requires risk awareness by senior corporate officers, a clear understanding of

Performance Tracks and monitors strategy implementation, project completion, resource

©2007 IT Governance Institute. All rights reserved. 6

To make an IT governance implementation project successful:

©2007 IT Governance Institute. All rights reserved. 7

Delivers and improves IT services as required by the

Provides independent assurance to demonstrate that IT

Risk and Measures compliance with policies and focuses on alerts to

©2007 IT Governance Institute. All rights reserved. 8

IT resources need to be managed by a set of naturally grouped

©2007 IT Governance Institute. All rights reserved. 9

COBIT brings the following

 Enables mapping of IT goals to business goals and

©2007 IT Governance Institute. All rights reserved. 10

WHAT ITIL HOW

©2007 IT Governance Institute. All rights reserved. 11

ISO ISO ISO

Processes and Procedures QA Security ITIL

©2007 IT Governance Institute. All rights reserved. 12

► The COBIT framework was created with the main characteristics:

COBIT Framework Characteristics

COBIT 1 COBIT 2 COBIT 3 COBIT 4

1996 1998 2000 2005

For latest updates on COBIT, log on to www.isaca.org/cobit.

©2007 IT Governance Institute. All rights reserved. 14

©2007 IT Governance Institute. All rights reserved. 15

©2007 IT Governance Institute. All rights reserved. 16

Some of the advantages of adopting COBIT are:

©2007 IT Governance Institute. All rights reserved. 17

► COBIT focuses on improving IT governance in organisations.

Ensures Helps meet

©2007 IT Governance Institute. All rights reserved. 18

©2007 IT Governance Institute. All rights reserved. 19

©2007 IT Governance Institute. All rights reserved. 20

©2007 IT Governance Institute. All rights reserved. 21

©2007 IT Governance Institute. All rights reserved. 22

©2007 IT Governance Institute. All rights reserved. 23

for achieving Business

©2007 IT Governance Institute. All rights reserved. 24

©2007 IT Governance Institute. All rights reserved. 25

©2007 IT Governance Institute. All rights reserved. 26

Business Requirements for Information Criteria

©2007 IT Governance Institute. All rights reserved. 27

©2007 IT Governance Institute. All rights reserved. 28

Plan and Organise (PO)

©2007 IT Governance Institute. All rights reserved. 29

Plan and Organise