1. CobiT Update NSAA IT Conference Richmond, VA John W. Beveridge
September 27, 2007

2. John Beveridge, CISA, CISM, CGFM, CFE, CQA
Deputy State Auditor, Commonwealth of Massachusetts
Adjunct faculty at Bentley College
Co-Chair of Commonwealth’s Enterprise Security Board
Member of Information Systems Auditing Standards Board and Assurance Board
Member of CobiT Steering Committee,
International President of ISACA/F,
Served as member of IT Commission, Governor’s Commission on Computer Crime, Governor’s Commission on Computer Technology and Law, & Governor’s Task Force on E-Commerce

3. What is CobiT?
Authoritative, up-to-date, international set of generally accepted IT control objectives and control practices for day-to-day use by business managers and auditors.
Structured and organized to provide a powerful control model and evaluative tool

4. CobiT's Scope
Focuses on information having integrity, being secure, and available.
Management-oriented
Supports corporate and IT governance
Process-oriented
Controls-based
Measurement-driven
Based on a Strong Foundation and Sound Principles of Internal Control

5. COBIT Promotes an improved focus on business information requirements
Helps ensure that IT processes are defined and that responsibilities are assigned
Supports management’s efforts to demonstrate due diligence
Serves as excellent criteria for evaluation
Strengthens the understanding, design, implementation, exercise, and evaluation of internal control

6. Focus on Information and IT Management
“Right” information, to only the “right” party, in the “right” format, at the “right” time, at the “right” cost.
Information that is relevant, reliable, secure, and available.
Information provided by systems that have integrity by means of a well-managed and properly controlled IT environment.

7. Who is COBIT aimed at? IT & Business Users Auditors / Advisors
To Those Individuals Who are Interested in and Responsible for the Management and Evaluation of Information Technology
Management
IT & Business Users
Auditors / Advisors
Academics & Students of Management and IT
Legislators, Regulators, Oversight Bodies
Vendors
This summarises the different types of audience

8. CobiT was Driven from Recognition of
Need for better operational controls
Importance of technology
Risks associated with an ever changing technology environment
Demand for recognizable value
Need to hold senior management accountable and strengthen governance

9. The Challenge of Managing IT
Achieving sufficient value from IT to support the entity’s mission within a complex, vulnerable and ever changing environment
Adequately managing risk with increasing IT dependence
Effectively dealing with the scale and cost of current and future IT investments
Protecting operations and IT resources against increasing vulnerabilities and a wide spectrum of threats

10. The Challenge of Managing IT
Being able to adequately track and measure IT performance in support of business objectives
Obtaining adequate assurance for the integrity, security and availability of IT systems
Being able to demonstrate due diligence in meeting IT governance objectives

11. Criticality of Managing IT
Today, we are no longer just automating an established business process.
Instead, we are using technology to expand business process capabilities and management decision making -- It is about IT-enabled change.
Poorly-managed IT places the integrity, security, and availability of data and systems at risk and increases the likelihood of unrealized benefit.

12. Management Issues
Difficulty of obtaining adequate assurance that operational and control objectives are being addressed and will be met
Not being sufficiently aware of the impact of technology on control assessment
Not knowing who is really responsible for system integrity, security, and availability
Having cluttered or defused points of accountability for IT processes across the organization

13. Management Issues
Not recognizing that we often manage IT as if it were separate from the enterprise when in fact it is highly integrated with business operations
Uncoordinated strategic planning between business and IT operations
Outsourcing without adequate monitoring and evaluation

14. Management Issues
There are a whole host of folks who pose a real danger to IT systems
Meeting privacy requirements
Failing to meet regulatory or legal requirements
Having a false sense of security
Achieving adequate value to support the entity’s mission

15. Management Questions Is IT well managed? Is IT properly controlled?
Are we doing the right things?
Are we doing them the best way?
Are they being done well?
Are we achieving desired benefits?
Is IT properly controlled?
Do we exercise and can we demonstrate due diligence?
Are the information technology drivers in sync with the agency’s mandates and business goals?

16. Management Questions
How do responsible managers keep the ship on course? …… keep it afloat?
How do we achieve satisfactory results for our citizens and stake-holders?
How do we adapt in a timely manner to “best practices” for our organization’s environment?

17. Assessing the Entity's Ability:
To establish and maintain course and afloat
Strategic and tactical planning, monitoring and evaluation – dashboards with indicators –
Disaster recovery and BCP to keep it afloat
To achieve satisfactory results for our customers and stake-holders
Measurement processes, balanced scorecard, etc.
To adapt in a timely manner to “best practices” for our organization’s environment
Benchmarking, CMM comparisons

18. IT Value How do we manage to achieve acceptable IT value?
What policies, practices and assurance mechanisms do we apply to the “right” resources to achieve value?
What guidance is there to assist management in understanding IT processes and how to achieve IT process results?
What standards should be applied to our IT environment?
How do we address governance?

19. The successful organizations:
Need for IT Governance Control Framework
Many organizations recognize the potential benefits of technology
The successful organizations:
Understand that IT is more than an enabler
Understand and manage the risks associated with implementing new technologies
Keep a keen eye on the mission and goals, and
Know where they are through measured progress and monitoring and evaluation

20. The Need for IT Governance
Security
Keeping
IT Running
Aligning
IT with
Business
Managing
Complexity
Regulatory
Compliance
Value/Cost
Organizations require a structured approach for managing these and other challenges.
Need to ensure that IT objectives are agreed to, good management controls are in place, and there is effective monitoring of performance to keep on track and avoid unexpected outcomes.
Explain that there are many management challenges relating to the use of IT. The slide identifies some examples (the same as in the COBIT® Foundation Course). To manage this range of issues, a sound management approach is needed. The goals include agreed and aligned objectives for IT, effective controls, and effective tracking of performance. These are the main drivers for IT governance.

21. Need for IT Governance Control Framework
CobiT underscores the importance to recognize:
Optimizing value, safeguarding, and ensuring the availability of technology is an entity or senior management issue, not just an IT management issue
Business and IT goals depend on our understanding of how to dynamically apply IT, measure results, and engage IT and business process management
Requires understanding of what we want the technology to do, and how we are going to measure success

22. 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, organizing 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
This slide summarises the main attributes of the COBIT framework.
IT resources need to be managed by a set of naturally grouped processes. COBIT provides a framework that achieves this objective.

23. How Does COBIT View IT Governance?
Consists of leadership, organizational structures, and processes that ensure that IT sustains and extends the enterprise’s strategies and objectives
IT governance is the responsibility of executives and the board of directors

24. IT Governance Objectives
IT is aligned with the business and enables the business to maximize benefit
IT resources are safeguarded and used in a responsible and ethical manner
IT-related risks are addressed through appropriate controls and managed to minimize risk and exposure

25. IT Governance
Integrates and institutionalizes good practices to ensure that IT supports the business objectives.
Enables the enterprise to take advantage of its information and IT resources to maximize benefit and capitalize on opportunities.

26. COBIT IT Governance IT is aligned with the business
IT enables the business and maximizes benefits
IT resources are used responsibly
IT risks are managed appropriately

27. IT Governance Focus Areas
Strategic alignment
Value delivery
Resource management
Risk management
Performance measurement
Strategic alignment focuses on ensuring the linkage of business and IT plans;
on defining, maintaining and validating the IT value proposition; and on aligning
IT operations with enterprise operations.
• Value delivery is about executing the value proposition throughout the delivery cycle,
ensuring that IT delivers the promised benefits against the strategy, concentrating on
optimising costs and proving the intrinsic value of IT.
• Resource management is about the optimal investment in, and the proper management of,
critical IT resources: applications, information, infrastructure and people. Key issues relate to
the optimisation of knowledge and infrastructure.
• Risk management requires risk awareness by senior corporate officers, a clear
understanding of the enterprise’s appetite for risk, understanding of compliance
requirements, transparency about the significant risks to the enterprise, and embedding of
risk management responsibilities into the organisation.
• Performance measurement tracks and monitors strategy implementation, project
completion, resource usage, process performance and service delivery, using, for example,
balanced scorecards that translate strategy into action to achieve goals measurable beyond
conventional accounting.

28. IT Governance Focus Areas
Strategic Alignment focuses on ensuring the linkage of business and IT plans; defining, maintaining and validating the IT value proposition; and aligning IT operations with enterprise operations.
Value Delivery is about executing the value proposition throughout the delivery cycle, ensuring that IT delivers the promised benefits against the strategy, concentrating on optimizing costs and proving the intrinsic value of IT.

29. IT Governance Focus Areas
Resource Management is about the optimal investment in, and the proper management of, critical IT resources: applications, information, infrastructure and people. Key issues relate to the optimization of knowledge and infrastructure.
Risk Management requires risk awareness by senior corporate officers, a clear understanding of the enterprise’s appetite for risk, understanding of compliance requirements, transparency about the significant risks to the enterprise and embedding of risk management responsibilities into the organization.

30. IT Governance Focus Areas
Performance Measurement tracks and monitors strategy implementation, project completion, resource usage, process performance and service delivery, using, for example, balanced scorecards that translate strategy into action to achieve goals measurable beyond conventional accounting.

31. What Should Management Do?
Inquire: Ask the right questions
Focus on IT’s
Alignment with the agency objectives
Value delivery
Risk management
Adopt an IT governance framework
Focus on important IT processes and core IT competencies
Embed responsibilities for IT security and management in the organization
Measure performance and results

32. To Manage and Control IT, COBIT Recommends:
Employing fundamentals of IT governance
Understanding strategic value of IT
Understanding and managing associated risks
Exercising appropriate frameworks of control
Having mechanisms to provide adequate assurance that IT governance objectives are addressed

33. Agencies Need Assurance
That information and systems can be relied upon
That operations are adequately controlled
That information has integrity, is protected, and will be available
That due diligence and compliance with good business practices can be demonstrated.
CobiT provides the control criteria and evaluation methodology

34. CobiT is an Authoritative Source
Built on a sound framework of control and IT-related control practices.
Aligned with de jure and de facto standards and regulations.
Subject to extensive review and exposure.
Aligned with control models, standards and best practices for IT management

35. COBIT’s View of the Definition of Control Why Control Information Systems?
The answer lies in the realm of what the business wants:
to accomplish and
avoid
It therefore falls to the spectrum of:
objectives and
risks

36. COBIT’s View of the Definition of Control
The Objectives and Risks become
Value Drivers and Risk Drivers in COBIT

37. Control (as defined by COBIT)
The policies, procedures, practices and organizational structures designed to provide reasonable assurance that business objectives will be achieved and that undesired events will be prevented or detected and corrected.

38. To Avoid Risks, Threats and Exposures To Achieve Business Objectives
Control (as defined by COBIT)
The policies, procedures, practices and organizational
structures designed to provide reasonable assurance that
business objectives will be achieved and that undesired events
will be prevented or detected and corrected.
Source: COBIT Control Objectives. P. 12.

39. CobiT promotes a healthy understanding about “reasonable assurance” and “residual risk”
Knowing the acceptable levels for reasonable assurance and residual risk is a critical success factor for designing and managing an adequate framework of control

40. Assurance Level
100%
Residual Risk
Reasonable Assurance 0%

41. Relation to Other Control Models
CobiT is in alignment with other control models:
COSO
COCO
Cadbury
King

42. COBIT and Other IT Management Frameworks
Organizations will consider and use a variety of IT models, standards and best practices. They must be understood to consider how they can be used together, with COBIT acting as the consolidator (‘umbrella’).
COSO
COBIT
ISO 17799
ISO 9000
ITIL
WHAT
HOW
It is normal for COBIT to be used in conjunction with other good practices, standards and in-house developed guidance. COBIT can act like an umbrella providing the framework for everything else.
SCOPE OF COVERAGE

43. Business Requirements for Information Criteria
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

44. 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. i
IT Resources and Processes
Information
Business Processes
Business Objectives
provide to
for achieving
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.

45. IT Resource Management
CobiT underscores and demonstrates that IT resources need to be managed by naturally grouped processes to provide organizations with type and quality of information required to achieve organizational objectives.

46. COBIT
COBIT is a valuable IT governance tool that helps in the understanding and management of risks and benefits associated with information integrity, security, and availability, and the management of related technology.

48. CobiT Addresses key attributes of information produced by IT.
Links recommended control practices for IT to business and control objectives.
Provides guidance in implementing and evaluating the appropriateness of IT-related management control practices.

49. Where is COBIT Today?

50. How is CobiT Focused?
IT Governance – better coverage with governance practices
Business requirements – better business to IT linkages with cascading goals and supporting metrics
Harmonization – improved integration with key practices
Value Creation – extended focus on IT investment
Enterprise architecture - process structure and resources
Process definitions and process flows – improved descriptions, activities, inputs and output
Language and presentation – more concise in presentation, action-oriented, control model and management guidelines are consolidated into one document

51. What are the key COBIT Documents?
Control Objectives define what needs to be done to implement an effective control structure to improve IT performance and address IT solutions and service delivery risks.
Control Practices provides guidance on the risks to be avoided and value to be gained from implementing a control objective, and instruction on how to implement the objective.
IT Assurance Guide provides guidance for the assurance team with a structured assurance approach linked to the COBIT framework that is understandable for business and IT professionals

52. COBIT and Related Products
COBIT is an IT governance framework and supporting tool set that allows managers to bridge the gap between control requirements, technical issues and business risks.
Board Briefing on IT Governance
To help executives understand why IT governance is important, what its issues are and what their responsibility is for managing it
Information Security Governance
To help overcome these barriers by explaining information security in business terms. It comes complete with tools and techniques to help managers uncover security-related problems
IT Governance Implementation Guide
Provides a generic road map for implementing IT governance using the COBIT and Val IT resources
Control Practices
Provide guidance on why the control objectives are worth implementing and how to implement them
IT Assurance Guide
Provides guidance on how COBIT can be used to support a variety of assurance activities together with suggested testing steps for all the IT processes and control objectives

53. COBIT and Related Products
COBIT Quickstart
To summarized version of the COBIT resources, focusing on the most crucial IT processes, control objectives and metrics, all presented in an easy-to-follow format to help users gain the benefits of COBIT quickly.
COBIT Security Baseline (available 3rd quarter 2007)
To focuses on IT security risk in a way that is simple to follow and implement for everyone, from the home user or small- to medium-sized enterprise to executives and board members of larger organizations.
Val IT
To provides guidance for managing an organization’s portfolio of
IT-enabled business investments and for maximizing the quality of business cases for IT-enabled business investments.
IT Control Objectives for Sarbanes-Oxley
To provides guidance on how to ensure compliance for the IT environment based on the COBIT control objectives related to financial reporting.
Aligning COBIT, ITIL and ISO 17799
To explain to business users and senior management the value of IT best practices and how harmonization, implementation and
integration of best practices (COBIT, ITIL and ISO/IEC 17799) may be made easier.
COBIT Mapping Series
To overview and various mappings of COBIT to other international
guidance have been published by ITGI, such as CMM, ISO17799.

54. COBIT and Related Products

56. Framework Control Objectives Management Guidelines Maturity Models

57. COBIT Objectives - IT Governance Topics
Focus on IT Alignment by linking Information Criteria, IT Resources and IT Goals to Business Goals
Focus on Value Delivery by using value-oriented IT goals to focus on the IT processes that are critical to deliver effectively
Focus on Risk Management by using risk-oriented IT goals to focus on the IT processes that are needed to manage risk
Focus on Resource Management by using Maturity Models to ensure there is a capability to deliver
Focus on Performance Management by using metrics and scorecards to ensure plans are on track and deviations are identified and corrected
CobiT focuses on 5 key areas which we will see during this course are the main elements of IT Governance as well as the issues all commentators and analysts agree are key to IT success
Read through each bullet to reinforce each one, saying these will be come clearer as we progress through the two days

59. Concise Control Objectives
CobiT 4.1
CobiT 4.0
PO1.2 Business-IT Alignment
Establish processes of bi-directional education and
reciprocal involvement in strategic planning to achieve
business and IT alignment and integration. Mediate
between business and IT imperatives so priorities can be
mutually agreed.
Educate executives on current technology capabilities and
future directions, the opportunities that IT provides, and
what the business has to do to capitalize on those
opportunities. Make sure the business direction to which IT
is aligned is understood. The business and IT strategies
should be integrated, clearly linking enterprise goals and IT
goals and recognizing opportunities as well as current
capability limitations, and broadly communicated. Identify
where the business (strategy) is critically dependent on IT
and mediate between imperatives of the business and the
technology, so agreed priorities can be established.
PO5.1 Financial Management Framework
Establish and maintain a financial framework to manage the
investment and cost of IT assets and services through portfolios
of IT enabled investments, business cases and IT budgets.
Establish a financial framework for IT that drives budgeting and
cost/benefit analysis, based on investment, service and asset
portfolios. Maintain the portfolios of IT-enabled investment
programmers, IT services and IT assets, which form the basis for
the current IT budget. Provide input to business cases for new
investments, taking into account current IT asset and service
portfolios.
New investments and maintenance to service and asset portfolios
will influence the future IT budget. Communicate the cost and
benefit aspects of these portfolios to the budget prioritization, cost
management and benefit management processes.

62. Framework Update

63. COBIT Framework
Documents relationships among information criteria, IT resources, and IT processes
Links control objectives and control practices to business processes and business objectives
Assists in confirming that appropriate IT processes (and practices) are in place
Facilitates evaluation and assurance methods

64. Information Criteria -- The 1st Component
Effectiveness
Efficiency
Confidentiality
Integrity
Availability
Compliance
Reliability

65. IT Resources -- The 2nd Component
Application Systems
Information
Infrastructure
People

66. IT Process Domains -- The 3rd Component
Plan and Organize
Acquire and Implement
Deliver and Support
Monitor and Evaluate

67. COBIT Process Model Subdivides IT into four domains
34 processes in line with the domains
Responsibility areas of plan, build, run and monitor, providing an end-to-end
Enterprise architecture concepts help identify the resources essential for process success

68. What Are the Main Changes?

69. COBIT Domains: Information Processes (3rd Component)
Plan and
Organize
Acquire and
Implement
Feedback
Monitor and Evaluate
Feedback
Feedback
Deliver and
Support

70. COBIT Framework
To provide the information that the enterprise requires to achieve its objectives, the enterprise needs to invest in and manage and control IT resources using a structured set of processes in order to provide the services that deliver the required enterprise information.
Basic COBIT Principle

71. CobiT Framework Helps one understand the:
relationship of controls to control objectives,
importance of focusing on control objectives and their relationship to the business organization and its business processes, and
value of managed processes and resources to attain data integrity, security and availability.

73. CobiT is Business-focused
Business orientation is the main theme of COBIT.
Designed to be used by IT service providers, users and auditors, and to also provide comprehensive guidance for management and business process owners.

74. Business Orientation of COBIT
Links business goals to IT goals
Provides metrics and maturity models to measure their achievement
Identifies the associated responsibilities of business and IT process owners.

75. Business Goals Financial Perspective Customer Perspective
Expand market share
Increase revenue
Return on Investment
Optimize asset utilization
Manage business risks
Customer Perspective
Improve customer orientation and service
Offer competitive products and service
Service availability
Agility in responding to changing business requirements
Cost optimization of service delivery

76. Business Goals Internal Perspective Learning and Growth Perspective
Automate and integrate the business value chain
Improve and maintain business process functionality
Lower process costs
Compliance with external laws and regulations
Transparency
Compliance with internal policies
Improve and maintain operational and staff productivity
Learning and Growth Perspective
Product and business innovation
Obtain reliable and useful information for strategic decision making
Acquire and maintain skilled and motivated personnel

77. IT Goals
Respond to business requirements in alignment with business strategy
Respond to governance requirements in line with board direction
Ensure the satisfaction of end users with service offerings and service levels
Optimize the use of information
Create IT agility
Define how business function and control requirements are translated in effective and efficient automated solutions
Acquire and maintain integrated and standardized application systems
Acquire and maintain and integrated and standardized infrastructure

78. IT Goals
Acquire and maintain IT skills that respond to the IT strategy
Ensure mutual satisfaction of third-party relationships
Seamlessly integrate applications and technology solutions into business processes
Ensure transparency and understanding of IT cost, benefits, strategy, policies and service levels
Ensure proper use and performance of the applications and technology solutions
Account for and protect all IT assets
Optimize the IT infrastructure, resources and capabilities
Reduce solution and service delivery defects and rework
Protect the achievement of IT objectives
Establish clarity of business impact of risks to IT objectives and resources

79. IT Goals
Ensure critical and confidential information is withheld from those who should not have access to it
Ensure automated business transactions and information exchanges can be trusted
Ensure IT services and infrastructure can properly resist and recover from failures due to error, deliberate attack or disaster
Ensure minimum business impact in the event of an IT service disruption or change
Make sure that IT service are available as required
Improve IT’s cost-efficiency and its contribution to business profitability
Deliver projects on time and on budget meeting quality standards
Maintain the integrity of information and processing infrastructure
Ensure IT compliance with laws and regulations
Ensure that IT demonstrates cost-efficient service quality, continuous improvement and readiness for future change

81. Linking Business Goals to IT Goals
An Example:
The business goal of increasing revenue is linked to IT goals numbers 25 and 28, which are:
“Deliver projects on time and on budget meeting quality standards” and
“Ensure that IT demonstrates cost-efficient service quality, continuous improvement and readiness for future change”

83. Linking IT Goals to IT Processes
Example of linking IT goals to IT processes:
The IT goal of optimizing the use of information is linked to IT processes PO2 and DS11 (information architecture and managing data)

85. The WATERFALL Navigation Aid --
High Level Control Objectives for Each Process
High-Level Control Objective
The control of
which satisfy
is focusing on
Is achieved by
IT Processes
Business
Requirements
Control
Statements
Practices
Is measured by
Users satisfaction

87. “RACI” Chart
Identifies who is Responsible, Accountable, Consulted and/or Informed
Addresses considerations for points of accountability
Addresses issues of communication and desired input (who would be consulted)
Rather than titles, think of positions in terms of roles
Depending on the size of the organization or the IT function, several roles may be combined

88. Primary Inputs and Outputs
CobiT identifies from where primary inputs are obtained for each process
The inputs are identifies and where they came from
Also identifies to which IT processes the process provides output to
The outputs (from the process) are identified to where they would be directed

90. Metrics Performance measurement is essential for IT governance.
Requires setting and monitoring measurable objectives of what the IT processes need to deliver (process outcome) and how they deliver it (process capability and performance).

91. Metrics Activity Goals tells us how well the process is performing
Measured by KPIs
Process Goals tell us what IT must deliver
Measured by Key Goal indicators
IT Goals tell us what we expect from IT
Measured by Key Goal Indicators

95. Use of Maturity Models
The assessment of process capability based on the COBIT maturity models is a key part of IT governance implementation.
Enables gaps in capability to be identified and demonstrated to management.
Action plans can then be developed

97. Control Practices Control Objectives Value Drivers Risk Drivers

98. Control Design Necessary and sufficient steps Roles & responsibilities
Characteristics
Generic and specific practices
Active and passive
Input, outputs, activities

99. IT Control Practices
Provides guidance on risks to avoided and value to be gained
Provides detailed guidance on specific controls needed to address high-level and detailed control objectives
Provides guidance on how, why and what to implement to improve IT performance
Includes key elements of value and risk statements and control practices

100. IT Control Practices
Describing the different necessary and sufficient steps to achieve a control objective
Action-oriented, enabling timely execution and measurable
Relevant to the purpose of the control objective
Supporting clear roles and responsibility including segregation

101. Control Practices Characteristics:
The benefits listed under ‘why do it’ are tangible and motivate to implement controls
The set of control practices is complete (e.g. key controls) and implementation satisfies the control objective
Control practices listed are generally accepted as good business practice
Control practices suggest sustainable solutions
The control practices are effective in addressing the risk linked to not achieving the detailed control objective
The control practices suggest efficient solutions
The wording of the control practices is concise while providing clear and unambiguous guidance on what is expected for implementation
The control practices are realistic
Control Practices go to the next level down and are a guide for implementation, explaining how to address each objective providing practical considerations. But they are not specific solutions and are therefore generic.
Note that during 2003 not all of these are available as they are under development

102. IT Assurance Guide Need for IT Governance and Assurance
The CobiT Framework
IT Assurance Approaches
How CobiT Supports IT Assurance Activities

103. Approach IT Assurance Steps
Testing of a control approach covering 4 assurance objectives
Existence
Design effectiveness
Operating effectiveness (implemented, consistent application and proper use)
Design and operating efficiency (cost/benefit and possible use of automation)
Providing 3 types of assurance guidance
Testing the suggested control design
Testing control objective achievement
Documenting impact of control weaknesses

104. Approach IT Assurance Steps
Tests based on a documented taxonomy of relevant assurance methods
Enquire and confirm (via different source)
Inspect (walk-through, search, compare, review)
Observe (confirmation is inherent)
Re-perform or re-calculate and analyze (often based on a sample)
Automated evidence collection (sample, trace, extract) and analyze

108. Using CobiT 1

109. CobiT provides the basis for IT Governance
CobiT IT Processes and Maturity Models focus on IT capability
CobiT Links business goals to IT Goals
Provide Direction
Compare
Measure Performance
IT Activities
Increase automation (make the business
effective)
Decrease cost
(make the enterprise efficient)
Manage risks
(security, reliability and compliance)
IT is aligned with the
business
IT enables the
business and
maximizes benefits
IT resources are used
responsibly
IT-related risks are
managed appropriately
Set Objectives
This diagram which is taken from the Management Guidelines book, describes one of the basic principles of IT Governance. Objectives have to be clear and well understood. Management should direct activities to meet these objectives and regularly measure and compare to detect variances that can then be corrected.
The diagram shows how the various elements of CobiT support these stages
The working of a central heating thermostat as an example
CobiT Framework provides a common understanding of IT’s role
CobiT KGIs and KPIs enable measurement

110. Using CobiT
From an organizational perspective, entities should use control models such as COSO and CobiT along with generally accepted control practices to build and exercise appropriate controls to help manage their entities.

111. Strong Basis for Policy Development
Use CobiT as a basis to develop or strengthen policies and control practices
Compare existing policies and standard procedures against CobiT
Conduct high-level and detailed policy reviews

112. Using CobiT Matrices to Focus on:
IT Functions
Their importance?
Level of performance?
Control documentation?
Responsible Parties of IT
Performed by?
Contracted services?
Primary responsible party?
Risk Assessment
Importance, level of risk, control documentation?

113. CobiT’s Evaluation Focus
What is most critical to the business?
What are the CSFs?
What are the risks and threats?
How robust and appropriate does the internal control structure appear?
What are management’s concerns?

114. Risks to the Entity? Unaware of the risks Poor understanding of CSFs
Absence of KPIs
No “scorecard” or basis of measurement
Absence of monitoring and evaluation
Weak IT control environment
Unknown loss of data or system integrity

115. COBIT Focuses on Risk-Based Approach
Focuses on the entity from a management perspective
Emphasis on knowledge of the business and the technology
Focus on assessing the effectiveness of a “combination” of controls
Linkage between risk assessment and testing focusing on control objectives

116. To Address Outsourced Services
Determine whether desired processes are in place and establish accountability
Agree on levels of control, measurement and evaluation
Use CobiT to help design service contracts by identifying deliverables and responsibilities
Use CobiT for ongoing monitoring and evaluation of providers and partners

117. Recap: CobiT Recognizes
IT is an integral part of the organization
IT governance is an integral part of corporate governance
Focus on control objectives can strengthen appropriateness and use of internal controls
Measurement is crucial to internal control
Monitoring and evaluation are integral to a system of internal control

119. Interrelationships of CobiT Components

120. CobiT Control Practices
COBIT Content Diagram
CobiT and Val IT
frameworks
IT Governance
Implementation Guide,
2nd Edition
IT Assurance Guide
Control Objectives
CobiT Control Practices
2nd Edition
Key Management
Pratices

121. CobiT Update Thank You Freely downloadable from: www.isaca.org
For questions and assistance:
John W. Beveridge
x 135
Best to me at:
Thank You