Financial institution boards of directors should oversee, while senior management should implement, a governance structure that includes the following:
- Effective IT governance.
- Appropriate oversight of IT activities.
- Comprehensive IT management, including the various roles played by management.
- Effective enterprise architecture.
Governance refers to how financial institutions manage and control their institution. Governance provides the structure through which an institution sets and pursues objectives while taking into account the regulatory and market environment and culture of the institution. The governance structure specifies the responsibilities for the board of directors, managers, auditors, and other stakeholders and specifies the level of authority and accountability for decision making. Governance also includes mechanisms for monitoring actions and decisions enterprise-wide.
I.A IT Governance