Open AccessThe Interrelation of Information Technology Governance and Enterprise Risk Management to The Organization’s Performance: A Review of Empirical Literature
Author(s) -
Kevin Bastian Sirait
Publication year - 2021
Publication title -
research synergy foundation conference proceedings series/research synergy foundation conference proceeding series
Language(s) - English
Resource type - Journals
eISSN - 2807-6699
pISSN - 2807-5803
DOI - 10.31098/bmss.v1i5.450
Subject(s) - corporate governance , business , empirical research , checklist , process (computing) , enterprise risk management , knowledge management , information governance , process management , risk management , information system , computer science , management information systems , political science , psychology , philosophy , finance , epistemology , law , cognitive psychology , operating system
Given that the role of information technology (IT) governance and enterprise risk management (ERM) within the organization are imperative due to the ever-increasing complexity in the corporate environment, this study aims to uncover the relationship between IT governance and ERM along with the impact of the two frameworks’ interconnectedness on the organization’s performance through empirical literature review. Furthermore, the findings obtained from the empirical review are also used to create a checklist that every organization can apply. The purpose of the created checklist is to help organizations examine the interconnectedness of their IT governance and ERM with respect to their needs and objectives. The findings from the empirical review show that both IT governance and ERM emphasize the importance of strategic and process alignment regarding its implementation, and it is positively significant to the organization’s performance. Hence, the level of effectiveness of one’s IT- and risk-oriented approaches are dictated by how well an organization appropriately aligns its IT governance and ERM structure, mechanism, and process with its objectives, needs, and business operations.