What is ISO/IEC 38506 about?
ISO/IEC 38506 is an International Standard on the governance of Information technology that provides guidance on governance of IT-enabled investments to the governing body of all forms of organizations, whether private, public, or government entities, and will equally apply regardless of the size of the organization or its industry or sector.
ISO/IEC 38506 also provides guidance to other parties interacting with governing bodies such as project personnel, accountants, management consultants, investment portfolio managers and governance, support staff.
ISO/IEC 38506 does not prescribe or define specific management practices required for IT-enabled investments.
Who is ISO/IEC 38506 for?
ISO/IEC 38506 on governance of IT is relevant to:
- IT industry
- Public and private organizations
- Investment portfolio management companies
- Management consultants
- Regulatory bodies
Why should you use ISO/IEC 38506?
Information Technology (IT) supports the core functions of all organizations, underpins the basis of almost all business activities and interfaces with customers and other stakeholders. Investments in IT enablement and the contribution of IT to the business capability and performance of the organization play a significant role in the achievement of strategic plans and the delivery of business value. ISO/IEC 38506 specifies effective governance of IT-enabled investments that will provide governing bodies with a better understanding of their obligations and derived to support the organization’s business opportunities and to appropriately mitigate the organization’s risk.
ISO/IEC 38506 ensures that IT governance delivers the promised benefits against the strategy at an agreed risk exposure and provides clarity between the business strategy and the IT strategy and initiatives.
ISO/IEC 38506 also provides guidance that can be applied in the due diligence process related to business acquisitions. Effective governance will proactively prevent or mitigate the IT aspects of the risk of such events occurring, for example, by addressing prolonged underinvestment.
ISO/IEC 38506 is beneficial as it allows organizations to improve cost savings, reduce redundancies and let customers fully benefit from new products or services.
