What is IT Governance & Compliance?

IT governance refers to the framework of roles, processes, policies, and controls through which an organisation directs and oversees its IT systems. Its primary purpose is to ensure that technology investments and operations support business goals, deliver value, and manage risk effectively.

Good IT governance provides clarity around decision-making authority, accountability, and performance monitoring. It defines how IT resources, including systems, people, and vendors, are deployed and optimised to achieve organisational objectives.

An essential part of governance is maintaining oversight of third-party software providers and supply chains. As businesses become increasingly reliant on external technology partners, ensuring those relationships are properly managed, compliant, and resilient is now a board-level concern.

IT compliance refers to the organisation’s ability to operate within applicable laws, industry regulations, and internal policies that govern the use of technology and data. This includes requirements for data privacy, cybersecurity, business continuity, and software integrity.

For many regulated industries, such as financial services, healthcare, and government compliance is not optional. Standards like South Africa’s Joint Standards on IT Governance and Cyber Resilience set clear expectations for managing IT risks, protecting sensitive information, and ensuring operational resilience.

Regulatory authorities around the world have introduced formal requirements for IT governance. In South Africa, Joint Standards on IT Governance and Cyber Resilience set clear expectations. Internationally, frameworks like the EU’s Digital Operational Resilience Act (DORA) and UK’s Prudential Regulation Authority (PRA) underscore the global shift toward holding institutions accountable for their technology risk.

Formalising IT governance structures is no longer optional. Organisations that fail to implement effective oversight expose themselves to scrutiny, fines, and operational sanctions.

Weak IT governance increases the likelihood of system failures, service interruptions, and cybersecurity breaches. Such incidents lead not only to operational disruption and higher costs but also to erosion of trust among customers and damage to the brand. In competitive markets, a single failure can have lasting consequences.

IT governance and compliance strengthen an organisation’s ability to withstand and recover from disruptions. By embedding business continuity planning into IT strategy, companies can safeguard critical systems and maintain service even in the face of vendor failure or unforeseen events.

With regulatory frameworks varying by country and industry, compliance is increasingly complex. Effective IT governance ensures that your organisation meets both domestic and international requirements, supporting cross-border operations and strengthening credibility with global partners.

One of the often-overlooked aspects of IT governance is managing the risk of third-party vendor failure. Many critical business functions depend on software or services provided externally. A vendor’s insolvency, acquisition, or breach of contract can jeopardise your operations.

This is where software escrow becomes indispensable. By ensuring verified, secure access to source code and essential documentation under defined conditions, software escrow protects your organisation’s ability to operate business-critical applications without interruption. It is a clear example of proactive governance in action.

Identify and document all third-party and even “nth-party” IT suppliers that support your operations. Understanding your technology supply chain is critical to assessing dependencies, prioritising risks, and managing contracts effectively.

Ensure that your continuity planning includes contingency access to IT assets, particularly those managed by external vendors. Plans should detail how your organisation will maintain operations in the event of vendor failure, cyber incidents, or system outages.

Proactively assess risks across all external IT suppliers and internal systems. Risk assessments should be updated regularly and whenever there are significant changes in your IT environment or supply chain.

Implement software escrow agreements to protect access to source code and technical documentation for critical applications. Escrow arrangements provide assurance that your organisation can continue using vital software if a vendor fails to deliver support or ceases operations.

Ensure your IT investments and activities align with the organisation’s broader business strategy. This helps optimise resource allocation, ensures accountability, and demonstrates the value of IT to the business.

Set up clear internal and external reporting mechanisms that provide stakeholders with visibility into IT risks, performance, and compliance. Transparency is essential for effective oversight and regulatory confidence.

Clarify the roles and responsibilities of senior stakeholders such as the CIO, CFO, CEO, and CRO in IT decision-making. Role clarity reduces bottlenecks, improves accountability, and strengthens governance at the executive level.

Leverage international best practice frameworks to guide your governance structures and processes. Common frameworks include:

• COBIT 2019 for IT governance and management.
• ISO/IEC 27001:2022 for information security management.
• ITIL for IT service management.

These frameworks provide structure, consistency, and credibility to your governance approach.

Incorporate layered security measures, ongoing compliance audits, and threat intelligence into your governance. Cyber risk is dynamic, and organisations must be proactive to protect critical information assets.

Regularly review and update governance policies, processes, and controls to reflect changes in technology, regulation, and business priorities. Annual reviews, or more frequent if required by regulators, ensure your governance remains fit for purpose.