IT-related issues should be considered as part of the design factors for a governance system in order

to manage risks that have a high impact. Design factors are the characteristics of the enterprise that

influence the design and operation of a governance system, such as size, industry, culture, strategy,

etc. IT-related issues are one of the 11 design factors defined in COBIT 2019, and they refer to the

specific challenges or opportunities that arise from the use of information and technology in the

enterprise, such as cybersecurity, digital transformation, innovation, etc. These issues may pose

significant risks to the enterprise’s objectives, performance, or reputation, and therefore need to be

addressed by the governance system. The answer is based on the COBIT 2019 Design Guide1, page

15. Reference: 1: COBIT 2019 Design Guide | Digital | English.

The management objective “managed strategy” belongs to the governance domain “align, plan and

organize (APO)”, which covers the use of information and technology in achieving enterprise

objectives. A primary benefit associated with this management objective is that desired value is

delivered through a roadmap of incremental changes, which ensures that IT initiatives are aligned

with enterprise strategy, prioritized based on value creation, and monitored for performance2,

p. 25. Reference: 2: COBIT 2019 Framework: Governance and Management Objectives

The accountable (A) role drives a given task or process within an organizational structure chart (RACI

chart). A RACI chart is a tool that assigns different levels of responsibility, accountability,

consultation, and information to roles and organizational structures for each governance and

management objective. The accountable (A) role means being answerable for the outcome or result

of a task or process. There should be only one accountable role for each task or process, as having

more than one can lead to confusion or conflict. The accountable role drives a given task or process

by ensuring that it is performed effectively and efficiently, by providing direction and guidance, by

resolving issues or conflicts, by approving changes or exceptions, etc.13 Reference: COBIT 2019

Framework: Introduction and Methodology, COBIT 2019 Framework: Roles, Responsibilities & RACI

Charts

The people, skills and competencies component of governance identifies the human resource needs

that must be met to achieve governance and management objectives. People are the individuals or

groups who perform or are accountable for the governance activities and tasks. Skills and

competencies are the abilities and knowledge that people need to perform their roles and

responsibilities. The people, skills and competencies component of governance defines the required

roles and organizational structures for each governance and management objective, as well as the

skills and competencies that are needed for each role.13 Reference: COBIT 2019 Framework:

Introduction and Methodology, COBIT 2019 Framework: Roles, Responsibilities & RACI Charts

The enterprise goal titled “Optimization of Business Process Costs” is aligned to the internal

dimension of the balanced scorecard (BSC). The internal dimension focuses on the efficiency and

effectiveness of the business processes that deliver value to customers and

stakeholders. Optimization of business process costs is one of the 17 generic enterprise goals defined

by COBIT that supports the internal dimension.12 Reference: COBIT 2019 Framework: Introduction

and Methodology, COBIT 2019 Framework: Governance and Management Objectives

The IT balanced scorecard (BSC) is a tool that helps to measure and communicate the achievement

of IT goals in relation to enterprise goals, using four dimensions: financial, customer, internal, and

learning and growth. The alignment goal titled “Enabling and supporting business processes by

integrating applications and technology” is aligned to the internal dimension of the IT BSC, as it

relates to the efficiency and effectiveness of IT processes that support business processes2,

p. 20. Reference: 2: COBIT 2019 Framework: Governance and Management Objectives

The COBIT framework is designed to meet the I&T goals for the entire enterprise. The COBIT

framework is a comprehensive governance and management framework for information and

technology that helps enterprises to achieve their goals and create value. The COBIT framework

consists of four core publications: COBIT 2019 Framework: Introduction and Methodology; COBIT

2019 Framework: Governance System; COBIT 2019 Framework: Governance and Management

Objectives; COBIT 2019 Design Guide: Designing an Information and Technology Governance

Solution. The COBIT framework is designed to meet the I&T goals for the entire enterprise by

providing a holistic approach that covers all aspects of I&T governance and management, as well as

by enabling customization and tailoring to suit different contexts, needs, priorities,

etc.14 Reference: COBIT 2019 Framework: Introduction and Methodology, COBIT 2019 Framework:

Governance System

Processes are key components of a governance system. Processes are the structured sets of

activities that produce outputs or outcomes for achieving specific objectives. Processes define what

needs to be done, by whom, when, how, and why. Processes are one of the seven enablers of a

governance system, as defined by COBIT.12 Reference: COBIT 2019 Framework: Introduction and

Methodology, COBIT 2019 Framework: Governance System

The focus of an enterprise that has a cost leadership strategy design factor is short-term cost

minimization. A cost leadership strategy is a competitive strategy that aims to achieve lower costs

than competitors by offering standardized products or services at low prices. A cost leadership

strategy design factor affects how an enterprise designs its governance system, as it implies a focus

on operational efficiency, process automation, economies of scale, outsourcing, etc. An enterprise

that has a cost leadership strategy design factor would prioritize short-term cost minimization over

long-term cost optimization or medium-term cost equalization.12 Reference: COBIT 2019

Framework: Introduction and Methodology, COBIT 2019 Design Guide: Designing an Information and

Technology Governance Solution

Within the COBIT goals cascade, stakeholder drivers are transformed into the enterprise’s actionable

strategy. The COBIT goals cascade is a mechanism that helps enterprises to align their governance

objectives with their stakeholder needs. It consists of four levels: stakeholder drivers, enterprise

goals, alignment goals, and governance and management objectives. Stakeholder drivers are the

needs or expectations of the internal or external stakeholders of the enterprise. Enterprise goals are

the specific targets or outcomes that the enterprise sets to achieve its vision and mission. Alignment

goals are the intermediate goals that link the enterprise goals with the governance and management

objectives. Governance and management objectives are the desired outcomes of the governance

system for information and technology. Stakeholder drivers are transformed into enterprise goals

through a process of analysis, prioritization, and validation. Enterprise goals form the basis of the

enterprise’s actionable strategy.12 Reference: COBIT 2019 Framework: Introduction and

Methodology, COBIT 2019 Framework: Governance System