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COBIT 5© ISACA

COBIT 5 ISACA’s new framework for IT Governance, Risk,Security and Auditing

An overview

M. GarsouxCOBIT 5 Licensed Training Provider

COBIT 5© ISACA

Introduction

Principles

Processes

Implementation

Supporting Products

Questions

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Governance of Enterprise IT

COBIT 5

IT Governance

COBIT4.0/4.1

Management

COBIT3

Control

COBIT2

A business framework from ISACA, at www.isaca.org/cobit

Audit

COBIT1

2005/720001998

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1996 2012

Val IT 2.0(2008)

Risk IT(2009)

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COBIT 5© ISACA

What is CobiT?• Control Objectives for Information and Related Technology (CobiT)• is a set of best practices for Information Technology management• developed by ISACA (Information Systems Audit & Control Association)• and IT Governance Institute• in 1996.

ISACA develops and maintains the internationally recognized COBITframework, helping IT professionals and enterprise leaders fulfil their ITGovernance responsibilities while delivering value to the business.

The latest ISACA’s globally accepted frameworkCOBIT 5 is aimed to provide an end-to-end businessview of the governance of enterprise IT that reflectsthe central role of IT in creating value for enterprises

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• Information is a key resource for all enterprises.• Information is created, used, retained, disclosed

and destroyed.• Technology plays a key role in these actions.• Technology is becoming pervasive in all aspects of

business and personal life.

What benefits does information and technologybring to enterprises?

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Helps enterprises:

• Bring Order to ComplexStandards and Frameworks

• Extract Value from InformationChaos

• Address all Stakeholders Needsand Maximize Value ofCorporate Information

• Protect and Drive EnterpriseValue

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Enterprises and their executives strive to :• Maintain quality information to support business decisions.• Generate business value from IT-enabled investments, i.e.,

achieve strategic goals and realise business benefits througheffective and innovative use of IT.

• Achieve operational excellence through reliable and efficientapplication of technology.

• Maintain IT-related risk at an acceptable level.• Optimise the cost of IT services and technology.

How can these benefits be realized to createenterprise stakeholder value?

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• COBIT 5 is a comprehensive framework that helpsenterprises to create optimal value from IT by maintaining abalance between realising benefits and optimising risk levelsand resource use.

• COBIT 5 enables information and related technology to begoverned and managed in a holistic manner for the wholeenterprise, taking in the full end-to-end business andfunctional areas of responsibility, considering the IT-relatedinterests of internal and external stakeholders.

• The COBIT 5 principles and enablers are generic and usefulfor enterprises of all sizes, whether commercial, not-for -profit or in the public sector.

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• Enterprises exist to create value for their stakeholders

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• Delivering enterprise stakeholder value requires good governanceand management of information and technology (IT) assets.

• Enterprise boards, executives and management have to embraceIT like any other significant part of the business.

• External legal, regulatory and contractual compliancerequirements related to enterprise use of information andtechnology are increasing, threatening value if breached.

• COBIT 5 provides a comprehensive framework that assistsenterprises to achieve their goals and deliver value througheffective governance and management of enterprise IT.

Stakeholder Value

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• Stakeholder needs have to betransformed into an enterprises’actionable strategy.

• The COBIT 5 goals cascadetranslates stakeholder needs intospecific, actionable and customisedgoals within the context of theenterprise, IT-related goals andenabler goals.

Goals cascade

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COBIT 5 entreprise goalsGovernance objectives

BSC Description Benefits Risk ResourceFINANCIAL

1.Stakeholder value of business investments P S2.Portfolio of competitive products and services P P S3.Managed business risks (safeguarding of assets) P S4.Compliance with external laws and regulations P5.Financial transparency P S S

CUSTOMER

6.Customer oriented service culture P S7.Business service continuity and availability P8.Agile responses to a changing business environment P S9.Information based strategic decision making P P P10.Optimisation of service delivery costs P P

INTERNAL

11.Optimisation of business process functionality P P12.Optimisation of business process costs P P13.Managed business change programmes P P S14.Operational and staff productivity P P15.Compliance with internal policies P

Learning&Growth

16.Skilled and motivated people S P P17.Product and business innovation culture P 15

COBIT 5© ISACA

COBIT 5 IT-related goalsBSC Description

FINANCIAL

1. Alignment of IT and business strategy2. IT compliance and support for business compliance with external laws & regulations3. Commitment of executive management for making IT related decisions4. Managed IT related business risks5. Realised benefits form IT-enabled investments and services portfolio6. Transparency of IT costs, benefits and risk

CUST

7. Delivery of IT services in line with business requirements8. Adequate use of applications, information and technology structure

INTERNAL

9. IT agility10. Security of information, processing infrastructure and applications11. Optimisation of IT assets, resources and capabilities12. Enablement and support of business processes by integrating applications and technology13. Delivery of programme on time, on budget, and meeting requirements and quality standards14. Availability of reliable and useful information for decision making15. IT compliance with internal policies

L&G

16. Competent and motivated business and IT personnel17. Knowledge, expertise and initiatives for business innovation 16

COBIT 5© ISACA

Stakeholder Value ofBusiness investments

Customer - orientedservice culture

Optimisation of businessprocess functionality

Skilled andmotivated peole

1 6 11 16Financial Customer Internal Learning and Growth

Financial 1Alignment of IT andbusiness strategy

P P P S

Customer 7Delivery of IT servicesin line with businessrequirements

P P P S

Internal 9 IT agility S S P S

Learningand Growth

16Competent andmotivated businessand IT personnel

S S P

Enterprise Goal

IT -Related Goal

Mapping of Enterprise goals into IT-goals

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Mapping IT goals to processes

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Alignment of IT andbusiness strategy

Delivery of IT servicesin line with business

requirements IT agility

Knowledge, expertiseand initiatives for

business innovation1 7 9 17

Financial Customer Internal

EDM01

EnsureGovernanceFrameworkSetting and

Maintenance

P P S S

EDM02EnsureBenefitsDelivery

P P PEDM03

Ensure RiskOptimisation S S S

EDM04

EnsureRessource

OptimisationS S P S

EDM05Ensure

StakeholderTransparency

S P S

Evaluate,Direct and

Monitor

IT - Related Goal

COBIT 5 Process

COBIT 5© ISACA

Key components of agovernance system

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• COBIT 5 aligns with the latest relevant other standards andframeworks used by enterprises:– Enterprise: COSO, COSO ERM, ISO 9000, ISO 31000– IT-related: ISO 38500, ITIL, ISO27000 series, TOGAF, PMBOK/PRINCE2,

CMMI– Etc.

• This allows the enterprise to use COBIT 5 as the overarchinggovernance and management framework integrator.

• ISACA plans a capability to facilitate COBIT user mapping ofpractices and activities to third-party references.

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COBIT 5© ISACA

COBIT 5 defines a set of enablers to support theimplementation of a comprehensive governance and

management system for enterprise IT.

COBIT 5 enablers are:• Factors that, individually and collectively, influence

whether something will work• Driven by the goals cascade• Described by the COBIT 5 framework in seven

categories

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1

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7

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1. Principles, policies and frameworks—Are the vehicle to translate the desired behaviourinto practical guidance for day-to-day management

2. Processes—Describe an organised set of practices and activities to achieve certainobjectives and produce a set of outputs in support of achieving overall IT related goals

3. Organisational structures—Are the key decision-making entities in an organisation4. Culture, ethics and behaviour—Of individuals and of the organisation; very often

underestimated as a success factor in governance and management activities5. Information—Is pervasive throughout any organisation, i.e., deals with all information

produced and used by the enterprise. Information is required for keeping theorganisation running and well governed, but at the operational level, information is veryoften the key product of the enterprise itself.

6. Services, infrastructure and applications—Include the infrastructure, technology andapplications that provide the enterprise with information technology processing andservices

7. People, skills and competencies—Are linked to people and are required for successfulcompletion of all activities and for making correct decisions and taking correctiveactions

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• Governance ensures that enterprise objectives areachieved by evaluating stakeholder needs, conditionsand options; setting direction through prioritisation anddecision making; and monitoring performance,compliance and progress against agreed direction andobjectives (EDM)

• Management plans, builds, runs and monitors activitiesin alignment with the direction set by the governancebody to achieve the enterprise objectives (PBRM)

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COBIT 5© ISACA

COBIT 5 is not prescriptive, but it advocates thatorganisations implement governance and managementprocesses such that the key areas are covered, as shown.

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COBIT 5 brings together the five principles thatallow the enterprise to build an effectivegovernance and management framework based ona holistic set of seven enablers that optimisesinformation and technology investment and use forthe benefit of stakeholders.

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• Failed IT initiatives• Rising costs• Perception of low business value

for IT investments• Significant incidents related to IT

risk (e.g. data loss)• Service delivery problems• Failure to meet regulatory or

contractual requirements• Audit findings for poor IT

performance or low service levels• Hidden and/or rogue IT spending

Resource waste through duplicationor overlap in IT initiatives

Insufficient IT resources IT staff burnout / dissatisfaction IT enabled changes frequently

failing to meet business needs (latedeliveries or budget overruns)

Multiple and complex IT assuranceefforts

Board members or senior managersthat are reluctant to engage with IT

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• Merger, acquisition or divestiture• Shift in the market, economy or

competitive position• Change in business operating

model or sourcing arrangements• New regulatory or compliance

requirements• Significant technology change or

paradigm shift

An enterprise-wide governance focusor project

A new CIO, CFO, COO or CEO External audit or consultant

assessments A new business strategy or priority

By using pain points or trigger events as thelaunching point for IT governance initiatives,the business case for GEIT improvement canbe related to issues being experienced,which will improve buy-in to the businesscase.

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