What is Governance?
Governance Definition: The process of how an organization is managed; usually includes all aspects of how decisions are made for that organization, such as policies, roles, and procedures the organization uses to make those decisions.
Understanding Governance
The process of how an organization is managed; usually includes all aspects of how decisions are made for that organization, such as policies, roles, and procedures the organization uses to make those decisions. Governance establishes the framework of authority and accountability that directs and controls how an organization fulfills its mission and objectives. It includes organizational structures, policies, processes, and leadership oversight mechanisms that ensure strategic alignment and risk management. Governance frameworks include COBIT, ISO 38500, and is addressed in standards like ISO 27001 and NIST CSF. Organizations implement governance through board oversight, executive leadership, policy frameworks, accountability structures, and reporting mechanisms. For example, a financial institution might establish an IT governance committee with representation from business, IT, security, and risk management that oversees technology investment decisions, policy approval, and risk acceptance. Related terms: Corporate governance, IT governance, GRC Governance, Risk, and Compliance, Oversight, Accountability, Policy management, Decision rights.