IT Governance Frameworks - Week 1

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AYB115 WEEK 1 - IT Governance Frameworks


"Governance does not protect an organisation against fraud, bribery and corruption. Choosing ethical employees is the only way to prevent such crimes."




I disagree that choosing ethical employees is the only way of preventing crimes such as fraud, bribery, and corruption. Governance most certainly has an influence on preventing these crimes as well, however governance severs a different role in preventing fraud in comparison to hiring ethical employees.

 

Ethical employees are a crucial part in preventing crimes relating to fraud, bribery, and corruption but it being the only factor is not enough. Even the most ethical employees can succumb to external pressures such as financial hardship or pressures within the company to meet certain deadlines or quotas. Moreover, sometimes it is not apparent in the hiring process what prospective employees’ motives are for the company, making it very difficult to solely rely of having ethical employees as the sole factor of preventative action.

 

Effective governance inputs the standard for companies’ ethics and accountability. These rules, policies and procedures help guide employee behaviour to be more ethical. Tight governance also reduces the risk fraud and corruption going unnoticed within the company. If governance is not implemented, then the company is opening itself up to a higher likelihood of fraudulent activities, potential problems with regulatory bodies for not meeting proper governance measures, challenges in attracting investors and also just general reputation problems within the industry.

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