Cobit 5 principle 1

Prepared for COBIT 5 Foundation Certification - by Sajan Variar

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Principle 1:Meeting Stakeholders Need

Based on COBIT 5 Framework


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AgendaValue Creation by

1. Benefits Realization2. Risk Optimization3. Resource Optimization


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COBIT 5 Principles


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Meeting Stakeholder NeedsEnterprises exist to create value for their stakeholders.


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Meeting Stakeholder Needs• Enterprises have many stakeholders, and

‘creating value’ means different—and sometimes conflicting—things to each of them.

• Governance is about negotiating and deciding amongst different stakeholders’ value interests.

• The governance system should consider all stakeholders when making benefit, resource and risk assessment decisions.

• For each decision, the following can and should be asked: • Who receives the benefits? • Who bears the risk? • What resources are required?


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COBIT 5 Goal Cascade Overview• Stakeholder needs have to

be transformed into an enterprise’s practical strategy.

• The COBIT 5 goals cascade translates stakeholder needs into specific, practical and customised goals within the context of the enterprise, IT-related goals and enabler goals.


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Goals CascadeStep 1 : Stakeholder Drivers Influence Stakeholder NeedsStep 2 : Stakeholder Needs Cascade to Enterprise GoalsStep 3 : Enterprise Goals Cascade to IT-related GoalsStep 4 : IT-related Goals Cascade to Enabler Goals


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Using the COBIT 5 Goals CascadeThe goals cascade allows the definition of priorities for• Implementation• Improvement• Assurance of governance of enterprise IT

In practice, the goal cascade:• Defines relevant and tangible goals and objectives• Filters the knowledge base of COBIT 5, based on

enterprise goals• Clearly identifies and communicates how enablers

are important to achieve enterprise goals


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Using the COBIT 5 Goals CascadeUsing the COBIT 5 Goals Cascade Carefully• Every enterprise has different priorities in its

goals, and priorities may change over time.• The mapping tables do not distinguish between

size and/or industry of the enterprise. • ‘discrete’ levels of relevance


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Using the COBIT 5 Goals CascadeUsing the COBIT 5 Goals Cascade in Practice• Enterprise to build its own goals cascade,

compare it with COBIT and then refine it.

Example:• Translate the strategic priorities into a specific

‘weight’ or importance for each of the enterprise goals.

• Validate the mappings of the goals cascade, taking into account its specific environment, industry, etc.


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StakeholdersExternal Stakeholders• Business partners• Suppliers• Shareholders• Regulators/government• External users• Customers• Standardisation

organisations• External auditors• Consultants

Internal Stakeholders• Board• Chief executive officer (CEO)• Chief financial officer (CFO)• Chief information officer (CIO)• Chief risk officer (CRO)• Business executives• Business process owners• Business managers• Risk managers• Security managers• Service managers• Human resource (HR)

managers• Internal audit• Privacy officers• IT users• IT


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SummaryUnderstanding the

• Benefits Realization• Risk Optimization• Resource Optimization


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Quiz - 11. What is the purpose of the Goal Cascade?

a) Consider the inputs and outputs of an IT process in the enterpriseb) Define and implement the Enterprise Architecture of an enterprisec) Support alignment between enterprise needs and IT solutions and servicesd) Support the definition of clear roles and responsibilities in the enterprise


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Quiz - 11. What is the purpose of the Goal Cascade?

a) Consider the inputs and outputs of an IT process in the enterpriseb) Define and implement the Enterprise Architecture of an enterprisec) Support alignment between enterprise needs and IT solutions and servicesd) Support the definition of clear roles and responsibilities in the enterprise


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Quiz - 21. Which driver influences Stakeholder needs?

a) Good practicesb) Contextual qualityc) Lag indicatorsd) Regulatory environment


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Quiz - 21. Which driver influences Stakeholder needs?

a) Good practicesb) Contextual qualityc) Lag indicatorsd) Regulatory environment


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Reference 1. A business framework for the Governance and

Management of Enterprise IT - COBIT 5, ISACA2. The Balanced Scorecard: Translating Strategy Into

Action - Robert S. Kaplan & David P. Norton3. The goals cascade is based on research performed

by the University of Antwerp Management School IT Alignment and Governance Institute in Belgium

4. COBIT 5 Foundation Training Vanilla material


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Questions ?


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Appendix


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Enterprise Goals


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IT Related Goals