Based on COBIT 5 Framework
1
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
Value Creation by
1. Benefits Realization
2. Risk Optimization
3. Resource Optimization
2
Prepared for COBIT 5 Foundation ...
3
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
 Enterprises exist to create value for their stakeholders.
4
Prepared for COBIT 5 Foundation Certification -
by Sajan Var...
• Enterprises have many stakeholders, and ‘creating value’
means different—and sometimes conflicting—things to
each of the...
6
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
• Stakeholder needs have to be
transformed into an enter...
Step 1 : Stakeholder Drivers Influence Stakeholder Needs
Step 2 : Stakeholder Needs Cascade to Enterprise Goals
Step 3 : E...
The goals cascade allows the definition of priorities for
• Implementation
• Improvement
• Assurance of governance of ente...
Using the COBIT 5 Goals Cascade Carefully
• Every enterprise has different priorities in its goals, and
priorities may cha...
Using the COBIT 5 Goals Cascade in Practice
• Enterprise to build its own goals cascade, compare it
with COBIT and then re...
11
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
External Stakeholders
• Business partners
• Suppliers
•...
Understanding the
• Benefits Realization
• Risk Optimization
• Resource Optimization
12
Prepared for COBIT 5 Foundation Ce...
1. What is the purpose of the Goal Cascade?
a) Consider the inputs and outputs of an IT process in the
enterprise
b) Defin...
1. What is the purpose of the Goal Cascade?
a) Consider the inputs and outputs of an IT process in the
enterprise
b) Defin...
1. Which driver influences Stakeholder needs?
a) Good practices
b) Contextual quality
c) Lag indicators
d) Regulatory envi...
1. Which driver influences Stakeholder needs?
a) Good practices
b) Contextual quality
c) Lag indicators
d) Regulatory envi...
1. A business framework for the Governance and
Management of Enterprise IT - COBIT 5, ISACA
2. The Balanced Scorecard: Tra...
18
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
19
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
20
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
21
Prepared for COBIT 5 Foundation Certification -
by Sajan Variar
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Cobit 5 principle 1

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  • Principle 1: Meeting Stakeholder Needs—Enterprises exist to create value for their stakeholders by maintaining abalance between the realisation of benefits and the optimisation of risk and use of resources. COBIT 5 provides all of therequired processes and other enablers to support business value creation through the use of IT. Because every enterprisehas different objectives, an enterprise can customise COBIT 5 to suit its own context through the goals cascade,translating high-level enterprise goals into manageable, specific, IT-related goals and mapping these to specific processesand practices.
  • Enterprises exist to create value for their stakeholders by maintaining a balance between the realisation of benefits and the optimisation of risk and use of resources. COBIT 5 provides all of the required processes and other enablers to support business value creation through the use of IT. Because every enterprise has different objectives, an enterprise can customise COBIT 5 to suit its own context through the goals cascade, translating high-level enterprise goals into manageable, specific, IT-related goals and mapping these to specific processes and practices.
  • Step 1. Stakeholder Drivers Influence Stakeholder NeedsStakeholder needs are influenced by a number of drivers, e.g., strategy changes, a changing business and regulatoryenvironment, and new technologies.Step 2. Stakeholder Needs Cascade to Enterprise GoalsStakeholder needs can be related to a set of generic enterprise goals. These enterprise goals have been developed using thebalanced scorecard (BSC)1 dimensions, and they represent a list of commonly used goals that an enterprise may definefor itself.Step 3. Enterprise Goals Cascade to IT-related GoalsAchievement of enterprise goals requires a number of IT-related outcomes,2 which are represented by the IT-related goals.Step 4. IT-related Goals Cascade to Enabler GoalsAchieving IT-related goals requires the successful application and use of a number of enablers. The enabler concept isexplained in detail in chapter 5. Enablers include processes, organisational structures and information, and for each enablera set of specific relevant goals can be defined in support of the IT-related goals.
  • Goals Cascade allows the definition of priorities for implementation, improvement and assurance of governance of enterprise IT based on (strategic) objectives of the enterprise and the related risk.
  • The first step an enterprise should always apply when using the goals cascade is to customise the mapping, taking into account its specific situation.
  • COBIT 5 defines 17 generic goals, which includes the following information:• The BSC dimension under which the enterprise goal fits• Enterprise goals• The relationship to the three main governance objectives—benefits realisation, risk optimisation and resource optimisation.
  • Cobit 5 principle 1

    1. 1. Based on COBIT 5 Framework 1 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    2. 2. Value Creation by 1. Benefits Realization 2. Risk Optimization 3. Resource Optimization 2 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    3. 3. 3 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    4. 4.  Enterprises exist to create value for their stakeholders. 4 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    5. 5. • 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? 5 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    6. 6. 6 Prepared for COBIT 5 Foundation Certification - by Sajan Variar • 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.
    7. 7. Step 1 : Stakeholder Drivers Influence Stakeholder Needs Step 2 : Stakeholder Needs Cascade to Enterprise Goals Step 3 : Enterprise Goals Cascade to IT-related Goals Step 4 : IT-related Goals Cascade to Enabler Goals 7 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    8. 8. The 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 8 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    9. 9. Using 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 9 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    10. 10. Using 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. 10 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    11. 11. 11 Prepared for COBIT 5 Foundation Certification - by Sajan Variar External 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
    12. 12. Understanding the • Benefits Realization • Risk Optimization • Resource Optimization 12 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    13. 13. 1. What is the purpose of the Goal Cascade? a) Consider the inputs and outputs of an IT process in the enterprise b) Define and implement the Enterprise Architecture of an enterprise c) Support alignment between enterprise needs and IT solutions and services d) Support the definition of clear roles and responsibilities in the enterprise 13 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    14. 14. 1. What is the purpose of the Goal Cascade? a) Consider the inputs and outputs of an IT process in the enterprise b) Define and implement the Enterprise Architecture of an enterprise c) Support alignment between enterprise needs and IT solutions and services d) Support the definition of clear roles and responsibilities in the enterprise 14 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    15. 15. 1. Which driver influences Stakeholder needs? a) Good practices b) Contextual quality c) Lag indicators d) Regulatory environment 15 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    16. 16. 1. Which driver influences Stakeholder needs? a) Good practices b) Contextual quality c) Lag indicators d) Regulatory environment 16 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    17. 17. 1. A business framework for the Governance and Management of Enterprise IT - COBIT 5, ISACA 2. The Balanced Scorecard: Translating Strategy Into Action - Robert S. Kaplan & David P. Norton 3. 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 17 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    18. 18. 18 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    19. 19. 19 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    20. 20. 20 Prepared for COBIT 5 Foundation Certification - by Sajan Variar
    21. 21. 21 Prepared for COBIT 5 Foundation Certification - by Sajan Variar

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