The Reserve Bank of India (RBI) has released a draft master direction on information technology (IT) governance for all regulated entities, which will make it mandatory for them to install a robust IT governance framework and help meet their objectives.
The RBI said that the key focus areas of IT governance shall include strategic alignment, value delivery, risk management, resource management, performance management and business continuity and disaster recovery management.
The framework will give clarity on the responsibilities of the board of directors and senior management of the entity.
It will also have to include adequate oversight mechanisms to ensure accountability and mitigation of business risks.
As per the guidelines, the regulated entities would have to set up a board level IT strategy committee, which will have a minimum of two directors as members and at least one of them must have substantial expertise in managing and guiding technology initiatives.
This panel will also ensure that the entity sets up an IT strategic planning process.
Also the Chief Executive Officer of the regulated entity will have to form an effective oversight on the plan and execute an IT strategy.
The regulated entities have to institute an IT steering committee, with an objective of assisting the board, IT strategy committee in IT strategic planning and oversight.
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