The Adoption of Information Technology in the Governance System of the Bank of Namibia

Abstract

The failure of many organisations over the years has led to a greater need for transparency and accountability. The Corporate Governance Framework, as developed by the King report, is the overarching framework that ensures that the board of directors are responsible for the governance of an organisation. The King III report implies that the board should also be responsible for IT governance because IT is a crucial and costly component that enables the achievement of organisational objectives. From several IT Governance frameworks that exist, the Bank of Namibia, through its integration initiative with the SADC Central Banks, has adopted COBIT 4.1 as an IT governance framework. COBIT 4.1 has several processes that directly aid the alignment of IT to business. A study of the implementation approach of the framework at the Bank and its effectiveness in ensuring the alignment of IT to the business functions was conducted. This study used a quantitative research methodological approach. A questionnaire was developed and was completed using a stratified sample of 35 individuals chosen from a target population comprised of the IT department, executive management and IT compliance champions in the Bank. The findings from the study revealed that a good understanding of what corporate and IT governance entails was evident in the Bank. Ninety-seven percent of the respondents indicated that IT is a key strategic tool that can be leveraged to achieve business goals. In the age of changing technology, the study revealed that the IT department is innovative and stays abreast with new technologies and trends. User awareness was not adequate and the study further revealed that only 49% of the respondents were involved in the IT governance project. The study revealed that top management supported the project. The study also reflected the positive role of IT auditing in the project. It was also noted that IT service delivery has improved and that benchmarking initiatives, as a result of the project, can lead to significant improvements in IT operations. The study revealed that the IT department understands business needs through a process facilitated by their annual departmental visits. The results from the departmental visits are well prioritised projects and IT projects that are tailored to support business goals. An IT steering committee, which was formulated, ensures that executive management is involved in key IT decisions and the reports on IT governance to the board and ensures that awareness is raised on that platform. It is recommended that an IT user awareness programme be established and an investment framework should also be established. It is recommended that the Bank adopts the COBIT 5 framework, which is a more holistic approach that focuses on governance as well as allowing for greater alignment between IT and business functions.