Determining the Degree of Principle-Based or Policy-Based Enterprise Governance Framework

D.

When defining an enterprise governance framework, the primary determination of the degree to which the framework is principle-based or policy-based is the organizational decision-making style.

Principle-based governance refers to a governance approach that is based on a set of guiding principles. These principles provide a high-level framework that guides decision-making and behavior throughout the organization. Principle-based governance tends to be more flexible and adaptable, as it allows for more individual judgment and interpretation.

On the other hand, policy-based governance refers to an approach that is based on a set of specific rules and procedures. These policies provide more detailed guidance on how to handle specific situations and tend to be more prescriptive in nature. Policy-based governance tends to be more structured and predictable, as it provides a clear set of guidelines to follow.

The organizational decision-making style can influence whether an organization prefers a principle-based or policy-based approach to governance. For example, an organization with a more decentralized decision-making style may prefer a principle-based approach, as it allows for more individual judgment and interpretation. Conversely, an organization with a more centralized decision-making style may prefer a policy-based approach, as it provides clear guidance and instructions for employees to follow.

Other factors, such as the enterprise architecture framework, IT process maturity, and organizational structure, may also influence the degree to which an enterprise governance framework is principle-based or policy-based. However, the organizational decision-making style is the primary determinant of this aspect of the governance framework.