Factors Indicating the Need for Improved Governance of Enterprise IT

B.

The need for improved governance of enterprise IT can arise due to various factors. However, among the given options, option B - "Significant incidents related to IT risk, such as data loss or project failure, have been experienced" is the most relevant factor indicating the need for improved governance of enterprise IT.

IT risk refers to the potential for adverse effects on the enterprise resulting from the use of information technology. IT risks can arise from various sources, including hardware and software failure, human error, malicious attacks, and natural disasters. IT risks can have significant consequences, such as financial losses, damage to reputation, legal liabilities, and regulatory non-compliance.

If an enterprise has experienced significant incidents related to IT risk, such as data loss or project failure, it indicates that there are gaps in the governance of enterprise IT. These incidents can be symptoms of deeper problems, such as inadequate risk management processes, inadequate controls, insufficient oversight, inadequate training and awareness, or a lack of alignment between IT and business objectives.

To address these problems and improve the governance of enterprise IT, the enterprise needs to undertake a systematic and structured approach to IT governance, based on a recognized framework, such as COBIT (Control Objectives for Information and Related Technology). COBIT provides a comprehensive framework of governance and management practices for enterprise IT, based on a set of core processes, control objectives, and metrics.

In addition to adopting a framework such as COBIT, the enterprise needs to establish a governance structure that defines clear roles and responsibilities for IT governance, establish policies and procedures for IT governance, implement controls to manage IT risks, and provide training and awareness to ensure that all stakeholders understand their roles and responsibilities.

In summary, significant incidents related to IT risk can indicate a need for improved governance of enterprise IT. To address this need, the enterprise needs to adopt a systematic and structured approach to IT governance, based on a recognized framework such as COBIT, and establish a governance structure, policies, procedures, and controls to manage IT risks effectively.