Overseeing a company's information technology activities is a significant challenge for directors. The pace of change in this area is rapid, the subject matter is complicated, and the highly technical language used to describe emerging technologies and evolving risks makes this a challenging area. And many companies are relying more and more on technology to get ahead, often prompting substantial changes in how they operate. On the other hand, cyber risk impacts nearly all companies and is top of mind for directors. All of these factors can make the board’s IT oversight responsibility appear harder than it is.
Our research, which included surveying 860 public company directors, indicates many board members are not confident in their board’s ability to effectively oversee their company's IT. Although many directors want to better comprehend the risks and opportunities related to IT, they sometimes don't have an adequate understanding of the subject to be truly effective in their oversight roles. In addition, boards often lack a well-defined process that satisfies their needs in this area. On the whole, this confluence of factors can create an “IT confidence gap” for many board members. Some of the factors contributing to this gap include:
What can the board do to enhance the IT oversight role? Structured frameworks for IT professionals and management already exist; however, they are not designed with the board's oversight role in mind. To fill this void, PwC developed Directors and IT―What Works Best: A user-friendly board guide for effective information technology oversight, which introduces our IT Oversight Framework, to help boards figure out the most effective way to oversee IT at their companies.
|Other key issues|
Learn what PwC has to say about IT Governance:
Additional information about IT Governance: