Information Technology (IT) pervades every facet of banking operations and IT Governance is emerging as an important discipline to be supported by the Top Management of banks. IT Governance is an important component of corporate governance and both need to converge, since good governance besides ensuring better compliance also helps achieve better performance.
Boards of banks play an important role in laying down principles, policies and promoting best practices of IT Governance. With a view to familiarize the Board members of various banks on the important subject of IT Governance as well as other technologies such as Customer Relationship Management, Risk Management and Cyber Security, IDRBT organized the First Seminar on May 13 & 14, 2011 at IDRBT, for the benefit of Board Members of Banks.
Starting the proceedings, Shri B. Sambamurthy, Director, IDRBT, explained why the Institute is organising this very important programme. "IT Governance is a relatively new subject, even globally. But IT Governance is very critical because IT is now almost all-pervasive in Banks. Do our banks have good measures, tools, frameworks and guidelines to evaluate IT Governance? It is the responsibility of the boards to ensure that governance, both from the performance and conformance aspects, is taken care of. This seminar while providing exposure to the latest in IT governance, would also dwell on how it is linked to Corporate governance, and how the two disciplines of IT governance and Corporate governance converge and align and what implications it has on the working of a bank." He also emphasized the importance of developing information as a distinct discipline.
The seminar was inaugurated by Dr. Y. V. Reddy, Former Governor, Reserve Bank of India. Speaking on the occasion, Dr. Reddy highlighted the lessons learnt from the Global Financial Crisis, especially from the perspective of Governance by raising pertinent questions in respect of the origin of the crisis, the causative factors, and the role of various entities including the markets, participants, regulators, government, credit rating agencies, etc. He focused on the need for accountability and the role of the Governance structure in the form of the Board and their Committees and took the participants through a virtual journey of ensuring appropriate Governance.
The next key speaker was Shri Anand Sinha, Deputy Governor, Reserve Bank of India and Chairman, IDRBT. In his address, he dwelt upon IT Governance, Technology Management, CRM and Cyber Security. The salient points made by him include:
The other issues deliberated in detail during the two-day seminar included Principles and Concepts of IT Governance; Regulatory Framework for IT; IT Governance Framework and Practices; Risk Management, IT Strategy and Management and relationships between IT and Business, IT and Security, IT & Human Resources and IT Governance and Audit.
Thirty Two Directors of twenty banks participated. The seminar was coordinated by Shri M. V. Sivakumaran, Faculty.