Why Compliance is Essential to the Company
STUDENT NAME :
STUDENT NO :
PROGRAM : BTech (IT)
MODULE :
ASSIGNMENT : King 3
To:
From:
Re: king 3
Introduction
Compliance is the process of adherence to policies and procedures. (Gartner, 2006)
Risk and compliance are essential to the sustainability of a company and it is estimated that by 2011, companies that follow or more accurately put ‘adhere’ to processes and procedures in terms of compliance and standards will get the most business value out of their investments.
The KING 3 report of corporate governance is the third report for governance in South Africa and became necessary because of the new Companies Act no.71 of 2008 and international governance trends and will come into force on 1 March 2010.
The King 3 report talks about an ‘apply or explain’ basis, where the company should apply the recommendations of the report in their own way with the aim of achieving the corporate governance principles of accountability, fairness, responsibility and transparency.
King 3 recognizes the significance of IT with regards to governance and has included IT governance as one of the new elements in the report. In order to gain competitive advantage and drive business potential, King 3 recommends that a company should incorporate IT together with the company strategy.
The aim of this report is to discuss the impact of the King 3 report on information systems within an organization.
There are 9 chapters in the report namely:
1. Ethical leadership and corporate citizenship
2. Boards and directors
3. Audit committees
4. The governance of risk
5. The governance of information technology
6. Compliance with laws, rules, codes and standards
7. Internal audit
8. Governing stakeholder relationships
9. Integrated reporting and disclosure
Each chapter has a role to play in the management of information systems specifically chapter 5 which deals with information technology and the role information technology in
STUDENT NO :
PROGRAM : BTech (IT)
MODULE :
ASSIGNMENT : King 3
To:
From:
Re: king 3
Introduction
Compliance is the process of adherence to policies and procedures. (Gartner, 2006)
Risk and compliance are essential to the sustainability of a company and it is estimated that by 2011, companies that follow or more accurately put ‘adhere’ to processes and procedures in terms of compliance and standards will get the most business value out of their investments.
The KING 3 report of corporate governance is the third report for governance in South Africa and became necessary because of the new Companies Act no.71 of 2008 and international governance trends and will come into force on 1 March 2010.
The King 3 report talks about an ‘apply or explain’ basis, where the company should apply the recommendations of the report in their own way with the aim of achieving the corporate governance principles of accountability, fairness, responsibility and transparency.
King 3 recognizes the significance of IT with regards to governance and has included IT governance as one of the new elements in the report. In order to gain competitive advantage and drive business potential, King 3 recommends that a company should incorporate IT together with the company strategy.
The aim of this report is to discuss the impact of the King 3 report on information systems within an organization.
There are 9 chapters in the report namely:
1. Ethical leadership and corporate citizenship
2. Boards and directors
3. Audit committees
4. The governance of risk
5. The governance of information technology
6. Compliance with laws, rules, codes and standards
7. Internal audit
8. Governing stakeholder relationships
9. Integrated reporting and disclosure
Each chapter has a role to play in the management of information systems specifically chapter 5 which deals with information technology and the role information technology in
References: 1. King 3 Report 2. It Web