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PO5.1 - Financial Management Framework

This topic is intended to enable collaboration and sharing of information to facilitate a better understanding and approach to implementing this COBIT control objective based on the risk, value and guidance provided by its corresponding control practices.

COBIT Control Objective PO5.1 - Financial Management Framework is contained within Process Popup Manage the IT Investment

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Financial Management Framework

Establish and maintain a financial framework to manage the investment and cost of IT assets and services through portfolios of IT-enabled investments, business cases and IT budgets.

View value and Risk Drivers  help

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Value Drivers

  • Insight into the value of IT’s contribution to the business, by using standardised investment criteria
  • IT priorities based on IT value contribution
  • Clear and agreed-upon budgets
  • Improved ability to assign priorities based on business cases
  Risk Drivers
  • Unclear priorities for IT projects
  • Inefficient process for financial management
  • IT budget not reflecting business needs
  • Weak control over IT budgets
  • Failure of senior management to approve the IT budgets
  • Lack of senior management support

View Control Practices  help

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  1. Define a framework, process and responsibilities to:
    • Drive IT budgeting and cost and benefit management
    • Enable fair, transparent, repeatable and comparable estimation of IT costs and benefits for input to the portfolio of IT-enabled business programmes (including a cost structure)
    • Maintain the IT asset and services portfolios and ensure that their maintenance is reflected in budgets and plans
  2. Define inputs, outputs and processes inherent in the framework, and make regular updates based on available financial information.
  3. Create and maintain portfolios of IT-enabled investment programmes, IT services and IT assets, which form the basis for the current IT budget and support the IT tactical and strategic plans.
  4. Establish and use a process to use financial and portfolio information to provide input to business cases for new investments in IT assets and services throughout their full economic life cycle.
  5. Work with service delivery managers to maintain the service portfolios and with operations managers and architects to maintain the asset portfolios, and provide an information prioritisation process of investment decisions.
  6. Record and maintain the current IT budget, including committed expenditures and expenditures to date, considering:
    • IT projects recorded in the IT-enabled investment portfolios
    • Operation of and maintenance to asset and service portfolios
  7. Use the financial framework and processes to provide fair, transparent, repeatable and comparable input on cost and benefits to business cases for new investments, in co-operation with the business.
  8. Establish procedures to communicate the cost, benefit and risk-related aspects of these portfolios to the budget prioritisation, cost management and benefit management processes.

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Experienced business and IT professionals know that optimizing their use of big data as a resource will deliver real business value to the enterprise stakeholders.
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Events & Online Learning: 7 total

10 Jun 2013
ISACA International Event
Berlin, Germany
Early bird deadline has been extended: save over US $350 when you register by 1 May. Learn from industry-leading IT experts at Insights 2013. This is a unique opportunity to discover revolutionary new ideas at the world’s premier business event.
16 Sep 2013
ISACA International Event
London, England
Stay on top of the trends and opportunities of the dynamic technology industry at EuroCACS/ISRM 2013 in Berlin—the leading European conference for IT audit, assurance, security and risk professionals. Save over US $200 when you register by 22 July!
30 Sep 2013
ISACA International Event
Medellín, Colombia
La Conferencia Latinoamericana CACS/ISRM 2013 en Medellín, Colombia es la conferencia principal latinoamericana para los profesionales de auditoría, riesgo y seguridad de la información. Ahorre más de EE.UU. $ 100 si se inscribe antes del 7 de agosto!
14 Oct 2013
ISACA International Event
Boston, MA, USA

Journal Articles: 261 total

Volume 3, 2013
by Steven DeFino and Larry Greenblatt | Reviewed by Dauda Sule, CISA
This Guide is targeted toward individuals who wish to attain the Certified Ethical Hacker (CEH) certification.
Volume 2, 2013
by Darlene Tester
Not performing a full risk assessment before determining what security controls should be implemented is equivalent to not “looking before you leap.”
Volume 2, 2013
by Bob Smart, CISA, CISM, CRISC, MACS Snr, MBIS
Professional certifications can be defined as a promise made by the certifying body that the recipient has demonstrated a minimum level of capabilities.
Volume 2, 2013
by Samuel Pierre-Louis, CISSP-ISMP, René Sanchez, CISM, CBCP, MBCI, and Molly Shek, CISM, CGEIT, CRISC, PMP, RHIA
How does an organization that is faced with numerous federal and state compliance requirements meet the challenge?
Volume 2, 2013
by Vicki Gatewood, CGEIT, CRISC
For all of the positive claims about the benefits of cloud computing, there have been as many articles warning of the dangers.
Volume 2, 2013
by Rajesh Bhatia, CISA, CGEIT, PMP, MDP
This article discusses the benefits of using the framework of the five IT governance focus areas.

Wikis: 2 total

Blog Posts: 139 total

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