Aligning enterprise risk management with business strategy and information systems

Business leaders recognise effective risk management as one of the main success drivers for enterprises. Even though the Enterprise Risk Management (ERM) concept has evolved significantly in the past years, in the aftermath of recent economic crises it became evident some of its critical challenges still need to be addressed. The review of subject literature led to a conclusion that current ERM approaches failed to protect enterprise value in turbulent and risky market conditions. Therefore, this paper aims to provide a conceptual analysis of the most common ERM practices and frameworks, in order to identify their shortcomings and areas requiring development. It is further aimed to provide guidance to business practitioners in implementing more integrated and effective Enterprise Risk Management (ERM) solutions. This research recognises the importance of aligning ERM programmes with business strategies, and with consolidated Information Systems. A “New Approach ERM Model” is developed as guidance for a successful alignment of ERM with enterprise business strategy, and for an effective adaption of Information Systems to requirements of ERM programmes. The “New Approach ERM Model” steers risk management initiatives and strategies in the same direction, and consequently allows enterprises to improve organisational effectiveness, increase shareholders value, and gain competitive advantage in the market

Towards a business-IT alignment maturity model for collaborative networked organizations

Aligning business and IT in networked organizations is a complex endeavor because in such settings, business-IT alignment is driven by economic processes instead of by centralized decision-making processes. In order to facilitate managing business-IT alignment in networked organizations, we need a maturity model that allows collaborating organizations to assess the current state of alignment and take appropriate action to improve it where needed. In this paper we propose the first version of such a model, which we derive from various alignment models and theories

Towards alignment of architectural domains in security policy specifications

Large organizations need to align the security architecture across three different domains: access control, network layout and physical infrastructure. Security policy specification formalisms are usually dedicated to only one or two of these domains. Consequently, more than one policy has to be maintained, leading to alignment problems. Approaches from the area of model-driven security enable creating graphical models that span all three domains, but these models do not scale well in real-world scenarios with hundreds of applications and thousands of user roles. In this paper, we demonstrate the feasibility of aligning all three domains in a single enforceable security policy expressed in a Prolog-based formalism by using the Law Governed Interaction (LGI) framework. Our approach alleviates the limitations of policy formalisms that are domain-specific while helping to reach scalability by automatic enforcement provided by LGI

Some empirical evidence on business-IT alignment processes in the public sector: A case study report

An empirical study that explores business-IT alignment processes in a networked organization among the province Overijssel, the municipalities Zwolle and Enschede, the water board district Regge & Dinkel and Royal Grolsch N.V. in The Netherlands, is summarized in this report. The aim of the study was to identify processes that contribute to improve such alignment. This study represents a continuation of previous validation efforts that help us to confirm the business-IT alignment process areas that should ultimately be included in the ICoNOs MM. Evidence was sought for the alignment of business and IT through the use of information systems to support the requirements of the organization in a specific project. The results of this study in the public sector also are relevant to the private sector where (i) business-IT alignment plays an increasingly valuable role, and (ii) the characteristics of collaborative networked organizations are present

Approaches Regarding Business Logic Modeling in Service Oriented Architecture

As part of the Service Oriented Computing (SOC), Service Oriented Architecture (SOA) is a technology that has been developing for almost a decade and during this time there have been published many studies, papers and surveys that are referring to the advantages of projects using it. In this article we discuss some ways of using SOA in the business environment, as a result of the need to reengineer the internal business processes with the scope of moving forward towards providing and using standardized services and achieving enterprise interoperability.Business Rules, Business Processes, SOA, BPM, BRM, Semantic Web, Semantic Interoperability

SOA and BPM, a Partnership for Successful Organizations

In order to stay effective and competitive, companies have to be able to adapt themselves to permanent market requirements, to improve constantly their business process, to act as flexible and proactive economic agents. To achieve these goals, the IT systems within the organization have to be standardized and integrated, in order to provide fast and reliable data access to users both inside and outside the company. A proper system architecture for integrating company’s IT assets is a service oriented one. A service-oriented architecture (SOA) is an IT architectural style that allows integration of the company’s business as linked, repeatable tasks called services. A subject closely related to SOA is Business Process Management (BPM), an approach that aims to improve business processes. The paper also presents some aspects of this topic, as well as the relationship between SOA and BPM. They complement each other and help companies improve their business performance.Information Systems, SOA, Web Services, BPM

Definition and Validation of a Business IT Alignment Method for Enterprise Governance Improvement in the Context of Processes Based Organizations

These days, it is remarkable to note the growing of interest in professional responsibility. Specifically, the responsibility a person commits to when he or she performs a task. Based on a review of research currently performed in the field of policy (from corporate to technical ones), we observe that the perception of responsibility has often been limited to a combination of rights and obligations. In addition, we are seeing a re-emergence in business (for example, in the financial sector) of a belief that business ethics foundation can be improved and that a renewed focus in this area would help to prevent future breakdowns in the system. With regard to improving business/IT alignment and corporate ICT governance, it becomes increasingly important to define a commonly accepted personal responsibility model that embodies important and well-known concepts like accountability, capability and commitment. Moreover, because responsibility constitutes a fundamental notion of management theory, it is likewise identified as a meaningful bridge toward organizational artifacts. Exploiting process-based approach to define policy seems to offer new research opportunities since process-based organization becomes a continuous widely spread structure.ICT Governance, Responsibility model, Capability, Accountability, Commitment.

Situational Enterprise Services

The ability to rapidly find potential business partners as well as rapidly set up a collaborative business process is desirable in the face of market turbulence. Collaborative business processes are increasingly dependent on the integration of business information systems. Traditional linking of business processes has a large ad hoc character. Implementing situational enterprise services in an appropriate way will deliver the business more flexibility, adaptability and agility. Service-oriented architectures (SOA) are rapidly becoming the dominant computing paradigm. It is now being embraced by organizations everywhere as the key to business agility. Web 2.0 technologies such as AJAX on the other hand provide good user interactions for successful service discovery, selection, adaptation, invocation and service construction. They also balance automatic integration of services and human interactions, disconnecting content from presentation in the delivery of the service. Another Web technology, such as semantic Web, makes automatic service discovery, mediation and composition possible. Integrating SOA, Web 2.0 Technologies and Semantic Web into a service-oriented virtual enterprise connects business processes in a much more horizontal fashion. To be able run these services consistently across the enterprise, an enterprise infrastructure that provides enterprise architecture and security foundation is necessary. The world is constantly changing. So does the business environment. An agile enterprise needs to be able to quickly and cost-effectively change how it does business and who it does business with. Knowing, adapting to diffident situations is an important aspect of today’s business environment. The changes in an operating environment can happen implicitly and explicitly. The changes can be caused by different factors in the application domain. Changes can also happen for the purpose of organizing information in a better way. Changes can be further made according to the users' needs such as incorporating additional functionalities. Handling and managing diffident situations of service-oriented enterprises are important aspects of business environment. In the chapter, we will investigate how to apply new Web technologies to develop, deploy and executing enterprise services