Why Boards Should Consider Creating a Technology Audit Committee

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The digital age has brought about a new set of challenges for boards of directors when it comes to understanding and managing technology-related risks and opportunities. As technology advances, boards must be prepared to respond quickly and appropriately. Creating a technology audit committee is one way for boards to ensure they remain informed and proactive in their approach to technology risk management. In this blog post, we’ll explore the reasons why boards should consider creating a technology audit committee, including the potential benefits, the structure of such a committee, and the steps involved in setting it up.

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The Case Against
Many business leaders are unconvinced that a technology audit committee is necessary, arguing that it is a redundant expense that can add little to the already existing layers of oversight. They also argue that technology audits are better handled internally by IT departments and other technical personnel who are already well-versed in the technical aspects of the organization’s operations. However, a technology audit committee can provide important additional oversight when managed properly. It can help ensure that the organization is using its technology in an effective, secure and compliant way, and that all regulatory requirements are met. In addition, such a committee can help mitigate the risks associated with the use of technology, allowing the organization to stay ahead of any potential issues.

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What the Committee Should Do
The primary role of a technology audit committee should be to provide oversight and guidance on the organization’s technology investments, infrastructure, and processes.

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The committee should review areas such as budgeting for technology projects, security, data privacy, and IT operations. Furthermore, it should evaluate the performance of vendors and contracts, keep up with technological advancements and trends, and ensure that investments are being made in the best interests of the company. It should also help develop strategies for deploying new technologies and effectively leveraging existing ones. Finally, the committee should also be tasked with understanding how the company’s technology can help drive better business results.