It Governance Practices in Commercial Banks in Ethiopia
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Date
2021-07
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A.A.U
Abstract
In this study, there were two main objectives. Identifying the IT Governance practices in Ethiopian commercial banks was the first step. Further, it set out to explore the challenges Ethiopian Commercial Banks confront when implementing IT Governance. The goal was to look at Ethiopian commercial banks' IT governance practices. Commercial banks in Ethiopia were the focus of the investigation. A questionnaire was used to gather primary data from 52 respondents from commercial banks. Directors, managers, and senior officers responsible in IT strategy design and implementation were among those who responded. The commercial banks were identified using data from the Ethiopian National Bank (NBE). The majority of the banks where the data was gathered had been in business for more than twenty years. The other two banks (OIB and CBO) have also been above a decade. There was evidence that a large number of respondents had adequate IT experience. The strategy committee meets quarterly to discuss how to implement and design appropriate IT governance strategy processes. As a result of the conclusions of the study, it is suggested that banks place a greater emphasis on IT governance. To strengthen IT governance processes in Ethiopian commercial banks, the role of NBE in the process needs to be examined. Commercial banks should serve as role models for other businesses in terms of implementing and adhering to standard IT processes that are compliant with IT governance. Given the restrictions discovered, the study concluded that an effective IT governance approach is a function of numerous factors. As the major controller of both commercial banks, the National Bank must ensure that its machinery has the best processes in place to ensure that IT governance becomes a central driver for achieving IT business strategy alignment, risk management, and value delivery from massive ICT investments. To ensure compliance and wise use of the strategies in place, every officer with a responsibility for the IT governance process must be well-equipped with the necessary skills and knowledge. The IT governance process has confirmed that policy implementation, budget execution, planning, and the resource allocation function are all critical outcomes
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Keywords
Information Technology (IT), Information Technology Governance (ITG), IT-Business alignment, banking sector