What is a common risk associated with poor IT governance?

The selection of misalignment between IT and business objectives as a risk associated with poor IT governance highlights a fundamental issue in the effectiveness of an organization's strategy and operations. In the absence of strong governance practices, IT initiatives may not align with the broader goals of the business. This misalignment can result in IT resources being utilized for projects that do not provide value to the organization, leading to wasted investments and missed opportunities for growth and innovation.

When IT and business strategies are not synchronized, it can create challenges in responding to market changes and customer needs, ultimately hindering the organization's agility and competitiveness. Effective governance ensures that IT initiatives are not only consistent with business priorities but also support strategic objectives, leading to enhanced performance and value delivery.

While increased operational costs and inefficiency could stem from a lack of governance, the key risk of misalignment between IT and business objectives goes deeper, impacting the overall direction and success of the organization. Excessive documentation and process control may obstruct efficiency but does not inherently indicate a failure to align IT with business goals. An over-reliance on external IT vendors can pose its own risks but is not a direct consequence of poor governance compared to strategic misalignment. Thus, identifying misalignment as a risk emphasizes the need for cohesive governance