What is IT Governance?
IT governance is the framework of policies, processes, and responsibilities that ensure technology supports business goals. It answers questions like: Who makes technology decisions? How do we manage IT risks? Are we compliant with relevant regulations? How do we measure IT performance?
Key Australian Regulatory Considerations
Privacy Act 1988 and Australian Privacy Principles
The Privacy Act governs how organisations handle personal information. Key requirements include transparency about data collection, secure storage, access rights for individuals, and mandatory data breach notification. Penalties for serious breaches can reach $50 million.
Notifiable Data Breaches Scheme
If your organisation experiences a data breach likely to cause serious harm, you must notify affected individuals and the Office of the Australian Information Commissioner (OAIC) within 30 days. This requires breach detection and response capabilities.
Industry-Specific Regulations
Various industries face additional requirements:
- Healthcare: My Health Records Act, RACGP standards
- Financial services: APRA CPS 234, ASIC requirements
- Legal: Australian Solicitors' Conduct Rules, state law society requirements
- Government contractors: Protective Security Policy Framework (PSPF)
Building an IT Governance Framework
- Define roles and responsibilities: Who owns IT decisions? Who is accountable for security? Who approves changes?
- Create IT policies: Document acceptable use, security, data handling, BYOD, and change management policies.
- Implement risk management: Identify, assess, and manage IT risks through regular reviews.
- Establish change control: Formal processes for evaluating and approving changes to systems.
- Monitor and measure: Track key metrics, conduct audits, and review performance.
- Ensure compliance: Map requirements, document controls, and maintain evidence.
Essential IT Policies for SMBs
- Acceptable Use Policy: What employees can and cannot do with company technology
- Information Security Policy: How data and systems are protected
- Data Classification Policy: How to categorise and handle different data types
- Access Control Policy: Who gets access to what, and how
- Incident Response Policy: How to respond to security incidents
- Business Continuity/DR Policy: Maintaining operations during disruptions
- Password Policy: Requirements for authentication credentials
- Remote Work Policy: Security requirements for working outside the office
Pro tip: Don't create policies you can't enforce. A policy saying "employees will use 20-character passwords changed monthly" that nobody follows is worse than no policy—it creates liability while providing no protection.
How We Researched This Article
This article was compiled using information from authoritative industry sources to ensure accuracy and relevance for Australian businesses.
Sources & References
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Office of the Australian Information Commissioner
Australian privacy regulator with guidance on Privacy Act compliance
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Australian Cyber Security Centre
Government guidance on cybersecurity for Australian organisations
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NIST Cybersecurity Framework
US Government framework widely adopted internationally
* Information is current as of the publication date. Cybersecurity guidelines and best practices evolve regularly. We recommend verifying current recommendations with the original sources.
Frequently Asked Questions
Do small businesses need formal IT governance?
The level of formality depends on your size and risk profile. All businesses need basic policies and security controls. Formal governance frameworks become more important as you grow, handle sensitive data, or face regulatory requirements.
Who should be responsible for IT governance?
In SMBs, IT governance often falls to a business owner or operations manager, with support from IT staff or an MSP. Clear accountability is essential—someone must own IT decisions and risk management.
What happens if we don't comply with the Privacy Act?
Penalties for serious breaches can reach $50 million for companies. Beyond fines, breaches damage reputation and client trust. Compliance is cheaper than consequences.
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