The Technology Committee's Identity Crisis

• In Event: Research in Accounting Information Systems

Abstract

The technology committee (TC) is currently suffering from an identity crisis by dividing its focus between product and operational IT risk oversight. Shareholders may be confused about the purpose of the TC particularly when the name implies that the committee oversees operational IT systems, which most TCs in our sample do not. There is some evidence that the presence of a TC mitigates the negative market reaction to data breaches (Higgs, et al 2016). While this gives the TC governance credibility, the actual role of the TC is more product than operations oriented. Based on a review of fifty existing TC charters, TCs today focus mainly on strategic oversight as their single most outstanding characteristic. As part of strategic oversight, the TC oversees product technology risk—the risk of losing dominance in products and processes by failure to strategically manage product-technology portfolios. In addition to managing product technology risk, companies need to manage risk inherent in operational IT—risk to transactions processing and confidential data, including the risk of misspending in these areas. We suggest that companies would do well to increase their oversight of operational IT risks through the TC.

Authors

• Steven A Harrast, Central Michigan University

• Amy Swaney, Central Michigan University