LO 39.5: Describe factors that can lead to poor or fragmented IT infrastructure at

LO 39.5: Describe factors that can lead to poor or fragmented IT infrastructure at an organization.
There are five major factors to consider with regard to poor or fragmented IT infrastructures. 1. No common understanding o f long-term business strategy between business lines and IT
management. This factor often results due to internal competition for funding, thereby not permitting important IT infrastructure projects to be completed.
2. Management only makes decisions based on short-term profits. As a result of this factor,
many IT infrastructure projects are scaled back, delayed, or eliminated.
3. Significant turnover in important IT roles within the firm. This factor has resulted in
delays in completing IT projects.
4.
Insufficient data governance and insufficient data management plan within the firm. This factor results in inconsistency across business lines in how to upgrade systems; this is costly if the systems end up being incompatible because of the inconsistencies.
5. Merger and acquisition activities. This factor results in multiple systems running
simultaneously within the recently merged firm. Data aggregation across products and business lines becomes a significant challenge.
2018 Kaplan, Inc.
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Topic 39 Cross Reference to GARP Assigned Reading – Senior Supervisors Group
D a t a A g g r e g a t i o n B e s t P r a c t
i c e s

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