Final answer:
The IT Governance Council usually reports to the board of directors or the CEO (Chief Executive Officer). Corporate governance relies on the board of directors, auditing firms, and outside investors to maintain company integrity. The collapse of Lehman Brothers exemplifies the consequences of governance failures.
Step-by-step explanation:
The IT Governance Council typically reports directly to the board of directors or the CEO (Chief Executive Officer). While the CTO (Chief Technology Officer), CIO (Chief Information Officer), and CFO (Chief Financial Officer) play crucial roles within an organization's leadership structure, governance councils, especially those pertaining to IT, generally align with the CEO or the board to ensure broad organizational oversight and strategic alignment.
Corporate governance involves several key institutions: the board of directors, the auditing firm employed by the company, and outside investors, like those managing large mutual or pension funds. Each of these plays a distinct role in maintaining the integrity of the company's operations and financial reporting.
In the case of Lehman Brothers, a failure in corporate governance led to inadequate financial information being provided to investors—highlighting the importance of effective governance and accurate reporting for maintaining investor trust and firm stability.