COBIT APO07.06 - Manage Contract Staff

by Rajeshwari Kumar


Within the COBIT framework, APO07.06 focuses on managing contract staff to ensure strategic alignment and efficient utilization of external resources. Contract staff play a crucial role in organizations by providing specialized skills, flexibility, and cost-effectiveness. However, without proper management and oversight, these resources can become a liability rather than an asset. 

Addressing Risks Associated With Contract Staff in COBIT APO07.06

Addressing Risks Associated With Contract Staff In COBIT APO07.06

1. Identifying and Assessing Risks: The first step in managing risks associated with contract staff is to identify and assess potential risks. This involves identifying the specific risks contract staff pose to the organization, such as data security breaches, compliance violations, and reputational damage. Organizations should also assess these risks' likelihood and potential impact to determine their significance.

2. Establishing Clear Roles and Responsibilities: Organizations must establish clear roles and responsibilities for both the contract staff and internal employees to effectively manage risks associated with contract staff. This includes defining expectations, deliverables, and reporting structures to ensure that everyone understands their responsibilities and obligations.

3. Implementing Robust Contract Management Processes: One of the key ways to manage risks associated with contract staff is to implement robust contract management processes. This includes conducting due diligence on contract staff before engaging their services, clearly defining contract terms and conditions, and monitoring performance against agreed-upon deliverables.

4. Providing Adequate Training and Oversight: Another important aspect of managing risks associated with contract staff is providing adequate training and oversight. Organizations should ensure that contract staff are trained on relevant policies, procedures, and compliance requirements and provide ongoing oversight and supervision to ensure that they adhere to these requirements.

5. Establishing Clear Communication Channels: Effective communication is essential for managing risks associated with contract staff. Organizations should establish clear communication channels to communicate expectations, feedback, and updates to contract staff, ensuring that everyone is on the same page and working towards common goals.

COBIT APO07.06 - Significance Of Managing Contract Staff In Organizational Success  

COBIT APO07.06, a key process in the COBIT framework, focuses on managing contracts and suppliers to achieve business goals and objectives. This process is essential for ensuring that the organization's contractual relationships are aligned with its strategic objectives and that it can effectively deliver on its commitments to internal and external stakeholders.

One of the key reasons why managing contract staff is crucial in the context of COBIT APO07.06 is the need to mitigate risks associated with relying on external resources. Contract staff may not have the same level of commitment or loyalty as permanent employees, making it important to carefully monitor and evaluate their performance to ensure they meet expectations.

Additionally, effectively managing contract staff can help organizations optimize their resources and reduce costs. By carefully evaluating the skills and expertise required for each role, organizations can ensure that they are only employing contract staff when necessary and that they are getting the best value for their investment.

Regulatory Compliance: Ensuring Adherence To Requirements In Managing Contract Staff COBIT APO07.06

Compliance with regulatory requirements in COBIT APO07.06 is critical for organizations to operate ethically and legally. It involves identifying relevant laws and regulations that apply to the organization's operations, ensuring that its processes and controls align with these requirements, and monitoring and assessing compliance continuously.

Organizations must first understand the regulatory requirements that are applicable to their industry and geographic location. This may include data privacy laws, financial regulations, industry-specific guidelines, and other legal requirements. Once these regulations are identified, organizations must analyze how they impact their operations and what actions must be taken to comply with them.

APO07.06 in COBIT provides guidance on establishing a compliance program, including developing policies and procedures, employee training, and monitoring and reporting on compliance activities. It also emphasizes the importance of regular reviews and updates to ensure that the organization remains in compliance with changing regulations.

Implementing Controls For Monitoring And Evaluating Contract Staff Performance In COBIT APO07.06

1. Define clear objectives and expectations: Before engaging contract staff, it is essential to define clear objectives and expectations for their role. This includes outlining the specific tasks, deliverables, and performance standards that contract staff are expected to meet.

2. Establish performance metrics: To effectively monitor and evaluate contract staff performance, organizations need to establish relevant performance metrics. These could include key performance indicators (KPIs) such as productivity, quality of work, and adherence to deadlines.

3. Regular monitoring and feedback: Implement regular monitoring mechanisms to track contract staff performance against established metrics. Provide timely feedback to contract staff to address any performance issues and to recognize achievements.

4. Performance reviews: Conduct regular performance reviews with contract staff to assess their performance, provide constructive feedback, and set goals for improvement. Performance reviews can also be used to identify training and development needs.

5. Compliance with contractual agreements: Ensure that contract staff comply with all contractual agreements, including terms and conditions related to performance, confidentiality, and compliance with organizational policies and procedures.

6. Risk management: Implement controls to manage risks associated with contract staff performance, such as performance failures, breaches of confidentiality, or non-compliance with regulations. Develop contingency plans to address any potential risks proactively.

7. Documentation and reporting: Maintain proper documentation of contract staff performance evaluations, feedback, and any corrective actions taken. Prepare regular reports on contract staff performance to senior management and stakeholders.


Effective management of contract staff is crucial for ensuring successful project outcomes and organizational efficiency. Compliance with COBIT APO07.06 standards is essential in managing contract staff effectively. By adhering to these guidelines, organizations can mitigate risks, enhance productivity, and maintain a strong governance framework. Embracing the principles outlined in COBIT APO07.06 will undoubtedly bolster the success of contract staff management practices within an organization.