Data has become a valuable asset that fuels decision-making processes. However, with great data comes great responsibility. Businesses must understand data governance, its importance, and how it can impact their operations.
If data falls into the wrong hands, it can damage the company's reputation, client relationships, and profitability. The company may even face legal action depending on the nature of the breach and stolen data.
Data governance addresses these risks to protect confidential information for businesses and clients.
WEBIT Services has helped hundreds of clients develop and execute effective IT strategies for over 25 years.
By reading this article, you will learn the definition and goals of data governance, why it matters, and key questions to ask about how you protect and process your data.
Understanding Data Governance
Data governance refers to managing and controlling an organization's data assets. It encompasses the policies, processes, and procedures that ensure data is accurate, reliable, accessible, and secure.
Data governance focuses on creating a framework and processes to protect data. This enables users to make informed decisions based on reliable and trustworthy data.
Why Data Governance Matters
1. Data Quality
Data governance ensures the collected data is accurate, complete, and consistent. By implementing data quality standards, organizations can improve decision-making processes. They can also avoid costly errors caused by inaccurate information.
2. Compliance and Risk Mitigation
Data governance is critical in ensuring compliance in an era of stringent data protection regulations.
Some data protection regulations include the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
By establishing proper data management practices, organizations can minimize the risk of data breaches, fines, and reputational damage.
3. Efficiency and Cost Savings
Data governance enables organizations to streamline their data management processes. This makes it easier to find and access the correct information when needed.
This efficiency reduces the time and resources spent searching for data, resolving discrepancies, and rework. Greater efficiency also reduces costs.
4. Decision-Making and Strategy
When data is governed effectively, it becomes a strategic asset that drives decision-making. Reliable and accessible data empowers organizations to identify trends, discover insights, and make informed choices that positively impact business outcomes.
5 Questions Every Organization Should Ask About Data Governance
1. Do you know what your data is?
To establish effective data governance, organizations must comprehensively understand the types of data they collect.
This includes identifying both structured (e.g., databases, spreadsheets) and unstructured data (e.g., emails, social media posts) and classifying it based on its sensitivity and criticality.
2. Where is your data?
Data can reside in various locations, including databases, data warehouses, cloud services, and employee devices.
Organizations need to know where their data is stored to ensure proper access controls, data protection measures, and disaster recovery plans are in place.
3. Who has access to your data?
Understanding who has access to data is vital for maintaining security and privacy.
Organizations must define roles and access levels for different individuals or groups based on their job responsibilities and the principle of least privilege.
Regular audits and monitoring should be conducted to ensure compliance with these access controls.
4. What do they do with your data?
Organizations should clearly understand how data is being used within their ecosystem. They must know how internal and external stakeholders, such as employees, partners, or customers, interact with the data.
By documenting data usage, organizations can ensure that data is only used for authorized purposes and that individuals are accountable for their actions.
5. How long do you keep your data?
Data retention policies determine the duration for which data is stored and maintained. Organizations should establish guidelines based on legal requirements, industry regulations, and business needs.
Defined data retention periods help avoid unnecessary storage costs and minimize data security risks.
Next Steps for Developing Data Governance
Data governance is a crucial component of any organization's data management strategy. It ensures that data is accurate, accessible, secure, and compliant with relevant regulations.
Proper data governance helps businesses make more informed decisions, mitigate risks, and enhance efficiency.
You can examine your data governance policies by asking the following questions:
- What data am I using, creating, and storing?
- Where am I storing my data?
- Who has access to my data?
- What do users do with the data?
- How long do I keep the data, and why?
If you are unsure about your data governance processes and policies, talk to your IT provider or internal IT team. They can help you analyze your current setup and build effective practices and procedures for handling data.
WEBIT Services has helped hundreds of clients in the greater Chicago area over the last 25 years.
If you are looking for a new IT provider, schedule a free 30-minute consultation to see if WEBIT can help.
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