The Importance of Data Governance: Why Your Business Needs It

Data governance is a system that ensures the correct and consistent use of data across an organization. It involves employees at all levels of an organization and is designed to ensure that data is used in a way that supports the organization’s strategic initiatives and operational efficiencies. Data governance includes policies, processes, and procedures that are used to ensure that data is used in a way that is consistent with the organization’s goals and objectives. It also includes mechanisms to ensure that data is of high quality and integrity.

The importance of data governance has been highlighted in recent years due to the increasing volume and complexity of data that organizations must deal with. In addition, the need to comply with data privacy and security regulations has made data governance an essential part of doing business.

Below are five reasons why your business needs data governance:

1. Ensures Data Accuracy and Integrity
   When employees have access to accurate data, they can make informed decisions that ultimately benefit the organization. Data governance ensures that data is clean, accurate and reliable, which is critical to effective decision-making.  Data integrity is also essential for compliance with regulations such as GDPR, HIPAA and CCPA.
   

2. Improves Operational Efficiency
   Data governance can improve operational efficiency by ensuring that data is properly managed and utilized across the organization. It can help to eliminate redundant data, reduce errors, and improve workflow processes. This can ultimately result in cost savings and increased productivity.
   

3. Supports Strategic Initiatives
   Strategic initiatives need data to support the return of investment. By taking the extra step to ensure that data is aligned with the organization’s objectives. It helps to identify data necessary to support strategic initiatives and ensures that data is collected, managed, and used effectively. This can lead to better decision-making, improved performance, and increased competitiveness.
   

4. Enhances Data Security
   Data governance plays an important role in protecting data from security breaches and cyberattacks. It helps to ensure the confidentiality, availability, and integrity of data by providing guidelines and policies for data access, storage and use. Compliance with data security laws and regulations is also essential and can help to avoid potential legal and financial consequences.
   

5. Encourages Collaboration and Communication
   Every process requires collaboration and communication among employees at all levels of an organization. Data governance helps to break down silos and promotes a culture of shared responsibility for data. This can foster innovation, creativity and problem-solving, and ultimately benefit the organization as a whole.

In conclusion, data governance is essential for any organization that wants to leverage data as a strategic asset. It helps to ensure that data is accurate, reliable, secure, and aligned with the organization’s objectives. By implementing an effective data governance program, businesses can improve operational efficiency, support strategic initiatives, and mitigate risks associated with data use.

Stonehill can help successfully define standards, clean-up data, and implement policies and processes for Data Governance. Contact the Stonehill team today to learn more!