Understanding Data Governance Strategy

Data governance is the practice of looking after data to ensure that it is safe and accessible and that you use it legally and ethically, adhering to industry standards. Data governance includes the processes of collecting data and managing its use, how it’s stored, what you use it for, and how you dispose of it.

Businesses and organizations implement data governance strategies so that a data governance framework properly describes how to manage data. Data governance is essential to keeping data safe and protected and ensuring it is reliable, valid, and usable. It ensures that the data you collect and use is consistent and complete.

Given its importance, the global data governance market is expanding steadily and is projected to grow 21.7 percent by 2030 [1]. Discover the elements of a data governance strategy, why having one is important, and how to make a start with yours. 

Elements of a data governance strategy

A data governance strategy has several essential elements to ensure that data is safe, of high quality, compliant and usable, and supports your organizational needs:

• Data quality: Ensuring data accuracy by deleting old, irrelevant data and making sure data is up to date; outlining data collection processes to ensure only quality, reliable data is stored and accessible

• Data security: Ensuring sensitive data is secure and protected from unauthorized access

• Data compliance: Implementing quality controls for collecting, storing, and using data to adhere to relevant laws and regulations

• Data architecture: Structuring and categorizing data for easy access and analysis

Why is a data governance strategy important?

A data governance strategy has many important aspects and uses; ensuring your data is up-to-date, reliable, secure, and accessible means it is more available for your organization. You might use it to improve internal processes, gain insights from customers and competitors, and make important decisions.

Enhancing decision-making

Decision-making is most informed when it’s data-driven. If you’re going to use data for making business decisions, the better the quality of the data you collect and analyze, the more informed your decisions will likely be. You can use your data governance strategy to check data accuracy regularly so that you know you’re making decisions with the best possible metrics. 

Ensuring regulatory compliance

A big part of your data governance strategy will likely cover regulatory compliance. Each industry has rules and laws around regulatory compliance that you must be aware of, as well as internal compliance procedures to adhere to. Compliance with regulations and industry standards can help you improve your credibility and avoid fines and penalties. 

Improving data security

A data governance strategy focuses on protecting and keeping sensitive data safe from security threats and breaches. This allows you to mitigate risk and creates trust between your organization and your customers or users.

Optimizing operational efficiency

A data governance strategy supports operational efficiency by allowing you to streamline and improve your data management processes, ensure data doesn’t duplicate, and ensure that the data collection, management, and storage processes are cost-effective and efficient. 

Read more: What Is Data Analysis? (With Examples)

Who benefits from a data governance strategy?

A solid data governance strategy benefits everyone in an organization by driving decision-making, enhancing data security, and making data more accessible. However, within an organization, you’ll find certain people whose roles have a closer connection with governance:

• Data managers and analysts: In these roles, you would be responsible for actioning what is in the data governance policy when working with data. You may design the data governance frameworks that your organization works with.

• IT professionals: IT is linked to data governance, as IT professionals work with data and data infrastructure, using IT and technology tools to check for risks and vulnerabilities.

• Compliance officers: This role links with data governance because it ensures an organization’s activities comply with regulations and laws, which is a critical aspect of a governance policy. 

• Business executives: Executives are a company's decision-makers and use data to help make decisions. Data governance policies support data accuracy and reliability for these types of decisions. In many cases, executives with a stake in governance take on data management and distribution for the company.

Advantages of a data governance strategy

Data governance is important for compliance, decision-making, and security, which rely on high data quality. Governance strategies focus on collecting, handling, using, and disseminating data to ensure its reliability and accuracy. 

Limitations of a data governance strategy

While effective and an integral part of many businesses, data governance strategies have some limitations that you must be able to mitigate. Data governance is a complicated process involving significant planning and monitoring. You’ll need to manage it effectively to assure security, compliance, and accurate data analysis. 

How to build and implement a data governance strategy

Building a data governance strategy for your organization is a complex procedure involving several steps and people. The following steps outline the basics of putting this into practice: 

1. Set your goals and objectives.

2. Identify key people and define roles.

3. Build your data governance framework.

4. Document your data governance policies.

5. Outline tasks and responsibilities.

6. Refine your data governance processes.

7. Monitor and improve.

Work toward a data governance career.

If you’d like a career in data governance, you can start by building the right experience and gaining essential qualifications for your field of interest. To work as a data governance analyst, you’ll need a bachelor’s degree in information technology, computer science, data management, or a similar field. For higher-level data governance roles, you might consider a master’s degree or a relevant certification. Possible certifications include the following:

• CompTIA Data+

• Chartered Data Scientist (CDS) from the Association of Data Scientists (ADaSci)

• Data Governance and Stewardship Professional (DGSPfrom the Institute for the Certification of Computing Professionals (ICCP)

Get started with data governance strategy on Coursera.

Data governance supports businesses in collecting, monitoring, using, and storing data effectively and safely. To further develop your data governance skills, you might consider starting with a course on data management, such as Meta’s Introduction to Data Management, which is part of the Meta Data Analyst Professional Certificate.