By Scott Magoon, Director of Product
Management at Zaloni
"Data-driven" and "actionable insights" are two of the biggest
buzzwords for organizations and their tech leaders in 2022. Businesses want to
enable a data-driven culture internally and affirm to both potential buyers and
current customers that big decisions are being made carefully, with respect for
data and personal information. But what happens behind the scenes? In a world
where data privacy and security feel more important than ever, how can personal
information be kept safe in the event of a breach? What are the consequences
for not responsibly governing data? We'll aim to answer these three crucial
questions to help your business better understand why data governance-the rules
of managing and securing your data-should be a core pillar of any business striving
to be data-driven.
What happens behind the scenes?
When a business creates a database, it needs to ensure that it
collects all relevant data and securely stores this information. Data, however,
is increasingly being stored in disparate areas of an organization, creating a
lack of visibility and accessibility. For this reason, it's important that data
stewards-the people in your organization tasked with managing and governing
your data-know where data is located and have a holistic view of a company's
data ecosystem. Without a unified view, it can sometimes take weeks or even
months for data to change hands, which slows decision-making and introduces
compliance risk. Data quality-ensuring that data is accurate, has the correct
formatting, etc.-is key to operating databases. If data quality isn't ensured,
analytics and reporting can't be trusted. These details might seem minute, but,
as we'll discuss in more detail, they can make or break a business' data
strategy and the insights they purport to provide.
How can I keep my business' data
safe?
There are already many regulations in place aimed to prevent
breaches and, if a breach happens, limit the organization and potential
customers' exposure. Within the last few years, organizations have faced an increasing
number of compliance initiatives, such as HIPAA (Health Insurance Portability
and Accountability Act), GDPR, (General Data Protection Regulation), and
others. But these regulations are only effective when sound data governance
principles are met and followed. This requires strategies, talent, and of
course, financial investment. Many employees see this firsthand when their
company sets specific parameters around data and who can access it. Sound
password practices are obviously important, but ensuring a process of data
access requests is critical as well. A strong data governance platform operates
both securely and efficiently to ensure authorized users can quickly access the
data they need.
What are the consequences of
irresponsible data governance?
$400M. That was the
fine for Citibank in October 2020, as the Office of the Comptroller
of the Currency (OCC) issued a warning to organizations that dealt with
compliance checks: data governance is the first step toward ensuring compliance
with regulations. Fines have a clear negative business impact along with the
possibility of losing the trust of your customers. So, let's take a deep dive
and unpack why data governance, as a whole, is essential.
Data governance is more than just compliance. As mentioned, data is
becoming core to many businesses' decision-making strategies. Organizations
aiming to make sound decisions need timely access to high-quality, trusted
data. If data can't be trusted, how can
businesses take faith in their decisions? Moreover, since artificial
intelligence requires data to operate, how can AI generate outcomes that can be
taken in confidence by decision-makers if the inputs aren't perfect? Writing a
well-performing AI algorithm is quite a feat, but it requires data to operate,
and the data must be as good as the algorithm itself.
This is why data governance is such a sticking point for
regulators. As the world becomes more "data-driven" where businesses claim to
create "actionable insights," regulators want to ensure that the data being
used is protected and secure. Anyone can follow a recipe, but the highest
quality ingredients will always make for a better meal.
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ABOUT THE AUTHOR
Scott Magoon is
Zaloni's Director of Product Management and has over 25 years of experience in
product development, sales, and marketing. Before Zaloni he held strategic and leadership
roles at innovative companies including AT&T, Kraft Foods, and Cisco
Systems.