Ignoring data governance, a multimillion-dollar mistake waiting to happen
When you’re running a big financial company, dealing with people’s sensitive information is a huge responsibility. Keeping that data safe isn’t just a box to check; it’s an absolute necessity. One misstep, one data breach, and you're looking at massive fines, legal nightmares, and a damaged reputation.
The numbers don’t lie. Ponemon Institute conducted a phishing study in 2021 revealing how companies neglecting proper data governance could lose an average of USD 14.8 million per year due to security incidents and compliance violations. But with an effective strategy, you can turn the odds in your favour. We're talking about clearly defined policies, strict access controls, rigorous security protocols, and ongoing training to keep everyone on the same page.
By assigning data owners and stewards, there's clear accountability for data accuracy and protection, and no confusion over whose job it is. Plus, regular employee training ensures everyone understands why the governance rules matter and how to follow them.
The payoff goes far beyond just covering your bases. A survey from Drexel University’s LeBow College of Business showed that 83% of businesses with the most mature data governance programmes see great value in improved data quality. And with consistent, well-governed data, teams can utilise data to make smarter decisions and forecasts, instead of wasting time on irregularities.
Top five areas to prioritise for effective data governance
Does prioritising data governance pay off? Absolutely. Let’s look at the five key areas that you should pay attention to:
Policy development and roll-out: Clear rules for your data (like how it's used and who sees it), in line with your business strategy and compliance requirements, help your business run smoothly, avoid problems, and make better decisions.
Data owners and stewards: Clearly defining roles is key. Owners ensure accuracy, privacy, and policy compliance, while stewards manage day-to-day data handling. Keeping things separate makes everyone more responsible and gets things done faster.
Compliance and regulations: The financial world is no stranger to a dizzying array of regulations like GDPR, CCPA, and SOX. Following them isn’t just about avoiding legal penalties; it’s also about protecting your customers’ data and building trust. Regular check-ups and updates make sure everything stays on track.
Risk management and privacy: These days, companies constantly face a never-ending battle against cyberattacks. To keep your customers’ data safe, you need a strong risk plan. This should cover what data you have, who can see it, and how you protect it.
Training and awareness: No matter how good your plan is, it won't work if your employees aren't on board. Regular training programmes on data dos and don’ts, following the rules, and everyone’s roles help a lot. A well-informed team is the first line of defence against data leaks.
The upfront investment is more than worth it to avoid vulnerabilities, chaos, and inefficiencies that can cost your company millions down the road — not to mention reputation damage. An ounce of prevention through proper data governance surely pays off down the line.
To discover how you can effectively safeguard your clients’ data, feel free to reach out to our expert, Yoong Chung, Associate Partner, Banking, at yoong.chung@synpulse.com.
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