As the value of data grows, more businesses are looking for new ways to manage that data. If you want to succeed in data management, then you need to be willing to seek out as much information as possible. There are several things that you may not know about data governance.
What is data governance? It’s the management of the availability, integrity, security, and usability of data in an enterprise. Here are 7 facts that every business owner needs to know before exploring data management.
Big Data is an Issue For Business Owners
Big data has become a problem for everyone, not just business owners. It’s been driven by the need to increase numbers in regulatory reports and increase levels of control, data visibility, and governance. Many businesses now are focusing on efforts to improve the way that data is managed across the entire structure. While most business owners have been implementing new data-management strategies, most have realized that if they want complete control over their data throughout the entire lifecycle, they need to start with proper data management.
Business owners need to change the way that they are collecting, storing, and using data. Everyone in your business is a contributor or stakeholder to this data. It’s your job to ensure that the appropriate processes are in place to stick to these data management practices. You also need to make sure your business has a modern infrastructure that can support these processes. You need to review how you manage your data governance framework and establish new rules that create an integrated enterprise data infrastructure.
There’s Valued Trapped in Unstructured Data
Most individuals and businesses are not aware of the power of enterprise data. There’s a concern with unstructured data that’s accessible and ready to explore. Seventy-nine percent of individuals in the 2015 Chartis Risk Data Aggregation and Reporting Systems Survey don’t see unstructured data as important. In addition, 80% of data in a financial institution is unstructured.
What happens to this data is that it becomes invisible. You should tap into this data to uncover emerging trends. Without using this data, your business will only receive half of the picture. If you want to take full advantage of your data, then you need to create new standards to convert that unstructured data into accessible and analytics-ready information.
Data Has Grown Significantly
The ability to collect and process data has increased over time. According to research studies and various surveys, structured data has increased by 40% each year. Traditional content, such as unstructured data, is increasing by 80%. Eighty-five percent of this data growth will originate from machine-generated data that are expected to grow 15 times by 2020.
There’s More Regulations & Compliance
The increased compliance and regulatory requirements are making their data governance framework a key factor for financial institutions and the healthcare sector. These regulations are increasing demand for data lineage, data privacy, data security, historical data, and personal information protection. This is making data the most important priority for Chief Information Officers. Also, According to a 2016 Gartner survey, 20% of CIOs would risk losing their jobs for failing to implement the data governance regulations successfully.
Data Management is the Reason Why Regulatory Reports are Time-Consuming
Reporting has become a huge problem for most organizations. That’s because you’re legally obligated to meet these regulations, which is why a big part of your effort and time is dedicated to completing this task properly. But the problem with these reports is that they’re taking business owners longer to complete them than they should. The time to compile and submit these regulatory reports have increased over the years.
Fifty percent of business owners spend most of their time preparing reports compared to analysis and review. This has turned into a hectic exercise rather than a valuable task of analysis of your key enterprise and risk data. The cause of this problem is poor data management. You need to reboot your reporting process with a single source for each aspect of your enterprise data.
BCBS 239 is Almost Here
BCBS 239 is changing the way that business owners enforce regulations. Its main focus is to encourage organizations to exceed in control, data management, and governance. But the problem is most businesses are ready for it. While only the global institutions were chosen and instructed to meet this new guideline, but none of them stepped up to the plate.
It’s still becoming an important motivator for businesses to invest in data management infrastructures, platforms, and solutions. The principles of BCBS 239 doesn’t just give you an insight into the top 30 global banks. They reflect the trends for all institutions. You need to prepare yourself to become more interested in data structure and governance policies as you are you with the data itself.
Data Quality is a Key Area of Focus
Thanks to data accuracy and integrity becoming the key factors of BCBS 239 and monitoring high-quality data is more important than ever. It’s not enough to just track your data. You need to have the highest quality data available. Business owners who are already cleansing, standardizing, and streamlining their data are already seeing the benefits. Higher-quality data increases the speed of reporting and allows you to deliver valuable information to decision-makers that can help them see new opportunities or risks.