6 components of a common-sense data governance plan
In an effort to quickly become data-driven, many financial institutions skip the very important step of establishing rules and procedures around their data. It is tempting to dive right in and start putting your data to use quickly! But failing to spend time upfront establishing a comprehensive and personalized data strategy, including data governance, can lead to bigger challenges down the road, such as inaccurate reporting, insufficient security standards, and more.
Many credit unions are aware of the concept of data governance, but often it feels too difficult to move beyond that concept into an actionable plan. A quick Google search will tell you that there is no shortage of resources about data governance. And you can easily find a myriad of consultants offering to assess your current strategy and recommend improvements—for a hefty price tag.
Fortunately, data governance does not have to be overly complicated (or overly expensive). Savvy financial institutions recognize that it is practical to start out with a simple strategy and expand as their analytics maturity evolves. Consider these six key components as you get started on your own data governance strategy.
- Executive Sponsorship – One of the most important components of a data governance plan (or any plan, really) is support from the top of the organization. Executives should recognize and reinforce the role data plays in the organization, thus empowering the data team to establish procedures around the remaining components of data governance.
- Data Ownership – It is important to establish an owner, or set of owners, when starting your data journey. Your data owners are responsible for overseeing accuracy of data, providing context around data, and ensuring the safety, security, and storage of data. Essentially, your data owner(s) will be responsible for all aspects of the data governance plan. This can be quite a task to take on, so a great way to distribute data ownership is by forming an Analytics Center of Excellence comprised of both technical staff and subject matter experts.
- Data Quality Management – Your credit union uses, or will use, data to make important decisions throughout the organization. Therefore, it is critical that the data is complete, accurate, and understood. Your data governance issue must define proactive methods for monitoring data quality, and addressing any issues that arise.
- Data Security & Privacy – Perhaps one of the most serious aspects of a data governance strategy is the security and privacy component. Credit unions must maintain security by establishing processes for determining who should have access to what types of data, and tracking to ensure the access is being enforced. From a privacy standpoint, organizations must be aware of the data they are storing and sharing, and must stay up-to-date with current laws and regulations around data privacy.
- Data Architecture & Management – This component refers to the way data is collected, transformed, distributed, and consumed. As your organization leverages more and more data, consistent and efficient architecture will become increasingly important.
- Data Cataloguing & Classification – Credit unions have a wealth of data available to them. So much so that it can be challenging understanding which data to use for which scenarios. Data owners should capture thorough explanations of data points, along with plain-language explanations of how to use the data, will help create consistency across the organization. A dynamic data dictionary is a great tool to leverage to maintain these details.
If you are ready to get started with your data governance strategy, the six components above will provide a solid foundation. As you become more mature, remember to evaluate and enhance components on a regular basis.
To learn more about these components, or to assess the maturity of your existing data governance strategy, download the Common-Sense Approach to Data Governance published by Lodestar Technologies. No matter where you are on your data journey—or where you want to go—Lodestar has the tools and talent to get you there!
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