Data can reveal hidden insights you might otherwise miss. These can point you to the next big trend in your industry or show a surge in enquiries about a specific product.
But it’s not magic. You need to take complete control of your data to optimise its use. This article can show you just how to do that through Data Governance.
The Value of Data: Your Untapped Resource
Data is no longer just numbers on a spreadsheet. It has become the new gold – a highly valuable asset that can propel your organisation to success. For example:
- Researchers can speed up the development of life-saving treatments, using patterns from patient data.
- A Nonprofit can increase its resources by tailoring fundraising campaigns, based on an analysis of donor data.
- A school can improve student outcomes by personalising learning experiences, after gaining insights from student data.
Data can be a very powerful resource IF managed properly. On the other hand, poor data management can cause data breaches, penalties, and loss of customer trust. However, you can mitigate these risks via a strong Data Governance strategy.
What is Data Governance?
Data Governance is the practice of ensuring that data is collected, stored, used, and protected in a way that is consistent with an organisation’s policies and objectives. An effective Data Governance framework covers the following:
Data Ownership: Who is responsible for data?
This establishes clear roles and responsibilities for managing different types of data. For example, in a medical practice, the head clinician might be responsible for patient data, while the IT department oversees system security.
Data Quality: How can you ensure accuracy and reliability?
Data Quality ensures your data is accurate, complete, and up-to-date. This data governance policy often involves data validation processes and regular audits.
Data Security: How can you keep your data safe?
This involves implementing strong security measures to protect sensitive information from unauthorised access or data breaches. This could include password protocols, encryption, and staff training.
Data Privacy: How do you protect the rights of your customers?
You must ensure you’re collecting, storing, and using data ethically. This includes obtaining user consent for data collection and providing clear information about how their data is used.
Benefits of Data Governance to Your Organisation
Data Governance can help your business succeed through these advantages:
Improved Decision-Making
Data Governance can ensure you have accurate, high-quality data at your fingertips, helping you make informed decisions that drive winning outcomes.
Enhanced Compliance
While data privacy regulations can be a challenge, Data Governance provides a clear roadmap to help you stay on top of compliance requirements with confidence.
Reduced Risk
Data breaches can be devastating, leading to financial losses, reputational harm, and legal trouble. Data Governance can minimise these risks through robust security measures.
Customer Satisfaction
Understanding your customers’ or donors’ needs and preferences can build strong relationships. Data Governance helps you put the structure in place to be able to leverage data to personalise your interactions and target communications more effectively.
New Opportunities
Valuable insights can be buried within your data, awaiting discovery. Effective Data Governance empowers you to analyse trends, identify areas for improvement, and develop innovative strategies.
Ethical Data Management
Data can also become a liability. To prevent this, you must give emphasis to key Data Governance areas such as data collection, retention, and disposal, especially for Personally Identifiable Information (PII) or sensitive data.
PII is any information or opinion about a person that can identify them, whether it’s true or not, and whether it’s written down or not. Sensitive data is a type of personal information that includes details such as race, beliefs, health, or biometric data (like fingerprints).
Data Collection
Your organisation must collect only necessary data and do so ethically and legally. Clearly define your purpose for collecting such data. Gather only what is essential for your specific purpose and avoid collecting irrelevant information.
Ask questions like:
- Does it contribute to your specific goal?
- Is it necessary for your operations?
- Is it critical for decision-making?
- Will it improve your processes or outcomes?
You must also get informed consent from individuals. Although the terminology in the Privacy Act isn’t defined, be transparent about what data is being collected, why it is needed, and how it will be used. Provide clear and accessible privacy notices, and ensure that individuals can opt-in or opt-out.
It is important to note that the Privacy Act specifies the need for “express” consent when collecting Personal Information or Sensitive Information. This means that individuals must clearly and explicitly agree to the collection and use of their data. Ambiguous or implied consent is not sufficient under the Privacy Act. Therefore, ensure that your consent mechanisms are robust and leave no room for misunderstanding.
Data Retention and Disposal
Establish retention policies based on legal requirements, business needs, and risk assessment. Set retention schedules and regularly review them, so they reflect changes in laws, needs, and data usage patterns. Set up alerts for relevant personnel to act promptly when data is due for review or deletion. When possible, you could automate data retention and deletion processes.
You must dispose data that is no longer needed as it is essential for security, storage and compliance reasons. Follow industry-standard methods for data destruction, such as secure shredding for physical documents and data wiping for electronic records.
The Increasing Complexity of Data Privacy Regulations
Data privacy regulations have become increasingly stringent and complex in recent years, reflecting growing concerns about the misuse of personal information. Standards such as the General Data Protection Regulation (GDPR) and the Health Insurance Portability and Accountability Act (HIPAA) have shaped the global landscape.
In Australia, we have the Privacy Act 1988 which outlines the principles for collecting, handling, and storing personal information, with recent amendments focusing on transparency and accountability.
ADITS offer the only assessment tool for the Privacy Act in Australia so you can assess your compliance with a yearly assessment.
Find out more about CyberShield+
Successfully Implementing a Data Governance Framework
Taking control of your data through Data Governance is achievable even for smaller organisations. Here’s how to get started:
Start Small, Scale Up
Begin by focusing on high-risk areas first, like sensitive personal data or financial records. Once you have a solid foundation in these areas, you can gradually expand your framework to encompass all your data assets.
Engage Stakeholders
Data Governance isn’t a solo act. Involve key stakeholders across your organisation from the outset, including your leadership team, department heads, and even data users. Encourage open communication and collaboration to gain valuable insights and build buy-in for your data governance initiatives.
Practical Steps for Building Your Framework
Data Governance doesn’t have to be complex or expensive. Here’s a simple guide:
- Appoint a Data Governance Champion: This dedicated individual will spearhead the implementation process and drive a data governance culture within your organisation.
- Conduct a Data Inventory: Take stock of the data you collect, store, and use. Understanding your data landscape is crucial for establishing effective governance.
- Develop Data Policies & Procedures: These documents will outline data ownership, security protocols, and access controls – the “rules of the road” for your data ecosystem.
- Invest in Data Training & Awareness: Equip your team with the knowledge and skills they need to handle data responsibly. Training can range from basic data security practices to user awareness campaigns.
- Continually Monitor & Improve: Data Governance is an ongoing process. Regularly review your policies and procedures, addressing any gaps or adapting to new regulations or technologies.
Data Governance in the Age of AI
The importance of data governance is further amplified in the context of AI.
Firstly, AI systems rely heavily on large amounts of high-quality data to learn and make accurate predictions. Poor data quality or inconsistencies can lead to biased or inaccurate results. Data governance ensures that the data used to train AI models is reliable, relevant, and consistent, mitigating the risk of biased or unfair outcomes.
Additionally, AI often involves the processing of sensitive personal data, making data security and privacy a paramount concern. Data governance helps to protect this data from unauthorised access, use, or disclosure, ensuring compliance with privacy regulations. By implementing effective data governance practices, you can harness the power of AI while minimising its risks and ensuring ethical and responsible use.
You can ensure your organisation in Brisbane, Townsville, or beyond gets the most from AI whilst ensuring data privacy by reading our comprehensive eBook, Step into AI: Your Playbook for Secure and Compliant Integration. We’ve also included a bonus AI Kickstarter Guide so you can begin your journey safely and securely.