What is information governance and why is it important

1. What is information governance and why is it important? The data is essential for the orientation of corporate activities since it allows to identify the operation of a strategy, evaluate the productivity of the collaborators, and calculate an infinity of internal metrics. An information governance plan consists of the efficient management of all corporate digital information, thus positioning itself as a powerful generator of insights and the basis for making business decisions. Likewise, its practices allow increasing productivity by minimizing the use of resources and maximizing the security of intellectual property. Basically, Data Governance covers, directly or indirectly, the following aspects: • Corporate policies. • Production processes. • Human Resources. • Use of technological resources. • Therefore, we can say that data governance configures the general management of the availability, usability, integrity, and security of the data used in an organization. Typically, such a good-quality program includes a steering group, a set of procedures, and a plan for executing those activities. In fact, data governance is made up of three main parts: • Rules that guide the entry and maintenance of data such as definitions and style rules. • Execution of the regulations, opening space for corrections in the case of deficient queries, such as typing acronyms instead of the integral expression. • Data management in accordance with the established rules, encouraging managers and users to use the information appropriately. Taking into account everything that we have pointed out so far, we can perceive that the lack of efficient data governance can put corporate information at risk, since the existence of unreliable data creates a deficient information base, consequently affecting the quality of decision-making. In this sense, for example, inconsistent data can trigger significant financial losses as managers tend to act on the wrong basis to invest capital, restructure processes or launch activities with low potential for success.

2. Importance of Information governance As we noted above, inefficient information management can severely affect the company, especially if we look from a financial perspective and consider that the flow of data has increased exponentially in recent years as a result of the development of new technologies and market growth. In essence, consistent data governance needs to answer simple questions about the provenance of data, informational content, and the alignment of data with corporate policy, thus providing a holistic approach to treating information in a way that becomes a robust source of advantage over the competition. It is clear that the scope of good governance is closely related to the company's perspective on its data, which is why it must consider it as a highly valuable asset in terms of both the operational and strategic fields. In this way, worrying about data governance has become an essential practice for businesses, since it has an impact on profits and, therefore, on their level of profitability. Having good data management means making the best decisions for the business, which results in increased productivity and operational efficiency and, consequently, an increase in business revenue.

3. Thus, we can highlight some of its main objectives: • Improve decision-making mainly by virtue of the use of real and reliable information. • Anticipating demands through the accumulation of data and historical analysis, it is possible to predict future demand, especially when artificial intelligence mechanisms are in place. • Protect information by preventing it from falling into the hands of third parties. • Prioritize data transparency by sharing it with the entire work team. • Optimize processes through proper organization and add value to operations, thus promoting increased efficiency and reduced costs. Ultimately, effective data governance aims to minimize costs and maximize profits, thus increasing the level of profitability of the business. To achieve excellence, you need to positively influence decision-making by generating more successful results that, in fact, contribute to the success of the business. It is important to emphasize that a strong governance policy requires the definition of specific standards and an internal code of conduct that guides workers towards the adoption of best practices and compliance with corporate rules. In this way, the company manages to protect its stealth information by minimizing the occurrence of inconveniences and malicious actions. Learn about the main advantages of governance By reaching this point in the article, you've likely understood that putting excellent data governance in place is critical for your business to develop and grow in the marketplace. Indeed, this aspect directly affects the quality of information, insights, and organizational strategies, so prioritizing it generates a series of benefits such as: Increased operational efficiency Proper information management gradually improves productivity, since following effective procedures as well as being fully aware of the rules to be met and organizational demands avoid numerous human errors and, above all, the repetition of activities and the waste of resources. Lower costs Basically, relying on concrete, safe and reliable data allows activities to be carried out with much more assertiveness, which automatically leads to the reduction of operational costs. The equation is quite simple: By reducing the incidence of errors and human failure, you can maximize the use of resources and, therefore, use them in less quantity to obtain even more productivity, as well as better results. In this way, the resources saved can be invested in other areas of the business and even in new

4. technologies. Increased profitability When we have an increase in productivity and mitigate costs, we can increase the profitability of the business. Essentially, that is the output provided by: • More effective decisions. • More rigorous processes and attentive to organizational demands. • Reduction of problems in the productive and/or operational area. • Adoption of more competitive prices, since efficient data governance provides the facility to detect whether the profit margin is satisfactory or not, as well as to implement measures to optimize it. Risk reduction When we handle data indiscriminately, that is, we use it without considering the negative effects that its possible inconsistencies may have in the business environment, we open precedents for the emergence of risks such as the abandonment of good practices and the manifestation of a disinterested stance. By putting governance at the forefront, you can change this context by providing more reliability to the data and actions that are based on those business assets. Data security optimization After the digital transformation, companies have become increasingly dependent on new technologies, which is very interesting and beneficial for businesses, however, it generates certain mistrust in terms of the protection of circulating data. In this sense, the appearance of powerful technological solutions on the market not only stimulates the optimization of business practices but also arouses the interest of cybercriminals who specialize by dedicating themselves to sophisticated techniques to attack corporate vulnerabilities. With efficient data governance, it is possible to manage information with more precision by incorporating security measures in accordance with new technological trends and adopting protection mechanisms that make it possible to avoid or, failing that, face cyber attacks. Therefore, we can say that the improvement of information security is also another extremely positive effect of efficient governance. More accurate and accurate decision making At different points in this article, we point out good governance as a relevant differential for decision-making, and indeed it is!

5. By virtue of operational efficiency, effective data flow, and information security, managers can visualize the current business situation in a comprehensive and comprehensive way, resulting in a more efficient prediction of future business demands. In this way, data governance of the highest quality makes it easier to anticipate problems, make the best decisions and implement the most efficient measures to correct them. As you can see, powerful governance brings significant benefits to the different corporate areas, however, most of its contributions are reflected in increased financial results. Source Url: https://proteusdiscovery.blogspot.com/2021/12/what-is-information- governance-and-why.html