Companies will need to take a new approach if they want to develop a successful data governance framework, Mark Firenze, the CTO of a financial services technology provider, wrote in a recent WallStreet & Technology opinion piece.
Buy-side firms looking to set up the proper infrastructure, as well as institutions that want to improve existing policies and procedures, might benefit from knowing about his statements.
Many regulatory initiatives impact data governance
Lawmakers and regulators have been seeking to develop the proper set of rules and regulations for data over the last several years. They have targeted data governance in several key regimes, including the Dodd-Frank Act.
While this reform brought about the needed changes in the U.S., government officials in Europe impacted the rules and regulations involving important information with separate legislation.
Expert lists counterproductive assumptions
In his opinion piece, the market expert outlined three separate assumptions that undermine the successful implementation of data governance frameworks. These include:
- The belief that developing and then adopting the proper data governance is a matter that is neither difficult nor complex
- The perception that creating the proper set of information rules and regulations is a short-term initiative and has a definitive end-date
- The idea that data governance is mostly a technical matter, which involves efforts to trap errors
The market expert emphasized that data governance is not entirely a technical matter, nor is it merely a business concern. He stated that if firms want to succeed in implementing the proper set of information rules and regulations, they will need to have key stakeholders focusing on both business and IT work together to achieve the desired results.
Information is a valuable resource
Technical staff who want their buy-side institution to grant more importance to these efforts might consider emphasizing the crucial value of information when attempting to get senior executives and other management on-board.
Before speaking with important members of staff that run a business, individuals with expertise in technical matters should keep in mind that these stakeholders are going to want resources that will help them achieve their business objectives.
Information plays a key role
Firenze emphasizes that information is an asset, and should be treated as such. If companies want to use their data in the best way, they need to take specific steps. They need to own this information, carefully monitor how it is sourced and develop a context for data governance that affects the entire organization.
He is certainly not the only one who has noted the crucial role of obtaining buy-in at all levels. Unless staff members across an organization are on-board with the importance of data governance initiatives, these efforts could fail.
Buy-side institutions should keep in mind that while obtaining a mandate from senior management is of the utmost importance, the rank-and-file must be enthused about data governance as well.