The Future of Data Governance and Emerging Trends to Watch

Data is the lifeblood of any organization. Without it, you're flying blind with no real knowledge of how your business is performing. From customer behavior to supply chain logistics, data has become such a valuable and critical component of today's world that it is difficult to imagine a world without it.

But the value of data comes with a price. With every new technological advancement and business innovation that generates data, the importance of managing that data effectively and securely dominates the discussion. That is where data governance steps in.

Data governance is the set of rules, policies, procedures, and standards that outline how an organization manages, stores, and protects its data throughout its lifecycle. In simple terms, data governance ensures that an organization can effectively manage data while also ensuring data security, privacy, and compliance.

As technology advances, data governance continuously evolves to keep up with these changes. So, let's take a look at some of the emerging trends in data governance and what we can expect for the future.

The Expansion of Data Protection Laws

Privacy regulations are becoming more stringent, and data governance plays a vital role in achieving compliance. Privacy laws, such as the European Union's General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and the New York Privacy Act (NYPA), are evidence of governments responding to the issue of data protection. Data breaches, stolen data, and other privacy violations could potentially result in heavy fines and legal action.

As such, data governance is integral to complying with these regulations, reducing the risk of fines, lawsuits, and damage to the organization's reputation.

But these regulations are not limited to government-imposed policies. Many organizations are taking it on themselves to implement data protection policies to regulate how data is accessed, stored, and used internally. Companies must be mindful of these policies and adhere to them alongside applicable legal regulations.

The Rise of Artificial Intelligence (AI) and Machine Learning (ML)

The industrial AI and ML industries are growing in leaps and bounds, and with it comes additional data acquisition and management challenges. According to ResearchAndMarkets.com, the AI market will grow from $21.5 billion in 2018 to $190 billion in 2025, a compound annual growth rate (CAGR) of 36.62%. Along with the growth of the market come increased opportunities to gather, process, and use data.

While the benefits of AI and ML are academic, organizations must assess the potential risks of AI and ML models. As AI and ML are trained on data sets, a lack of data governance can mean the use of biased data sets that generate inaccurate results. Data governance is essential when applying AI and ML models to ensure that the models are trained on quality and unbiased data.

Moreover, data governance practices will ensure that private information is not stored within these models and robust security measures are in place within AI and ML applications.

Data Governance Beyond Borders

As organizations become more global, data governance has to be considered beyond borders. Laws and regulations surrounding data differ in different countries, but data must still be secured while complying with local laws.

Whether data is held within the home country or stored abroad, its security must be ensured. Organizations that operate on a global scale must ensure that the data stored in a foreign jurisdiction is secure and complies with local data regulations.

Data governance can help organizations simplify their international data management and steer clear of regulatory risks.

The Expansion of Data Stewardship Roles

Data governance requires the active involvement of roles throughout an organization. As data sets grow, so does the need for data stewards' roles within an organization. Data stewards are responsible for managing the complete data lifecycle, including the development of policies, procedures, and standards, data quality management and data protection, and regulatory compliance.

Data stewardship will increasingly become an essential function within organizations as data volumes grow and new datasets are collected. A culture of good information management and a clear communication plan about the organization's approach to data governance can help mitigate data management challenges.

The Importance of Collaboration

The expansion of data across different departments within an organization brings a new level of complexity to governance. Collaboration, coordination, and transparency within data governance will become more critical to ensure data is shared, secured, and used to its greatest potential.

Collaboration, coordination, and communication need to occur throughout various departments and business units within an organization. Ensuring that everyone is working towards the same end/goal is an essential aspect of effective data governance.

The development of a data governance framework, where roles and responsibilities are clearly defined, will enhance collaboration and bring different parts of the organization together to ensure data is used securely and effectively while ensuring compliance with all data regulations.

Conclusion

Data governance is not a stagnant field, and as technology and business innovation continue to evolve, so must data governance. The emerging trends we've covered above will play a significant role in the future of data governance, both in the near term and long term.

As privacy regulations expand, organizations are enhancing their data protection policies to meet compliance standards. As AI and ML continue to transform the way businesses operate, data governance will keep up with these changes and ensure that AI and ML models are trained on unbiased data.

Moreover, data governance principles will have to be applied beyond local borders, while data steward roles and tools for transparent communication will continue to evolve.

The future of data governance is bright and strong, and staying aware of these emerging trends will ensure that organizations can navigate the complexities of managing data efficiently and securely.

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