A data governance failure can be catastrophic but preventive toolkits exist: Here’s what to do

Subscribe to enjoy similar stories. It wasn’t long ago that a multinational firm faced multiple compliance failures spanning several years that resulted in billions of dollars in fines for lapses in risk management and other critical areas. This served as a stark warning to organizations worldwide: the cost of non-compliance and poor data governance is non-negotiable.

The scenario in India is not very different. As regulatory penalties soar into hundreds of crores, Indian organizations now face an unprecedented convergence of regulations; a single incident can trigger action under multiple regulatory frameworks within hours. The risks are not just regulatory.

Flawed data governance practices not only disrupt business operations, but also result in inaccurate reporting, delayed decision-making and impaired customer trust. Yet, most still operate with a ‘we’ll find it when we need it’ approach to data management, even though such an attitude can prove financially and operationally catastrophic. Why do organizations struggle?: In our experience, the core issues that lead an organization’s data governance to fail, often lie in outdated, fragmented technology and decades of underinvestment in building a strong governance backbone.

Often, organizations that are undergoing massive restructuring exercises with multiple mergers or acquisitions are the ones that fall prey. On the other hand, organizations with legacy IT systems with an under-evolved risk environment remain vulnerable. When organizations begin to reassess governance frameworks, uncover vulnerabilities and strengthen their technology infrastructure, they start recognizing drawbacks of the siloed approach they have always taken.