Why does data governance matter?

Data Governance Concepts

Courtney Smith

Strategic Initiatives Manager

The evolution of data governance

 

An image illustrating the evolution of data governance from the 1980s to today

Data Governance Concepts

Increased financial regulations

Goals include:

  • Mitigate the risk of harmful events
  • Increase executive accountability
  • Better risk management
  • More accurate reporting
  • Increased protection for consumers, investor, and economy

 

Data governance is here to help!

A gavel next to a piggy bank and calculator to represent financial regulations

Data Governance Concepts

The Sarbanes-Oxley (SOX) Act

  • U.S. regulation enacted in 2002 as a response to high-profile accounting scandals
  • Executives must attest to accuracy of financial information
  • Set standards for financial and corporate reporting

A picture of paperwork that has Sarbanes-Oxley Act and SOX Compliance on top

Data Governance Concepts

CCAR

Comprehensive Capital Analysis and Review:

  • Evaluates if U.S. banks have enough capital to withstand an economic downturn
  • Includes stress test to evaluate resiliency
  • Includes review of capital planning process and whether bank can distribute dividends or shares

A picture showing the squeezing of the U.S. dollar sign to represent tightening of financial policies

Data Governance Concepts

BCBS 239

  • 14 principles for risk data aggregation
  • Grouped into three data requirements
    1. BCBS reporting and data aggregation
    2. BCBS data governance
    3. BCBS data quality requirements
  • Global standard designed to prevent severe losses caused by poor risk management

A magnifying glass over chart figures to represent financial review

Data Governance Concepts

U.S. privacy regulations

  • Combination of federal and state laws with varying levels of protection and penalties

  • Examples:

    • Health Insurance Portability and Accountability Act (HIPAA) (1997)

      • Sensitive information cannot be shared without patient knowledge or consent, except in certain situations

    • California Consumers Protection Act (CCPA) (2018)

      • Provides California residents with more control over the use, handling, retention, and selling of their personal data
Data Governance Concepts

General Data Protection Regulation (GDPR)

  • Comprehensive privacy law to be used across the European Union (EU)
  • Applies to any company that collects data of EU citizens and residents
  • Some key components:
    • Increases the rights of EU citizens and residents over how personal data is processed
    • Data must be anonymized to protect privacy
    • Consumers must be notified of data breaches
    • Data transferring between countries must follow certain standards
    • Certain companies must have a data protection officer to oversee GDPR compliance
Data Governance Concepts

Data classification and retention

Data classification

  • Groups data based on confidentiality level
  • Indicates how data should be handled, protected, and used

Data retention and destruction policies

  • Indicate how long data should be kept and when it should be destroyed
  • Leverages data classification

Business people organizing document,files, and folders inside of a computer

Data Governance Concepts

Master, reference, and metadata management

Master data management

  • Enables consistency and transparency
  • Creating master (golden) records to identify, match, and merge data across systems

Reference data management

  • Identifying, mapping, and conforming coded data sets (e.g., country code, currency) across business lines and systems to ensure consistency

Metadata management

  • Managing data that describes and defines data (e.g., lineage, definitions)
  • Enables searching and cataloging of data
Data Governance Concepts

Let's practice!

Data Governance Concepts

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