Data governance involves the control and decision-making process of data across an organisation. It includes aspects like data quality, data custodian, data protection and compliance, and general data management.
Effective data governance and management results in accurate, usable data for decision-making and reporting on value creation across an organisation. Therefore, organisations must pay attention to the following aspects of data governance.
Firstly, leadership teams across organisations should take responsibility for data governance. For example, there could be a designated data custodian with reporting lines to management and board. It creates the clarity required on roles and responsibilities for data management, taking into account the data requirements of that organisation, for example, regulatory reporting requirements on sustainability reporting.
It also ensures that investments and resources are available to transform the process from compliance-focused to insights-driven. It leads to the second aspect, the business as usual (BAU) integration of data management policies and technology across the organisation.
This ensures data is available on a real-time basis, usable and presented in a manner that speaks to the issues that matter to stakeholders.
Organisations should also have periodic management engagements and meetings, for example, on non-financial reporting data.
During such collaborative sessions, organisations can perform analysis that provides insights into risks and opportunities for better decision-making.
These insights could lead to a competitive advantage in the marketplace on an organisation’s long-term financial viability. Another aspect organisations should focus on is the internal control processes on data governance.
This is important in ensuring the data on non-financial metrics and targets are accurate to avoid misstatements or even greenwashing.
For example, the metrics and targets required for IFRS S2 on emissions and climate risk should be accurately reported, and organisations should also have assurance processes on data quality to build trust.
Akinyemi Awodumila is a Partner at Deloitte East Africa. He is an author who writes and speaks widely on corporate reporting topics.
