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Within corporations, the theme of governance has been one of the most important themes for decades. Scholars have discussed and debated how corporations can be governed in order to protect shareholder value and resolve agency issues.
Companies have implemented a variety of corporate governance mechanisms to ensure effective decision-making and data risk management. These include board committees, independent directors, audit committees, and independent auditors. Companies have also implemented internal controls to ensure efficient and effective operations.
Effective corporate governance involves careful oversight and accountability of organizational assets to promote a company’s long-term success, ethical behavior, and responsible management.
These assets can include financial assets, physical assets, human capital, and technology assets to name a few. However, starting in the 1970s, information and data assets were viewed as assets determining and influencing company value.
Since then, data has been considered a valuable asset that must be managed and protected to ensure availability, accuracy, and security. Moreover, companies must also consider the impact of data on their organizational strategies and goals. It is a known fact that by using data-driven business models, a corporation can transform itself to profitability by understanding the markets and internal environment better.
The Theme of Data Governance Framework
Within corporations, the theme of governance has been one of the most important themes for decades. Scholars have discussed and debated how corporations can be governed in order to protect shareholder value and resolve agency issues.
Companies have implemented a variety of corporate governance mechanisms to ensure effective decision-making and risk management. These include board committees, independent directors, audit committees, and independent auditors. Companies have also implemented internal controls to ensure efficient and effective operations.
Effective corporate governance involves careful oversight and accountability of organizational assets to promote a company’s long-term success, ethical behavior, and responsible management. These assets can include financial assets, physical assets, human capital, and technology assets to name a few.
However, starting in the 1970s, information and data assets were viewed as assets determining and influencing company value. Since then, data has been considered a valuable asset that must be managed and protected to ensure availability, accuracy, and security. Moreover, companies must also consider the impact of data on their organizational strategies and goals. It is a known fact that by using data-driven business models, a corporation can transform itself to profitability by understanding the markets and internal environment better. For organizations to protect their data through a good “corporate governance framework,” a framework that provides guidance is necessary. The term corporate Data Governance differs in principle from the usual Data Governance.
In accordance with corporate governance objectives, Data Governance frameworks should contribute to market integrity and economic performance. An overarching domain of managing data risks can also contribute to corporate Data Governance. Corporate Data Governance prioritizes value, however, and identifying risks is crucial to determining the effectiveness of the internal data control environment.
For the enterprise and its stakeholders, the framework must enable organizations to assess, direct, monitor, and protect data and related infrastructure. The direction provided by corporate Data Governance can be different in scale and in its objectives to a generic Data Governance framework.
Further information is available here - The Emergence of Corporate Data Governance
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