Information Governance

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2 Information Governance The Why? The Who? The How? Summary Next steps Wikipedia defines Information governance as: an emerging term used to encompass the set of multi-disciplinary structures, policies, procedures, processes and controls implemented to manage information at an enterprise level, supporting an organization's immediate and future regulatory, legal, risk, environmental and operational requirements.

3 Why? Build a valued Information Asset Greater protection of sensitive data Access to trusted critical business intelligence in a timely manner Increased value of information throughout its lifecycle, culminating in a quantitatively modeled information asset. Single business aligned version of the truth Cross selling by profiling the client through a single view across the organization Reduce costs and increase revenue Business knows what they needs for their business function, thus IT knows what business wants from their system, therefore systems will be implemented on time, in budget and with little if any rework necessary. decreases time to market and increases revenue through efficient business processes due to an optimized transparent information landscape Decreased data management and systems costs and risks, due to aligned information standards, policies and quality rules enforced by a group wide business governance function Optimize use of resources Reduce the time spent on cleaning and validating data by general business employees, and more time spent on actual analysis, BI and MI, with valid, consistent, complete and timely information Effective information sharing and trusted decision making Information alignment between business functions & lines, systems and business processes, ensuring the trusted consolidation and aggregation of information with no costly data management operations. Internal & External Audit Requirement & Regulatory Compliance KYC, POPI, FATCA, Dodd Franks, Basel 3, IFRS, CRT etc

4 Who? Ownership of Information resides with business. To help business accept accountability and assume the guardianship role for their information, a clearly defined governance unit providing the authority, method and control to facilitate this critical requirement, needs to exist. James Orr, author of Data Governance for the Executive and respected authority on data governance in the USA believes that, even at its most conservative estimate, bad data in Financial Institutions contributes to: Operations: 10-15% of operational costs Revenue: 2-4% reduction in revenue opportunities (even with a single client view across the enterprise) Risk and Compliance: Risk of exposure, security breaches and non-compliance in the tens of millions of dollars, with serious reputational and market risk implied

5 How?

6 Scope Information governance encapsulates the information needs of consumers, accountability of originators and responsibility of stewards, and describes their role in building an information asset.

7 Moving Forward Current Future In the current environment we have fragmented data strategy in business functions & lines, pockets of data management, and IT governance for systems and projects in silos. Business governs data management and projects and aligns business strategy and IT governance, where: Business owns and defines data, Data management manages and monitors data, IT moves and stores data, through a comprehensive Information Governance process

8 Projects Current Future Systems belongs to a business function Data belongs to the organization In a Gartner press release Dirty Data is a business problem, not an IT problem, (2007), More than 25 percent of critical data in Fortune 1000 companies will continue to be flawed, that is, the information will be inaccurate, incomplete or duplicated

9 The bigger picture We create a standardized governed data view, where: business can ensure alignment with business, business can ensure alignment with IT, IT can ensure alignment with the rest of IT, directed by the data definitions, rules, policies and standards created by business and collected, consolidated and enforced by the Information Governance Office in each logical subject area.

10 Functional Engagement An independent study by NASCIO showed that: Up to 75% of information workers have made decisions that turned out to be wrong due to flawed data. As much as 30% of the work week is spent verifying the accuracy and quality of data. Only 10% of knowledge workers believe they always have all the information needed to confidently make effective business decisions.

11 Stewardship (IGO) Martin Lippert, Chief Information Officer, Royal Bank of Canada, said: We have a culture that recognizes that what s in the information vault is as critical to us as what s in the money vault. For Royal Bank of Canada, data management and customer data integration aren t about the technology as much as they are about business strategy and information and the change management processes that enable it.

12 Maturity Model Future regulatory requirements states that information governance will become a regulatory requirement for compliance by 2016, This will mean a formalized group wide business driven information governance organizational structure will needs to exist by this date

13 Cost and Sponsorship Group Head: Chief Data Officer Cost to Business Sponsor *: Subject Data Steward (Head of Information Governance in Business Area) Business Data Stewards (% time from Executive Decision Makers, SME s) IGO (Cost to catalogue data subject for business area) Training and support of Information Governance Office Cost to Projects: Project Data Steward * It should be noted that most of these staffing cost would be negated by simply reappropriating existing staff members. It is therefore possible to implement an IGO with no cost to sponsor. An EIU research survey (2008) showed that even though most senior executives are aware that their company s success is largely dependent on how often information policies are evaluated and adapted as business priorities and market conditions evolve, 62% of them do not have a formal information governance strategy in place.

14 Summary Information governance serves to orchestrate the people, processes and technology in the organization to align business and facilitate the creation and leverage of data as a group-wide asset Information governance provides a structured accessible facility to allow all of business to own and govern their data Information governance serves to collect and distribute standardized definitions and rules for data, with focus on data quality and data usability, aligning data subjects across the group, and giving business one view of data Analyst from Gartner along with leading financial institutions (2011) have concluded that: Risk calculations will need to become more pervasive and automated across the entire enterprise to stay effective Financial institutions without a mature data governance program will be vulnerable to severe regulatory penalties

15 Next Steps Re-appropriate/Appoint a head of information governance for the business area Divide the subject by identifying all functional and managed subject areas, which when looked at in an amalgamation will describe the business subject. Align efforts to existing group standards and policies Create a subject repository to collect, align, standardize and store all data definitions and rules, and details on ownership, stewardship and stakeholders. Identify the Executive decision makers who will act as guardians (business stewards) for each of the subject s categories or sections. These will form the IGO along with the head of information governance (subject steward) for the business area. Between them they should be able to define/redefine/remove any data definition or rule included in the subject. Assign/Identify business owners to all information (data) elements, this will be the originators of the information, if the information changes in its journey it will have a new owner (accountability). Identify all possible stakeholder and ensure they are included in the projects, the definition of elements and the creation of quality rules. These are the consumers of the information. Assign/Appoint project stewards on all current and planned projects as guardians of the data subject Create policies and standards in conjunction with the CDO for the information subject in the business area. Define/collect all data elements in subject area by creating business definitions. Define quality rules for data elements where required, and include in repository. Identify all reference and master data, and ensure proper ownership and controls are in place Global Information Governance Day, or GIGD, is an international holiday that occurs on the third Thursday in February. The purpose of Global Information Governance Day is to raise the awareness of information governance. (Wikipedia 2013)

16 Papers and research This presentation should be used in conjunction with papers published on my website: