Introduction

In today's digital age, data has become a valuable asset for businesses and development of business strategies as organisations are continually building digital products and, in the process, acquiring various forms of data.

The resultant effect of this development is that the responsibility to govern and protect data has become increasingly important within the corporate governance ecosystem. This publication aims to examine the role of data governance in corporate governance as understanding and implementing effective data governance measures would significantly impact the management of data amongst Nigerian businesses and the wider economy, in addition to ensuring that data as an asset is utilized to ensure maximum profitability for the organisation.

The Role of Data Governance in Corporate Governance

Corporate governance encompasses the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of stakeholders, including shareholders, employees, and the wider public. The board is the primary influence on an organization’s governance framework. This framework establishes, the rules practices and policies required to guide such organization’s operations into profitability.

The basic principles of corporate governance are accountability, transparency, fairness, responsibility, and risk management. This necessitates the development and implementation of policies upholding data transparency in data collection. Organizations also have a responsibility to be accountable for the data they collect.

Data governance on the other hand refers to the overall management and oversight of data within an organization. It involves establishing policies, processes, and controls to ensure the reliable and ethical use of data. Data governance is the subset of corporate governance which ensures the proper management of data as an asset of the organization. An effective data governance framework should include various components such as data quality, data access, data security, and data privacy.

Organizations that have a transparent data governance process are able to build trust with stakeholders such as investors and clients and also inspire confidence regarding the management of the data in their possession. By implementing proper data governance practices, organizations can better identify risks, comply with regulations, and safeguard sensitive data. By implication, this would result in reduced exposure to sanctions from non- compliance with the various data protection regulations.

The Responsibility of the Board in Ensuring Effective Data Governance

The board plays a critical role in data governance. Some of their roles include:

• Designation of a Data Governance Steering Committee (DGSC): the DGSC is the primary and highest authority in an organization, responsible for oversight, support, and funding of data governance activities. The DGSC should consist of a cross-functional group of senior executives and management.
• Appointing a Data Governance Officer: The board, through its established policies must ensures that the organization appoints a designated executive to manage the data governance process. This data governance office will monitor the management of governance activities in the organization.
• Overseeing Data Management: The board ensures data handling practices comply with the relevant internal policies and any established data governance frameworks.
• Cultivating a Culture of Accountability: The board sets the tone for responsible data practices within the organization.
• Effective Data Governance Operating Model: The board should ensure that the organization develops an effective data governance operating model to outline and organize the data and information arising from operational, financial or risk management process. The report from the Data Governance Operating Model assists the board in making recommendations on strategic business practices that upholds best governance standards.

Conclusion

In conclusion, data plays a crucial role in the evolution of business operations across the world. It is therefore important for the board, being the strategic arm of the organization, to uphold and establish appropriate data governance framework in order to improve transparency and efficiency. An effective data governance operation would improve stakeholders’ confidence, brand visibility and the overall operation of the organization. It is therefore important to establish data governance structures to address the ever-growing complexities of modern governance.

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