Organisations have a lack in trust over board's data governance knowledge

As concerns continue to grow around cybersecurity in Australian businesses, nearly two thirds of organisations don’t believe their board has sufficient understanding of current data governance challenges, according to a new report.

The report, released by the Governance Institute of Australia, Data Governance in Australia found a majority of respondents surveyed were not positive about how their organisation manages and protects important data, with more than half describing it as ‘average’.

Four percent of respondents noted their organisation’s understanding as ‘poor’.

It also found that more than half of organisations do not have a data governance framework, mostly due to a lack of capacity or resources.

Pauline Vamos, chair of the Governance Institute said data is an increasingly valuable asset that boards and senior managers across all sectors need to prioritise as a matter of urgency.

“It is critical that organisations design, introduce and implement an effective data governance framework to maximise customer service and the commercial value of data while also minimising risk - particularly reputational risk,” she said.

Vamos explained the results revealed a number of important insights into the challenges of keeping pace with technological advances, reporting to the board, protecting assets and maintaining the trust of stakeholders. 

“Just under three-quarters of organisations link data governance to the overall governance risk management strategy,” she said.

“Less than half report data governance to the board, and if they do, the variation on the frequency of reporting is significant.”

The report also noted the standout risk around data governance is cyber attacks, followed by emergent technologies and AI.

Vamos said an effective data governance framework is critical in protecting an organisation from potentially catastrophic internal and external threats and ensures a responsible, legally compliant and efficient use of data assets.

“We also cannot underestimate the role of governance as we move towards safe, responsible and ethical creation and usage of AI and the protection of vital data,” she added.

“We know there is a skills and knowledge gap that organisations must address as a matter of urgency.”

To increase data governance, The authors of the report recommended an increase in education, developing guidelines, creating mechanisms for collaboration, and implementing methods to measure the success of data governance frameworks.