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What is Data Governance?

Data governance is the framework of policies, roles, and controls that ensures data is accurate, secure, consistent, and used responsibly.

Definition

Data governance is the overarching framework that defines how an organisation manages the availability, quality, integrity, and security of its data. It establishes ownership and accountability through roles such as data owners and data stewards, sets standards for how data is defined and entered, and enforces rules for access and compliance. Good governance ensures that the meaning of data is consistent across departments and that sensitive information is protected and auditable. It underpins reliable reporting, regulatory compliance, and trust in analytics and AI initiatives.

How Data Governance Works in ERP

In an ERP context, data governance defines who can create or change master records, what validation rules apply, and how data quality is monitored over time. It works alongside role-based access control to limit who can edit sensitive financial or customer data and ties into audit logging for traceability. Governance policies help keep the ERP a trustworthy source of truth as many users and integrations write to it. Clear governance is especially important in regulated industries where data accuracy and retention must be demonstrable.

ERP Vendors with Strong Data Governance

Frequently Asked Questions

What is the difference between data governance and master data management?

Data governance is the broad framework of policies and accountability for all data, while master data management is a more specific discipline focused on maintaining consistent core records; MDM operates within the rules that governance sets.

Who is responsible for data governance?

Responsibility is shared: executives or a governance council set policy, data owners are accountable for specific domains, and data stewards handle day-to-day quality, often supported by IT and compliance teams.

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