The Ethics Of Data Governance - 'Data Comes With Benefits And Liabilities'

Data has never been more powerful than it is right now. 2018 saw some of the largest data breaches in history come to light, including the Marriott hotel group breach and the Cambridge Analytica scandal, both of which had troubling implications concerning international relations. 2019 has already seen breaches involving Australian government officials, and one of Germany’s biggest cyberattacks to date targeting public figures. Enterprises, governments and consumers alike are beginning to appreciate the value and vulnerability of data, and how important it is to properly handle data and the algorithms that feed on it.

‘Data citizens are waking up,’ says Stijn Christiaens, the co-founder and CTO of Collibra, and businesses are having to rapidly change to put data first and manage information ethically - ‘data governance is about the people, and the processes they follow.’ In conversation with Christiaens, we spoke about the moral impetus of gathering, using, and regulating data, and how companies need to adapt to a new, digital way of working.

‘Herding cats’

The biggest difficulty that many people face when thinking about data is that it is intangible - ‘you can’t govern data; data is inanimate’ explains Christiaens - and as such it can be a difficult concept for traditional business leaders. ‘The organizations of today have grown using the “old” way of doing things, now the “digital” way of doing business is fundamentally different’ and has become the new normal.

Managing this transition is difficult because an understanding of the importance of data needs to be prominent throughout an organization. Aside from a pressing shortage of data professionals there is also the issue that executives may not grasp the need for analytics or proper data governance at all: ‘for executives trained in the old ways, data is very alien to them.’ New regulation like GDPR is creating awareness around the value of data, but Christiaens stated that getting people used to the idea of data governance ‘is [like] herding cats’, especially when attempting to change processes in large organizations that have been untouched (and doing just fine) until now.

‘The bulk of the change is still to come’

Thanks to an international push for appropriate data usage - instigated within Europe with GDPR and followed by other Eastern and Western governments - there has been far more talk about handling data in an ethical way, and about the consequences of not doing so. ‘As consumers get more and more informed that element of trust is key,’ says Christiaens, and increasing that trust with stricter data protection regulation also benefits organizations that are struggling to adapt: ‘regulation is increasing awareness and helps bridge the gap to the informed consumer.’ As expected, while some leaders understand the importance of data protection and public trust, many companies are less concerned about the effects of regulation: “how can I check this box as fast and as cheap as possible.” This approach won’t hold up for long, as Christiaens makes clear - ‘it’s very superficial on one hand and fragmented on the other’ - and companies that don’t pay attention to the way they handle data, or where that data comes from, will suffer for it - ‘companies become responsible for working with non-trusted parties, and there’s a big impact there.’

While the financial consequences are clear (GDPR sanctions can be up to €20 million or 4% of annual turnover, whichever is higher) companies need to pay far more attention to the benefits of having a structured and transparent data strategy throughout the organization. ‘Whether you’re creating deeper customer engagement or offering digital products or services, you really have to organize around [data analytics] - it’s not something you can sprinkle onto an existing organizational structure.’ Just as consumers, those data citizens who ‘use data to do their job’, are waking up to the power of their data, so are companies ‘beginning to realize that data is more than just a by-product, it’s an asset that comes with benefits and liabilities.’

‘Shooting yourself in the foot with a machine gun’

Although Christiaens states that ‘really changing the organization and its business processes is still to come in the majority of [cases]’, companies can now see the positives of having robust and transparent data governance for themselves - ‘people want their data to be trusted… at the executive level [you want] something you can trust to make decisions on.’ Not only does good data governance increase the decision-making ability of those at the top, it also helps everything else run smoothly through an organization.

Trusting the data that comes into and flows through your organization is especially important when it comes to employing Artificial Intelligence (AI) operationally or as part of a digital offering. But AI could equally be used as an example of why it is always vitally important to have trustworthy data in an organization. ‘You trust that the data that went into the model will lead to a healthy outcome... when the data is bad that goes into that model, it’s like shooting yourself in the foot with a machine gun.’ If ‘bad’ data travels through multiple layers and a decision is made based on that information (whether by an algorithm or an executive), not only will that bad decision disrupt organizational processes, but could also make or break a company in the eyes of the public.

Powerful implications

Data might be the world’s next most powerful resource, but it can be difficult to get across just how valuable it can be. Indeed, the less someone understands this power, the more damage it can do if not treated properly. New regulations around the world are helping ‘data citizens’ understand the change that is afoot, and making sure that proper data governance works in everyone's favor.

Treating data with respect and properly governing those who use it is fast becoming the new norm, and brings those who embrace it a more efficient organization, better customer relationships and a more ethical way of doing business. Once this structure is in place companies can reap the much-cited rewards of AI, but the benefits and dangers of data always apply - if your data governance is not above-board, the consequences could pollute every aspect of your business. And the opposite is, of course, true - the more you take care of your data, the quicker and better your decisions will be.