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[Data Governance #5] The Golden Rules of Data Governance

David Chung, Ph.D.
Associate Partner
Synpulse Management Consulting Ltd.
For a long time, data governance has been recognized as vital for financial institutions, yet its prioritization often lags behind other initiatives. In recent years, however, the rise of data science, artificial intelligence (AI), and even generative AI (Gen AI) has forced the significance of data governance into sharper focus.

This series will explore various aspects of data governance, with this article dedicated to its Golden Rules.
The Golden Rules of data governance play a critical role in ensuring data quality meets required standards. These rules are fundamental to improving operational efficiency, reducing compliance risks, and fostering trust in data across the organization.
Here are some commonly recognized Golden Rules:
  1. Standardization Rules: Ensure that data adheres to predefined data standards.
  2. Validation Rules: Verify that data values, formats, or types meet expectations (e.g., age cannot be a negative number).
  3. Deduplication Rules: Define how to merge or consolidate multiple similar records.
  4. Completion Rules: Establish how to address missing data when gaps are identified.
  5. Consistency and Referential Integrity Rules: Ensure data aligns with business logic (e.g., contract end dates cannot precede start dates).
  6. Priority Rules: Determine which data to prioritize when inconsistencies arise.
Beyond these six common rules, other Golden Rules may also apply in practice. Organizations typically discuss and define these rules based on the specific issues observed in their data, prioritizing their implementation according to the importance or urgency of the data in question. Additionally, the design of Golden Rules is often tied to operational practices, requiring potential adjustments to workflows during implementation.

Ultimately, the successful implementation of Golden Rules depends not only on the rules themselves but also on alignment with systems and operational processes.



This article has been authorized by Dr. David Chung. Reproduction without permission is prohibited.
Original source:
https://www.linkedin.com/posts/davidchungtw_%E6%95%B8%E6%93%9A%E6%B2%BB%E7%90%86-5-%E9%BB%83%E9%87%91%E8%A6%8F%E5%89%87-data-governance-5-golden-activity-7286727883677483008-dxYP?utm_source=share&utm_medium=member_desktop&rcm=ACoAACHogbkBPE4SYpsz6UQCUffXH-qlNMoauVI
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