write:Ó3. Reduces the risk of noncompliance Government regulations and compliance require-ments have increased significantly in the past decade. Companies that fail to comply with laws

Data Governance
and Cloud Computingthreats. Management predictions focus on Òwhat is going to happenÓ as opposed to finan-cial reporting on Òwhat has happened.Ó3. Reduces the risk of noncompliance Government regulations and compliance require-ments have increased significantly in the past decade. Companies that fail to comply with laws on privacy
fraud
anti-money laundering
cybersecurity
occupational safety
and so on face harsh penalties.4. Reduces the time and cost of locating and integrating relevant information.Data Governance: Maintaining Data Quality and Cost ControlThe success of every data-driven strategy or marketing effort depends on data governance. Data governance policies must address structured
semistructured
and unstructured data (discussed in Section 2.3) to ensure that insights can be trusted.Enterprisewide Data Governance With an effective data governance program
managers can determine where their data are coming from
who owns them
and who is responsible for what―in order to know they can trust the available data when needed. Data governance is an enterprisewide project because data cross boundaries and are used by people throughout the enterprise. New regulations and pressure to reduce costs have increased the importance of effective data governance. Governance eliminates the cost of maintaining and archiving bad
unneeded
or inaccurate data. These costs grow as the volume of data grows. Governance also reduces the legal risks associated with unmanaged or inconsistently managed information.Three industries that depend on data governance to comply with regulations or reporting requirements are the following:Â¥ Food industry In the food industry
data governance is required to comply with food safety regulations. Food manufacturers and retailers have sophisticated control systems in place so that if a contaminated food product
such as spinach or peanut butter
is detected
they are able to trace the problem back to a particular processing plant or even the farm at the start of the food chain.Â¥ Financial services industry In the financial services sector
strict reporting requirements of the Dodd−Frank Wall Street Reform and Consumer Protection Act of 2010 are leading to greater use of data governance. The Dodd−Frank Act regulates Wall Street practices by enforcing transparency and accountability in an effort to prevent another significant finan-cial crisis like the one that occurred in 2008.¥ Health-care industry Data are health careÕs most valuable asset. Hospitals have moun-tains of electronic patient information. New health-care accountability and reporting obli-gations require data governance models for transparency to defend against fraud and to protect patientsÕ information.Master Data and Master Data Management (MDM) Master data is the term used to describe business-critical information on customers
products and services
vendors
locations
employees
and other things needed for operations and business trans-actions. Master data are fundamentally different from the high volume
velocity
and vari-ety of big data and traditional data. For example
when a customer applies for automobile insurance
data provided on the application become the master data for that customer. In contrast
if the customerÕs vehicle has a device that sends data about his or her driving Data governance is the control of enterprise data through formal policies and procedures to help ensure data can be trusted and are accessible.