The importance of data governance for GDPR compliance

In the corporate world, data plays a fundamental role. Every day, companies collect and process various information and, based on them, business strategies are created, internal processes are improved, and new products and services are created.

However, special care must be taken with these valuable assets. Often, this information includes customer data, payment information, confidential contracts, among others. Therefore, it is essential to know how to handle and protect this data properly.

That is why, in recent years, the General Personal Data Protection Law (LGPD) . This legislation regulates personal data processing activities, ensuring that companies of all sizes are more careful in this regard.

One of the requirements of the LGPD is that organizations invest in data governance , which consists of all measures taken to ensure that data is secure, private, accurate, available and usable. This includes the actions that people must take, the processes they must follow, and the entire structure and technology involved in processing this data.

And that's what we're going to talk about in this article: the importance of data governance for companies to stay up to date with current regulatory standards. 

Good reading! 

What is the LGPD

The General Data Protection Law ( LGPD ) is the Brazilian legislation that regulates the processing of personal data. Enacted in 2018, it came into force in September 2020.

Its main objective is to protect the rights of freedom, privacy and the free development of the personality of natural persons, establishing standards that companies must follow when collecting and using their customers' information.

The LGPD was inspired by international data protection regulations, such as the European Union's GDPR, and is applicable to any data processing operation carried out in Brazilian territory . This includes companies of all sizes and government agencies.

The LGPD establishes important principles for the processing of personal data, such as:

• Purpose : Data may only be collected for specific and explicit purposes.
• Suitability : Data processing must be compatible with the stated purposes.
• Necessity : Limitation of treatment to the minimum necessary.

In practice, the LGPD imposes significant changes in the handling and protection of personal information, which affects everything from small companies to large corporations. 

With it in place, not only is consumer confidence strengthened, but a safer and transparent .

What is data governance?

Data Governance is the system of standards and practices that ensures the effective and secure management of data in an organization.

It encompasses processes, roles and policies that ensure that information is handled in a reliable and transparent manner.

The LGPD imposes specific responsibilities on companies to ensure the protection of personal data, establishing obligations that need to be followed. And one of these obligations is the adoption of data governance measures.

Elements of data governance

• Policies and standards : Clear rules about how data should be collected, used and protected.
• Access management : Controls over who can access different types of data.
• Data quality : Ensuring that data is accurate, consistent and up-to-date.

Importance of data governance for GDPR compliance

As we said previously, data governance plays a crucial role for companies to comply with the LGPD . This is because it involves practices and processes that guarantee the protection and privacy of individuals' data, meeting legal requirements. Let's see in more detail below:

Alignment between data governance and LGPD requirements

Data governance needs to be in perfect harmony with LGPD principles.

This is because one of the fundamental principles of the LGPD is transparency in the treatment of sensitive data .

Organizations must clearly inform individuals how their data will be used and obtain informed consent for the collection and processing of this information.

This is where data governance comes into play. By establishing clear procedures for obtaining and documenting consent, companies can ensure they are following GDPR guidelines and building trusting relationships with their customers.

Additionally, data governance helps companies identify what information is truly needed to achieve their objectives and implement policies that prevent excessive collection. 

This not only helps with GDPR compliance, but also reflects a responsible and ethical approach to individuals' data.

Challenges in implementing data governance

We previously saw what data governance is and its importance in complying with the LGPD, but now the time has come to understand the challenges of implementing it.

It is possible to encounter a series of obstacles in this process, so it is important to know them and to know how to anticipate and deal with each one of them to be successful in its implementation:

Main obstacles faced by companies

• Lack of awareness and support from senior management: this is one of the main obstacles. Many companies do not fully understand the risks associated with non-compliance with legislation and the need for adequate data management. And without the support of senior management, it is difficult to obtain the resources and commitment necessary for effective data governance;
  
  
• Cultural resistance: Existing organizational structures can be inflexible, making it difficult to integrate new data practices and policies. Employees may resist new procedures, especially if it interferes with their work routines;
  
  
• Lack of financial and technological resources: smaller companies, especially, often do not have the budget to invest in data governance tools or professional training, which becomes a problem.

Strategies to overcome these challenges

We have seen the challenges, but rest assured, because for every problem there is a solution! Below we have put together strategies to overcome these challenges.

To overcome the lack of awareness, companies must invest in capacity building and training programs , such as workshops and seminars on the importance of LGPD, data governance and the risks associated with poor information management.

To overcome cultural resistance, a collaborative data culture Encouraging communication between departments and involving leaders at all stages of implementation facilitates acceptance of new practices.

And when it comes to scarcity of resources, it is crucial to adopt a strategic and gradual . Prioritizing the most critical areas for compliance and using affordable, scalable technology solutions helps manage costs.

Additionally, partnerships with consultancies or data governance platforms can provide the necessary support without large upfront investments.

Benefits of data governance for companies

After all, what are the real benefits that data governance provides? In this section we will address this topic. From regulatory compliance to improved operational efficiency can be achieved with the help of data governance. Understand:

Data protection, regulatory compliance and risk mitigation

With solid data governance, a company ensures that sensitive information is treated with due care . This involves implementing robust measures to protect data against unauthorized access, breaches and theft.

Compliance with the General Data Protection Law (LGPD) is ensured, avoiding fines and strengthening customer confidence, who know that their personal data is protected.

Furthermore, correct data management significantly reduces the risks of information loss and theft, as well as the negative impacts of such incidents.

Improved decision making and operational efficiency

Another positive point of applying data governance is that it ensures that the information used in business decisions is accurate, complete and up-to-date. This leads to greater reliability in the analyzes and strategies adopted by the company.

Well-managed data allows decisions based on reliable information, avoiding errors and mistakes. Operational efficiency is also improved as internal processes can be structured more effectively, saving time and resources.

agile and responsive operation to market changes and regulatory requirements, ensuring the company's continued competitiveness.

Steps to implement effective data governance

Now that you understand the concept and benefits of data governance, let's see the steps to implement it? 

Initial assessment and planning

The first step to implementing effective data governance is understanding your organization's context and mapping data flows.

Identifying and analyzing all existing data sources allows a clear view of internal processes. Additionally, defining specific and measurable objectives helps align data governance with organizational strategy.

Another important point is to identify legal and regulatory non-conformities that could compromise data security

From this, detailed action planning to ensure that the data is secure and accessed by the right people, at the right times.

Employee training and awareness

All employees must be aware of data policies and their responsibilities. Conducting periodic training and workshops ensures that everyone understands the importance of data protection and knows how to apply best practices.

Developing a culture of responsibility and transparency in the use and processing of data is essential to reduce errors and promote a safer and more efficient work environment.

Recommended tools and technologies

Finally, choosing technological tools is vital for implementing data governance.

Data management tools , such as information management systems (DMS) and data security solutions, help monitor, store, and protect sensitive information.

Furthermore, it is necessary to invest in technologies that facilitate the automation and integration of processes, minimizing errors and optimizing resources.

Skyone helps you adapt to the LGPD

The LGPD requires companies to commit to improving the way they deal with data and information security, including applying data governance.

That's why Skyone offers an effective methodology to help organizations in this important process.

Our process involves different stages, ranging from diagnosing the company's current status in relation to LGPD standards, to implementing measures to effectively comply with standards.

Everything carried out by a team of professionals with expertise in the topic and its particularities. 

Are you interested? Request a demo of our platform!

Conclusion

As we saw throughout the article, the General Data Protection Law (LGPD) brought with it a new paradigm for data processing in Brazil.

Companies now need to deal with a set of obligations and responsibilities that aim to protect the rights of data subjects. In this scenario, data governance emerges as a fundamental element for compliance with standards.

This is because robust data governance allows companies to establish comprehensive control over information, from defining clear policies and procedures for collecting, storing and using data, to implementing appropriate security measures to protect it.

And by implementing effective data governance, companies can have several benefits such as:

• Demonstrate compliance with LGPD
• Avoid sanctions
• Gain customers' trust
• Improve data quality 
• Make smarter decisions

In short, data governance is not just a legal requirement, but also an opportunity for companies to become more efficient, competitive and reliable.

To learn more about the topic, read also: How the General Data Protection Law (LGPD) affects your company