Data Governance: How to Implement It and Stop Building Houses of Cards

In the digital era, data governance has become a fundamental pillar for organizations, especially in the banking sector. This concept encompasses the policies, processes, and standards that ensure data is accurate, accessible, secure, and properly managed throughout its lifecycle.

According to the Global Data Barometer (2023), a study that measures six dimensions aligned with different international analysis frameworks, countries like Mexico (0.79), Colombia (0.78), Brazil (0.69), and Argentina (0.51) stand out in the region for their progressive agendas in terms of regulation and the benefits of data governance.

However, effective implementation still faces challenges, particularly in stakeholder engagement and the execution of clear policies within banking institutions. In Central America, the scenario is quite similar.

7 Reasons Why Implementing Data Governance Is Essential Today

The current environment demands robust data management for several key reasons:

1. Data Reliability: Effective data governance ensures the integrity and quality of information, enabling decisions based on reliable, high-quality data.
2. Enabler of Emerging Technologies and Trends: Artificial Intelligence, Open Finance, and advanced analytics depend on well-governed data to function correctly.
3. Data Monetization: Proper management leads to the identification of internal and external opportunities to generate revenue from data, such as the creation of new products or services, enhanced operational efficiency, risk reduction, and the development of actionable insights.
4. Cost and Rework Reduction: By avoiding errors and redundancies, resources are optimized, operational efficiency improves, and the margin of costs associated with data processing (leaks, exposure, misuse of private information, etc.) is reduced.
5. Minimization of Legal and Reputational Risks: Ensuring compliance with regulations and protecting sensitive data is vital to maintaining customer trust and avoiding sanctions.
6. Definition of Roles and Responsibilities: Clear delineation of data ownership and responsibilities fosters accountability, streamlines management, and drives efficiency.
7. Bridging the Gap Between Technical and Business Worlds: Data governance promotes seamless collaboration between technical teams and business units, aligning goals and strategies for maximum impact.

Governing Data Is Like Refining Oil: Without Processing, You Only Have Crude and Chaos

Imagine for a moment that you are not an IT manager but an engineer in the oil industry. Your mission is not just to extract oil but to transform that resource into something useful, valuable, and safe: fuel, plastics, energy. But to do that, you need a high-precision refinery, controlled processes, and a flawless operation.

Unrefined, crude oil is useless. It's thick, unstable, and even dangerous if not handled properly. Only after going through filters, separators, quality controls, and thermal processes does it become a reliable product that drives industries, economies, and decisions. Data operates under the same principles

Accumulating large volumes of information without clear data governance is like storing unrefined oil: it may seem valuable, but in reality, it’s a potential problem. Uncontrolled data can contaminate systems, lead to poor decision-making, violate regulations, or block business opportunities.

Data governance is the process of refining that digital crude—establishing clear rules, eliminating impurities (duplicates, inconsistencies, or incomplete data), controlling access, and ensuring that each byproduct (dashboards, AI models, management reports) is reliable, secure, and actionable.

In the financial world, where each decision counts, you are not merely managing infrastructure; you are running the refinery where raw data is transformed into strategic intelligence. If the data is flawed, the consequences extend beyond technical setbacks—they can be strategic, reputational, or even legal.

Because the real value lies not in raw data, but in its ability to be governed, transformed, and deployed with precision.

Now, let's move forward and explore how to effectively implement data governance...

To establish robust data governance, it is essential to consider the renowned DAMA Model—a widely adopted framework used by organizations worldwide. This comprehensive guide covers key aspects of data acquisition, management, processing, and security, providing a solid foundation for effective data governance.

After years of research and the application of best practices, Pragma builds upon the principles of the DAMA Model to create an evolutionary framework that drives organizational change, tailored to the current challenges of the industry. With customized, business-focused strategies, we empower organizations to define clear roles, leverage key tools, and assess the status of their data, ensuring that data serves the strategy, not the other way around:

1. Data-Driven Culture: In your institution, we foster a mindset where every member understands the importance of data and feels responsible for its management.
2. Quality, Security and Compliance: We implement control and monitoring mechanisms to ensure data integrity and regulatory compliance.
3. Evolving Analytical Maturity: Imagine the ability to anticipate the future. Working with data extends far beyond generating reports; organizations that manage their data effectively can progress from understanding the past to predicting what lies ahead. However, reaching this level requires a solid foundation—your data must be complete, clean, and trustworthy. Only then can it be analyzed with precision, empowering technologies like Artificial Intelligence. Without this solid groundwork, every decision is built on unreliable information.
4. Data Monetization: We identify opportunities to generate economic value from data, such as offering personalized services or creating new financial products. Additionally, we mitigate costs, expenses, and penalties associated with poor data management and misuse. 
5. Data Lifecycle Technology and Optimization: Adopt tools and platforms that enable efficient data management, from creation to deletion. For data management to be effective, scalable and modular tools are required that can adapt to the maturity level of each organization. Just like a well-organized library, data should be structured, classified, and protected, with clear and secure access. This approach streamlines workflows, minimizes errors, and empowers decision-making with confidence.
6. Ethics and Responsible Data Use: We ensure ethical data management within your organization, from access control based on roles and profiles to its application in emerging technologies and trends such as AI, Open Finance, and analytical models. Ensuring responsible data use not only protects the organization but also enhances trust and the value of data in every decision.

Is Your Data Strategy Holding You Back? Discover Pragma’s Governance Framework

It’s not a luxury or a trend; serious data governance will prevent you from building houses of cards.

Today, taking care of a company’s data is no longer a luxury or an option, it’s a strategic necessity. Without solid data management, any attempt to adopt new technologies, comply with regulations, or make sound decisions will probably fail.

Imagine making critical decisions with incomplete, outdated, or unreliable information. It’s like building on sand—unstable, risky, and ready to collapse at any moment.

This is where data governance comes in. It’s not just about rules or controls; it’s about building a solid foundation that ensures data is well-organized, protected, and accessible to those who need it. This involves defining responsibilities, establishing clear processes, and using tools that support every stage of the data lifecycle—from creation to deletion.

At Pragma, we believe data governance is the cornerstone upon which all modern business capabilities are built. Without it, discussing advanced analytics, Artificial Intelligence, or Open Finance is like building a house of cards: impressive, but fragile.

That’s why we help you bring this concept to life in your organization, with clear, measurable strategies tailored to your maturity level. We guide you step by step in implementing data management models that not only meet increasingly demanding regulatory requirements-especially in sectors like banking-but also drive efficiency, reduce risks, and prepare your company to compete in a complex, ever-changing digital environment.

Moreover, we never lose sight of what matters most: The responsible and ethical use of data. From access control to its application in emerging technologies, fostering a culture of trust and respect for data is key to unlocking its true value.

Because when data is well-governed, decisions are smarter, processes are safer, and the future is much more secure.

Begin Your Data Governance Journey Today!