Why Information Governance is Essential for Regulatory Compliance

Effective information governance is a critical necessity for organizations adhering to regulatory requirements. As businesses face mounting pressure to implement Unified Data Management strategies that ensure Legal Preservation to safeguard sensitive data and streamline compliance efforts, a well-structured information governance framework helps organizations protect their reputation while ensuring data quality for decision-making and regulatory compliance.

Why Information Governance Is Crucial for Regulatory Compliance

The exponential increase in organizational data makes the role of Information Governance more important than ever. An effective information governance framework is required for organizations to control, collect, use, store, and manipulate their data in the most strategic ways possible.

Information Governance strategies sometimes need to be as granular as the location. Certain jurisdictions even regulate how organizations use that data to make decisions. For example, insurance companies in California and Michigan are banned from using credit scores to calculate premiums or determine eligibility.

Organizations need to implement an effective information governance strategy to avoid regulatory penalties while securing consumer data and reducing the risk of cyber criminal activity, all while protecting their reputation.

What Is the Relationship Between Information Governance and Regulatory Compliance?

Information Governance encompasses an organization’s approach to managing IT security in compliance and risk management. Regulatory compliance refers to an organization’s adherence to applicable laws, regulations, guidelines, requirements, and specifications.

Information Governance and regulatory retention requirements are in place to ensure that organizations understand what data they are housing, have effective management procedures in place, and are not exposing themselves or their customers to unnecessary risk, including misuse or unauthorized access.

The Risks of Non-Compliance

Failing to implement an effective information governance strategy exposes organizations to significant risks and consequences:

• High fines from regulatory bodies
• Lawsuits from affected persons
• Bad press from media agencies
• Customer attrition
• Damaged public trust
• Increased attractiveness to cyber criminals
• Increased financial and market fear
  
  

Organizations found in breach of their data regulations face financial penalties, sometimes as severe as billions of dollars. For example, Meta was fined $1.3 billion for violating user privacy rules. As of October 31, 2024, HIPPA violations have cost organizations a total of $144,878,972.

Receiving fines or being the subject of a data breach shakes the trust of stakeholders, partners, and the public. The costs, both tangible and intangible, associated with losing trust can be offset by using a solid information governance framework to maintain regulatory compliance.

Raising Awareness and Encouraging a Culture of Compliance

It takes more than training to get employees to fully embrace their shared responsibility in keeping an organization compliant. Encourage open communication about the importance of information governance and foster a sense of shared responsibility. Management should lead by example and demonstrate their commitment to upholding compliance standards. This can help employees fully embrace the concept.

Regularly recognizing and rewarding those exhibiting outstanding compliance behavior helps reinforce the importance of information governance and regulatory adherence. Information governance is the duty of every member of an organization.

Why Cloud Migration and Information Governance Is Crucial for Regulatory Compliance

Cloud migration is essential for modern organizations wanting to upgrade their information governance systems. However, this process also presents new challenges in maintaining Information Governance and adhering to Regulatory Compliance. As data moves to the cloud, organizations must have robust information governance strategies to ensure cyber criminals do not intercept that transfer and steal records.

Our experienced cloud migration specialists understand why information governance is crucial for regulatory compliance. Each of Cloudficient’s migrations is tailored specifically for our client’s specific requirements and desires while maintaining strict information governance to regulatory standards. Contact us today to get a quote.

Effective information governance is more than a regulatory necessity. It is a strategic advantage. By proactively addressing compliance requirements, organizations protect their sensitive data while avoiding costly penalties. Robust legal preservation strategies help ensure Unified Data Management so businesses’ data remains resilient, compliant, and secure.