The five key data governance challenges for CIOs

Data governance has emerged as a critical priority in today’s digital era, with 91% of CIOs and technology leaders identifying it as their second-highest challenge for the next three to five years, according to PwC’s 2024 Tech Strategy and AI Survey. This highlights the growing recognition of data’s pivotal role in driving operational and strategic success and navigating the complexities of the digital landscape. The surge in importance is driven by the rapid growth of data, the need for better decision-making and rising concerns about data security and privacy. 

Accurate, trustworthy and accessible data forms the backbone of effective business strategies. Establishing a data-centric mindset across the organisation, fostering collaboration between IT and other departments and ensuring consistent data quality are just some of the hurdles organisations face.

To gain deeper insights, PwC’s Data Governance experts have identified five issues organisations typically face with regards to poor data governance. By addressing these challenges proactively, organisations can build a strong foundation for effectively managing and leveraging their data.

1. Data security vulnerabilities: exposure to cyber threats

Data breaches and cyberattacks are growing threats to organisations worldwide. According to the PwC’s Tech Strategy and AI survey, 97% of CIOs identify cybersecurity breaches and data privacy issues as their top concerns. Poor data governance weakens security frameworks, creating vulnerabilities that can be exploited by cybercriminals or internal threats. Without clear policies and controls, organisations struggle to safeguard sensitive information such as customer data and intellectual property, increasing the risk of breaches and data leaks. These vulnerabilities not only pose risks to an organisation's finances but also threaten its reputation and may result in legal consequences.

2. Data quality issues: inaccurate, inconsistent or incomplete data

Data quality is essential for informed decision-making. Poor data governance often results in inaccurate, inconsistent or incomplete data, leading to errors such as duplicate records, outdated information and missing entries. When organisations rely on flawed data, they risk making misguided business decisions, which can result in financial losses, missed opportunities and customer dissatisfaction. Moreover, high-quality data is a prerequisite for successful AI and GenAI adoption, as these technologies rely on accurate, well-structured data to generate reliable insights and outcomes. To fully unlock the potential of data analytics and business intelligence, organisations must prioritise high-quality data governance as the foundation for reliable insights and strategic decision-making.

3. Compliance risks: non-compliance with data protection laws

As regulations around data privacy continue to tighten, organisations must comply with strict guidelines regarding the collection, storage and processing of personal data. Poor data governance significantly increases the risk of non-compliance, potentially leading to substantial fines, lawsuits and a loss of consumer trust.

Without strong governance practices, organisations may fail to implement crucial data protection measures, such as data encryption, consent management and data anonymisation. In addition, data may be retained longer than necessary or employees may access sensitive information without proper authorisation. The lack of consistent tracking of data processing activities further complicates compliance audits, making it difficult to demonstrate adherence to privacy regulations.

A comprehensive data governance framework should include processes for ensuring compliance with data protection regulations. Organisations should implement strict access controls to sensitive data, establish retention policies and use encryption for data storage and transfer. 

4. Lack of data accessibility and integration: data silos and fragmentation

Data silos occur when information is stored in isolated systems or departments, making it challenging to access, share or integrate across the organisation. This usually happens without deliberate intent, often as a result of different teams independently collecting and storing data in their own formats or systems. Over time, this fragmentation leads to inconsistencies and inefficiencies, as various departments work with different versions of the same data. 

As a result, teams may lack access to the most up-to-date or relevant information, impacting their ability to make informed decisions. Data silos also result in duplicated efforts, where multiple departments collect and manage the same data in different ways, further compounding inefficiencies. Poor data governance is a key contributor to these silos.

5. Inefficient resource management: wasted effort and redundant work

In organisations with poor data governance, inefficiencies often arise from unclear data ownership, lack of coordination between teams and the absence of standardised processes. These issues can lead to redundant work, where multiple teams unknowingly perform similar tasks, such as cleaning or organising data. This duplication of effort not only wastes valuable time but also results in employees spending excessive hours searching for the right data, instead of using it for analysis or decision-making.

To address these challenges, clear data ownership and stewardship should be assigned to specific individuals or teams, ensuring accountability for the accuracy and management of each dataset. Data governance tools (e.g. Collibra or Purview) can automate tasks like data cleaning, validation and quality checks, reducing the manual effort required. Streamlining data processes and standardising workflows across departments will eliminate redundancies, optimise resource allocation and ultimately allow teams to focus on more strategic data-driven initiatives.

Data governance is more than a compliance obligation—it is a strategic safeguard that drives business value, drives innovation, and improves decision-making. PwC’s 2024 Tech Strategy and AI Survey reinforces this, revealing that technology leaders are placing data governance among their top priorities for the years ahead.

At PwC, we understand the complexities of data governance and are ready to help. Whether you’re looking to enhance data quality, strengthen compliance or address security challenges, our experienced teams can support you to align governance efforts with your business goals. Let’s connect and explore how we can help you unlock the full potential of your data.

More information about our data governance and management services can be found here:  Center of excellence for data management

We look forward to connecting with you soon.