Why Your Data Governance Strategy Might Be Missing the Human Element

While data breaches cost SMBs an average of $108,000 per incident, an Ataccama study reveals that one in five businesses still lack a data governance framework (Ataccama Data Trust Report, 2025).

You've invested in cybersecurity tools. You've written the policies. So why are your employees still storing sensitive data in random cloud drives?

In my previous newsletter, I talked about how technical solutions alone can't drive compliance. The same is true for data governance. Without the right people practices in place, even the best technical systems won't protect your data.

Here's your quick read brief:

• Recent regulatory changes are making data governance mandatory, not optional

• Start with simple framework assessments before complex governance structures

• Link data governance to employee objectives to build lasting cultural change

• The most successful SMBs treat data governance as a business advantage, not just a cost

This Isn't Just About Following Rules Anymore

Let's talk about what's really happening in the data world for small-medium businesses.

The National Institute of Standards and Technology (NIST) recently emphasized data governance as a foundational principle in its Cybersecurity Framework 2.0. This isn't just another technical update; it's a fundamental shift in how businesses need to think about their data.

At the same time, data residency laws, which dictate where and how you can store certain types of information, continue to tighten, especially for industries like healthcare and finance. These regulations require specific types of data to remain within US borders rather than being stored on servers in other countries.

If you're thinking this only matters for big corporations, here's why you need to pay attention. Small and medium businesses face the same legal requirements but typically have fewer resources to address them. That's not just my opinion. Industry data shows SMBs often pay proportionally higher costs for compliance failures.

We all know that many businesses have scattered information across their organizations. It's common to find some data in the CRM, some in spreadsheets on individual computers, and some in cloud storage accounts that aren't even being monitored by the company. When a Data Subject Access Request (DSAR) comes in, what should be a straightforward process can turn into a weeks-long project that disrupts operations. This isn't just inconvenient; it poses significant compliance and security risks that can impact your bottom line.

Start Here: Small Steps That Make a Big Difference

Getting your data governance program off the ground doesn't require a massive overhaul. Here's what works for businesses your size.

Begin with a straightforward self-assessment using an established framework like NIST CSF or CIS18. Think of this as taking stock of what you already have, like checking your pantry before making a grocery list. The goal isn't to implement everything at once, but to identify your most significant gaps and prioritize accordingly.

Focus first on these four basic controls to dramatically reduce your risk:

Implement multi-factor authentication for all systems containing sensitive data

Verify your backups are working properly and securely stored

Ensure no public-facing firewall rules allow remote desktop access without proper security

Reset and secure your administrator credentials with proper access controls

Success story: Just as we saw with Michael and Debbie's small medical office, implementing these fundamentals can significantly reduce your risk profile. In their case, our HIPAA security assessment identified the necessary changes to meet federal statutes and ensure data security. By implementing security measures and protocols, conducting employee training, and setting up remote monitoring, we helped them achieve compliance while protecting their client data from both external threats and unauthorized internal access.

Getting Your Team On Board (Without the Eye Rolls)

I've noticed that data governance training rarely excites anyone. But the way you present it makes all the difference.

The most successful approaches we've seen link individual employee objectives to company compliance goals. This connection helps staff understand how their daily actions impact the organization's overall security posture.

In our experience working with dozens of companies, organizations that make data stewardship a recognized part of job descriptions see much better adoption. When you designate "data owners" for specific information types and recognize these responsibilities in performance reviews, employees begin treating data governance as part of their professional growth rather than an administrative burden.

Technology can help too, but it works best when it makes people's jobs easier, not harder. A centralized document management system provides a foundation for better data governance by creating a single source of truth. Similarly, automating processes like employee onboarding ensures consistent communication of data handling procedures.

What really moves the needle for many clients is implementing a simple classification system for data: public information, internal-only, and strictly confidential. This makes it instantly clear how different information should be handled, without requiring employees to memorize complex policies.

How Do You Know If It's Actually Working?

You can track progress without fancy dashboards. Here's what to watch for in your day-to-day operations:

First, look for behavioral changes. Are employees spontaneously asking questions about data handling? Are they correctly classifying information without prompting? These subtle shifts indicate your governance culture is taking root.

Second, monitor process improvements. Many clients notice their teams resolving issues faster because they can easily find the information they need in properly managed systems. Others find their compliance reporting takes half the time it used to because data is already organized appropriately.

Our clients who get this right aren't just avoiding fines. They're seeing real advantages in efficiency and customer trust. Many have turned compliance from a cost center into a market differentiator, especially when working with larger organizations that have strict vendor requirements.

Turning Data Governance From Burden to Benefit

I believe that data governance doesn't have to be complicated or overwhelming. By starting with basic controls, involving your team in meaningful ways, and focusing on practical improvements, you can build a governance approach that actually works for your business.

Having trouble getting started? I've helped dozens of businesses get started with healthy compliance and governance processes. Let's talk about your specific challenges and how a tailored approach might work for your organization. I promise, no technical jargon, just practical solutions that fit your business realities.

Stay secure,

Ed

Do you want to discuss how data governance might impact your business? I'd love to hear your thoughts and share how we can support you. Drop me a DM to chat about your company's approach to managing sensitive information.

Glossary of terms

Data governance: The set of rules, roles, and processes that ensure your business information is accurate, secure, and used appropriately.

Data residency: Requirements that dictate where certain types of data must be physically stored and processed, often requiring sensitive information to remain within specific geographic boundaries.

Data classification: The process of categorizing data based on its sensitivity level and importance to help determine how it should be handled, stored, and protected.

Data steward: A designated person responsible for ensuring data quality, accessibility, and security for a specific type of information within an organization.

Extra reading cited in newsletter:

• Ataccama Data Trust Report 2025

• NIST Cybersecurity Framework 2.0, 2024

• Data Privacy Academy 2024: Data Governance Framework for Small Businesses