Corporate governance in the digital economy: The critical importance of information governance

  • Information is critical to decision-making and plays an essential role across all three pillars of governance.
  • The emerging driver of good information governance globally is compliance with regulatory obligations, particularly with the growth in global privacy laws.
  • Effective information governance requires top-down board and senior executive leadership.

Closeup of black computer keyboard

Good corporate governance in the data-driven and digital economy poses significant challenges for boards and seniors executives. This article highlights the importance of information governance to ensure there is a unified strategy and framework to govern information effectively. Good information governance enables organisations to maximise the value of information as a business asset while minimising risks and costs, particularly those associated with data breach.

Over the last 25 years there has a lot been written about corporate governance. There have been debates about the value it adds to an organisation and even the effect on the organisation’s share price on the Australian Securities Exchange (ASX). One fact that is not disputed is that despite awareness of corporate governance, companies and organisations still fail. This has been illustrated through the media in September 2018, with the Australian Broadcasting Corporation (ABC) public dismissal of its managing director and then the forced resignation of the chair of the board a few days later. Similarly, the scathing criticisms of the four major banks and other financial services providers in the Interim Report1 of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Hayne royal commission) in respect of their culture and corporate governance.

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