Establishing a data governance framework is the first strategic action in addressing the situation where financial data is being managed in a way that will negatively impact the enterprise’s ability to support regulatory reporting. This is because a data governance framework is a structured approach to managing and utilizing data in an organization. It includes policies, procedures, and standards that guide how data is collected, stored, managed, and used1. A data governance framework can help to:

Improve data quality, accuracy, consistency, and completeness1

Ensure data privacy, security, and compliance with regulatory requirements1

Align data with business strategy, objectives, and priorities1

Enhance data integration, accessibility, and usability1

Define data roles and responsibilities and assign accountability1

By establishing a data governance framework, the enterprise can address the root cause of the problem, which is the lack of control and oversight over the financial data. A data governance framework can help to ensure that the financial data is properly managed and utilized to support regulatory reporting and other business needs.

The other options, assigning data responsibilities through a RACI chart, reviewing key risk indicators (KRIs) related to data management, and updating data management policies are not as effective as establishing a data governance framework for addressing the situation. They are more related to the implementation and execution of the data governance framework, rather than its design. They are also dependent on the existence of a data governance framework, as they require a clear understanding of the data landscape, goals, and standards of the organization.