# Governance & Compliance
## Purpose
Define comprehensive enterprise governance, compliance, and regulatory requirements for enterprise-grade systems. This section ensures the product meets all necessary enterprise standards and regulatory obligations.
## Prerequisites
- Business objectives and regulatory context understood
- Enterprise environment and constraints documented
- Compliance requirements identified
- Stakeholder governance structure mapped
## Section Structure & Requirements
### 1. Governance Framework
**Objective**: Establish enterprise governance structure and processes
**Required Elements:**
- **Governance Model**: How product governance will be structured
- **Decision Authority**: Who has authority for different types of decisions
- **Approval Processes**: Required approvals for development, deployment, changes
- **Oversight Mechanisms**: How governance will be monitored and enforced
- **Escalation Procedures**: How governance issues will be escalated
**Quality Criteria:**
- Governance model aligns with enterprise standards
- Decision authority is clearly defined and appropriate
- Approval processes are efficient yet thorough
- Oversight mechanisms provide adequate control
**Template:**
## Governance Framework
### Governance Model
[How product governance will be structured within enterprise]
### Decision Authority Matrix
| ------------- | ------------------ | ----------------- | -------------------- |
| Architecture | Tech Lead | CTO | Enterprise Architect |
| Security | Security Lead | CISO | Risk Committee |
| Compliance | Compliance Officer | Legal | Audit Committee |
### Approval Processes
- **Development Approvals**: [Required approvals for development activities]
- **Deployment Approvals**: [Required approvals for production deployment]
- **Change Approvals**: [Required approvals for system changes]
### Oversight Mechanisms
[How governance compliance will be monitored and enforced]
### Escalation Procedures
[How governance issues and conflicts will be escalated]
### 2. Regulatory Compliance Requirements
**Objective**: Define all applicable regulatory and compliance requirements
**Required Elements:**
- **Applicable Regulations**: All regulations that apply to the product
- **Compliance Controls**: Specific controls required for each regulation
- **Audit Requirements**: Audit trails and reporting requirements
- **Compliance Testing**: How compliance will be validated and tested
- **Compliance Monitoring**: Ongoing compliance monitoring and reporting
**Template:**
## Regulatory Compliance Requirements
### Applicable Regulations
**Primary Regulations**:
- **GDPR**: [Specific requirements and controls]
- **SOX**: [Financial reporting and control requirements]
- **HIPAA**: [Healthcare data protection requirements]
- **SOC 2**: [Security and availability controls]
**Secondary Regulations**:
- **ISO 27001**: [Information security management requirements]
- **PCI DSS**: [Payment card data security requirements]
### Compliance Controls Matrix
| ---------- | ------------------ | ------------------------------------ | ------------------------- |
| GDPR | Data Protection | Consent management, data portability | [Implementation approach] |
| SOX | Financial Controls | Access controls, change management | [Implementation approach] |
### Audit Requirements
- **Audit Trails**: [What activities must be logged and retained]
- **Audit Reports**: [Required compliance reports and frequency]
- **External Audits**: [External audit requirements and schedule]
### Compliance Testing
[How compliance will be validated through testing]
### Compliance Monitoring
[Ongoing monitoring and reporting of compliance status]
### 3. Data Governance
**Objective**: Define comprehensive data governance requirements
**Required Elements:**
- **Data Classification**: How data will be classified and labeled
- **Data Ownership**: Who owns and is responsible for different data types
- **Data Access Controls**: How access to data will be controlled
- **Data Retention**: How long different types of data will be retained
- **Data Privacy**: Privacy controls and user rights management
- **Data Quality**: Standards and processes for data quality management
**Template:**
## Data Governance
### Data Classification Framework
| -------------- | ----------------------- | --------------------------- | --------- |
| Public | Publicly available data | No restrictions | [Period] |
| Internal | Internal business data | Employee access only | [Period] |
| Confidential | Sensitive business data | Need-to-know basis | [Period] |
| Restricted | Highly sensitive data | Executive approval required | [Period] |
### Data Ownership Matrix
| -------------- | ---------------------- | ---------------- | --------------- |
| Customer Data | Chief Customer Officer | Customer Success | Privacy Officer |
| Financial Data | CFO | Finance Director | CFO |
| Employee Data | CHRO | HR Director | CHRO |
### Data Access Controls
[How access to different data types will be controlled]
### Data Retention Policies
[Retention periods and disposal procedures for different data types]
### Data Privacy Controls
- **Consent Management**: [How user consent will be managed]
- **Data Subject Rights**: [How user rights requests will be handled]
- **Privacy by Design**: [How privacy will be built into the system]
### Data Quality Management
[Standards and processes for ensuring data quality]
### 4. Enterprise Security Governance
**Objective**: Define enterprise security governance requirements
**Required Elements:**
- **Security Governance Model**: How security decisions will be made
- **Security Policies**: Enterprise security policies that apply
- **Risk Management**: How security risks will be identified and managed
- **Security Controls**: Required security controls and frameworks
- **Incident Response**: Security incident response procedures
### 5. Change Management & Control
**Objective**: Define change management and control processes
**Required Elements:**
- **Change Control Process**: How changes will be reviewed and approved
- **Release Management**: How releases will be managed and controlled
- **Configuration Management**: How system configuration will be managed
- **Emergency Changes**: Procedures for emergency changes
- **Change Documentation**: Required documentation for all changes
### 6. Vendor & Third-Party Governance
**Objective**: Define governance for vendors and third-party services
**Required Elements:**
- **Vendor Risk Assessment**: How vendors will be assessed for risk
- **Vendor Contracts**: Required contract terms and conditions
- **Vendor Monitoring**: How vendor performance will be monitored
- **Third-Party Security**: Security requirements for third-party services
- **Vendor Termination**: Procedures for vendor termination and data recovery
## Information Gathering Requirements
### Governance Context Needed:
- Enterprise governance structure and policies
- Applicable regulatory requirements
- Existing compliance frameworks and controls
- Data governance policies and procedures
- Security governance requirements
### Validation Requirements:
- Legal and compliance review of all requirements
- Security team validation of security controls
- Enterprise architecture review of governance model
- Audit team validation of audit requirements
## Cross-Reference Requirements
### Must Reference:
- Business objectives and regulatory context
- Technical architecture and security requirements
- Data requirements and privacy needs
- Risk assessment and mitigation strategies
### Must Support:
- Technical implementation planning
- Security architecture and controls
- Operational procedures and monitoring
- Audit and compliance reporting
## Common Pitfalls to Avoid
### Governance Pitfalls:
- **Over-governance**: Creating unnecessarily complex governance processes
- **Under-governance**: Not providing adequate oversight and control
- **Governance silos**: Not integrating governance across different domains
- **Static governance**: Not adapting governance as the system evolves
### Compliance Pitfalls:
- **Compliance theater**: Implementing controls that don't actually provide protection
- **Regulatory misunderstanding**: Misinterpreting regulatory requirements
- **Compliance debt**: Deferring compliance requirements to later phases
- **Audit unpreparedness**: Not preparing for compliance audits
## Edge Case Considerations
### When Regulations Conflict:
- Identify the most restrictive requirements
- Consult with legal experts for interpretation
- Plan for jurisdiction-specific implementations
- Document compliance approach clearly
### When Governance is Complex:
- Start with minimum viable governance
- Plan for governance evolution
- Focus on highest-risk areas first
- Build governance automation where possible
## Validation Checkpoints
### Before Finalizing Section:
- [ ] All applicable regulations identified and addressed
- [ ] Governance model aligns with enterprise standards
- [ ] Data governance requirements are comprehensive
- [ ] Security governance is properly integrated
- [ ] Change management processes are defined
### Cross-Section Validation:
- [ ] Governance requirements align with technical architecture
- [ ] Compliance controls are technically feasible
- [ ] Data governance supports functional requirements
- [ ] Security governance aligns with security requirements
## Output Quality Standards
- Governance framework is comprehensive and practical
- Compliance requirements are accurate and complete
- Data governance is thorough and enforceable
- Security governance is properly integrated
- Change management processes are clear and efficient