What is a primary impact of poor master data governance on organizations?

The primary impact of poor master data governance on organizations is indeed inaccurate reporting and compliance issues. Master data governance involves the management and oversight of critical business data, ensuring that it is accurate, consistent, and reliable across the organization. When master data is poorly governed, it can lead to significant inaccuracies in data that are utilized for reporting purposes. This means that decisions made based on such data could be flawed, potentially resulting in financial misstatements, operational inefficiencies, and strategic missteps.

Furthermore, compliance with regulations and standards often relies on accurate data. Inconsistent or incorrect master data can result in an organization being unable to meet regulatory requirements, leading to legal penalties and damage to the company's reputation. Thus, organizations experience direct negative consequences from poor master data governance, affecting both their operational effectiveness and regulatory standing in the industry.