In data governance, what is the role of a business glossary?

• A. Store user passwords
• B. Standardize terms and definitions across data assets
• C. Encrypt data at rest
• D. Execute data backups automatically

Answer: (B)

A business glossary in data governance provides a single, authoritative vocabulary for terms used across data assets. It is a centralized, governed repository that captures business terms, their definitions, synonyms, owners, and accepted values. This standardization ensures everyone—analysts, data stewards, and business users—interprets key terms the same way, reducing miscommunication and making analytics more reliable. By tying terms to specific data assets and metadata, the glossary supports data literacy, consistent reporting, and easier impact analysis when definitions evolve.

The other options relate to security or operations, not governance vocabulary. Storing user passwords is about authentication security. Encrypting data at rest is about protecting data confidentiality. Automatically backing up data is about resilience and data operations. These are important, but they serve different purposes than standardizing terms across data assets.