A Modern Approach to API Governance: Challenges and Recommendations


With any IT system, old or new, adequate risk management is critical for sufficient system protection, prioritizing of issues, data privacy, and making sure appropriate compliance regulations are met.

With the API-first economy and the prevalence of API-driven distributed applications, the rate of change in the digital enterprise and the impact of potential compromises is even more important.

This reality is driving an emphasis on governance and risk assessment including the technological, operational, and organizational aspects of the API lifecycle.

This blog covers the most important aspects of API governance, including the challenges, different measures involved, one of the biggest risks of API governance – third party API risk, and the importance of having an overall API strategy to help further mitigate that risk.

What is API Governance?

API governance refers to the set of policies, processes, and practices that are put in place to manage and oversee the use of APIs (Application Programming Interfaces) in an organization.

API governance involves defining standards for how APIs should be designed, developed, and deployed, as well as establishing guidelines for how they should be used and maintained over time.

API governance initiatives help to ensure that APIs are being used effectively and consistently within an organization, and that they align with the overall business strategy and objectives.

It helps to promote the use of best practices, minimize risk, and optimize the value that APIs bring to the organization.

API governance typically involves a combination of technical and non-technical measures, including:

  • Defining API design and development standards, such as the use of specific technologies or architectures
  • Establishing policies for how APIs should be documented, tested, and deployed
  • Setting guidelines for how APIs should be secured and managed, including authentication and authorization protocols
  • Defining roles and responsibilities for API development and management, including who is responsible for developing, testing, and maintaining APIs
  • Establishing processes for monitoring and reporting on the use and performance of APIs
  • Providing support and training to API developers and users to help them understand and follow API governance policies and practices.


Traceable has put together a best practice whitepaper to help organizations understand the deeper requirements for API governance. Download it here.

There are many challenges that organizations may face when implementing API governance, but some common ones include:

  1. Lack of clarity around API strategy and objectives: Without a clear understanding of why and how APIs will be used within an organization, it can be difficult to define appropriate governance policies and practices.
  2. Complexity of API ecosystems: As the number of APIs and API users within an organization grows, it can become increasingly difficult to manage and oversee their use. This can lead to issues such as inconsistency in API design and functionality, and difficulties in tracking and managing API usage.
  3. Limited resources and expertise: Implementing effective API governance often requires specialized knowledge and skills, and organizations may struggle to allocate sufficient resources or find the necessary expertise to effectively manage their APIs.

Other challenges that organizations may face with API governance include managing the risks associated with exposing APIs to external parties, ensuring the security and privacy of API data, and balancing the needs of different stakeholders within the organization.


There are several potential problems that organizations may face when exposing APIs to external parties:

  1. Security and privacy risks: Exposing APIs to external parties can increase the risk of security breaches and data leaks, particularly if proper security measures are not in place. This can lead to significant financial and reputational damage to the organization.
  2. Legal and regulatory risks: Organizations may face legal and regulatory risks if they expose APIs that violate laws or regulations, or if they fail to properly protect sensitive data.
  3. Risk of abuse: External parties may misuse or abuse APIs if they are not properly managed and governed. This can lead to issues such as excessive usage, which can impact the performance and reliability of the API, or the misuse of sensitive data.
  4. Risk of losing control: Exposing APIs to external parties may also lead to a loss of control over how they are used, as external parties may develop their own applications or integrations that may not align with the organization’s objectives.

To mitigate these risks, it is important for organizations to implement robust API governance policies and practices, including measures such as authentication and authorization protocols, data protection measures, and usage policies.

Not having an API strategy can lead to a number of challenges for an organization, including:

  1. Lack of alignment with business objectives: Without a clear API strategy, it can be difficult to ensure that the APIs being developed and deployed are aligned with the overall business objectives of the organization. This can lead to the development of APIs that are not fit for purpose or do not deliver the desired value.
  2. Inefficient use of resources: Without an API strategy, organizations may struggle to effectively prioritize and allocate resources to API development and management. This can result in a lack of focus and inefficient use of time and money.
  3. Inconsistency in API design and functionality: Without a clear API strategy, it can be difficult to ensure that APIs are being developed consistently and in line with best practices. This can lead to issues such as inconsistency in API design and functionality, which can make it difficult for developers to use and integrate APIs.
  4. Difficulties in tracking and managing API usage: Without an API strategy, it may be difficult for organizations to effectively track and manage the use of their APIs, leading to difficulties in understanding how they are being used and by whom.

Having a clear API strategy can help organizations to more effectively plan and execute their API development and management efforts, and ensure that they are aligned with business objectives and best practices.

The Bottom Line

Technology enterprises engaged in the API-driven economy know that managing API risk is paramount for understanding, controlling and ultimately reducing their overall business risk. While an initial assessment is important, the constant change and versioning of APIs mean the risk must be constantly reassessed. 

Processes for periodic risk assessments, monitoring the results of those assessments, and managing the system to reduce or mitigate risks to a level that is acceptable to the business, the CEO and the board, is the API governance framework that you need.



About Traceable

Traceable is the industry’s leading API security platform that identifies APIs, evaluates API risk posture, stops API attacks, and provides deep analytics for threat hunting and forensic research. With visual depictions of API paths at the core of its technology, its platform applies the power of distributed tracing and machine learning models for API security across the entire development lifecycle. Visual depictions provide insight into user and API behaviors to understand anomalies and block API attacks, enabling organizations to be more secure and resilient. Learn more at traceable.ai.