Why is metadata important in data management?

Metadata is vital in data management because it serves to provide context and information about the data itself. This context includes details such as the origin, format, structure, and relationships among various data elements. By defining what the data represents and how it can be used, metadata acts as a guide to help users understand and effectively utilize the data.

Having proper metadata enhances data discoverability, ensuring that users can find relevant data easily. Additionally, it supports data governance and compliance by clearly outlining attributes like ownership, access rights, and data lineage. This understanding and structure help in maintaining data accuracy, quality, and consistency across an organization.

The other options do not accurately reflect the primary purpose of metadata in data management. Storing user credentials pertains more to security and access control rather than providing context for data. Improving data encryption focuses on data security measures, while increasing data transfer speed relates directly to performance and network efficiency, neither of which are direct functions of metadata.