See the Unseen

Global Digital Risk Survey 2022

Consumer exposure to digital incidents is significantly increasing, driving a disconnect between consumer and organisation confidence in digital use.

Is digital transformation happening too fast for consumers, or are the priorities and processes organisations put in place to protect consumers against digital risks going unseen?

Our Global Digital Risk Survey 2022 'See the Unseen' explores everything from autonomous vehicles and banking apps, to customer services and fake content, to identify what business leaders should prioritise, and the vitality of an organisation-wide approach to build confidence in digital technologies.

The Global Digital Risk Survey 2022 ‘See the Unseen’ analyses confidence in digital technologies amongst consumers and organisations. Specifically, it explored sentiments and experiences around the safety, security and sustainability of digital technology, the risks induced by such technology, the repercussions and concerns of digital incidents and the responsible and accountable business leaders. Over 1,000 business leaders and 5,300 customers were interviewed, across financial services, the public sector, consumer products and many more industries. Input was gathered on an industry-wide and global scale- from APAC and EMEA to UK and the Americas - looking to determine the state of, and how to build, digital confidence.

All organisations need a social licence to operate. To function effectively, they require approval and acceptance of their interactions with and impact on consumers, stakeholders and society. This has never been truer than in the digital era.

Digital technology has already transformed the way business is done and continues to do so in a ceaseless, disruptive revolution. Businesses are constantly being challenged by competition and consumers expectations to ‘keep up’. They are also continually challenging themselves to further digitise to increase organisational efficiency, improve routes to market, and enhance customer experience.

As digital transformation accelerates, the question of ethics has become even more prevalent. It is therefore vital that consumers have confidence that the use of those digital technologies to deliver products and services is safe, secure and sustainable. Ultimately, do they feel their best interests are at heart?

Unfortunately, that is not always the case. This survey finds a substantial gap between consumer confidence in digital technologies and the confidence that business leaders place in them. In turn, this translates into a confidence deficit, putting the social licence to operate in jeopardy.

Just 22% of consumers declare themselves ‘highly confident’ regarding the use of digital technologies in this context compared to 40% of leaders. Even when those who are merely ‘somewhat confident’ are considered, the disparity remains; the net confidence level among consumers increases to 66% but still lags considerably behind the comparative figure for business leaders at 81%.


The existence of this gap has clear implications for the future success, and even viability, of transformative and innovative corporate strategies about digitisation – including those that deploy artificial intelligence (AI), cloud, automation, machine learning, and data analytics. For every digital decision made risk must be considered.

At its simplest, this means looking at how to make the digital unknown unknowns visible and making a conscious decision about how to manage their implications. Doing this proactively will build confidence/ reassurance that the desired output is being reached effectively. It will also help to bridge the confidence gap. But beyond this, it provides the opportunity to differentiate; by seeking new ways to develop your digital footprint, it will help maximise the commercial and societal value of digital as well as augmenting reputation.

Key findings

Responding effectively to this digital confidence gap requires answering key questions

Chapter 1 - People v technology - who’s in control?


The confidence disparity between consumers and organisations could indicate a dilemma balancing commercial digital strategies with what consumers are comfortable with.


We explored 26 use cases of digital technology to understand how an equilibrium could be reached.


Digital control is paramount; people are happiest using technology when they feel that they are ultimately in control of it. The more that the human actor has the authority to override or cancel a digital process, the more confident they are.

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Chapter 2 - Consumer experience - the biggest digital risk to your business?


While 72% of consumers have experienced an adverse digital incident in the last year, the majority did not relate to issues with the technology, and instead concerned problems with the interaction between humans and technology.

The most prevalent issue was customer services being unable to help the consumer with a problem, experienced by 23% of participants. The failure to provide human support is seen as more annoying than technology failure itself.

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Chapter 3 - Business leaders feel in control, but are they?


75% of business leaders are confident in their ability to deliver on their responsibilities when it comes to identifying and managing digital risks.

However, when asked how mature their organisations were across a spectrum of core digital risk capabilities, more than a third of business leaders (34%-39% depending on capability) acknowledged that they were either not mature, still scoping, or had simply not considered the risks.

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Global Digital Risk Survey 2022

See the Unseen

Download the report

What does this mean for you?

The repercussions of digital incidents reinforce the need of a cross firm approach. What priorities do you need to be aware of and how can you address them with confidence? Select your role below to find out more.

technology

How can you ensure all levels and lines of the business have confidence that technology use and deployment is safe, secure and sustainable?

Priority 1

Enable users to retain ultimate decision-making power

The more a user has the authority to override or cancel a digital process, the more confident they are because they retain control. This doesn’t just have applications for consumer experience, but also internal business processes. As new technologies are rolled out, consider:

  • Are you able to effectively collaborate across lines of defence to create guardrails that enable safe and secure digital transformation?
  • Where and how are the appropriate overrides applied to enable final decision-making power, and who has the power action them?
Priority 2

Integrate a new and forward-looking risk methodology

72% of consumers have experienced an adverse digital incident in the last year. Incidents do occur, but long-term consideration of people and process will help drive innovation built around customer-centricity, and enhance competitive-edge.

  • Are you clear on the risk appetite and metrics applicable to the technology used across your business?
  • Do you have the right processes / guardrails in place to perform your role?
  • How can you ensure risk decisions are integrated throughout digital development and enable, rather than delay, innovation?
Priority 3

Safely working together with digital technology

53% of consumers feel they have become more at risk from digital technologies over the last year, and only 40% of consumers currently feel adequately informed by organisations about their digital policies. As business demands accelerate, it will become even more important to have the right people and processes in place to enable safe, secure and sustainable technology innovation.

  • What is your IT talent strategy or resourcing model?
  • Can you combat the traditional hierarchy approach and ensure the right people are in the room?
  • How can you help ensure your team keep up to date with security requirements, communicate accreditations and ensure accountability?

How can you ensure all levels and lines of the business have confidence that technology use and deployment is safe, secure and sustainable?

Priority 1

Enable users to retain ultimate decision-making power

The more a user has the authority to override or cancel a digital process, the more confident they are because they retain control. This doesn’t just have applications for consumer experience, but also internal business processes. As new technologies are rolled out, consider:

  • Are you able to effectively collaborate across lines of defence to create guardrails that enable safe and secure digital transformation?
  • Where and how are the appropriate overrides applied to enable final decision-making power, and who has the power action them?
Priority 2

Integrate a new and forward-looking risk methodology

72% of consumers have experienced an adverse digital incident in the last year. Incidents do occur, but long-term consideration of people and process will help drive innovation built around customer-centricity, and enhance competitive-edge.

  • Are you clear on the risk appetite and metrics applicable to the technology used across your business?
  • Do you have the right processes / guardrails in place to perform your role?
  • How can you ensure risk decisions are integrated throughout digital development and enable, rather than delay, innovation?
Priority 3

Safely working together with digital technology

53% of consumers feel they have become more at risk from digital technologies over the last year, and only 40% of consumers currently feel adequately informed by organisations about their digital policies. As business demands accelerate, it will become even more important to have the right people and processes in place to enable safe, secure and sustainable technology innovation.

  • What is your IT talent strategy or resourcing model?
  • Can you combat the traditional hierarchy approach and ensure the right people are in the room?
  • How can you help ensure your team keep up to date with security requirements, communicate accreditations and ensure accountability?

Contacts

Netherlands Digital Risk Leads

Leon Wiegeraad

Risk Advisory Director

Harold Malaihollo

Risk Advisory Partner

Global Leaders

USA

Adam Thomas
Risk and Financial Advisory
Partner
Email Adam

 

Adam Berman
Risk and Financial Advisory
Partner
Email Adam

 

Stuart Rubin
Risk and Financial Advisory
Managing Director
Email Stuart

 

Gina Primeaux
Risk and Financial Advisory
Partner
Email Gina



Canada

Don MacPherson
Risk Advisory
Partner
Email Don

 

Baskaran Rajamani
Risk Advisory
Partner
Email Baskaran

 

Judit Halin
Risk Advisory
Partner
Email Judit



Spain

Manel Carpio
Risk Advisory
Partner
Email Manel

 

Elisa de Hevia Gisbert
Risk Advisory
Partner
Email Elisa

Netherlands

Leon Wiegeraad
Risk Advisory
Director
Email Leon

 

Harold Malaihollo
Risk Advisory
Partner
Email Harold



France

Gregory Abisror
Risk Advisory
Partner
Email Gregory

 

Antoine Gajac
Risk Advisory
Partner
Email Antoine

Germany

Martin Flisgen
Risk Advisory
Director
Email Martin

 

Stefan Steinhoff
Risk Advisory
Partner
Email Stefan



Japan

Yasuhide Onuma
Risk Advisory
Partner
Email Yasuhide

 

Tomotake Kozu
Risk Advisory
Partner
Email Tomotake

China

Rebecca Wei Jiang
Risk Advisory
Partner
Email Rebecca

 

Allan An Xie
Risk Advisory
Partner
Email Allan



Australia

Darren Gerber
Risk Advisory
Partner
Email Darren

Singapore

Mark Woodley
Risk Advisory
Partner
Email Mark