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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

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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.

How can you ensure the right processes and channels are established to ensure technology is safe, secure and sustainable?

Priority 1

Get the right information

Although business leaders are confident in their ability to deliver on their responsibilities in relation to digital risk, they report business maturity against a spectrum of core digital risk capabilities as low.

Are you getting the right assurance that your digital transformation is happening as planned and with the desired outcomes?
What do changes in the regulatory environment mean for your business and its digital footprint globally?
Do you have access to the right information at the right time? How efficient are your reporting and warning systems?

Priority 2

Enable innovation with control

Patterns of ownership of digital risk remain hugely varied. How can you encourage collaboration between leadership teams and ensure all digital decision making takes risk into consideration?

Can you challenge the traditional hierarchy and enable resourcing models to support digital risk ownership? Are your risk teams embedded in the business to enable real-time decision making without delaying innovation, or are they sat on the outside? Do teams have the right level of risk and digital skills to deliver?
Are you confident that digital innovation is happening within a risk appetite and aligned to business strategy/vision?
What are you doing internally to lead change and help embrace risk?

Priority 3

Regaining confidence when digital transformation doesn’t go to plan

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.

What resources have you put behind this to develop long-term mitigation plans?
What role do you need to play and when? How can you prepare for digital incidents?

Priority 4

Help consumers feel in control

Over 50% of consumers don’t think digital interactions with businesses are ethical. Digital can’t happen in isolation - how can you build consumer confidence and help consumers feel in control?

What role are you playing externally to champion digital transformation aligned to your vision / principles and provide reassurance across new customer journeys?
How can you help consumers and customers gain the confidence that your business is putting their interests first and is acting in a digitally responsible way?

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

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 enable safe, secure and sustainable digital innovation, and safeguard against digital incidents?

Priority 1

Building confidence through regulation and transparency

55% of consumers say increased regulation will improve their confidence in digital innovation, while only 40% feel adequately informed about digital practices.

What do changes in the regulatory environment mean for your business and its digital footprint globally?
Who do you need to align with to ensure the business adapts appropriately, and changes don’t restrict operation or innovation?

Priority 2

Regaining confidence when digital transformation doesn’t go to plan

Have you planned for the worst-case digital incidents?
What resources have you put behind this to develop long-term mitigation plans?
How efficient are your reporting and warning systems, and do business decision makers have access to the right information at the right time?
How are you providing reassurance to those less familiar with technology and translating and identifying the most important information?

How can you ensure risk management enables safe, secure and sustainable digital innovation, and isn’t seen as a blocker to progress?

Priority 1

Working together with digital technology

Less than 5% of organisations cite risk functions as the owner of digital risk , but all business leaders must play a wider role to ensure business behaviours are in line with the risk appetite of and regulations for the business.

How can you ensure risk decisions are integrated throughout digital development and enable, rather than delay, innovation?
How do you ensure the right guardrails are established and embraced by your business?
How can you build a resourcing strategy that embeds digitally native risk talent within the business, to enable seamless and agile decision making in line with risk appetite?

Priority 2

Building digital confidence with regulation and transparency

55% of consumers say increased regulation will improve their confidence in digital technologies, but there is also a need to build internal reassurance as regulatory requirements change.

What do changes in the regulatory environment mean for your business and its digital footprint globally?
Who do you need to align with to ensure the business adapts appropriately, and changes don’t restrict operation or innovation?
How efficient are your reporting and warning systems, and do business decision makers have access to the right information at the right time?
How are you providing reassurance to those less familiar with technology and translating and identifying the most important information?

How can you ensure the business and consumers remain confident digital innovation is safe, secure and sustainable?

Priority 1

Balance the technology and human interaction

The number one digital incident reported by consumers over the last year was that customer services failed to help them with a technology problem. While, over 50% of consumers don’t think digital interactions with businesses are ethical. Digital transformation can’t just focus on digital technologies. Long term consideration of people and process will help drive successful and sustainable innovation built around customer-centricity, and enhance competitive-edge.

How do you ensure that the digital and human elements, including the handover between them through customer service, are optimised in your consumer experience?
How can you reassure consumers that interactions with digital are ethical through long-term consumer engagement plans? Before undertaking any new digital innovation, consider: have you thoroughly mapped the impact to customer experience, and engaged customers to stress test the confidence in them and your organisation?
What is the communication and customer services plan to help consumers feel in control and help your organisation stand out?
Have you planned for the worst-case digital incidents? How you address these incidents to provide transparency and regain consumer confidence is vital to managing reputation and ensuring sustainability.
What resources have you put behind this to develop long-term mitigation plans?

Priority 2

Integrate forward-looking risk responsibilities into your daily activities

Less than 5% of organisations cite risk functions as the owner of digital risk, but all business leaders must play a wider role to ensure business behaviours are in line with the risk appetite of and regulations applicable to the business.

Are you clear on the risk appetite and methodology applicable to your role and projects you’re involved in?
How can you ensure risk decisions are integrated throughout digital development and enable, rather than delay, innovation?
Are you prepared for any upcoming regulatory interventions across the digital landscape?

Priority 3

Building business confidence in digital

81% of business leaders are confident digital is safe, secure and sustainable. But it’s vital to stay ahead of the unknown unknowns generated by the fast moving digital landscape, particularly to provide reassurance to those less familiar with the technology.

How are you tracking all the short and long terms implications of digital transformation?
Are you reinforcing stakeholder confidence by reporting that your digital delivery is meeting expectations of the plan, and that you have processes in place to identify unintended consequences?

How can you ensure processes to ensure technology is safe, secure and sustainable are both communicated and understood by consumers?

Priority 1

Help consumers feel in control

Over 50% of consumers don’t think digital interactions with businesses are ethical. Digital can’t happen in isolation, long term consideration of people and process, will help drive innovation built around customer-centricity, and enhance competitive-edge.

How are you helping to ensure a consistent external experience in line with your brand as digital changes?
How can you help consumers and customers gain the confidence that your business is putting their interests first and is acting in a digitally responsible way?

Priority 2

Regaining confidence when digital transformation doesn’t go to plan

Have you planned for the worst-case scenario digital incidents?
How you address these incidents to provide transparency and regain consumer confidence is vital to managing reputation and ensuring sustainability.

Priority 3

Building business confidence in digital

81% of business leaders are confident digital is safe secure and sustainable. But it’s vital to stay ahead of the unknown unknowns, in particular championing digital within your functions and providing reassurance to those less familiar with technology.

Are consumers aware of digital change and digital risk management within your organisation? Are you communicating the right information to consumers?
Are you tracking consumer perception of risk policies in relation to services used?
How can you ensure consumers both understand and are kept up to date with the latest digital changes and their impact on them?

How can you ensure the right processes and channels are established to ensure technology is safe, secure and sustainable?

Priority 1

Get the right information

Are you getting the right assurance that your digital transformation is happening as planned and with the desired outcomes?
What do changes in the regulatory environment mean for your business and its digital footprint globally?
Do you have access to the right information at the right time? How efficient are your reporting and warning systems?

Priority 2

Enable innovation with control

Patterns of ownership of digital risk remain hugely varied. How can you encourage collaboration between leadership teams and ensure all digital decision making takes risk into consideration?

Can you challenge the traditional hierarchy and enable resourcing models to support digital risk ownership? Are your risk teams embedded in the business to enable real-time decision making without delaying innovation, or are they sat on the outside? Do teams have the right level of risk and digital skills to deliver?
Are you confident that digital innovation is happening within a risk appetite and aligned to business strategy/vision?
What are you doing internally to lead change and help embrace risk?

Priority 3

Regaining confidence when digital transformation doesn’t go to plan

What resources have you put behind this to develop long-term mitigation plans?
What role do you need to play and when? How can you prepare for digital incidents?

Priority 4

Help consumers feel in control

Over 50% of consumers don’t think digital interactions with businesses are ethical. Digital can’t happen in isolation - how can you build consumer confidence and help consumers feel in control?

What role are you playing externally to champion digital transformation aligned to your vision / principles and provide reassurance across new customer journeys?
How can you help consumers and customers gain the confidence that your business is putting their interests first and is acting in a digitally responsible way?

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

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

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

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 enable safe, secure and sustainable digital innovation, and safeguard against digital incidents?

Priority 1

Building confidence through regulation and transparency

55% of consumers say increased regulation will improve their confidence in digital innovation, while only 40% feel adequately informed about digital practices.

What do changes in the regulatory environment mean for your business and its digital footprint globally?
Who do you need to align with to ensure the business adapts appropriately, and changes don’t restrict operation or innovation?

Priority 2

Regaining confidence when digital transformation doesn’t go to plan

Have you planned for the worst-case digital incidents?
What resources have you put behind this to develop long-term mitigation plans?
How efficient are your reporting and warning systems, and do business decision makers have access to the right information at the right time?
How are you providing reassurance to those less familiar with technology and translating and identifying the most important information?

How can you ensure risk management enables safe, secure and sustainable digital innovation, and isn’t seen as a blocker to progress?

Priority 1

Working together with digital technology

Less than 5% of organisations cite risk functions as the owner of digital risk, but all business leaders must play a wider role to ensure business behaviours are in line with the risk appetite of and regulations applicable to the business.

How can you ensure risk decisions are integrated throughout digital development and enable, rather than delay, innovation?
How do you ensure the right guardrails are established and embraced by your business?
How can you build a resourcing strategy that embeds digitally native risk talent within the business, to enable seamless and agile decision making in line with risk appetite?

Priority 2

Building digital confidence with regulation and transparency

55% of consumers say increased regulation will improve their confidence in digital technologies, but there is also a need to build internal reassurance as regulatory requirements change.

What do changes in the regulatory environment mean for your business and its digital footprint globally?
Who do you need to align with to ensure the business adapts appropriately, and changes don’t restrict operation or innovation?
How efficient are your reporting and warning systems, and do business decision makers have access to the right information at the right time?
How are you providing reassurance to those less familiar with technology and translating and identifying the most important information?

How can you ensure the business and consumers remain confident digital innovation is safe, secure and sustainable?

Priority 1

Balance the technology and human interaction

How do you ensure that the digital and human elements, including the handover between them through customer service, are optimised in your consumer experience?
How can you reassure consumers that interactions with digital are ethical through long-term consumer engagement plans? Before undertaking any new digital innovation, consider: have you thoroughly mapped the impact to customer experience, and engaged customers to stress test the confidence in them and your organisation?
What is the communication and customer services plan to help consumers feel in control and help your organisation stand out?
Have you planned for the worst-case digital incidents? How you address these incidents to provide transparency and regain consumer confidence is vital to managing reputation and ensuring sustainability.
What resources have you put behind this to develop long-term mitigation plans?

Priority 2

Integrate forward-looking risk responsibilities into your daily activities

Less than 5% of organisations cite risk functions as the owner of digital risk, but all business leaders must play a wider role to ensure business behaviours are in line with the risk appetite of and regulations applicable to the business.

Are you clear on the risk appetite and methodology applicable to your role and projects you’re involved in?
How can you ensure risk decisions are integrated throughout digital development and enable, rather than delay, innovation?
Are you prepared for any upcoming regulatory interventions across the digital landscape?

Priority 3

Building business confidence in digital

How are you tracking all the short and long terms implications of digital transformation?
Are you reinforcing stakeholder confidence by reporting that your digital delivery is meeting expectations of the plan, and that you have processes in place to identify unintended consequences?

How can you ensure processes to ensure technology is safe, secure and sustainable are both communicated and understood by consumers?

Priority 1

Help consumers feel in control

Over 50% of consumers don’t think digital interactions with businesses are ethical. Digital can’t happen in isolation - how can you build consumer confidence and help consumers feel in control?

How are you helping to ensure a consistent external experience in line with your brand as digital changes?
How can you help consumers and customers gain the confidence that your business is putting their interests first and is acting in a digitally responsible way?

Priority 2

Regaining confidence when digital transformation doesn’t go to plan

Have you planned for the worst-case scenario digital incidents?
How you address these incidents to provide transparency and regain consumer confidence is vital to managing reputation and ensuring sustainability.

Priority 3

Building business confidence in digital

Are consumers aware of digital change and digital risk management within your organisation? Are you communicating the right information to consumers?
Are you tracking consumer perception of risk policies in relation to services used?
How can you ensure consumers both understand and are kept up to date with the latest digital changes and their impact on them?