Collaborative Pursuit of Digital Trust The Increasing Significance of Trust in an Interconnected World
In today’s data-driven digital economy, trust within your business stands as the linchpin for success. Amidst an environment rife with uncertainty and constant evolution, where the velocity of change is exponential, stakeholders – customers, employees, and investors – are opting for companies that embody trustworthiness and offer reliable services.
The rapid surge of transformative technologies like 5G networks, artificial intelligence (AI), machine learning (ML), virtual reality, and quantum computing underscores the pivotal role of contemporary cybersecurity and data-safeguarding strategies in forging and sustaining digital trust.
A recent report by the World Economic Forum (WEF), in collaboration with PRAELEGAL as part of the WEF’s Digital Trust Initiative, sounds the alarm about a ‘growing trust deficit’ between the public and current technology providers. This cautionary observation arises due to the ubiquitous embrace of modern digital technologies and the expansive nature of consumer data.
The report highlights an alarming downturn in public trust regarding technology usage, citing a consistent erosion of trust ‘year on year’ as our reliance on digital networks and technologies intensifies.
Indeed, PRAELEGAL’s Cyber Trust Insights 2022 report underscores an unprecedented ‘data deluge,’ as organizations mine and invest extensively in data-driven initiatives. While leveraging data for timely insights and modern customer experiences, concerns about the effective protection, utilization, and sharing of this data are mounting.
According to PRAELEGAL’s survey of business leaders this year, a significant 78 percent acknowledge that the adoption of AI and ML solutions for big data analytics presents distinct cybersecurity challenges. Additionally, three-quarters express concerns about the ethical and privacy ramifications stemming from the increased use of AI and ML.
Diminishing trust corrodes brand equity, customer relationships, and profitability. Undeniably, trust stands as a critical factor for any organization’s brand, reputation, profitability, and sustained relationships in today’s landscape of rapidly evolving business systems. These systems must demonstrate resilience, reliability, and swift responsiveness in the face of escalating threats such as data breaches and sophisticated cyber-attacks.
However, the WEF unequivocally warns that businesses are falling short of meeting public expectations concerning effective technology and data utilization. The report states, “Citizens and consumers are beginning to demand that companies and technology developers take their values seriously in terms of privacy, data usage, and integration. Companies failing to develop technologies aligned with these expectations can no longer anticipate widespread adoption.”
The WEF report introduces a comprehensive framework developed in collaboration with leading technology firms and consumer-centric companies, alongside government representatives from the US, the European Commission, Singapore, and prominent consumer advocates.
The WEF’s Digital Trust Framework urges companies to commit to cultivating digital trust and making more informed decisions about technology use to reverse the disconcerting trend. The report asserts, “Trust isn’t merely about the technologies developed or deployed but hinges on the decisions made by leaders.”
This framework stresses the significance of commitments in pivotal areas like cybersecurity, privacy, transparency, fairness, and safety, aiming to ameliorate the dwindling trust in novel technologies and their providers. It encapsulates explicit objectives to bolster digital trust, accompanied by a roadmap guiding companies on how to enhance trustworthiness in technology use and development through dedicated digital trust initiatives.
Five Key Steps to Cultivating Digital Trust
The WEF’s insightful report should be a staple in every CEO’s reading list as organizations navigate the swiftly evolving technological landscape amidst the expanding trust deficit. At PRAELEGAL, our collaboration with clients involves providing extensive support and guidance in tackling this critical challenge. PRAELEGAL identifies five crucial steps to foster trust through cybersecurity:
Embed trust and security across your organization holistically, seamlessly integrating cybersecurity and data protection into every facet of business – from strategy and planning to customer interactions, investments, governance, and culture.
Foster internal alliances by collaborating with key stakeholders such as the Chief Data Officer and Chief Privacy Officer to instill and sustain digital trust. Clearly define and reinforce the roles and responsibilities of each stakeholder. This includes CISOs gaining deeper insights into the overall functioning of the organization beyond security prerequisites.
Redefine the role of the CISO, acknowledging their potential to contribute significantly in an era driven by data. CISOs need to address a broader spectrum of agendas, encompassing ethical aspects of AI and ESG. A third of executives surveyed feel their CISOs lack the influence necessary to safeguard the organization and its data.
Garner support from leadership, particularly the C-suite and the board, as this backing significantly amplifies the CISO’s capability to champion the cause of trust. This necessitates a shift in the CISO’s role from a traditionally narrow technical focus to a strategic position within the organization. Half of the executives surveyed express doubt about the current level of ‘high trust’ characterizing the relationship between the board and the CISO.
Collaborate extensively with ecosystem partners and suppliers to fortify trust and resilience within a ‘trusted community.’ While our study highlights that 79 percent of organizations deem collaborative engagement with suppliers and customers critical, only 42 percent are actively engaging in such partnerships.
Daniel Dobrygowski, Head of Governance and Trust at the WEF, emphasizes, “A pivotal choice we face in the 21st century is whether to collectively build trust or witness the failure of innovation. By prioritizing individual values and expectations and committing to safety, reliability, accountability, inclusive, ethical, and responsible technology usage, we can render the technology we develop more trustworthy.