Companies that violate trust get ‘canceled.’ Are businesses reducing digital risks?

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TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Alexandra Mondalek   Associate Editor, New York Developing digital trust In the news • Fostering cyber resilience. Companies focused on keeping their operating systems running smoothly should consider developing cyber resilience. Rather than trying to prevent all cyberattacks, a better option would be for organizations to build up operational strength so that it's harder to damage the business in the event of a cyberattack or data breach. Businesses can proactively develop cyber resilience by dividing digital networks into smaller parts so that if one segment is attacked, the others aren't automatically at risk. [WSJ] • Humans required. While AI programs can help make decisions that involve vast troves of data, machines aren't yet capable of considering moral and ethical concerns. Consider the "trolley problem"—a hypothetical situation in which one can choose to divert a runaway streetcar to another track, causing the death of one person in order to save the lives of many. AI systems may lack the empathy that leads to more ethical decision making. To build public trust in technology, organizations should promote fair and moral decision making using AI and remove biased or skewed data. [HBR] Organizations that are best positioned to build digital trust are also more likely than others to see annual growth rates of at least 10% on their top and bottom lines. On McKinsey.com • At risk. Many leaders are highly confident in their company's ability to establish digital trust, the belief that an organization will protect consumer data, and offer ethical AI-powered products and services. But that assuredness is largely unfounded. Nearly 90% of executives say that they are at least somewhat effective at reducing digital risks. However, less than a quarter report that their organizations are actively mitigating a variety of digital risks across most of their organizations, note McKinsey senior partners Alex Singla, Kate Smaje, and colleagues. • The power of digital trust. Leaders in digital trust—those with employees who follow established policies on data, AI, and general ethics—outperform their peers both in loss prevention and business growth. Many consumers say that they will stop buying from a company when it violates their trust. In a global survey of more than 3,000 consumers, 53% say they make online purchases or use digital services only after making sure that the company has a reputation for protecting its customers' data. See why digital trust truly matters. Learn more about digital trust Was this forwarded to you? Sign up here. Or send us feedback— we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007