WHY IT MATTERS: Digital Transformation

WHY THIS IS IMPORTANT

Expect to hear more about security threats and fears in the coming years. In the digital world, I suggest that there is a "hierarchy of digital needs" (see the pyramid of digital needs fmcs.digital/blog/pyramid-of-digital-needs/) and that if we do not feel secure in the digital world, we will not be able to leverage the different tools and solutions available to us. In fact, the research shows that our fears are exacerbated when we are not in control, which is the case for most people as they do not fully understand digital technologies (layer 1 in the pyramid) and do not feel secure (layer 2).

"...many things affect how we perceive risk:

• do you trust the person you are dealing with
• control vs. lack of control (lack of control inflates risk perceptions)
• is it catastrophic or chronic (catastrophic inflates risk perceptions)
• does it incite dread or anger (dread inflates risk perceptions)
• uncertainty (lack of knowledge about something inflates risk perceptions)

“Most people do not distinguish well between a one-in-a-thousand risk and a one-in-a-million risk,” said Mark Egan, an associate advisor at the Behavioral Insights Group in London.