How to build data trust in reporting: PwC

Are you providing your stakeholders with next-level, credible information?

It’s hard to grow a business without a solid foundation of trust among stakeholders. Many businesses want to strengthen those relationships, and providing more transparency with reporting is a good start. At the same time, ever-expanding business models are increasingly complex and interdependent.

So what does that mean for your current reporting efforts, whether financial or non-financial?

Traditional reporting (or self-reporting) doesn’t necessarily equal trusted reporting.
Trust in your business is a currency that needs to be managed, maintained and grown.
Attestation is a critical part of a concerted, long-term effort to build trust and brand.

With 71% of consumers reporting they would buy less with a brand if it loses their trust, it pays to double-check data and deliver on transparency.

Here’s some next-level considerations for how emerging attest, or trust reporting, enhances your business model to:

impact your data
determine how you publicize your standing among peers
validate true benchmarks to measure against your business

Breaking trust can hurt the bottom line: Delivering credible data and reporting matters

What does it mean to trust data?
A bigger need for emerging trust reporting

In a world where businesses and consumers are bombarded with information, it’s hard to know whom to trust. Consumers, employees and business leaders make decisions based on recommendations every day — without really considering the process behind the numbers.

If the source seems trustworthy it may be, but how can a company understand what metrics out there are the real deal? That’s when attest services — an independent review of a company’s financial or other statements — become a crucial piece of the puzzle to build trust in your brand.

Attesting to data validity builds trust. When looking at your business's whole trust reporting strategy, start with the basics. Interested parties, beyond regulators — like boards, audit committees, management teams and customers — want to know if the information your company is bringing to market can be trusted.
Self-reporting isn’t good enough. With increased scrutiny on non-financial metrics, self-reporting within an organization is no longer sufficient. It sounds simple, but a digital world — particularly where third-party controls and data analytics are out of your hands — requires going the extra step.
Assess, then attest. Start with assessing what’s been done to assure your reporting, data and technology are delivering valid information. Then your company can figure out how far to go to maintain a cadence of verified reporting.

Establishing trust in an adapting business model

Think about it this way: it’s cumulative. New trust reporting structures can help with oversight of data processed within the business ecosystem. That, in turn, supports an organization’s digital transformation investment. All of it helps build trust in your brand.

Today, companies conduct business with a level of interoperability that did not exist in the past. Typically, your business depends on someone else to conduct reporting. Delivering accurate, complete information can be out of your hands. Insurance companies for ride-sharing businesses, for instance, have no way of knowing if the information for so many trips is relevant or accurate. And boards, customers, business partners and others want more transparency. So your line of business may need an extra set of eyes.

As systems become more complex, adapting your business model in a way that gains and embeds trust across the ecosystem is the way forward.

Rankings: Who’s tops and who’s at the bottom — and where’d the list come from, anyway?

Every so often, consumers and businesses look for the latest rankings across industries and services. That might include the top 50 colleges, top vacation places for families — even who’s in the Fortune 500.

Where a company lands in those rankings can have a significant impact, positive or negative, on business. But how often do you ask who’s doing the ranking, and are they unbiased?

An independent and qualified third party can analyze and confirm that data, collateral and other assets are verified and trustworthy — before the information hits the market or regulators. By using technologically advanced solutions that support internal reporting for non-financial data — often known as ranked data — businesses can produce more reliable information.

So when consumers look for college rankings or turn to their streaming service for a top-10 kids’ movie list, for example, they can trust what they get.

How trusted industry benchmarks get built

Some industries need to have standards in place to protect consumers, investors and other businesses. This means going above and beyond regulation on financial and other types of reporting.

Many industries (especially regulated ones) get together and agree upon a set of rules crucial to delivering the highest standards. That includes gathering financial and non-financial reports that address industry and regulatory expectations. Gathering businesses together to agree (a consortia) on leading industry standards builds a trusted model to compare across an industry.

As technology moves business models into a space that management couldn’t have imagined even a decade ago, verifiable standards set a trusted bar for businesses to meet. For instance, in the adtech space, businesses are coming together to find solutions to issues like privacy and limiting digital cookies on consumer data. When industry consortia collaborate around new tech — like a cookieless environment — they’re making sure everyone plays by the same rules.

Third-party reporting in these emerging areas can provide clarity on how to protect consumers and meet broad expectations across industries.

Help your brand build trust

Whether you’re reporting for regulators, boards or consumers, attestation for financial or non-financial data can help you stay ahead of the trust equation. Increased attestation of data builds stakeholder trust and helps boards, audit committees and management teams increase their confidence in internal and external reporting.

Make sure your relevant data that is going out to the public is verified: Pursue technology and data-driven attest capabilities that provide value, efficiency and quality to distinguish your brand from competitors. And let stakeholders know why they can trust it.
Make sure the third-party reporting you received gets validated. When the board or audit committee comes calling, be ready. Consider independent, third-party review or attestation to help validate the effectiveness of digital frameworks and programs and grow trust through transparency.
Make sure you know what your industry standards require and when you need to comply. Efficiently and effectively work with various stakeholders to confirm data and other report requirements are structured.