“Organisation identity is a parallel and just as valuable identity type as individual identity.”
At IDM Europe 2023 in October Simon Wood, Ubisecure CEO, presented the facet of identity management that’s often overlooked – Organisational Identity. In this session overview, we delve into the importance of organisation identity, its impact, and how it’s poised to transform the digital landscape. Alternatively, watch the full 15-minute presentation in the video below.
The Significance of Organisational Identity
Individual identity has thus far taken the forefront in discussions about digital security. However, organisation identity is an equally valuable aspect of the broader identity landscape. To grasp this concept, it’s crucial to understand what organisational identity encompasses.
Defining Organisational Identity
Organisations come in various forms and structures, from social groups and families to contractual entities and legal corporations. Just as there are assurance levels associated with individual identities, the same holds true for organisation identities, ranging from low to high assurance levels. This is where the distinction between low assurance organisation identities, such as social groups, and high assurance ones, like legal entities, becomes evident.
Case Studies: The Good, The Bad, The Ugly
The significance of organisation identity is illustrated through a series of case studies.
In an example from Ubisecure’s Finnish government case study, the combination of individual and organisational identities resulted in remarkable cost savings. By allowing organisation identities to be represented by highly assured individuals, the Tax Office achieved cost savings of 99%. This real-world case shows how organisation identity can lead to substantial financial benefits.
The vulnerability of organisation identity became apparent when Elon Musk’s purchase of Twitter (or X as it’s known this week) led to the removal of verified organisation accounts. Fake accounts naturally emerged. Due to a tweet from a fake Eli Lilly account claiming false information, Eli Lilly saw a >4% drop in the stock price.
The 2008 financial crisis was partly driven by the complex world of collateralised debt obligations (CDOs). The interconnection of organisations within this financial web led to a catastrophic market collapse when triggered, serving as a stark reminder of the importance of transparent and accountable organisation identity in complex financial ecosystems.
Legal Entity Identifier (LEI) – A Key to Organisation Identity?
The Legal Entity Identifier (LEI) plays a central role in organisation identity. Created in response to the 2008 financial crisis by the Financial Stability Board, the LEI identifies legal entities and their ownership structures. As a globally recognised, highly assured organisation identity, the G20 and World Trade Organisation (WTO) support the LEI as a solution to the complexities of modern financial markets.
The Road to Widespread LEI Adoption
The adoption of the LEI is steadily growing, with a target of 20 million LEIs by 2027 set by the G20. This critical mass will promote its use across various industries and use cases. Several driving forces are pushing for the broader adoption of organisation identities, including the WTO’s focus on cross-border digital payments, changing regulations for electronic trade documents, and the integration of LEIs into financial transactions.
The Future of Digital Identity: Context Matters
Ubisecure’s vision for the future of digital identity management involves connecting highly assured organisation identities with strongly authenticated individual identities. This synergy allows us to understand who an individual is, whom they represent, and the rights and responsibilities associated with different contexts. The context in which identity operates is paramount, as it determines what an individual or organisation can do within a specific setting.
This session sheds light on the growing trend towards effective organisation identity and the critical role it plays in financial markets, security, and digital transactions. As we look to the future of digital identity management, the synergy between individual and organisation identities becomes increasingly vital.
To discuss organisation identity and its role in the future of digital identity management in more detail, contact us.