The human being has always been looking for being worthy; worthy of living? worthy of dreaming? worthy of getting a particular lifestyle? Worthy of getting trusted by people?
Here is a summary of the three most common worthiness-related concepts (Creditworthiness, Airworthiness, and Digitalworthiness). Let’s see if you’re familiar with all of them!
The concept of worthiness exceeds the interpersonal and social level, and reaches the financial-side level. Indeed, when dealing with loans, bank institutions’ executives need to settle criteria to estimate which customer is worthier to get financial credit. Eventually creditworthiness is focused on a scoring that would determine whether a client is worthy of a particular advantage or not.
When it comes to credit risk, banking institutions are allowed to select between two techniques for calculating their risk-based capital prerequisites for credit chance.
The first option consists of using external ratings for particular administrative purposes. The second option which is the IRB approach (Internal Rating Based) advocates for the use of the financing institutions’ own internal assessments to deal with risk weights.
These two techniques were studied by Basel Committee on Banking Supervision via Basel III: Finalizing post-crisis reforms.
Furthermore, in the aviation field, safety is a crucial component in the whole industry. This is when it refers to airworthiness to assess the appropriateness of an aircraft (and the flight operation as a whole) for accomplishing safe flights by measuring different conditions such as engine, construction and design to ensure zero hazards operations.
In fact, airworthiness includes third parties’ safety: it’s true that an aircraft needs to be suitable for a safe flight but also on a safe ground without marking any noteworthy hazard on ground crew or passengers. In its annex 8, The Convention on International Civil Aviation dealt deeply with the airworthiness requirements.
Due to its importance, airworthiness is governed by the National Aviation Authority which issues the airworthiness certificates. Airworthiness is best known for its flexible and enhancement-centered approach. The NAA isn’t only responsible for issuing updated or new regulations but also it believes in consultation: when it comes to changes the authority consults the industry experts (except for a few cases when the situation requires an immediate interference not allowing time to the consultation process).
A new concept related to worthiness has recently emerged. Actually, digitalworthiness is just like creditworthiness when it comes to scoring: digitalworthiness measures how far an entity goes with its investment in being a digitally-enabled business based on a “Digital Rating“ system. The latter assess the digital means provided by an entity in order to ensure a suitable customer experience.
Also, similar to airworthiness, digitalworthiness is proved through getting a certification, but this is not the end of the digitalworthiness journey of an entity, since it should continue enhancing its digital approach and get a better Digital Rating which leads to an updated certificate. Both digitalworthiness and airworthiness believes in continuous improvement and industry consultation.
Digitalworthiness concept is now illustrated via the digitalworthiness platform and based on a digital rating system. AT Rating system that, on one hand, allows the entity to measure and illustrate its digitalworthiness to the consumers and to boost their competitiveness edge, and on another hand, paves the way for the consumer to decide their level of engagement according to their digital needs and expectations.
Creditworthiness, airworthiness and digitalworthiness are all concepts that approach enhancing the customer experience through providing the business with a set of guidelines. Digitalworthiness has a target of creating a global community of digitally-enabled businesses.
Whereas, when creditworthiness is related to the banking industry, and airworthiness to the aeronautic industry, digitalworthiness is applicable to any industry: the Digital Rating system is centered around a questionnaire that differs from a segment to another. In other words, digital rating is of a global scale; each entity, independently on its size, segment or core business, could embark the digitalworthiness journey!
What about you? Is your brand or business entity digitalworthy?