Why Identity Assurance Matters More Than You Think

If you’ve ever been on the receiving end of a personal data handling compliance audit, you might associate “identity assurance” with a tedious compliance exercise—just another checkbox to tick. But this perception misses the mark. Identity assurance isn’t just about satisfying auditors and regulators or complying with frameworks like NIST SP 800-63-3 . It’s about ensuring your systems, processes, and data stand up to scrutiny, yielding benefits far beyond mere compliance. Let’s examine why identity assurance matters, not just to pass an audit but to achieve broader business goals like risk mitigation, data quality, and even competitive advantage.

Assurance Programs: More Than a Box to Tick

People deeply involved in identity assurance programs often assume that everyone understands what it is and why it’s important. Since identity is one of the prime vectors for cyberattacks attacks, it seems obvious that everyone should know when (and when not!) to verify identity information and how to do it well. A well-executed and maintained Identity Assurance program provides the organisation with confidence that their identity verification and data handling processes are fit-for-purpose. In practice, however, most organizations approach assurance programs as a regulatory hurdle that must be jumped, without understanding the wider business benefits. Those benefits can be many and varied, and the specifics will depend on a range of factors including the size of the organisation, the sector in which it operates, the nature of the business, and so on. But there are three common areas which apply in almost every case:

1. Mitigate Corporate Risk

   Think about the governance level: identity assurance ensures that age verification actually verifies age, that credentialing systems accurately confirm credentials, and so on. By reducing the risk of identity fraud or data mishandling, a good assurance program helps safeguard the company’s reputation and protects it from costly breaches—and reassures the C-suite and the board that this is so.

2. Improve Data Quality

   Companies rely on data for everything from marketing to product development. But… garbage in, garbage out. A well-executed assurance process helps ensures that the data you collect is accurate, relevant, and usable. Let’s be clear: this doesn’t give you carte blanche to indulge in otherwise needless identity verification, and choosing to do so carries its own not insignificant risks! But, where appropriate, then whether it’s customer demographics, account verifications, or internal employee information, data quality improves significantly when identity-proofing processes are reliable. And a reputable assurance program helps provide reassurance of that reliability.

3. Provide Competitive Advantage

   In industries where trust and security are selling points, demonstrating robust identity assurance practices can set you apart. Imagine being able to confidently tell your customers: “We don’t just claim our system works; here’s how we prove it.” That’s a compelling value proposition—and that’s what a reliable and reputable assurance program can provide

This does, of course, mean that an assurance program may well find faults with your (or your vendors’) processes, tools and technologies, that need rectifying. This is actually a good thing: it means that your assurance program is helping you make improvements in each of these critical areas. Embrace the effort!

Assurance Isn’t Just for You—It’s for Your Stakeholders

A solid identity assurance program benefits multiple stakeholders:

• Customers gain confidence that their data is secure and used appropriately.
• Regulators see evidence that your organization is compliant.
• Internal teams have clear, actionable guidance on maintaining secure operations.
• Executives can rest easy knowing risks are managed and brand trust is upheld.

Avoiding Proofing Creep

In a previous post , we talked about “proofing creep”—when identity proofing requirements grow unnecessarily stringent, making the user experience worse while adding little actual value. A good assurance program guards against this by focusing on what’s essential. It ensures that you’re verifying what needs to be verified, no more and no less. For example, if your system needs to verify age for a service, assurance focuses on whether your chosen method—say, government ID checks—achieves that goal reliably. It prevents a drift into unnecessary demands, like requiring a full background check for age verification alone.

Building Faith in Your Systems

Ultimately, identity assurance is about faith—faith that your systems work as intended, that your processes achieve their stated outcomes, and that the data you rely on is trustworthy. A strong assurance program offers this faith, backed by evidence. So next time someone mentions identity assurance, think beyond compliance. Think about risk reduction, better data, and stronger market positioning. Because in today’s digital world, assurance is more than a checkbox—it’s a cornerstone of trust.

If you’re interested in other thoughts I have on digital identity, privacy, and corporate governance, I encourage you to read through this site or follow me on LinkedIn .