Symptoms

After restoring a production database into a lower environment the following error was thrown by a custom smartobject: InitializeSecurityContext: (8009030C) Authentication with server failed
 

Diagnoses

There was a connection string in Workspace - Management Console - Smart Objects - Services - Worklist.ServiceBroker for the custom service broker. The password was for production since the DB was restored from the production environment into the test environment.
 

Resolution

Update that password to have a relevant value for the current environment.