February 2014

Rebuilding Trust: New Reputation Risk Research


Two pieces of recent research have highlighted the need for, and the financial benefits of, reputation risk management. 

A report (How to Rebuild Trust After a Scandal) co-authored by Ed deHaan, Associate Professor of Accounting at Stanford University, has been published showing how companies with damaged reputations can better restore their financial value by undertaking ‘broad’ reputation-repair action.  Instead of just appealing to investors and creditors, they found that companies that also engage with other stakeholders such as customers, employees and local communities, saw better subsequent recovery in their share prices. 

Of course, prevention is always better than cure and that is where the second piece of research released recently picks up.  In their ‘Roads to Resilience’ report, the Cranfield School of Management (on behalf of Airmic) highlights the critical importance of building resilience using risk management measures which “enhance the reputation of the organisation, facilitate more innovative approaches and ultimately secure greater success”.

These reports underline the need for detailed and timely data for decision-making and reputation strategies across many stakeholders.

We have worked with many organisations, large and small, and across the globe, to provide successful strategies and leading-edge data analysis to ensure the avoidance of damage, the building of resilience and the enhancement of future reputations.