October 2013

Reputation is Number One Corporate Risk

Reputation is Number One Corporate Risk

The latest global survey of risk managers has revealed that reputation and managing the fallout from reputation damage, is the number one concern for large companies.

Reputation has risen from third place, when the study was last carried out in 2010.  This change has been mirrored by growing concern about the importance of social media, indicating increasing feelings of vulnerability to the pressures and scrutiny of the digital age.

Henry Ristuccia of Deloitte says: "The time it takes for damaging news to spread is quicker, it goes to a wider audience more easily, and the record of it is stored digitally for longer. Even in an environment where economic conditions remain tough and technology threatens business models, this is why companies place reputation at the top of their strategic risk agenda.”

This increased concern is also leading to greater uptake of reputation monitoring tools such as Reputation Tracker.

Six ways tracking reputation helps manage risk

  1. Immediacy. Monitor live reputational risk.
  2. Comparisons. See risk in context to your sector and competitors.
  3. Early Warnings. Track emerging issues and swings towards strong negative emotions.
  4. Prioritising. Understand where concerns are strongest to prioritise key issues for immediate attention.
  5. Best practice. Retropsective analysis provides opportunities to learn from the past and identify best practice.
  6. Prediction. Monitor the ebb and flow to predict reputational risk, by understanding cause and effect.