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Reputational Risk

Reputation Risk is often ranked as one of the greatest risks facing businesses, responsible for big swings in everything from share price to employee retention. But what is it, how do you measure it and can it be managed? We examine every aspect of reputation risk from its definition, to its measurement and best practice examples of management.


Reputational Risk

Reputation Risk: what, how and why

What is reputation risk, how do you recognise it, avoid it, manage it, and mitigate it? A guide to handling threats to your organisation’s reputation, and the consequences of not doing so.

1. What is reputational risk and how does it affect your business?

We are in the midst of an ethical crisis. That´s why you should keep in mind what is reputation risk and how it can affect your business. This year’s Edelman Trust Barometer reveals that globally, only 56% of people trust business to do what is right (although, perhaps understandably, even fewer – 47% – have...
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2. How to measure the reputational risk of your business?

Boards and executives need more precise quantification of reputation risk, how it is evolving and the negative impact posed by certain issues, to support better decision making and the balancing of risk versus reward.

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3. Tips to mitigate the reputational risk of your company

Risks to your business’ reputation are a constant threat from both external and internal factors – but with the right plan, enterprise risks can be managed and the negative effects mitigated. Here are some of our top tips for how to save your brand from an avoidable crisis.

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4. Perception versus reality: the reputational risk gap

Reputation has far more grounding in perception than in reality – perceptions held by the various stakeholders linked to an organisation –and is not necessarily the truth of that organisation. How others see it can have a far greater impact than what it does, when it comes to forming that reputation.

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5. Reputation Risk: An opportunity for Corporate Affairs

Corporate Affairs is most often the function being asked to provide reputation intelligence to the rest of the business. This presents an enormous opportunity – if reputation is the biggest concern to the leadership of the business, the department which is responsible for providing reputation intelligence should see a commensurate increase in its status within the business.

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6. An introduction to reputational risk insurance

How can something as arguably abstract and intangible as reputational risk be quantified? More specifically, how can organisations put a price on their reputation? And, even more complex, how can that value be effectively rolled into an insurance policy that is both attractive to the insurance company, and worth the paper it’s written on to the holder of the policy?

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7. TalkTalk case study: reputational risk of cybersecurity attacks

Using the TalkTalk cyber attack as an example, this case study sets out to answer the following three questions:

  1. What is the measurable impact of data breaches on corporate reputation?
  2. How have data breaches affected different companies – is the effect uniform?
  3. What are the variables that affect how damaging a data breach is to reputation and what can companies control to limit reputational damage?
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8. Boeing: The alva Reputation Case Study

This case study looks at the issues that Boeing has experienced over the past three years to draw a clear quantitative differentiation between a risk and a crisis. The intention is to help organisations better understand where they sit on this spectrum, when internally it may feel like every negative issue is a crisis and develop response strategies accordingly.


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