MITIGATING REPUTATION RISK FOR SUCCESS: STRATEGIC PLANNING IN TODAY’S MULTI-STAKEHOLDER, MULTI-CHANNEL ENVIRONMENT
Reputation risk management emerged as one of the most dynamic areas of business strategy during the first decade of the 21st century and hasn’t showed any signs of slowing down in the aftermath of the 2008-2009 global financial crisis. Consider these four data points:
First, the number of publications containing reputation risk in their title or abstract has more than doubled since the year 2000, according to the Conference Board.
Second, in 1990 there were only two mentions of reputation risk in the global media (this in the immediate aftermath of the Exxon Valdez oil spill), compared with 270 in 2006 and more than 1000 in 2012, according to Weber Shandwick.
Third, today 75 percent of risk managers from institutional investors believe that risk was given the highest priority after the financial crisis of 2008-2009, according to The Economist.
Finally, besides financial risk, reputation risk has emerged as the most important area of risk management to boards of four different kinds of companies: 66 percent of public companies, 70 percent of private companies, 77 percent of not for-profits and 65 percent of private equity-owned companies, according to EisnerAmper.
Jul-Sep 2014 Issue