Reputation risk as a board concern
Reputation risk is not new; it has been a part of business forever. What's changed is how vital reputation risk has become to the overall health of businesses – and how difficult it can be to manage.
In a digital world where bad news spreads more quickly than ever before, a company's reputation can suffer severe and sometimes irreparable damage in the blink of an eye. Worse, companies are now being held accountable for everything that happens in their global supply chain; even for the questionable business practices of an obscure third- or fourth-tier supplier in a distant land. In this challenging and volatile business environment, reputation risk has become the number one strategic business risk†. And such, it is now an issue boards must actively monitor and oversee as part of their overall responsibility for corporate governance.
The article, published in The Corporate Board and written by Michael Rossen and Henry Ristuccia, explores hidden reputation risks, crisis management lessons for boards, and the board's role in reputation risk oversight moving forward.
†The findings in this report are based on a global survey conducted in the spring of 2014 by Forbes Insights, on behalf of Deloitte.