Developing reputational resilience ahead of your crisis
Recent high profile crises remind us of the impact of reputational damage resulting in the destruction of market value and subsequent recovery costs. Even so, many organisations remain unsure what to do about reputational risk. In this brief we identify two fundamentals in building reputational resilience – identification of risks from an outside in perspective, and being prepared for a crisis through a robust crisis readiness programme.
In a recent survey, board members identified reputational risk as the area where they felt most vulnerable, but only 39% had a plan to address a reputational crisis.
Looking ahead, it will be the organisations that understand, protect and develop their reputation asset that will be best placed to maintain shareholder value.
Key learnings include:
- Risk to reputation is a risk to value, and organisations need to understand both
- Organisations are judged by the way they are seen to conduct their business and how they handle a crisis, both need to be addressed to build reputational resilience
- Managing reputational risk doesn’t fit neatly into a single function in an organisation, it needs clear accountability and broad engagement
- Reputation threats within a sector are also opportunities to enhance reputation and value.
Our expert says…
“Understanding and preparing for events and trends that can affect corporate reputation is front of mind for many leaders in today’s uncertain world. Preparing for crises helps to protect value when unexpected, or unforeseen, events threaten organisations”
Rick Cudworth, Lead Partner, Resilience and Crisis Management
Find out more
To learn more about evolving risk management trends, get in touch with our Risk Advisory team.
For further insights into resilience and crisis management, get in touch with our Resilience team.