‘It takes 20 years to build a reputation and 5 minutes to ruin it and if you understand this you will do things differently’. – Warren Buffett (Chairman, CEO and largest shareholder at Berkshire Hathaway)
5 Essential Truths
- Reputation problems have the biggest impact on revenue and brand value.
- Reputation risk is the number one strategic business risk.
- Customers are the most important stakeholders for managing reputation risk.
- Companies are investing to improve their capabilities for managing reputation risk.
- Reputation risk is driven by a wide range of other business risks that must all be actively managed.
5 Immediate Check Points
- Do you link strategy and innovation with risk management programs to identify potential disruption hotspots?
- Are you analysing both internal and external data to gather and help interpret market intelligence?
- Are your organisational leaders prepared to respond and recover in the event of a reputational event as part of your business continuity plans?
- Do you live your brand through creating a risk intelligent organisation?
- Do you understand stakeholders and their expectations – and realise that those expectations tend to evolve over time?