In fact, reputational resilience has become an essential variable for ensuring business continuity and sustainability. Nonetheless, reputational risk remains a complex factor for the many executives who recognize its tangible impact but lack the knowledge to manage its intangible nature.
In insurance company Aon’s latest survey on global management risks, “damage to reputation or brand” was listed as the second-most worrying risk for executives, behind only slow economic recovery. The company explains that “due to the nature of this risk, companies tend to underestimate its impact.” However, “studies show a direct correlation between a blow to company reputation and its value to shareholders.”
Resilience and reputation
Identifying reputational risks is the first step toward preventing their impact on business continuity and company sustainability. In their article “Getting Business Resilience Right,” Bain & Company recommend refraining from attempts to quantify the entire universe of potential negative events or doing so based on accumulated experience. They suggest instead focusing on the organization’s efforts to prepare for the risks that, from a holistic perspective, could most heavily damage that business in particular.
In this article, you will discover how we at LLYC address the identification and assessment of the reputational risks that can have the greatest impact on our clients’ businesses. We build solutions tailored to their needs, combining technology and consultancy, with artificial and human intelligence, applied to the prevention of crises with reputational impacts.