Execs Top 2013 Risk Concern: Reputation
So why are reputational risks a significant cause of executive unease?
Execs are realizing that reputational damage directly affects the companys bottom line and can break down even the most well-crafted business strategies. Warren Buffet once said, It takes 20 years to build a reputation, and only five minutes to ruin it. In reality, with more than a billion people now using some form of social media, reputational damage could actually occur within seconds. Companies no longer own their brandstheir customers, competitors and other stakeholders do.
Deloittes survey also found that executives view social media as the biggest technology disrupter and threat to their business models. While social media use shows no signs of declining, companies have to take an outside-in approachlooking at all of the reputational risks outside of the companyto proactively manage their reputations. This is different from a traditional risk management approach of examining whats going on inside the company first.
To proactively manage your companys reputation, consider the following:
- What or who are the threats to your companys reputation? Identify all threats, and if you can, fix the areas where your reputation is most vulnerable.
- Where might people be talking about your company? Know the social media outlets where you have the opportunity to bolster your reputation and where you should be wary of reputational threats.
- How would you respond to an incident or event that damages your reputation? Create a plan for how your company would respond to a reputational crisis.
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