Recent research shows that reputation risk is a top 3 risk for companies, yet only one-third say they are comfortable with how they are managing reputation risk.
The key reasons cited:
- lack of a clear framework to make the intangible risk of reputation tangible
- push-back from the risk community on an issue that appears to be unmeasurable and unquantifiable
The good news is that there now is a clear framework to apply to the reputation risk process and a method for quantifying reputation risk.
Reputation Institute has jointly published with Airmic a White Paper for risk managers to “Define and Manage Reputation Risk”. This framework is based on 15 years of research in the reputation area.
The process is clear and simple:
- Quantify the impact of potential issues to your company’s reputation by measuring how stakeholders perceive the issue;
- Build the competencies inside the organization to be ready to manage reputation risk; and then
- Monitor the business environment to identify potential risks emerging
Using Reputation Institute’s RepTrak® measurement framework, organizations can break down reputation risks into 7 tangible dimensions and quantify the potential negative impact of an issue to business success.
With this in hand, we can then apply standardized risk management approaches to the challenge. By making the intangible tangible we have turned something complex into something manageable.
So the time is ripe for the risk community. The process is outlined in specific steps, the measurement of reputation risk is ready to apply, and the Board of Directors are waiting for the answer to how you are actively protecting the reputation of your organization.
What will your answer be?
To move forward on your journey download the White Paper on Reputation Risk HERE.