Did you know that 87% of well-known executives rate reputation as one of the most strategic risks facing their companies according to Deloitte’s Reputation at Risk global survey? What does this mean for companies? Well, companies are beginning to open up separate risk departments because managing reputation risk is significantly different than managing business risk, financial risk, and other forms of risks business face. We might be starting to see this happen because of the amount of businesses failing to manage their reputation. Even with a specific department, it is difficult to prevent a crisis. It is the response that determines how effective your ORM strategy is.

Specific examples include United Airlines dragging a passenger off their place, Bill O’Reilly’s sexual harassment allegations at Century Fox, Alphabet and Facebook breach of privacy scandal, Uber accumulating sexual harassment allegations with their drivers, Harvey Weinstein’s multiple sexual assault accusations, Equifax’s data breaches, Samsung’s Note 7 overheating and exploding issues, among many others in the past 2 years.

When Risk Hits

When a reputation crisis hits a company, it is very difficult to measure how much damage it will leave. Above all, many companies will have policies and procedures in place for these situations but they are very rarely effective enough to restore hope in stakeholders immediately. Most of the damage can be assumed in how much press covers the issues, what outlets cover it (are they local, national, or international) and who/how many people are negatively affected. The combined influence and opinions formed by stakeholders and the general public is a somewhat accurate measure of the immediate damage a reputation crisis could have on a company or individual.

It is harder to determine the long-term damage of a reputation risk crisis. After Wells Fargo fake account creation and quota stuff scandal two years ago, they have been trying to regain the trust of the public, let alone the customers that gave them a second chance, those who are on the fence, and those who left. Two years later they are still suffering and are compensating by televising a commercial acknowledging their mistakes and pleading to regain trust.

Who Can Manage Your Risk?

Internet Reputation Services can manage your online risk. Time and time again, companies and individuals seek external training to build a knowledgeable internal team that knows how to react quickly in an ORM crisis.

Don’t wait until after something big happens to take action. Develop a reputation management risk plan today!

Published by Tauseef shah