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Reputational Risk

With the growth of social media, information speads at a rapid rate across the world. Organisations need to have robust strategies and be prepared to deal with any issues that might arise

Awareness of corporate and social injustice, even if perceived , can result in a barrage of cricitism resulting in damage to the business and a loss of trust.

Business risk was recently featured in the Sunday Times Raconteur and commented "you are viewed in all manner of different aspects, not just products and services, but your impact on society... this is top of the agenda right now".

Organisations tend to be good at managing people , processes and physical assets but less focussed on managing intangible assets such as goodwill, trust, reputation, feelgood, etc. Look at recent cases such as data breaches, the emissions scandal with VW, banks tarnished by the global crisis and how quickly these are resurrected by the media with any hint of wrongdoing. These are stains that will not go away.

As Warren Buffett famously said it takes 20 years to build a business and 5 minutes to ruin it. Be vigilant and above all be prepared. No one wants anything to happen but your marketing strategy should make sure that reputational risk is considered Carry out your own reputatonal risk audit and be prepared to manage any incidents quickly and professionally.