REPUTATION RISK

   Reputation risk is one of the most common risks for any entity, e.g. company, governmental or non-governmental organization in today`s dynamic world. It can make or brake reputation of individuals or organizations.

   The possibility that negative public opinion, whether justified or not, will cause an organization, a brand, or an individual to lose stakeholder trust and, as a result, suffer a measurable decline in value or ability to achieve objectives, is essentially the risk of damage to the intangible asset called “reputation.”

  The source of the risk in politics, business or public sphere are media&social media, public, customers, partners, regulators, employees or any external event and can be manifested by negative public image, strategic blockage, revenue loss, higher costs, funding constraints, talent problems, cyber-attacks, or market-cap decline.

    Reputation risk is a broad, fast-moving threat that can emerge from virtually any other risk category. Because reputation is both critical and fragile, leading organizations treat it as an enterprise-level risk, embed reputation considerations in decision-making, and maintain robust monitoring and crisis-management capabilities to protect and, when necessary, restore stakeholder trust.