Economic security/ Risks

Reputation risk has arrived. In the past couple of years there’s been a buzz about it – almost overnight. Leading consultants and advisors, poll takers and survey makers have been producing evidence that senior executives and board members have identified a different, somewhat amorphous, and possibly threatening new strategic risk: reputation risk.

Why is this? There is a relatively straightforward explanation. The age of hyper-transparency has changed everything – the internet, social media, instant communication of everything from megabits of big data to tiny 140 character tweets. This rapid, unceasing and increasing avalanche of data and exposure together with the democratisation of the means of communicating it has changed the reputation risk equation dramatically and materially. Companies, organisations, governments, leaders, each of us personally have fewer places to run to or hide in.

Reputation Risk Is A Strategic Risk: What Are Your Board Plans?