Reputational damage is the biggest risk to businesses across the globe, according to a recent Aon survey. And for a good reason—the decisions that organisations make, from an advert to the structures of their supply chains, shape their reputations.
The difficulty with defending reputations is that they are intangible but still valuable—their size and worth is determined largely by the public.
The foremost cause for the increased threat that reputation damage poses to organisations is the growing rise of transparency in business — whether it is through government regulation or social media. Therefore, it would behove organisations to make their business practices as transparent as possible.
To minimise the risk of suffering reputation damage, you should heed the following guidance:
• Publish a regular report for the public that details what changes your organisation has made and what current practises are in place.
• Review each component of your supply chain to identify any possible risks that may contribute to reputation damage, such as slavery and human trafficking.
• Build a rapport with the local media and develop an online presence.