Global risk survey: Reputation @ Risk

Read about how businesses are managing reputation risk in this report on a global survey of more than 300 executives from major companies around the world.

Reputation at Risk , Deloitte’s 2014 global survey on reputation risk, includes insights into how companies deal with reputation risk.

KEY FINDINGS:

  • Reputation risk is still a strategic business issue. Eighty-seven per cent rated reputation risk as “more important” or “much more important.”
  • Responsibility for reputation risk resides with the board and C-Suite. Responsibility for reputation risk resides at the highest levels of the organization, with the chief executive officer (36 per cent), chief risk officer (21 per cent), board of directors (14 per cent) or chief financial officer (11 per cent).
  • Reputation risk is driven by a wide range of other business risks that must all be actively managed. Topping the list are risks related to ethics and integrity, such as fraud, bribery and corruption.  
  • Customers are the most important stakeholders for managing reputation risk. Other key stakeholders include regulators, senior executives, employees and investors.  
  • Companies are least confident when it comes to risks that are beyond their direct control. Such risks include third-party ethics, competitive attacks and hazard or other catastrophes.  
  • Reputation problems have the biggest impact on revenue and brand value. Respondents who had previously experienced a negative reputation event say the biggest impact areas were revenue (41 per cent) and loss of brand value (41 per cent) followed by regulatory investigations (37 per cent).
  • Companies are investing to improve their capabilities for managing reputation risk. More than half of the surveyed companies say they plan to address reputation risk by investing in technology such as analytical and brand monitoring tools.  

About the Author

CPA Canada


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