According to the 'Reputation: Risk of risks' study, which polled 269 senior risk managers, 84 per cent of respondents believe the threat to their companies' reputations has increased significantly over the past five years, due to tough competition for customers, the expansion of the global media and increased scrutiny from regulators. Only 10 per cent of respondents, meanwhile, say they are excellent at managing crises -- with quick and effective communications respon-ses seen as crucial to emerging from these events with their reputations intact and even enhanced.
"Reputational threats represent the biggest risk to business according to this survey," said Daniel Franklin, editorial director at the Economist Intelligence Unit. "But because it is hard to categorise and measure, many companies lack a formal strategy or management structure to manage reputational risk effectively."
The survey found that companies struggle to categorise and quantify reputational risk; 62 per cent of respondents stating that reputational risk is harder to manage than other types of risk.
Reputational risk greatest threat to companies: study
New research by the Economist Intelligence Unit has revealed that threats to corporate reputation have increased significantly over the past five years, with communication seen as the key to effective management of such crises.
