Let us list the factors that carry reputational risks.
Management and staff of the company
A negative reputation of a CEO or other senior manager can affect the entire company, leading to loss of revenue, customers, and interested investors. The reputation of a company and its management are closely linked:
45% of the audience associate the image of top managers and management with the brand.
25% of a company's value is tied to its reputation.
Even if the CEO resigns, it is not easy to usa student data package resolve the problem immediately in the event of a conflict. Decisive steps are required from the company: public apologies, compensation for damages. Even with the right actions on the part of the organization, it may take a long time to normalize the situation.
Management and staff of the company
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Not only managers can create reputational risks for a brand, but also other employees. Social networks of employees of large companies are under close attention of the audience. Even a single incorrect statement can become a source of problems.
Various work situations can also provoke scandals. For example, during the pandemic, refusing to serve customers without a mask often caused discontent. A photo of an employee without personal protective equipment posted on social media also led to condemnation and a negative perception of the company.
Negative Content on the Web
Negative content that appears in the online space also carries reputational risks for the enterprise. This includes articles in the media, reviews from dissatisfied customers and employees. The level of trust in the brand decreases proportionally to the number of unsatisfied claims from customers. According to a study by Forrester Consulting, 54% of top managers note that the presence of negative materials in search results leads to a decrease in business revenue.
The more serious the negative event, the more attention the press pays to it. Brands actively deny information, apologize and use the services of reputation agencies. At the same time, it is necessary to react promptly.
Social networks
Social networks have become a key battlefield for customers and reputation. Any company, being in social media, is subject to constant attention of the audience, while negative information spreads there instantly.
An example of such an impact was the situation with the Nestle company in 2010. Thousands of social media users began to actively discuss and express negative opinions about the company after Greenpeace published a video about the harm of using palm oil in production, calling on Nestle to stop using it.
Loss of personal data
Losing personal data is a serious issue that requires constant security updates. Hacker attacks can lead to a loss of trust from customers of large companies. In 2021, a major software developer Accellion was the victim of a hacker attack, as a result of which the insurance numbers of Harvard University students and prescriptions for drugs from several pharmacy chains were leaked online.