We all want to be perceived in a certain way by those around us. That affects how we present ourselves to others and how we carry ourselves when we are around them. This is because we understand the importance of creating a good perception about ourselves that ensures we have a good reputation.<\/p>\n\n\n\n
When it comes to business, it is not any different\u2026Every business has a brand persona and that determines how it operates which eventually creates a certain perception about it. A good reputation is good for business, a bad one, can be crippling. It is therefore very important for stakeholders to create and maintain a good brand reputation.<\/p>\n\n\n\n
Reputational risk<\/strong> is a threat to the positive perception others may have about your brand in general, a product or service you offer. Reputational risk can be categorised into:<\/p>\n\n\n\n So what are some of the causes of reputational risk?<\/strong><\/p>\n\n\n\n How to manage reputational risk<\/strong><\/p>\n\n\n\n 1. Make reputational risk part of strategy and planning<\/strong><\/p>\n\n\n\n Start by brainstorming with your employees at different levels the potential scenarios that could damage your brand\u2019s reputation. Determine the indicators for each scenario and possible solution to mitigate it before the issue gets out of hand.<\/p>\n\n\n\n 2. Control processes<\/strong><\/p>\n\n\n\n Standardisation, technology, policies, and procedures reduce the likelihood and severity of events that could cause reputational damage. By focusing on consistently supplying quality products and services, it\u2019s much less likely that there will be a harmful mistake.<\/p>\n\n\n\n 3. Understand all actions can affect public perception<\/strong><\/p>\n\n\n\n Your company should have well spelt out policies and procedures to ensure all employees at all levels know how to behave and respond appropriately in any situation.<\/p>\n\n\n\n 4. Understand stakeholder expectations<\/strong><\/p>\n\n\n\n Make sure it is clear and you understand what customers, shareholders and employees expect from the organisation and management, and strive to satisfy these conditions. Don\u2019t set expectations too high by promising offers that you cannot deliver.<\/p>\n\n\n\n 5. Focus on a positive image and communication<\/strong><\/p>\n\n\n\n Customer service, transparency, good governance, and steady growth are some of the most important messages to convey. It\u2019s not possible to please everyone at the same time, so focus on satisfying your most important stakeholders first.<\/p>\n\n\n\n Consistently send out positive communications. Over time, this will build up your reputation in the public mind, lessening the impact of future damages. Always inform clients and employees what\u2019s happening and how you are responding to incidents in the organisation or environment.<\/p>\n\n\n\n 6. Create response and contingency plans<\/strong><\/p>\n\n\n\n What\u2019s the worst that can happen to your organisation and how will you respond to it from a reputation perspective? You should think of the worst-case scenario and how to appropriately respond to it in case it happens.<\/p>\n\n\n\n In conclusion, while in some organisation reputational risk may be underestimated, its potential side effect can hugely harm your business. Without an effective reputational risk management, it may take an organisation a long time to recover from an otherwise minor incident.<\/p>\n\n\n\n Yours faithfully<\/p>\n\n\n\n IMBA<\/p>\n","protected":false},"excerpt":{"rendered":"We all want to be perceived in a certain way by those around us. That affects how we present ourselves to others and how we carry ourselves when we are around them. This is because we understand the importance of creating a good perception about ourselves that ensures we have a good reputation. When it […]","protected":false},"author":5,"featured_media":18067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[145,146,147],"class_list":["post-17873","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-repetitional-risk","tag-risk","tag-risk-management"],"yoast_head":"\n