We live in a digitally connected world dominated by Smart Phones, Social Media, Emerging Technologies and the evolving expectations of society and stakeholders. An upsurge of socially conscious Consumers, globally distributed Business models and multichannel marketing strategies built on social platforms allow greater interactivity for the Customer with lesser or no Controls. Reputational Risk in this scenario would be a huge challenge for a Business since any information or news can spread like forest fire. The convergence of smartphones with social media is further intensifying the impact of Reputational Risks for Organizations enforcing the Board and the C-Suite to rethink the approach towards Risk Management strategies which fundamentally and proactively address these accelerated, amplified Risks.
As per a recent study by Deloitte, a majority of the Executives surveyed have rated Reputation Risk as a critical Business challenge. If not monitored and mitigated effectively, Reputational Risk can escalate into a significant Business crisis. Improper management and mitigation of Reputational Risk can further amplify the reputational damage where the organizations are forced to act over risks events in haste without even completion of an investigation and these are the most potent threats and pitfalls for the Organization.
The responsibility for effectively mitigating these Risks reside mainly with the Board and the C-Suite. In many cases, with proper Preventive and Detective Controls, a Business can actively manage Reputational Risk. The two most important steps towards achieving these are
- Planning Ahead – Having proper insights into the Risk with relevant metrics like Risk probability and impact, Risk value and geospatial Risk location give 360 degree visibility into the potential Risks.
- Having Agility in response time – Real-time Reporting and Dashboarding capabilities, as well as collaboration between teams, are the essential factors for having an Agile response strategy. This often requires Innovation and Automation where the team responds to Risks in real time in minutes, not hours or days.
With the help of ERM automation tools like ConfidentG Agile Risk Management application, Businesses can have powerful visualizations and scenario analysis and leverage management team to make risk-informed decisions.
At Confident Governance, we augment your Organizational goals of identifying and mitigating Reputational Risks. Our GRC product suite powered by Artificial Intelligence helps the Organizations worldwide to address their business specific and unique Reputational Risks. With years of serving our Clients globally across all Industry Verticals through our award winning and patent pending Governance as a Service® platform, we are Democratizing Governance Worldwide through the core concepts of Agility, Innovation, and Automation.
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