X hits on this document

62 views

0 shares

0 downloads

0 comments

14 / 25

Reputation: Risk of risks

sniffing in Latin America.

Among smaller firms, no strategy is pursued by substantially more than one-half of respondents, while, among the larger, only three are carried out by less than one-half.

A typical example of a firm seeking out a strategy for managing reputational risk is Gulf Finance House BSC, based in Bahrain, that offers Islamically structured financial services for regional investors. The bank did not have a risk management strategy at all until 18 months ago, when it appointed Silvan Varghese as head of risk management. At the time, protecting the bank’s reputation was considered a matter for the communications function. Mr

Varghese’s team is now looking at managing such risks more systematically.

A consultant is being taken on to benchmark the current risk status. “We’re identifying where we stand with stakeholders, including banks, regulators, customers and shareholders,” says Mr Varghese. “Then we’ll assess how to address areas of weakness, and how to manage a crisis should it arise.”

Mr Varghese takes a crumb of comfort from the knowledge that he is not alone in his quest for a reputational risk management strategy. “We all feel more comfortable with tangible risks that we can count,” he says.

Interestingly, in light of popular perceptions of the

Which of the following activities does your organisation take to manage reputational risk? Please check all that apply. (% respondents)

Processes for crisis management are planned and documented

  • (1)

    59

  • (1)

    54

External perceptions of the company are regularly measured (among customers, media, pressure groups, etc)

    • (2)

      61

  • (2)

    52

  • (3)

    51

More than US$10bn revenues Less than US$10bn revenues Less than US$1bn revenues

  • (1)

    Rank

  • (1)

    80

A broad programme for corporate social responsibility to address possible sources of reputational risk is developed

    • (3)

      61

  • (6)

    35

  • (5)

    31

Reputational threats are systematically tracked

    • (4)

      56

  • (4)

    45

  • (4)

    46

Employees are trained to identify and manage reputational risks

    • (5)

      54

  • (3)

    50

    • (2)

      53

A cross-functional team handles reputational threats and crises

    • (6)

      54

  • (5)

    35

  • (6)

    30

The risk function’s remit now covers key reputational threats and challenges

    • (7)

      46

  • (7)

    31

  • (6)

    30

Standards on environmental, human rights and labour practices are set publically

  • (8)

    22

    • (8)

      30

    • (8)

      26

Relationships and trust with pressure groups and other potential critics of your firm are established

  • (9)

    17

    • (9)

      24

    • (9)

      25

Source: Economist Intelligence Unit, 2005

© The Economist Intelligence Unit 2005

13

Document info
Document views62
Page views62
Page last viewedSun Dec 04 04:28:48 UTC 2016
Pages25
Paragraphs909
Words9862

Comments