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APPENDIX Reputation: Risk of risks

How much damage have the following events inflicted on your company’s financial performance in the past? (% respondents)

Major

Minor

Non/negligible

Loss of reputation

28

36

36

Loss of key skills and talent 18

52

30

Employee fraud 15

35

50

Loss/theft of intellectual property 14

39

47

IT failures or electronic security breaches 10

40

49

Damage to physical infrastructure 7

36

57

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

20

© The Economist Intelligence Unit 2005

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