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Managing Reputational Risk

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Managing Reputational Risk

Curbing Threats, Leveraging Opportunities


15 min read
10 take-aways
Audio & text

What's inside?

Whose reputation is more important than a pretty young girl’s and just as easy to lose? Your company’s. Avoid the risk.

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Editorial Rating



  • Applicable


The reputations of several major corporations (Enron, WorldCom, Parmalat and Tyco, to name a few) recently suffered from allegations of fraud, self-dealing, insider trading, accounting shenanigans and various other misdeeds. The sense of scandal became so pervasive that some businesspeople felt ashamed of their profession. Now, the mere rumor of misconduct is sufficient to send a company’s stock price down. Ironically, in an era when the transnational corporations seem omnipotent in their globe-girdling might, many of them greatly resemble nubile maidens in an eighteenth century romance, their whole fate dependent on spotless and easily marred reputations. That being the case, every business and every business manager should prioritize the careful husbanding of reputation. finds that this book, which has been highly praised by some of the most estimable authorities on business ethics and management, offers a comprehensive, if sometimes pedantic, guide to every step of building, measuring, preserving and growing reputation capital.


What Is Reputation

The Compact Oxford English Dictionary defines reputation as "The beliefs or opinions that are generally held about someone or something." The people who are generally most likely to hold opinions about a business are its important stakeholders: customers, vendors, employees, investors, bankers, government regulators and others whose decisions can make life much easier or much more difficult for the company. Reputation can take generations to build, and seconds to destroy. Intangible assets, such as reputation, intellectual capital and brand, frequently influence a company’s value.

The Importance of Reputation Risk Management

Stakeholder thinking has largely replaced an owner-orientation as companies have become much more responsible to a broader, more diverse network of people, interests and institutions. Investors consider a company’s reputation when they buy or sell stock. Customers consider reputation when they buy or boycott products. Suppliers certainly consider reputation when they decide whether or not to work closely with a company. Competitors may even decide which market to attack based, in part, on the reputation of the company...

About the Author

Jenny Rayner is an independent U.K.-based consultant, founder of Abbey Consulting and executive editor of the Business Risk Management Handbook.

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