Understanding Reputation Risk: Part III

By Leonard Ponzi PhD

By Leonard J. Ponzi, Ph.D. - Managing Partner, ReputationInc
Andrea Bonime-Blanc, JD/Ph.D. - CEO and Founder, GEC Risk Advisory


In this Part III of our 5 Part series on “Understanding Reputation Risk”, we start delving into the “quantitative” side of the reputation risk equation, so to speak. In Part I, we started our exploration of reputation risk by providing the reader with a brief introduction to this relatively new concept and distinguished it from related concepts – like crisis management. In Part II, we made the case that reputation risk management should be part of the strategic agenda and that every type of organization – whether corporation, non-profit or government agency -- should know who their most important stakeholders are, as stakeholders are a vital part of any reputation risk management solution.  In future Parts IV and V, we will be applying our qualitative - quantitative approach to describe industry case studies.   

Reputation Risk Management is a process that benefits organizations by protecting their most valued asset – their organizational (corporate, non-profit, governmental) reputation. 

The process begins with proactively identifying risks to an organization and the associated reputational threats.  Appropriate strategies and tactics are then developed to mitigate each risk and associated implications. While the process is mainly completed through workshop and in depth interviews with the c-suite and other relevant leaders and staff, this qualitative approach alone lacks the rigor that quantitative research can provide to the development of reputation risk strategies.  

In this Part III, we propose a quantitative solution to visualizing an organization’s reputation risks. Visualization provides a key input into developing the strategy and tactics of addressing each risk. It’s the rigor of this reputation risk methodology that can directly improve the ability of a company or other type of organization to manage its reputation. 

For more information, please find the download link for the full report on the right-hand side.

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