Why reputational risk is often under-estimated

If you work for a scientifically, technically or operationally focused organization, chances are, you are well versed in the concept of risk assessment. Ironically, working for an organization of this type can also leave you blind-sided to some of the most critical risks, those related to reputation.

The video below explains why:

When considering your crisis management planning, reputational risks – those to do with people, values, behaviours and ethics – are often the most challenging of all. They are also hard to manage, but have the power to destroy organisations (Enron being one of the earliest and most dramatic examples).

Given that corporate ethics is a hot topic and that retaining the trust of your stakeholders is a pre-requisite for long term success, identifying and managing reputational risk should be a top priority for all businesses.