Global organisations are increasingly concerned about reputational risk, with eight in 10 believing that the issue will grow in importance over the next five years, a recent survey has found.
Willis Towers Watson's (WTW) Global Reputational Risk Management Survey of 200 risk managers and executives also found that 86% are concerned about loss of income and a reduced customer base due to reputational risk.
Loss of talent is a worry for 61.5%, while 56.5% think that reputational risk could make them less attractive as an employer.
Moreover, the findings show that risk management teams have at least some responsibility for the monitoring, measuring or management of reputational risk at 72% of the organisations surveyed.
“Reputational risk is increasingly of concern to our clients with most risk mangers now having some responsibility for risk mitigation in this area,” said Garret Gaughan, head of Global Markets P&C Hub at WTW.
“As a previously difficult to insure risk, it is unsurprising that all of the survey participants agreed it would be helpful to them to have access to a reputation platform.”
The survey findings also indicate that risk managers believe they do not have the tools and support they need to effectively manage reputational risk.
When asked to describe the reputation intelligence tools that were available within their organisations, 44% of respondents said there weren’t any, or they weren’t aware of them.
In addition, 51% said that they face real challenges in accessing reliable data.
“Our research has shown that many of the current tools, methodologies and insurance products available are struggling to keep up with the changing demands of our digitally-enabled world,” WTW said in a summary of the findings.
“In order for businesses to understand and mitigate the risks to their reputation, they need adequate tools that are driven by data and allow them to track and anticipate threats or issues for them, their stakeholders and their industry.
“Alongside this, they need tailored insurance products that have been specifically designed to cover the wide-reaching losses reputational damage can cause.”
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Author: Chris Seekings