BC065_English: Understanding and Protecting Against Reputational Risk

Risk management involves the protection of people, assets, facilities, information, business interests, financial stability, operational effectiveness, legal vulnerabilities; but also critically the hard-won reputation of an organization. Reputational risks are frequently connected to all forms of incidents, where the mitigation, avoidance or response to a threat is perceived, or confirmed, to have been inadequate or absent. Reputational risk often has long-lasting and far reaching consequences, and the effects can frequently overtake the impacts of the root cause incident itself. Reputational risks can impact strategic business interests and financial solvency, and it can lead to devastating operational disrupters. As such, the ability to understand the importance of reputational risk management, and ensure appropriate steps are taken to safeguard the organization, is critical to the long-term survivability of the organization itself.