Every business has to account for reputational risk. Reputational harm or a negative event suffered by a business directly impacts the bottom line. Reputational harm and negative events impact an organization at all levels, including dissuading investors, turning away consumers and reducing the selection and quality of employees. In fact one study determined that “the average annualized loss from a “reputation-sensitive” event could be around 7 per cent or US $3.5 billion.”
Reputation Risk Management For Small Business
As a small business owner or a large corporation, why should your organization think about reputation risk management? A company’s reputation is a bond that ensures consumer loyalty and consumer referrals and recommendations. A company’s reputation draws other entities to the company and their products, thereby creating partner opportunities and investor interest and commitment. A company’s reputation directly correlates to how the outside world perceives the company, including current or prospective employees, investors and vendors or policymakers, regulators and the media. Having a reputation management plan in place insulates your business from reputational risk and lost profits.
Every business, whether operating as a traditional brick and mortar entity or online business, indirectly and directly, impacts their reputation on a daily basis. A company impacts their reputation by how they conduct business through direct contact with their consumers, through contact with their employees within their company and through contact with third parties. What sets a company apart is how they manage their online reputation. Traditional brick and mortar businesses must be just as mindful, if not more mindful, of their online reputation, than internet-based businesses. Reputation management is one of the most overlooked facets of a business, although investment in a company’s online reputation management will prove to be one of the best returns on investment for a company, both in the short term and the long term. A strategic and well thought out reputation management plan enables a business to focus on company performance while reaping the short and long-term benefits of creating, promoting and maintaining a positive online reputation.
Protect your business and promote your brand by ensuring you have a plan for everyday and crisis events. Learn about the Repunomics difference today.