An organisation’s reputation is highly significant in achieving its goals. Countless organisations invest massively to maintain and even improve their reputations. Modern media and new technology allow many organisations to work better on their reputations. Press releases, advertisements, media covered initiatives, and other related activities greatly help in the cultivation of stronger and healthier reputations and support the establishment of the organisation’s integrity.
However, the same instruments may also cause the opposite effect. The extensive reach of today’s media and technology easily makes organisational reputation highly vulnerable. A fake, negative Google review, for example, can easily hurt and damage the reputation of a small business. This leads to considerable impacts on the organisation’s marketing efforts and extends to its overall goals.
The Effects of a Negative Reputation to the Business
The reputation and integrity of the business is an integral part of its survivability and growth. Having a good standing in the public eye will not only help maintain current clients but will definitely help in the acquisition of more. Growing a client base is a primary objective of businesses in wanting to grow their business and this could only come smoothly with a reputation that can be trusted.
Negative reputation, on the other hand, works in the opposite direction of growth. A negative reputation discourages incoming clients and will shake the confidence of your current client base. Here are some ways it impacts your business:
- Slow or no acquisition of new clients.
- Diminishing number in client base.
- Inability to create healthy partnerships.
- Lack of motivation of workers and some even quitting the job.
- Inability to make new B2B relationships that hinder growth and further reach.
- Products and service sales plummet causing sales targets to miss significantly.
Apart from these, a negative or damaged reputation has a wide array of ill-effects that hinder business operations.
Reputation Risk Management
There are lots of things that could pose a potential risk to your company’s reputation. The ability to manage this risk and greatly reduce, if not to totally eliminate, its impact can mean great things for your business. Here are some of the best ways to do a reputation risk:
1. Participation of the Management Board
Management boards act as an oversight in reputation risk. With proactive decision-making and implementation of reputation risk management strategies and mitigating practices, it is easier to manage any risks and threats and will greatly boost the reputation of the business.
2. Incorporating Risk in Business Planning and Strategy Setting
Having a proactive perspective about all kinds of risks that the business is exposed to and those that the business may face in the future makes a company more equipped to handle them. The integration of risk in any strategy and business plan will help better protect your business. It can even help in laying down a fabric of resiliency in many parts of the organisation.
3. Image and Brand Building and Effective Communication
Reputation risk management strategies can only be as effective as the communication system that they flow into. This means that effective communication strategies and systems must be put in place. Equally important is the image and brand building of the company and how it is being communicated and presented to the general public and target clients.
4. Strong Corporate Values and Incentive Systems
The strength of the top management must be rivalled by those down the corporate hierarchy. Strong corporate values that are internalised by staff and employees helps in maintaining a strong, reliable reputation in the company. In addition, providing necessary incentives to significantly commendable work performance will help foster these corporate values.
5. Culture of Compliance
Cultivating a positive culture of compliance to governing statutes and laws, as well as other corporate requirements put your company in a good public standing that reinforces its reputation.
6. A Positive and Healthy Relationship with Stakeholders
Executives must strive every day to provide a positive experience to everyone including staff, employees, workers, stakeholders, business partners, customers, and others. The strength of the business lies in its capacity to provide positively reinforcing experience to everyone.
7. Transparency in Reporting
This is very important especially on matters of financial concerns. In order to gain and maintain the trust of funders, lenders, business partners, and others; transparency in financial reporting must be observed.
8. Established Control Environment
Internal control environment helps in ensuring every process of the business contributes to the maintenance of quality and in providing clients and stakeholders a satisfying experience.
9. Keeping up in the Competition
The performance of the company in comparison to its competitors also ensures a positive reinforcement to its reputation. This can mean competitive products and marketing.
10. High-Standard Risk Response
This means the establishment of a comprehensive risk management system that will address various risk concerns and help increase the company’s risk appetite. This will also ensure that the company remains ready as emerging risks come.
A proactive perspective regarding reputation risk management can go a long way in protecting your company. If you want to learn how cammsrisk can help you better manage your organisation’s risks so that it does not adversely impact your reputation, book a demo with us today!