Off and Running
Am off and running to Switzerland tomorrow for business meetings. Therefore I wanted to get you some reputation news before I pack my bags.
I just was handed a wonderful report from AON on risk management. The survey is among 320 respondent organizations that have revenues of nearly $1 billion or more across many sectors and all regions of the globe. The findings are astounding as to what it says about reputation. Global business executives were asked about the top 10 risks they see today. Here they are in rank order:
|Damage to reputation|
|Third party liability|
|Distribution or supply chain failure|
|Failure to attract or retain staff|
|Market risk (financial)|
|Merger/acquisition/restructuring Failure of disaster recovery plan|
Reputation damage reigns at the top. As the AON report says, “Damage to reputation is an enterprise -wide event that can lead to negative publicity, a decline in market share and the inability to recruit and retain top talent.” And that’s only half of it. Companies with eroding reputation lose customers, investors, easy access to new markets, ability to charge a premium, goodwill from the community, benefit of the doubt in time of crisis, and the list goes on.
Even more remarkable, reputation damage is the greatest threat no matter what region of the world. The Global Risk Management Survey also found that few companies are prepared for reputation damage.
AON, thanks for this report. I can use these findings in many places for my talks and writings. It is nice to have what I believe so strongly be confirmed.