Reputational Risks

In: Business and Management

Submitted By liuzn501
Words 625
Pages 3
1. Good day ladies and gentlemen, this is leo. I dont think you can recognize my Chinese name, so instead of that, I m gonna to use my American name. today I would like to present managing reputational risks. 2. First, I m gonna to talk about what is reputational risk? Reputational risk - is a type of risk related to the trustworthiness of business. This type of risk can be informational in nature or even financial. Extreme cases may even lead to bankruptcy. Recent examples of companies include: Toyota, Goldman Sachs, Oracle Corporation and BP. Damage to a firm's reputation can result in lost revenue or destruction of shareholder value, even if the company is not found guilty of a crime. 3. Reputational risk can be a matter of corporate trust, but serves also as a tool in crisis prevention. A strong, positive business reputation is an extremely valuable asset for any organization. 4. There are also several reasons for why reputational risks important. 5. There are three determinants of reputational risk. The first one is reputation-reality gap, next is changing beliefs and expectations and the last one is quality of internal coordination. 6. Lets talk about reputation-reality gap first. If the company enjoys an undeservedly high reputation, there is a high risk that the truth could be revealed and substantiated. This revelation could then be very damaging. Clearly, the ability to accurately assess reputation in relation to true character is a critical factor. 7. Next one is changing beliefs and expectations. Shifting expectations and beliefs of stakeholders can widen (or narrow) the reputation gap. In other words, if the company operates in an environment where beliefs about the company and expectations of the company can change quickly, then there is a high risk that the company will find itself out of fit with public expectations of…...

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