Browse Definitions :
Definition

reputation risk

Reputation risk is the threat to the profitability or sustainability of a business or other entity that is caused by unfavorable public perception of the organization or its products or services. Reputation risk management is a component of reputation management, which seeks to shape the public perception of an organization or a brand.

Business sustainability relies on the careful management and coordination of environmental, social and financial demands and concerns to ensure responsible, ethical and ongoing success. Anything that impinges upon any of those elements can create reputation risk, especially in these days of social media when experiences and opinions are shared swiftly and widely online.

Reputation risk is strongly correlated with conduct risk, which is threat that results directly from an organization’s actions. Although reputation risk can also result from issues that are beyond the control of the organization, the most important element of reputation management is ensuring scrupulous business practices.

To some extent, reputation risk is an expansion of how an enterprise thinks about its problems and failures, whether actual or potential. Traditionally, for example, the effects of a product recall might be evaluated in terms of the expected profit that had been lost or the cost of repairs or replacements. However, that failure is likely to have broader effects, such as a loss of confidence in the company's products that impacts future sales. Similarly, the effects of a data breach are likely to be far-reaching.

This was last updated in May 2017

Continue Reading About reputation risk

SearchCompliance

  • information governance

    Information governance is a holistic approach to managing corporate information by implementing processes, roles, controls and ...

  • enterprise document management (EDM)

    Enterprise document management (EDM) is a strategy for overseeing an organization's paper and electronic documents so they can be...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

SearchSecurity

  • cyber espionage

    Cyber espionage, also called cyber spying, is a form of cyber attack that is carried out against a competitive company or ...

  • virus (computer virus)

    A computer virus is malicious code that replicates by copying itself to another program, computer boot sector or document and ...

  • honeypot (computing)

    A honeypot is a network-attached system set up as a decoy to lure cyber attackers and detect, deflect and study hacking attempts ...

SearchHealthIT

SearchDisasterRecovery

  • risk mitigation

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

SearchStorage

  • cloud storage

    Cloud storage is a service model in which data is transmitted and stored on remote storage systems, where it is maintained, ...

  • cloud testing

    Cloud testing is the process of using the cloud computing resources of a third-party service provider to test software ...

  • storage virtualization

    Storage virtualization is the pooling of physical storage from multiple storage devices into what appears to be a single storage ...

Close