Mastering Risk Management

REPUTATION CONTROLS

Just as with the controls discussed in Chapter 6, Risk management and risk and control self-assessments, reputation controls can be either before or after the risk has crystallised. With reputation risk, the best control is to manage expectations. Stakeholder surveys are detective controls which not only provide a benchmark with which to assess potential reputational damage, but also act as a basis for establishing preventative controls to reduce the likelihood of reputation risk events.

Effectively, the best controls of reputation are basic management:

• ■board oversight
• ■clear strategy and business planning
• ■communications, both up and down inside the firm, as well as outside
• ■complying with regulations and policies, and, ...