Mastering Risk Management

IT WON’T HAPPEN TO ME: WHAT TO DO WHEN IT DOES

Dealing with a reputation risk event is not the same as activating a business continuity plan which we consider in Chapter 17, although it may be part of it. That is because reputation is in the mind, whether it is the mind of the public, the media or any other constituency.

The reason for the problem may be operational, and that can be fixed, but reputational damage is a separate effect, with potentially far more expensive consequences, which must be treated separately – and fast. The impact of reputational damage is measured in time in a similar way to business continuity planning. How long will it take to restore trust and reputation? That partly depends on existing goodwill, your prior state ...