Corporate Reputation Management Nathan R' Hobson Finance 340

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Corporate Reputation ManagementNathan R.
HobsonFinance 340
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What is Corporate Reputation?

• Possibly the most valuable intangible asset for a
  company.
• Concepts included are corporate image, goodwill,
  and brand equity.
• Compilation of views held by all of the companys
  stakeholders investors, clients, customers,
  vendors, media, financial analysts, special
  interest groups, politicians, labor unions, and
  regulators.

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• Sixty-two percent of risk and insurance
  professionals say e-commerce risk and loss of
  reputation, or brand, are two of the most
  significant risks businesses face today.
  (Lloyds of London)

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Reputations Effect on the Company

• Adverse consumer and public views of a product,
  or company are detrimental to the reputation of a
  company. Numerous aspects of the business are
  affected
• Sales Levels
• Stockholder security
• Insurance premiums
• Profitability

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Tools for Predicting Risk

• It is necessary for companies to forecast
  potential risk. There are several different IT
  solutions and applications that are coming to the
  forefront of the industry. These applications
  serve as an early warning system.

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Attributes of Effective IT Applications

• Include an attractive and elegant functional
  interface that makes them easy to learn and
  comfortable to operate.
• Easy of operation is essential to the
  effectiveness of any IT application utilized for
  risk forecasting.

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Attributes continued

• Include a Multiple Document Interface (MDI) which
  allows the end user to open multiple risk
  incidents forms and various application features
  (queries, reports, etc) at once without having to
  close down other forms or activated features.
  MDI capabilities make it easy to view, edit,
  enter, cut, copy, and paste information among
  multiple open records.

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Attributes continued

• Be based on Relational Element Management (REM)
  database architecture. An REM database structure
  allows individual information elements to exist
  independently or to be relationally tied to risk
  issues or incidents. REM database architecture
  provides a solution that allows independent
  pieces of information to be treated and tracked
  without unnecessarily creating new risk issues or
  incidents.

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Attributes continued

• Provide for total enterprise reputation risk
  measurement capability that allows risk managers
  to benchmark past and present reputation risk
  performance and identify trends.

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Once the potential for risk is realized it is
important for corporations to develop and
incorporate contingency plans.
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Contingency Planning

• A contingency plan is an alternative plan that
  could be put into effect if certain key events do
  not occur as planned. (Dr. Fred David)
• Another description would be that they are
  alternatives that are considered if situations
  arise that were not included in the strategic
  plan.

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Keys to Implementing an Effective Contingency Plan

• Effective risk forecasting
• Clear channels of communication amongst the
  hierarchy of management.
• Swift action taken at the occurrence of problems.
• Control of internal information.

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• Risk forecasting Contingency Planning
  Effective Implementation
• A Safe Well Protected Reputation