Companies can damage their brand image and reputation in numerous ways: poor service, a drop in product quality, environmental harm and unfair treatment of staff are some of the most obvious examples. It is well known that such damage can take years to repair.

With the rise of pressure groups and the global media, negative publicity can have a greater impact than in the past, heightening the risk for organisations.

In the event of a crisis, a failure to communicate properly with stakeholders can inflame negative feelings and further damage reputation.

Critical questions you need to consider

• To what extent do you formally identify the key risk issues which may enhance or damage your reputation?
• Are you aware of how strategic, financial and operational decisions, such as entering a foreign market, launching a new product, and deciding how to comply with a new regulation, can have an impact on how your company is perceived?

• Do you understand what your stakeholders expect of you? Do you strive to exceed these expectations?

• Have you considered how crisis management can help minimise damage to your brand and reputation in the event of a disaster?

• Have you explored possible solutions to transfer the risk of brand and reputation damage to third-parties?