Risk management is a major part of any business operation, no matter what the size of your company. While you may have already given thought to your operational risks, financial risks and cybersecurity risks, have you considered your reputational risks? Do you have a reputational risk strategy in place?
While your business may be in good standing, a social media post going viral for the wrong reasons or a particularly negative review can suddenly put your company’s entire reputation in jeopardy. Here are some basic steps to understand and mitigate the danger of reputational risks.
Understand the threat
Reputational risks can come from many different directions. Direct risks involve actions or mistakes made by your company, while indirect risks can include actions or mistakes made by your employees. However, your company’s reputation can also be tarnished by simply being associated with another business or individual within the industry – even if your company did nothing wrong.
Responding to these risks
How do you manage this kind of issue in a world where reputational risks seem to be largely unmanageable and unpredictable? Here are some suggestions:
- Carefully monitor your online presence: The faster you respond to an issue, the better you can conduct damage control. Monitor mentions of your business online, as well as review platforms and your social media pages.
- Establish a clear code of conduct: Ensure that your employees understand that certain behaviors won’t be tolerated – on or off the clock. Make sure that your employee handbook addresses off-duty misconduct in a way that is specific, reasonable and tied to your reputational and business needs.
- Track your reputation: Regular audits and reviews that look into the way that your company and brand is perceived are important. That’s the best way to make sure that your public relations efforts are working.
A sound risk management plan is something that may need to evolve over time. Seeking legal guidance as you establish internal policies for your company’s risk management and crisis response, as well as a code of conduct for your employees, can be wise.