Every business either big or small can face a situation where its reputation is at risk. Here the reputation risks are the situations where a company’s image is corrupted due to bad publicity which affects its revenue.
Big companies are more visible to the public eye due to which they are more prone to reputation risks. But they have financial sources to keep them steady in that kind of event until the situation is resolved completely. But small companies are not financially stable in comparison to big companies. Due to this if they face reputation risks, they are more likely to shut down their business due to low income.
In 2017, united airlines faced negative publicity due to forcibly dragging a man off an airplane that they have overbooked. Nowadays a lot of seat tickets are overbooked. But the solution they find affects their reputation.
Sometimes all it takes a rumor to destroy your life’s worth of handwork. It takes many years to build a reputation but few minutes to destroy it because nowadays public opinion matters the most.
- Different types of reputational risk:
- Protecting Companies reputational risk:
Different types of reputational risk:
1.Treatment of employees:
Nowadays people are more aware of their rights. If an employee of your company is mistreated then it will spread a negative impact on the public which will automatically affect your company’s reputation.
2.Social media posts:
In 2021 there are a lot of people active on social media who communicate through posts or some kind of photo sharing mode or a message. If any customer gives a bad review of your company’s product, then it will spread to thousands of people. This action and the message conveyed will affect your reputation and will decrease your product’s value among people.
At present time hackers are more attacking companies because they contain sensitive data of customers such as phone numbers, social security numbers, and e-mail, etc. If this data is leaked or after hacking; sold on the black market then you will definitely lose your reputation and as well as customers.
Workplace accidents happening with employees can be more reputation damaging if the company did not follow health guidelines issued by the government. So, workplace accidents cause major reputation risks to businesses.
It makes a worse effect on the business if an employee breaks the law or the company’s law to profit himself individually. You will or can suffer financial loss due to this. But if this goes out to the public you will most likely suffer reputation risks as well as poor management.
Protecting Companies reputational risk:
You need to be careful of your company’s image. For this purpose, in this article, we will provide solutions to the above reasons affecting your reputation as well other reasons to maintain your company’s reputation.
If your company contains sensitive or any other customer’s information then you should either use an online resource or hire someone specially to create a cybersecurity plan to protect your company’s data. Your plan should be to secure your customer’s every personal detail as well as point out scams, fraud occurring on your website.
2.Social media policy:
You should maintain social media strategy to strengthen your business’s reputation. Your social media post should be strategic and well planned. You should convey your message through posts. Your social media or social media advertisement should present how you provide excellent customer service and employee’s good behavior towards customers.
3.Analyzing customer reviews:
You should analyze your customer’s review of your product. If they leave a bad review due to product or your service then you should attentively look into their problems and provide them a solution so as to make a good impact on customers. If you have a large business and can’t look into customer’s problems then you should make sure that an employee from your company is always to attend to your customer’s problems.
4.Create response and future plans:
If you face any problem in the above-said list then you should keep your calm in the situation and show the public what effective measures were taken to prevent the situation from happening. But as it has occurred what is your solution, if not, then what steps will you take to prevent it from happening again.
5.Understand your follower’s expectations:
We are not saying that you should please other people. We are saying that if you know your client’s expectations then you will consider your future plans to meet up with their expectations. You should not make their expectations too high by promising the things you will not be able to meet. If that happens your strategy will backfire and you will lose their trust in your words. You should know what your clients or employees are expecting from you and you should try to meet up with their expectations so as to decrease your reputation risks.
6.Managing external reputation risks:
Sometimes reputational risks occurred from outside the company. These risks may arise due to unethical business partners, contractors, your competitors, or other third parties you deal with. You can’t foresee these problems but you should take proactive steps and see whom and with what you are dealing with to see and measure their next steps.