GoingToMeet

Corporate governance and risk management deficiencies are again at the centre of corporate scandals, and in particular the financial sector. According to Economist Intelligence Unit surveys, 52% of companies stated that they considered reputational risk a more significant challenge than regulatory risk, country risk, market risk and human capital risk. However, without proper training 62% responded that reputational risk was the hardest to manage.

What is not difficult to measure is the current and prospective impact on operations, earnings, value and share price arising from negative public opinion. Indeed, when markets are turbulent, as is presently the case, those companies withbetter reputations are far more likely to weather the storm than those without.