Reputation Risk
Learn how your organization can benefit from reputation risk consulting.
What is Reputation Risk?
Reputation is a valuable corporate asset. In today’s world, the potential impact of a reputational crisis has never been higher – especially when it’s amplified by interconnectivity, social media and a 24/7 news cycle. A disruptive event can rapidly undermine an organization’s brand and reputation and result in a significant loss of shareholder value.
Why is Reputation Risk a Key Concern for Organizations?
When a reputation crisis occurs, financial markets have an opportunity to re-evaluate their forecasts of future cash flow and adjust their valuation of a company. Because the market forms a consensus view on whether the impact on long-term future cash flows will be positive or negative, effectively responding to a reputational crisis is crucial.
How Aon Can Help
At Aon, we take an enterprise approach to reputation risk, delivering data-driven insights, analytics and advice that enable reputation risk resilience through preparedness. If and when a crisis occurs, we want our clients to protect shareholder value, guided by 40 years of market-leading research and a growing insights database.
We follow a defined and collaborative approach by bringing together risk, data and analytics, finance, industry and SME leaders to model unique scenarios that create a shared understanding of the reputation risk. This includes everything from building a reputation risk index, assessing risk exposures with our analytics, advising for improved reputation resilience, to designing finance solutions.
$2.8T
Based on our research of over 340 events between 1982-2022, companies that have fared poorly following a reputation crisis have lost a total of $2.8 trillion in shareholder value over the post-event year.
Source: Pentland Analytics 2022
We can help by:
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Identifying Key Risk Exposures
Identifying key reputation risk exposures and developing a reputational risk definition inventory, risk register or index.
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Conducting Stakeholder Assessments
Conducting critical stakeholder assessments mapped to reputation risk (e.g., NGOs, advocacy groups, customers, suppliers, employees, community, regulators, investment community).
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Performing Sentiment Analysis
Performing sentiment analysis powered by Aon’s Digital Business Insights platform to monitor and interpret the reputation risk profile of an organization, its senior leadership and employee base. The real-time data feeds portray a company’s profile alongside industry and custom peer group trends.
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Developing and Running Scenarios
Developing and running key scenarios through Aon’s mathematical model, which estimates the impact of a reputation crisis on the stock price. Insights by industry, geography and event type are also available.
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Performing Audits
Performing audits of crisis management plans and business continuity/disaster recovery plans.
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Developing Metrics
Developing metrics and measures to show causal analysis, trigger identification, and possible outcomes.
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Identifying Risk Mitigation
Identifying appropriate risk mitigation and risk finance transfer strategies to improve reputation risk preparedness and post-event resilience.
Our Approach to Risk Reputation
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In-Depth Analysis
A clear and in-depth analysis of reputational risks and their impact.
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Structured Approach to Quantify Exposures
A structured approach to quantify the associated financial exposures with an objective, robust evaluation of the impact of a crisis on shareholder value.
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Delivery of Comprehensive Insight
The delivery of comprehensive insight to support informed decision-making on where and how investments could be prioritized to mitigate and manage reputational risk.
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Insights to Support Decisions
Insights to support risk transfer/finance strategy decisions.
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Data for Risk Assessment and Planning
Data to support future risk assessment and planning to embed best practices across multiple organizational touchpoints.
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