Reputation Risk Consulting
What is Reputation Risk?
Reputation is a valuable corporate asset. A media event, whether that be in the press or social media, can affect this asset quickly. Understanding how a reputation event can affect the associations, beliefs, or opinions linked to the name, symbol, or actions of an organization, its products, or services has never been more critical.
Why is Reputation Risk a Key Concern for Organizations?
The financial impact of a reputation crisis on an organization can be very significant, causing a decrease in sales and profits and leading to rising expenses. This can force stakeholders to re-evaluate their faith in a company and its future cash flows. Aon’s proprietary reputation risk quantification algorithm highlights that billions of dollars of shareholder value can be lost when an event occurs. Organizations that successfully manage reputation risk continually demonstrate that preparation is key, and responding in the right way is vital to recovery.
How Aon Can Help
At Aon, we take a holistic, enterprise-wide approach to reputation risk, delivering data-driven insights, analytics, and advice that enable reputation risk resilience through preparedness.
$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.
We can help by:
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Identifying
the most prevalent sources of reputation risk for your company using subject and industry specialists alongside news intelligence APIs.
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Selecting
relevant reputation risk scenario(s) and building company-specific insights into financial and non-financial impacts.
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Applying
our proprietary analytics to understand the influence of reputation risk on share prices and financial statements.
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Determining
the actions (and inactions) taken by organizations who have created (and diminished) shareholder value after a reputation crisis.
How we do it:
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Reputation Risk Assessment
Our structured approach quantifies financial exposures with objective, robust evaluation of the impact of a reputation crisis on shareholder value and business financials using Aon’s proprietary modeling and analytic capabilities.
We combine subject matter experts with extensive data and analytics gathered from real-life reputation issues, events, and scenarios. This helps us deliver comprehensive insight to support informed decision-making on investment prioritization to mitigate and manage reputational risk.
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Reputation Risk Monitoring
Using sentiment analysis techniques, we can monitor clients’ reputation at an organizational level, assess emerging trends and deliver benchmark status against key industry competitors.
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Reputation Risk Finance
We assess and quantify risk financing options to support risk mitigation and capital optimization.
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Risk Management and Transfer
We identify, evaluate and recommend risk management and transfer strategies to improve and demonstrate reputation risk preparedness and post-event resilience.
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Value Recovery Index
Our Value Recovery Index (VRI) is a unique, evidence-based tool that evaluates an organization’s capabilities to successfully emerge from a reputation crisis where share prices rise and expectations of future cash flows increase. The Index is based on the thorough analysis of 40 years of case studies from our reputation risk database.
To participate in the VRI and receive a complimentary report, please click here and complete the short questionnaire.
How Our Approach Delivers Value
Our collaborative approach brings together risk, data and analytics, finance, industry and subject matter leaders to model unique scenarios that create an aligned understanding and nomenclature for reputation risk, which:
- Brings insight and quantification rigor to reputation risk assessment
- Frames the analysis in executive-level metrics
- Informs the development of scenarios
- Supports capital, resource and time allocation decisions
- Instils cultural knowledge to identify and escalate reputation risk concerns
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