In a fast changing world, even the best thought out decision may expose your business (and your personal brand) to increased scrutiny. Add in social media, shareholder scrutiny and increasingly complex regulatory and governance requirements and it's easy to understand how one wrong move could lead to a significant impact on your bottom line. Reputation risk insurance solutions provide a safety net to mitigate the effects of an event that could otherwise damage your standing in the market, and with customers.
Digital transformation has brought with it many positive social and economic benefits. At the same time brands are being challenged by the expectation of transparency, further fuelled by social media and online conversation that can positively or engatively impact brand reputation and value within a matter of minutes.
What is reputation risk?
Reputation risk insurance is essentially the measure of your exposure to a specific set of risks that could impact your ability to operate as normal should an event trigger a material impact on your reputation.
What are business reputational risk threats?
Several business elements can leave your company exposed to the threat of reputational risk:
Financial irregularities or misconduct
Data and security breaches, including cyber attacks
Ethical violations and challenges
Associations with external third parties that bring your brand into disrepute