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Reputational risk — is the potential damage to an organization's public image and trustworthiness 12.
Some causes of reputational risk:
- poor quality of products or services 14;
- ethical breaches 14;
- unsatisfactory customer service 1;
- security failures (cyberattacks, data breaches) 13;
- corporate governance issues 1;
- guilt by association (reputational damage through partnership with a company in crisis) 1.
Consequences of reputational risk:
- loss of sales 1;
- broken customer trust and loyalty 1;
- low employee retention 1;
- legal and regulatory consequences 1;
- increased liquidity risk, affecting market position and stock price 1.
Strategies for managing reputational risk:
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