How A Reputational Risk Snowball Turns Into An Avalanche

Like the mountain climber who got stuck in the avalanche, reputational risk is often an area of risk management where trouble isn’t spotted until it’s already too late.

Just like the mountain climber, however, one can’t reach the top without taking the risk of embarking on a challenging path; but that doesn’t mean warning signs can’t be spotted and caution can’t be taken along the way.

According to Jim Wetekamp, chief executive officer, Riskonnect, there are two main drivers for a reputational slow bleed: a continued push for speed and the diversification of business thus resulting in eroding quality.

While explosive incidents can damage an organization’s reputation within seconds, it’s the reputational slow bleeds that companies should look out for.