Reputation Risk Consulting
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 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 as to whether the impact on long-term future cash flows will be positive or negative, responding to a reputational crisis effectively is crucial.
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 value1 over the post-event year.
How Aon Can Help
At Aon, we take an enterprise-wide 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 database of insights.
$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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Profiling
Profiling the most prevalent sources of reputation risk for your sector using news intelligence APIs
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Selecting
Selecting a reputation risk scenario(s) and building a unique portfolio of reputation risk events
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Applying
Applying the share price modelling to the portfolio to provide a range of financial quantifications
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Determining
Determining the actions undertaken by a sample of ‘winning’ and ‘losing’ firms, and the lessons learned after a reputation crisis event
How we do it:
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Reputation Risk Assessment
Our structured approach quantifies associated financial exposures with objective, robust evaluation of the impact of a crisis on shareholder value using Aon’s proprietary modelling 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 appropriate alternative risk financing options to support risk mitigation and capital optimization.
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Risk Management and Transfer
We identify appropriate risk mitigation and risk transfer strategies to improve reputation risk preparedness and post-event resilience.
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Crisis Management Audit
We perform audits of crisis management plans and business continuity/disaster recovery plans to assess gaps and current exposures.
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
1 Pentland Analytics 2022
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