Elizabeth Judd, Corporate Secretary, April 21, 2015

With three-quarters of companies naming reputational risk as a top risk concern, directors are increasingly seeking methods of risk oversight that are independent of management.

Reputational risk can come in many guises, from cyber-security to environmental, human rights, regulatory compliance, product recalls, fraud, succession planning, quality and even cultural risks. Beyond known risks, there are the ‘known unknowns’, sometimes called ‘black swan’ events.

‘It’s very hard for directors of any organization to get a full handle on what the reputational risks are,’ says Davia Temin, CEO and founder of Manhattan- based reputation consultant Temin and Company. ‘While there are always predictable risks – airlines will have crashes, for example, while consumer goods companies will have fraud or security breaches – some of the worst crises are the ones that come from left field.’ […read more]