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Handbook - Desarrollando Ideas · t Strategic Sustainable Procurement: ... QDPHG D 7RS 7KRXJKW /HDGHU LQ 7UXVWZRUWK\ %XVLQHVV ... Purpose and organization of the handbook 15

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Andrea Bonime-BlancGEC Risk Advisory LLC www.GECRisk.com

The Reputation Risk HandbookSurviving and Thriving in the Age of Hyper-Transparency

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Abstract

REPUTATION RISK HAS BECOME STRATEGIC� EHFDXVH� RI� WKH� DJH� RI�K\SHU�WUDQVSDUHQF\�� ,QGHHG�� WKH� UHSXWDWLRQ� ULVN�KLW�SDUDGH�RI� WKH�HDUO\�WZHQW\�ÀUVW� FHQWXU\� DOO� EXW� FRQÀUPV� WKLV�� 7KHUH� DUH� WKUHH� W\SHV� RI�FRQVHTXHQFHV� WR� UHSXWDWLRQDO� KLWV� WRGD\�� DOO� RI� ZKLFK� UHTXLUH� JUHDWHU�UHSXWDWLRQ�ULVN�DZDUHQHVV�LQ�WKH�DJH�RI�K\SHU�WUDQVSDUHQF\��GHÀQHG�DV�ELJ�DQG�VPDOO�GDWD�WUDYHOLQJ�DQG�LPSDFWLQJ�DW�WKH�VSHHG�RI�OLJKW��7KHUH�LV�D�VWURQJ�EXVLQHVV�FDVH�²�ERWK�TXDOLWDWLYH�DQG�TXDQWLWDWLYH�²�IRU�HIIHFWLYH�UHSXWDWLRQ� ULVN� PDQDJHPHQW�� :KDW� LV� ¶ULVN·"� :KDW� LV� ¶UHSXWDWLRQ·"�:KDW� LV� ¶UHSXWDWLRQ� ULVN·"� :H� H[DPLQH� D� YDULHW\� RI� UHSXWDWLRQDO� ULVNV�DQG�H[DPSOHV�� ,W� LV�D�GLIIHUHQW�NLQG�RI� ULVN�DQG�WR� WDFNOH� LW�SURSHUO\� LWV�GLIIHUHQW� QDWXUH� QHHGV� WR� EH� JDXJHG� DQG� XQGHUVWRRG�� :H� H[DPLQH� D�YDULHW\�RI�FKDUDFWHULVWLFV�RI�UHSXWDWLRQ�ULVN�WKDW�H[SODLQ�LWV�VSHFLDO�QDWXUH��5HSXWDWLRQ�ULVN� LV�WKHQ�SODFHG�ZLWKLQ�WKH�ULVN�XQLYHUVH��ÀUVW��ZLWKLQ�WKH�VSHFWUXP�RI�SRVVLEOH�ULVN�PDQDJHPHQW�DUFKLWHFWXUH�DQ�HQWLW\�PLJKW�KDYH�LQ�SODFH�� DQG� VHFRQG�ZLWKLQ� ¶ELJ�EXFNHWV·� RI� VXEVWDQWLYH� W\SHV�RI� ULVN��5HSXWDWLRQ�ULVN�LV�GLIIHUHQW�DQG�FURVV�GLVFLSOLQDU\��5HSXWDWLRQ�ULVN�DFWRUV�²�WKRVH�ZKR�GR�²�DQG�VWDNHKROGHUV�²�WKRVH�ZLWK�D�VWDNH� LQ�ZKDW�WKH\�GR�²�DUH� WKHQ�H[DPLQHG��$Q� LQWHUHVWLQJ�SKHQRPHQRQ�²�WKH�UHSXWDWLRQ�ULVN� ¶5DVKRPRQ·�HIIHFW�²� LV�GLVFXVVHG��7KH�RZQHUVKLS� UHVSRQVLELOLW\�RI�PDQDJHPHQW�DQG�RYHUVLJKW� UHVSRQVLELOLW\� RI� WKH�ERDUG�DUH�RXWOLQHG�� $�W\SRORJ\� RI� SRVVLEOH� UHSXWDWLRQ� ULVN� PDQDJHPHQW� VWUDWHJLHV� DYDLODEOH�WR�HQWLWLHV� LV�SUHVHQWHG�EDVHG�RQ� WKH� ULVN�DUFKLWHFWXUH�PDWXULW\�RI� WKH�HQWLW\� DQG� WKH� EUHDGWK� DQG� GHSWK� RI� UHSXWDWLRQ� ULVN� NQRZOHGJH� DQG�DZDUHQHVV�WKDW�PD\�H[LVW�ZLWKLQ�WKH�HQWLW\��$�UHSXWDWLRQ�ULVN�PDQDJHPHQW�

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THE REPUTATION RISK HANDBOOK: SURVIVING AND THRIVING IN THE AGE OF HYPER-TRANSPARENCY

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About the Author

DR ANDREA BONIME-BLANC� LV�&(2�DQG� IRXQGHU�RI� *(&� 5LVN� $GYLVRU\� //&�� D� JOREDO� JRYHUQDQFH��ULVN�� LQWHJULW\�� DQG� UHSXWDWLRQ� DGYLVRU\� ÀUP� �ZZZ�*(&5LVN�FRP��� 6KH� KDV� WZR� GHFDGHV� RI� VHQLRU�H[HFXWLYH� H[SHULHQFH� OHDGLQJ� JRYHUQDQFH�� OHJDO��HWKLFV��FRPSOLDQFH��ULVN��LQWHUQDO�DXGLW�DQG�FRUSRUDWH�UHVSRQVLELOLW\� LQ� SULYDWH�� SXEOLF�� HVWDEOLVKHG� DQG�

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9

Acknowledgments

NO BOOK WRITES ITSELF�DQG�QR�DXWKRU�LV�DQ�LVODQG��)RU�WKHVH�UHDVRQV��,�ZDQW�WR�H[WHQG�KHDUWIHOW�WKDQNV�DQG�DSSUHFLDWLRQ�WR�FORVH�FROOHDJXHV��IULHQGV��ZLVH�SHRSOH�DQG�FROODERUDWRUV�ZKR�KDYH�KHOSHG�PH�WR�GHYHORS�DQG� FRPSOHWH� WKLV� +DQGERRN� ZKHWKHU� WKH\� DFWXDOO\� NQHZ� WKH\� ZHUH�GRLQJ� VR� RU� QRW�� )LUVW� DQG� IRUHPRVW�� ,�PXVW� WKDQN� WKUHH� FORVH� IULHQGV�DQG� FROOHDJXHV� IRU� WKHLU� LQYDOXDEOH� GLUHFW� FRQWULEXWLRQV� WR� PDNLQJ�WKLV� D� EHWWHU� ERRN�� -DFTXHOLQH� (�� %UHYDUG��P\� FORVH� FROODERUDWRU�� GHDU�IULHQG� DQG� FRQÀGDQW�� +DQV� :�� 'HFNHU�� ZKR� LV� WKH� SHUVRQLÀFDWLRQ� RI�WKH�HPRWLRQDOO\� LQWHOOLJHQW�&(2��DQG�(PPDQXHO�/XOLQ��RQH�RI� WKH�PRVW�LQQRYDWLYH�EXVLQHVV�HWKLFV�SUDFWLWLRQHUV�,�NQRZ��,�ZRXOG�DOVR�OLNH�WR�WKDQN�WZR�PHQWRUV� ²�P\� FORVH� IULHQGV� DQG� FROOHDJXHV� 3URIHVVRU� 6�� 3UDNDVK�6HWKL�DQG�3URIHVVRU�0DU\�&��*HQWLOH��WZR�YLVLRQDU\�WKRXJKW�OHDGHUV�ZKR�KDYH�SURYLGHG�PH�ZLWK�DPD]LQJ�IULHQGVKLS�DQG�JXLGDQFH�IRU�D�ORQJ�WLPH��2UJDQL]DWLRQV� DQG� FROOHDJXHV� ZKR� KDYH� SURYLGHG� YDULHG� VXSSRUW� DQG�DVVLVWDQFH�RQ�LVVXHV�UHOHYDQW�WR�WKLV�+DQGERRN�LQFOXGH��7KH�&RQIHUHQFH�%RDUG� �0DULRQ� )HLJHQEDXP�� -RVHSK� )HXHU�� 6DOYDWRUH� 9LWDOH��� /ORUHQWH�� &XHQFD� �-RVH� $QWRQLR� /ORUHQWH�� -RUJH� &DFKLQHUR�� %HDWUL]� +HUUDQ]��0DUWD�)HUQDQGH]���1<6(�*RYHUQDQFH�6HUYLFHV��(ULFD�6DOPRQ�%\UQH��(ULF�0RUHKHDG��-HDQ�0DUF�/HY\��-HQQLIHU�0LWFKHOO���7KH�*OREDO�5LVN�,QVWLWXWH�LQ� )LQDQFLDO� 6HUYLFHV� �0LFKHO� 0DLOD�� *UHJRU\� )UDQN��� (WKLVSKHUH� �7LP�(UEOLFK�� .HYLQ�0F&RUPDFN�� 6WHIDQ� /LQVVHQ��� $À� � )XQGDFLRQ� $À� �-RVH�$QWRQLR�+HUFH��(PLOLR�2QWLYHURV��9HURQLFD�/RSH]���&RUSRUDWH�([FHOOHQFH��6DLGD�*DUFLD���*DUULJXHV��$QWRQLR�*DUULJXHV��5LFDUGR�*RPH]��-HVXV�GH�OD�0RUHQD��-XDQ�3DEOR�5HJRMR�%DOERD��0\ULDP�*RPH]�$ORQVR���7KH�,QVWLWXWH�

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Andrea Bonime-Blanc New York City, September 2014

12

Contents

� � $EVWUDFW����������������������������������������������������������������������������������6

About the Author��������������������������������������������������������������8

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� � ,QWURGXFWLRQ����������������������������������������������������������������������15Purpose and organization of the handbook�����������������15

I UNDERSTANDING REPUTATION RISK������������

1� �5HSXWDWLRQ�5LVN�LQ�WKH� $JH�RI�+\SHU�WUDQVSDUHQF\�������������������������������������20Mae West and the age of hyper-transparency�������������20‘Reputation’ across the ages��������������������������������������������217ZHQW\�ÀUVW�FHQWXU\�UHSXWDWLRQ�ULVN�KLW�SDUDGH�����������22Reputational hits and consequences�����������������������������24The age of hyper-transparency�����������������������������������������27The business case for effective reputation risk management��������������������������������������������32

2� 'LVVHFWLQJ�¶5HSXWDWLRQ�5LVN·���������������������������������38What is ‘risk’?������������������������������������������������������������������������38What is ‘reputation’?�������������������������������������������������������������

13

THE REPUTATION RISK HANDBOOK: SURVIVING AND THRIVING IN THE AGE OF HYPER-TRANSPARENCY

Contents

What is ‘reputation risk’?��������������������������������������������������405HSXWDWLRQ�ULVN�LV�DQ�DPSOLÀHU�ULVN��H[DPSOHV������������42Other special qualities of reputation risk���������������������45

II TRIANGULATING REPUTATION RISK�������������50

�� 5HSXWDWLRQ�5LVN�:LWKLQ�WKH�5LVN�8QLYHUVH�����51Reputation risk and risk architecture����������������������������51Reputation risk in the pantheon of ‘big buckets’ of risk�������������������������������������������������������������54Reputation risk is different�����������������������������������������������57

4� 5HSXWDWLRQ�5LVN�$FWRUV��6WDNHKROGHUV����������Reputation risk and you�������������������������������������������������������5HSXWDWLRQ�ULVN�DQG�WKH�RUJDQL]DWLRQ��actors & stakeholders��������������������������������������������������������61The reputation risk ‘Rashomon’ effect��������������������������65Reputation risk ownership and oversight���������������������68

III DEPLOYING REPUTATION RISK�������������������������74

�� 5HSXWDWLRQ�5LVN�6WUDWHJLHV�DQG�7RRONLW���������755HSXWDWLRQ�ULVN�PDQDJHPHQW�VWUDWHJLHV� a typology�������������������������������������������������������������������������������75The reputation risk management toolkit����������������������78

�� �2SWLPL]LQJ�5HSXWDWLRQ�5LVN�0DQDJHPHQW��WKH�1H[W�6WUDWHJLF�,PSHUDWLYH���������������������������������How to optimize reputation risk management��������������

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THE REPUTATION RISK HANDBOOK: SURVIVING AND THRIVING IN THE AGE OF HYPER-TRANSPARENCY

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Dissecting ‘Reputation Risk’

What is ‘risk’?WHETHER IT IS THE PROFIT MOTIVE� RI� D� FRPSDQ\�� WKH� HGXFDWLRQ�LPSHUDWLYH� RI� D� XQLYHUVLW\�� VRFLDO� VHUYLFHV� DW� D� JRYHUQPHQW� DJHQF\� RU�WKH� PLVVLRQ� WR� IHHG� WKH� KXQJU\� RI� D� QRQ�SURÀW�� RUJDQL]DWLRQV� UHTXLUH�UHVLOLHQF\�WR�DFKLHYH�WKHLU�SULPDU\�PLVVLRQ��,Q�RUGHU�WR�DFKLHYH�UHVLOLHQF\��HYHU\�RUJDQL]DWLRQ�QHHGV�WR�NQRZ�ZKDW�LWV�ULVNV�DUH�DQG�EXLOG��IRUWLI\�DQG�SURWHFW� LWV� UHVLOLHQFH� DQG� KDUG�HDUQHG� UHSXWDWLRQ� IURP� WKH� PDQ\� DQG�FRPSOH[�ULVNV�RI�WRGD\·V�LUUHYHUVLEO\�K\SHU�WUDQVSDUHQW�ZRUOG��

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What is ‘reputation’?,I� ZH� JR� EDFN� WR� WKH�0DH�:HVW� FRQFHSW� RI� UHSXWDWLRQ�� KDYLQJ� D� ¶EDG·�UHSXWDWLRQ�RU�D�UHSXWDWLRQ�IRU�EHLQJ�¶EDG·�ZDV�JRRG�IRU�EXVLQHVV��DW�OHDVW�IRU�KHU��$QG�WKHUH�DUH�FOHDUO\�RUJDQL]DWLRQV�WKDW�IDQF\�WKHPVHOYHV�HGJ\��ULVN�WDNLQJ�RU�LQWR�KLJK�ULVN�SURGXFWV�DQG�VHUYLFHV�WKDW�LQ�WXUQ�HQFRXUDJH�ULVN\� EHKDYLRUV� RU� DFWLYLWLHV�� $PRQJVW� VXFK� HQWLWLHV�PLJKW� EH� FDVLQRV��WREDFFR� FRPSDQLHV�� VNDWHERDUG� RU� MHW�VNL� PDQXIDFWXUHUV� RU� EXQJHH�MXPSLQJ�IDFLOLWLHV��%XW�DOO�RI�WKHVH�FRPSDQLHV�ZRXOG�ZDQW�WR�UHWDLQ�WKHLU�¶JRRG·�UHSXWDWLRQ�IRU�PDNLQJ�WKHVH�SURGXFWV�RU�GHOLYHULQJ�WKHVH�VHUYLFHV�ZHOO�DQG�VDIHO\�

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. . . the beliefs or opinions that are generally held about someone or something [or] the widespread belief that someone or something has a particular habit of characteristic.��

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. . . the common opinion that people have about someone or something: the way in which people think of someone or something more fully.20

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It’s tangible7KH�UHSXWDWLRQDO�LPSDFW�RI�D�QHJDWLYH�HYHQW�FDQ�EH�YHU\�WDQJLEOH��+HUH·V�DQ�H[DPSOH�EDVHG�RQ�D�86�JRYHUQPHQW�DQQXDO�UHSRUW�RQ�JOREDO�KXPDQ�WUDIÀFNLQJ�

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FIGURE 2. Reputation risk is cross-disciplinary.

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It’s strategic5HSXWDWLRQ�ULVN�KDV�UHFHQWO\�DQG�LQFUHDVLQJO\�EHHQ�DFNQRZOHGJHG�WR�EH�D�VWUDWHJLF�ULVN�E\�ERDUGV��&�VXLWH�H[HFXWLYHV�DQG�&(2V����7KLV�H[WHQGV�WR�DQ\�NLQG�RI�HQWLW\��-XVW�OLNH�D�FRPSDQ\��D�XQLYHUVLW\�FDQ�LOO�DIIRUG�WR�KDYH�D�PDMRU�VFDQGDO� OLNH�3HQQ�6WDWH�8QLYHUVLW\·V�FKLOG�VH[XDO�DEXVH�VFDQGDO�RI�D�IHZ�\HDUV�DJR�ZKLFK�UHYHDOHG�WURXEOLQJ��V\VWHPLF�DQG�KLJK�OHYHO�ÁDZV�ZLWKLQ�WKH�OHDGHUVKLS�RI�WKH�XQLYHUVLW\��5HSXWDWLRQ�ULVN�FDQ�

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FIGURE 3. Reputation risk is a strategic risk.

105

Notes

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