A survey of senior risk managers at 134 banks released by  PricewaterhouseCoopers (PwC)

found that over a third of respondents believe that reputation risk is the biggest threat they face.  Clearly, reputation risk is a major risk for corporate due to events such as Enron and WorldCom.  Reputation risk is difficult to quantify, yet the damage from such reputation events can be severe.

 

PwC's Richard Smith, a partner with PwC in London, believes that reputation is a genuine emerging issue.  "The risk function is being called upon to play more of a role in evaluating strategic and business decisions.  A whole range of new issues is going to come into play for risk managers, and reputation is one of them."

 

 ERM Consulting Solutions

ERM Consulting Solutions - ERM can assist you to identify potential events that can result in damage due to reputation risk.