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By Nancy Albinson, Andrew Blau and Yang Chu

In today’s hyper-connected world dominated by mobile devices, social media, and evolving expectations from society, information can spread like wildfire. This convergence of mobile and social media is intensifying the impact of reputation risks for organizations and is driving them to fundamentally rethink their approaches to risk management and proactively address these accelerated, amplified risks.

What forces are driving this trend?


 
Social media is creating a more connected, networked world where information is rapidly amplified

 
Disruptive mobile technologies are ushering in a new era of hyper-availability in which people are always available and connected

 
An upsurge of socially conscious consumers, and growing consumer activism, is putting pressure on businesses to be socially responsible and transparent

 
New multichannel marketing strategies built on social platforms allow for greater interactivity for consumers and less control for brands

 
Globally distributed business models are increasingly dependent on third parties and other stakeholders

 

What are the opportunities?

  • Develop new capabilities for proactive brand-related crisis management
  • Continually scan media sources with technology-enabled intelligence capabilities to monitor reputation risk
  • Initiate targeted campaigns and develop an external ambassador program to nurture external brand advocates
  • Foster a more risk-intelligent culture with tools, resources, and training opportunities to help employees see the reputation implications of their actions
     

What are potential threats and pitfalls?

  • Personal online activity of employees can cause reputational damage to the organization
  • Organizations may be forced to respond to risk events in haste without fully investigating the situation
     

Case studies: Where is this trend already in play?

A media conglomerate fired its head of communications for an offensive personal social media post—which went viral in a matter of hours—in an effort to prevent further damage to its reputation.

Websites like Ripoff Report and Scambook offer online platforms for consumers to post complaints. Ripoff Report receives more than a million visits a week and generates several million dollars of revenues a year from firms that pay to resolve customer complaints.1

Food safety incidents can cause significant reputation loss and revenue impact for food and beverage companies. The impact on a company’s reputation is often intensified due to the negative attention received through social media channels. Brands that are not prepared to respond to crisis face further scrutiny for moving too slowly when incidents occur.

Explore the future of risk trends:

 
 
  
 

 

  
  
 

 
  
 
  
 

 
    

 

Download the PDF
Future of Risk: New Game, New Rules

 


Adam Tanner, "Love it or hate it, Ripoff report is in expansion mode," Forbes, May 09, 2013
http://www.forbes.com/sites/adamtanner/2013/05/09/love-it-or-hate-it-ripoffreport-is-in-expansion-mode/&refURL=&referrer=#3f6622cb33dd

About Nancy Albinson

Nancy is a managing director at Deloitte & Touche LLP and leads Deloitte Advisory’s Innovation Program. She guides the business in establishing innovation strategies, identifying emerging client needs, overseeing a portfolio of strategic investments from validation to commercialization, and building a culture of innovation.

Contact: Nancy Albinson

nalbinson@deloitte.com / +1 973 602 4523

About Andrew Blau

Andrew Blau is a Deloitte Advisory managing director at Deloitte & Touche LLP. He leads Strategic Risk Solutions, which helps clients spot, assess, and manage critical long-term risks.

Contact: Andrew Blau

ablau@deloitte.com / +1 415 932 5416

About Yang Chu

Yang Chu is a senior manager at Deloitte & Touche LLP. She is a specialist in strategic, financial, operational, technological, and regulatory risk and focuses on exploring emerging trends for opportunities and threats for clients and for Deloitte.

Contact: Yang Chu

yangchu@deloitte.com / +1 415 783 4060

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