If you’re the Chief Risk Officer for a large financial institution, take heed: Traditional audit, risk and reputational controls may not be sufficient to protect banks.
With nearly everyone relying on internet research for information about where to spend — or bank — their money, star ratings and online reviews matter more than ever.
In a recent article, “The New Reputational Risk, and What To Do About It,” Michael Fertik, Reputation.com Founder and author of The Reputation Economy, asserts that “word of mouth” has given way to “word of review.”
Fertik notes that reviews and comments posted online “can unfold with with bewildering speed and have shocking impact on stock price, commerce, trade, profits, recruiting and morale.” As such, a bank’s online reputation is central to its value creation and stability — and must be managed effectively.
Fertik goes onto to explain why, eventually, everything will be assigned a score — including reputation — and only organizations who prepare now will fare well as this new reality emerges.
The article appears in the September 2017 edition of the European Risk Management Council’s journal, Risk Management Review. You can read the full article here.