SINGAPORE - Media OutReach - August 17, 2018 - Reputation events, such as cyber attacks, have a direct impact on share price, according to the findings of a new report released today by Pentland Analytics with Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions.
"Although risk management awareness and tools have evolved, reputation risk continues to weigh on corporate executives as one of their leading concerns. For the past 10 years, reputation risk has occupied one of the top spots on Aon's bi-annual Global Risk Management Survey," said Randy Nornes, enterprise client leader, Aon. "Savvy companies that develop and use a robust risk management framework can not only better navigate reputation events but can often see a net gain in value post-event."
At times of crisis, investors often use information about a company shared on social media to re-assess their expectations of future cash flow, which can positively or negatively impact a company's share price. Report findings showed that companies could add 20 percent of value or lose up to 30 percent of value depending on their reputation risk preparedness and management behavior in the immediate aftermath of a crisis.
"New technologies continue to emerge, such as robotics, artificial intelligence and bionics, all requiring constant vigilance," added Dr. Deborah Pretty, founding director of Pentland Analytics. "Technological developments have heightened reputation risk by making it easier, cheaper and faster for people to spread news."
Pentland Analytics provides advanced analytics and advisory services to the executive management of the world's leading companies. The firm converts complex business issues into analytics solutions that yield clear insights and direction. The results inform strategic decisions and help to build clients' resilience, reputation and shareholder value.