Reputational Risks

Risks to an Organization's Image

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Risks to an organization's image are referred to as what kind of risk?

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A. B. C. D.

D.

Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned.

Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.

Strategic risks can be broken down into external and internal risks: -> External risks are those circumstances from outside the enterprise which will have a potentially damaging or helpful impact on the enterprise.

These risks include sudden change of economy, industry, or regulatory conditions.

Some of the external risks are predictable while others are not.

For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating.

-> Internal risks usually focus on the image or reputation of the enterprise.

some of the risks that are involved in this are public communication, trust, and strategic agreement from stakeholders and customers.

The risks to an organization's image are referred to as strategic risks.

Strategic risks are those risks that have the potential to impact the long-term goals and objectives of an organization. These risks are related to external factors that are beyond the control of the organization and can affect its reputation, brand, and market position.

Reputational risk is a type of strategic risk that is specifically related to an organization's image. It is the risk that an organization's brand or reputation will be damaged due to events such as negative publicity, social media scandals, data breaches, or legal issues. Reputational risk can result in a loss of customer trust and loyalty, decreased market share, and financial losses.

Organizations should have a comprehensive risk management program that includes identifying and assessing strategic risks, developing mitigation strategies, and monitoring and reviewing the effectiveness of these strategies. The goal of this program is to minimize the impact of strategic risks on the organization's long-term goals and objectives, including its image and reputation.