Managing Reputational Risks. Workshop at Corporate Excellence
This week, Corporate Excellence organized a workshop to talk about reputational risk. Thanks to my frieds Angel Alloza and Juan Cardona, I had the chance to present the experience that we have lived in Telefónica in the last 11. I also have the pleasure to share the workshop with Tomás Garicano, (first, my finance teacher & my boss at IE Business School -long time ago-, and always my friend) and with Helana Redondo, from Ernst & Young.
What do we have learn in all this time? The most important thing that we have learn is that big companies live usually with some "reputational bombs" inside them. And they have to know (and to assume it too) that reputational crisis will probably happened sooner or later, no matter how good the company be. So, the challenge is not to "eradicate" all the crisis, because it is not realistic at all (it is like to ask a football team to win every matches they play).
The BIG challenge (in capital letters) is to prevent and to minimize the crisis impact.In other words: Assuming that you have to live with these kind of "reputational bombs", the challenge is simple: the more you manage in advance, the smaller will be the "bomb explosion". And the opposite: the less you manage in advance, the bigger will be "bomb explosion".
So... the challenge is to prevent and to manage in advance. How? Using the Risk Management methodology. This methodology has 4 steps: Identification; Evaluation; Management and response; and Follow up and Report.
Here, you can find the summary of this workshop from Corporate Excellence