UK Businesses Are Underprepared for Reputational Risk in 2024
The majority (84%) of UK executives think reputation management is more important for businesses now than it has been previously, according to research by Amp Corporate Communications.
However, less than half (47%) of the C-suite leaders surveyed believe their business is fully prepared to deal with reputational challenges.
Regulatory compliance, cyber attacks and service issues are perceived as the most concerning reputational risks for businesses in 2024.
“Our research demonstrated that there’s a heightened awareness of the importance of reputation management, yet worryingly many businesses aren’t fully prepared to deal with the likely challenges,” said Dee Gallagher, founder of Amp Corporate Communications. “Putting some simple processes in place can go a long way toward limiting the impact when issues arise. It’s also essential that businesses are proactively strengthening their reputation as part of their day-to-day activity and there are a host of ways to do that, taking a multi-disciplinary approach that can deliver business efficiencies, boost brand reputation and drive growth.”
Amp Corporate Communications gathered views from C-level executives across various business sectors – with a particular focus on financial services – and interviewed experts spanning finance, compliance and communications for its Reputational Risk Radar 2024.
Building trust with customers ranked in the top three areas of focus for helping to protect business reputation, after ensuring compliance with relevant regulation and delivering quality products and services.
Jacqueline Dewey, CEO of Smart Money People, the UK’s dedicated financial services review website said: “Quality products and services are at the core of business reputation and as part of that, businesses need to demonstrate their commitment to customers and other stakeholders in a transparent way.
“From responding to feedback and acknowledging customer concerns promptly and proactively, to making sure people know your product or service delivers on its promise, it’s absolutely essential for businesses to prioritise the importance of strengthening their reputation. Not only will it help drive sales and growth in the near-term but it will engender customer trust and loyalty which are pivotal for long-term sustainability.”
With contributions from various industry leaders, the Reputational Risk Radar 2024 encourages businesses to review and update their strategies and plans, so that they are ready to deal with the possible, probable and sometimes inevitable reputational threats that organisations face today.
Rudiger Theilmann, senior lecturer in PR and communications at Leeds Beckett University, added: “The best crisis management is to build up a strong reputation. Too often, businesses forget about the importance of reputation management until dealing with an issue – and it’s then the value of reputation becomes abundantly clear. But there are many ways that organisations can strengthen their reputation to help protect themselves, taking a nuanced approach that’s tailored to their own identity and stakeholder perception.”
Register here to read the report and find out more about reputational risks and the steps businesses can take to better protect and build their brand.
