Minimize reputational risk with 202 DIGITAL REPUTATION

By: Carlota Gatius

In a time of high competition, digital reputation is one of the greatest assets a brand can have on the web. However, there are different factors that can impact this. That’s why, in this article, we want to discuss how, at 202 Digital Reputation, we can minimize the reputational risk of your brand.

What is reputational risk?

Before discussing how to minimize reputational risk, it’s important to define what we mean by risk. Reputational risk is defined as any type of threat or danger that a company’s digital reputation may suffer, which will ultimately have consequences on its sales and overall development. These are aspects that can trigger an online reputation crisis, causing consumers, including employees and collaborators, to lose trust in the company.

Today, we can refer to four main types of reputational risks. These are:

1. The actions of the company

All business actions or practices that could generate a bad reputation. This includes issues like failing to comply with regulations, not protecting personal data, internal scandals, poor working conditions, poor quality products, misleading actions, among others.

2. The actions of partners

Whether partners or suppliers, negative behavior on their part can represent a significant risk to a brand's reputation. These include bad conduct that becomes public, or the decision of these partners to speak ill of the brand, among other possibilities.

3. The actions of individuals linked to the brand

From employees to investors or anyone associated with the brand, they can pose a reputational risk if they engage in misconduct, have a negative reputation themselves, misrepresent the brand, among other issues.

4. External factors

Finally, external factors are the most feared among reputational risks, as they are more difficult to control. These include, for example, negative customer reviews or fake reviews, negative press articles, viral negative social media posts, and more.

Why is it important to minimize reputational risk?

Despite the factors mentioned above, there are actions and practices that can be carried out to minimize reputational risk. These are aimed at substantially reducing the chances of these risks occurring, creating a shield and adequate protection for the brand, and avoiding the effects of a reputational crisis.

Some of the main reasons for taking actions to minimize reputational risk include:

• Maintaining a good image with consumers, which leads to trust and, therefore, increased sales.

• Strengthening relationships with customers to achieve customer loyalty.

• Maintaining good positioning in search engines.

• Fostering corporate integrity and ensuring employees, suppliers, and partners are committed to the brand, based on the trust it inspires.

• Creating a culture of response to risks and crises to ensure the right actions are taken when necessary.

We suggest reading the article How a reputational crisis can harm your business.

How can we minimize reputational risk at 202 Digital Reputation?

At 202 Digital Reputation, we base our strategy on monitoring and active listening. Through this, we constantly track what is being said about the brand, ensuring we can take the appropriate actions to prevent issues from escalating into a reputational crisis.

At the same time, through reputational shielding and comprehensive 360° management, we control and protect your brand’s reputation, manage crises when they arise, and ensure ongoing reputation maintenance through consulting and new content creation. If you want to learn more about this, contact us.