In recent years, there has been a growing interest across economic sectors in trust and reputation issues that impact the long-term sustainability of companies.
Regulation and various studies support the existence of a causal relationship between reputation and economic activity indicators such as income, liquidity and share value. This confirms that it is essential to maintain stakeholder trust as a pillar of corporate reputation and other intangible assets that ultimately drive profitability; in other words, reputational risk needs to be identified, measured, managed and mitigated.
Proactive reputation risk management
During almost two years of joint research with Mr. Houston, Management Solutions has developed the tool “Hatari” to measure reputational risk impact on key indicators based on information available from the media and social networks. Hatari makes it possible to manage reputational risk quantitatively through the use of advanced Natural Language Processing techniques. In particular, it allows you to:
- Observe what the news and social media say about a company.
- Interpret the key concepts appearing in those news.
- Analyze the extent to which they impact the company.
- And assess their impact on key performance indicators such as share value.
Management Solutions can therefore offer extensive capabilities as well as credentials in the field of reputational risk and is able to support different projects of this type, notably in four main lines of work:
- Current situation diagnosis and action plan for addressing reputational risk.
- Definition and deployment of a reputational risk management framework, taking account of the different areas that comprise it.
- Implementation of the “Hatari“ tool for quantitative reputational risk management.
- And support to evolve the reputational risk framework under a PMO role.