Damage to Reputation or Brand: A Critical Risk

Why Reputation Risk Remains High on the Risk Agenda

In the two years since we last carried out the Global Risk Management Survey, businesses have faced an unprecedented level of interconnected threats to their brand and reputation. Geopolitical tensions, polarized public sentiment, evolving regulatory expectations and the continued rise of cyber crime — amplified by artificial intelligence (AI) — have all combined to create a volatile environment in which reputational damage can occur swiftly and have a lasting impact. It’s no wonder that this year’s survey respondents ranked reputation risk as the eighth-largest risk they currently face.

In a world of digital connections and social media, news of negative incidents spreads faster and wider than ever, turning isolated events into full-blown crises that erode stakeholder trust, disrupt business operations and diminish shareholder value.

Three Fast-Moving Drivers of Reputational Risk

1. Cyber Attacks and AI-Powered Threats
   Ransomware, data breaches and AI-enabled deception tactics such as deepfakes and sophisticated phishing campaigns surged in 2024 and 2025. For example, in their rush to embrace technology, many organizations adopt AI without mature governance or expertise, increasing their vulnerability to attack. The fallout from cyber incidents extends beyond immediate financial loss to long-term erosion of customer and investor confidence.¹
2. ESG Challenges
   Stakeholders increasingly demand transparency and accountability when it comes to environmental, social and governance (ESG) issues, including diversity, equity and inclusion. The huge differences in ESG priorities and perceptions among shareholders, customers, regulators and the public create a complex landscape in which missteps or perceived noncompliance can trigger backlash, regulatory penalties or lost business.
3. Public Opinion
   Public trust in business leaders and institutions has declined sharply,² and every decision or communication from a business leader comes under increasingly intense scrutiny — even minor misstatements or controversial positions can amplify reputational damage. Authenticity, tone and responsiveness have become vital in maintaining stakeholder confidence.

How to Manage Brand and Reputation Risk Effectively

Preventive Measures

• Use analytics to quantify, measure, understand and address reputation risk effectively.
• Integrate reputation risk into enterprise risk management and strategic planning to ensure it is a constant priority.
• Engage stakeholders regularly and transparently to build trust and discover emerging concerns early.
• Employ advanced social media monitoring and analytics to detect reputational threats before they escalate.
• Equip leaders with communication and crisis management tools to navigate complex public forums.
• Collaborate across the enterprise with experts in marketing, corporate communications, risk management, legal affairs, cyber security and crisis response to enhance preparedness.
• Foster a culture of continuous learning through case studies and analysis of past incidents.

Crisis-Ready Actions

• Establish clear crisis protocols with defined roles and communication plans to enable swift, coordinated responses.
• Prioritize speed, transparency, authenticity and accountability in messaging to rebuild trust.
• Build a consistent communications strategy and counter misinformation effectively.
• Nurture engaged workers who can act as brand ambassadors and reinforce reputation.

Why It Matters

Organizations that embed reputation risk management into their strategic and operational frameworks, supported by expert guidance and advanced analytics, will not only protect but enhance their enterprise value.

¹ “The Five Drivers That Can Help Mitigate Growing Reputation Risks,” Aon Global 2025 Cyber Risk Report, June 17, 2025.
² 2025 Edelman Trust Barometer, Edelman.

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