Berlin Risk has developed a dedicated Reputational Risk Assessment Methodology (RRAM) which is based on the insight that a company’s integrity is a strategic asset. Integrity builds credibility and creates a valuable reputation among the stakeholders.
Stakeholder perception can change quickly, however, when integrity standards and rules of responsible business conduct have been breached. A decline in credibility will have tangible consequence for a company’s reputation and likely result in financial losses.
Our RRAM uses the bow-tie technique for causal risk analysis, identifying sources of reputational risk and defining relevant risk indicators that increase the likelihood of reputational risk events occurring. RRAM also provides guidance on the establishment of risk controls and risk mitigants which reduce the impact of the consequences in relation to the affected stakeholders and their actions.