Reputational Risk
Many guidelines have been developed for assessing and managing supplier and supply chain risk, from commodity prices to natural disasters. Yet most have not prioritized monitoring reputational risk. And as Apple and others have learned, this has been a huge mistake.
Reputational risk is an enormous issue as organizations with market valuation derived from intangible and difficult-to-quantify assets, such as brand equity and intellectual capital, are vulnerable to anything that damages their reputations.
Companies have invested billions to develop their brands. Protecting them is vital. Those with strong and positive reputations attract better talent and are perceived as providing more value in their products and services. This connection often enables them to charge a premium, and their customers are more loyal and buy broader ranges of products and services.
As organizations increase their reliance on suppliers, they are challenged by the corresponding increase in management requirements and need for insightful quantitative or qualitative information to proactively mitigate risk exposure. Many tend to focus their energies on handling the threats to their reputations that have already surfaced, which is not risk management but rather crisis management.
HICX understands the need to mitigate reputational risk through efficient supply base management. We provide the following solutions:
- Supplier Compliance Management Software – Ensure your organization complies with necessary internal policies and compliance initiatives
- Risk & Performance Scorecarding – Protect your brand and reputation through early insights into risks and performance issues with vendor risk management software.
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