How 5G Will Change Small Businesses
How 5G Will Change Small Businesses Tasks such as file transfer, web browsing, messaging, and so on are business critical tasks that require fast connection speeds. When it comes to the new 5G technology, there are more things to consider than just a faster download speed or better web browsing. Here is what to expect from 5G technology.
Read moreReputation Risk Series – Part 1: Basics of Reputation Risk
Reputation Risk Series – Part 1: Basics of Reputation Risk by Antonius Alijoyo Chairperson, ERMA In a volatile global marketplace, where media coverage is almost simultaneous across the world and where reputation is seen as a key source of competitive advantage, trust and confidence are now understood to be the key business drivers. Reputation is the mirror of company’s trustmark. However, reputation is subjective and elusive. It is not readily defined. Every time a company sells a product, provides a service, enters into a contract, builds a new facility, invests in research or technology, or enters into litigation, it is making decisions that define its reputation. It is an intangible asset. While it exists primarily in the minds of customers, shareholders and the public, it can have a profound impact on the balance sheet and economic profit of companies. Given the potential impact of reputation, it is only prudent to manage it judiciously, with all the care given to any other company asset. Indeed, the value of reputation extends over a long period of time. Strong management, authentic human capital, positive customer relations and favourable media coverage can – and do – make tangible and measurable contributions to the company’s resilience and future earnings. Customers and potential buyers, investors and creditors are constantly evaluating these intangibles in their decisions to purchase, invest or lend. Similarly, employees and future recruits are evaluating companies and making choices about where to work. What is reputation? Reputation reflects the perception, good or bad, that the different groups of people who interact willingly with or are affected by an organisation – the stakeholders – have of the company. They form their perception based on their evaluation of the organisation’s performance through the available information. It changes all the time, reflecting both the things we say and do and the trends and events that change the way our words and actions are interpreted. The reputation of any organization of any size is complex. It exists in the minds of both those with whom we interact directly, and in the minds of those who become aware of us as word of our actions circulates. What is reputation risk? In a survey of 269 executives, conducted by EIU (Economist Intelligence Unit – 2005: Reputation: Risk of Risks), reputational risks emerged as the most significant threat to business out of a choice of 13 categories of risk. The respondents also felt that risks to their company’s reputation had increased significantly over the past five years. Whilst there is a long outstanding debate on the categorization of reputation risk – whether reputation risk is an issue on its own right or simply a consequence of other risk (risk of risks) – the followings are some working definitions which can be used (quoted from various sources): Reputation risk is the current and prospective impact on earnings and capital arising from negative public opinion. This affects the organisation’s ability to establish new relationships or services or continue servicing existing relationships. This risk may expose the organisation to litigation, financial loss, or a decline in its customer base. Reputation risk exposure is present […]
Read moreReputation Risk Series – Part 3: Reputation Risk Management
Reputation Risk Series – Part 3: Reputation Risk Management by Antonius Alijoyo Chairperson, ERMA Managing Reputation Risk Series – Part 3: Reputation Risk Management While it is commonly acknowledged that reputation risk is difficult to manage, there is a consensus on the key elements of managing reputation risk: Understanding of stakeholders’ expectations, information requirements and perceptions of the organisation; Prompt and effective communication with all categories of stakeholder; Strong and consistent enforcement of controls on governance, business and legal compliance; Ensuring ethical practice throughout the supply chain; establishment and continual updating of a business continuity and crisis management plan and the team required to support them; Continuous monitoring of threats to reputation; A clear vision: ‘what we stand for and are prepared to be held responsible for’; Clear values, supported by a code of conduct, setting out expected standards of behaviour; An open, trusting, supportive culture; A robust and dynamic risk management system which provides continuous monitoring of threats to reputation and early warning of developing issues; Organisational learning leading to corrective action where necessary; Reward and recognition systems which support organisational goals and values. The first point is accomplished through identifying the parties with whom the company needs to relate to effectively in order to fulfil its business goals, and establishing an ongoing dialogue with them to clarify and update the expectations of each party. Looking forward, businesses will clearly go a long way towards making a more resilient company if they both identify and address the potential impacts of risks to their reputation. In addition, reputation risk management can be developed as an opportunity where superior products and customers can increase market share at the expense of competitors. Reputation can be enhanced through the ‘emotional attachment’ that stakeholders have with the company. Those companies that address global warming issues, tackle waste and recycling, support third world producers and are socially responsible, will engender respect and trust. Reputation risks – both up-side and down-side – must be managed in an integrated enterprise systemic approach, as there is no such thing as reputation risks – rather, all risks may impact on reputation. Thus the effective management of risks to reputation is sound ERM (enterprise risk management) and GCG (Good Corporate Governance), where all insiders are involved and outsiders’ interests are taken into account. In this regards, managing reputation risk is therefore an essential part of the strategic role of the board of directors, who must take into account all stakeholders, whose perception of the organisation will determine its reputation, hence the trustmark of company which may sustain over generations. Editor’s note: The Reputation Risk Series is a three series article on reputation risk. For your reading convenience, we have divided the whole topic into several sub-topics that covers a specific area on reputation risk. To obtain a full understanding on the series focus, we strongly suggest that you read all parts of the series.
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