More than half of Australian organisations report a loss of income due to brand and image risk in the past 12 months.
This is a constant risk and, according to Aon’s Australasian Risk Survey, is the top concern for Australian businesses.
“Technological innovation, the rise of social media and a number of recent well publicised brand scandals suggest that this risk is unlikely to lessen any time soon,” Aon said in a statement.
Jason Disborough, managing director, global, of Aon Risk Solutions, says advisers can use the survey to improve risk management practices. “Benchmarking organisational practices against the best in the industry offers a prime basis for improvement.”
Hard on the heels of the number one ranking is risk relating to regulatory and legislative change. While ranked third overall, it is, perhaps unsurprisingly, the number one concern for the banking and finance industry.
The survey highlights other areas of concern, with ‘lack of innovation’ and ‘increased competition’ in the top 10 for the first time. ‘Political risk and uncertainty’ was a first-time entrant into the top 20, as was ‘lack of technology infrastructure to support business needs’.
Duncan Khoury, marketing manager for Aon Risk Services, has given a few tips on how advisers can try to prevent/mitigate risks to brand and image
Make brand and image, particularly social media risk a board/senior management issue
Learn from past experiences and industry branding/social media crisis case studies
Develop your own templated responses to various anticipated issues
Include brand and image, including social media in your internal audit process
Ensure all business facets and staff are appropriately involved and versed in relation to the company’s Value Proposition and core values.
Commission a branding risk and research audit
Fully utilise any centralised (or in-house) Marketing expertise where available