Leaders Confront Tech-Enabled Reputational Risks

By Dennis McCafferty  |  Posted 10-24-2013 Email

For today's organizations, the overwhelming impact of social media, mobile, the cloud and big fata have created a whole new—and foreboding—category of risk, according to a recent global survey from Deloitte Touche Tohmatsu Limited. Joining the more tried-and-true risk drivers, such as operational, financial and compliance risk, is the potential for crippling reputational damage. And companies are pointing to social media as a major make-or-break driver of their word-of-mouth standing among customers. "This is a natural reaction to recent high-profile reputational crises, as well as the speed of digital and social media and the potential loss of control that accompanies it," says Henry Ristuccia, Deloitte's global leader of governance, risk and compliance programs. "[Damaging news] goes to a wider audience more easily, and its record is stored digitally longer." Other tech-created concerns include the transformative power of apps in the cloud, and, of course, the ever-present threat of a cyber-attack. An estimated 300 executives worldwide took part in the research. For more about the survey, click here

Dennis McCafferty is a freelance writer for Baseline Magazine.


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