With the rise of social media and other online communication methods, the number of reputational risk management concerns businesses have to manage has expanded.
Along with managing ethical employee behaviour on social networks, businesses also have to ensure their cybersecurity systems are able to protect valuable information. The value and quantity of data businesses collect is increasing, which can create further challenges in this area.
As initiatives such as e-commerce result in consumers trusting organisations with personal information such as addresses and bank details, it's important they are able to come across as trustworthy. Cyberattacks that compromise this image can have a notable effect on a business's reputation.
Australian CEOs need cybersecurity focus
KPMG investigated the way Australian CEOs are responding to the mounting cybersecurity concerns, finding there is notable room for improvement if executives want to mitigate the potential risks to their business.
According to the survey, Australian CEOs are less concerned about cybersecurity than their global counterparts. Around a third of international executives are focussed on these issues, compared to just a quarter of those in Australia.
Cyber Security Leader at KPMG Gordon Archibald provided valuable guidance for professionals looking to create a tangible link between data theft and reputation risk.
"Organisations need to understand what the 'crown jewels' are, what value they would have in the wrong hands, where they are located and how well they are protected," he explained.
Mr Archibald says the danger for Australian organisations lies in the fact that, while they understand they need to be concerned about their ability to be trusted with valuable data, they are unaware of how to put these concerns into action.
Facebook changes corporate affairs communication
In the event that a business does have to manage risks to their reputations, it's important they have access to the communications channels that allow them to interact with the public effectively.
While traditional channels are still an important part of these strategies, businesses can now cut out the middle man and communicate directly with the public.
Facebook reported there are now more than 50 million active business pages on the site, which receive around 2.5 billion comments each month. The organisation has updated the way these pages work for businesses. Now, to be classed as highly responsive, businesses have to reply to 90 per cent of the queries they receive within five minutes.
The changing face of corporate communication will continue to force organisations to evolve to ensure they foster a positive reputation with the general public.