52 Risks® Update (August 2021): Reputation and reputation risk: Top 100 US firms ranked, Scenario planning paying off for BHP, 52 Risks® featured in Australian Business Journal’s “15 Consulting Firms to Watch in 2021”, Risk Management Video – it’s all about choices, and more
Reputation and Reputation Risk – Top 100 US Firms Ranked
Reputation risk is an intangible risk and often a consequential risk. It will usually arise as a result of some other event (or events). How to manage and limit the downside reputation risk is a challenge.
But clearly efforts to enhance a firm’s reputation and manage downside risks do pay off in the long run. A recent research report and infographic from The Visual Capitalist and The Harris Poll shines the light on those firms managing reputation risk well – as well as those doing a poor job.
The top three were filled by Patagonia, Honda and Moderna. The bottom three places were Facebook, Fox (Media) and the Trump Organization. The ranking of Facebook at #98 begs more questions than answers. It is clearly a profitable business – but has more than its hands full managing its reputation.
Reputation ranking is a leading indicator of future challenges Facebook will have in achieving strategic and financial goals. Any deterioration in the annual rankings can point to actual or potential reputation risk and damage. Particularly in a world very focused on ESG issues.
Scenario Planning Paying Off for BHP
It is always pleasing to see risk management explicitly playing a role in strategic planning.
It is no secret that the move to electric vehicles has opened a new market for nickel miners. BHP’s announcement last month that it has signed an agreement to supply Tesla, the world’s largest electric vehicle maker with nickel, a key raw material used in batteries for elective vehicles demonstrates this potential. 500%+ growth in nickel demand is expected over the next decade. You can read more about the deal here.
BHP’s announcement highlights the value of longer-term strategic thinking about the impact of climate change on businesses and identifying the upside potential.
BHP’s 2020 Annual Report provides, in a lot of detail, its strategic responses to climate change and sustainability and the use of scenario planning and other risk management techniques, more generally. In the annual report, BHP stated that “Climate-related scenarios, themes and signposts are used to evaluate the resilience of our portfolio and inform BHP’s strategy.”
Business Model Risk, Climate Change Risk and Revenue Risk are all key risks under the 52 Risks® framework.
52 Risks® Featured in Australian Business Journal’s ’15 Consulting Firms to Watch in 2021′
Really thrilled to have Notwithoutrisk Consulting included in the list of “15 Consulting Firms to Watch in 2021” in the Australian Business Journal last month.
It has been pleasing to see the demand from clients across all industries for our unique offering blending strategic planning and risk advisory insights and capability.
In addition, having access to, and leveraging off, the 52 Risks® framework (www.52Risks.com) brings a fresh approach to risk management thinking to businesses, small, medium, and large. The full list of 15 Consulting Firms to Watch in 2021 is here.
Risk Management Video – It’s All About Choices
I was recently reminded of a neat little video I first saw over ten years ago at RiskMinds International in Geneva. The video was put together by the now Sir David Spiegelhalter, better known as Professor Risk, from the University of Cambridge. It illustrates that risk management – like life – is all about choices. As I often say, ‘every business decision you make – or don’t make – is not without risk’.
It is a good video to use in risk training and education sessions.