Fundamentals of Risk Management

Reputation and the business model 
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FIgURE
 20.2
Mapping the components of reputation
Capabilities
Activities
Processes
Finances
Services
Support
Values
Integrity
Resources
Purpose
Standards
Ethics
There fore, organizations should look carefully at the reputation of the sector within 
which they work, as well as their own reputation within that sector. Many organiza-
tions deliberately plan actions that will enhance their reputation and thereby achieve 
greater success.
An organization should have the necessary capabilities to plan strategy, imple-
ment tactics, continue operations and ensure compliance. The capability should be 
reflected in a clear statement of purpose, intent or commitment. The activities that
an organization undertakes will be dependent on the sector in which it operates. 
Also, the organization will require the necessary finances and financial stability to 
support its activities. Together, the capabilities and activities of the organization define 
that organization from an internal perspective.
The organization will offer a range of services and products and the standards of 
service and service delivery will be a critical component of reputation. Finally, the 
organization will have business ethics that demonstrate its integrity. Integrity will be 
demonstrated, to some extent, by the monitoring of performance in order to learn 
and achieve continuous improvement in performance.
The use of a chart, such as that shown in Figure 20.2 will enable the organization 
to map its overall reputation, within the context of the sector in which it operates. 
For each of the four segments, or eight attributes, an organization should be able
to plot its current status in a ranking of 1 to 4, representing poor, adequate, good
and excellent. It will then be possible for the organization to identify the sectors
that represent the greatest threats to the reputation of the organization. Table 20.3 
provides examples of how the threats can arise.

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