Reputational risk management: is it important for corporate strategy?

Researchers in strategic management have already considered uncertainty to be a major factor affecting key strategic decisions. However, it seems that managers, although they understand that corporate risk is a built-in part of all aspects of business activity, and that any short-term or longterm decision or strategic trend has a risk component, they do not consider it as an integral part of business strategy. Moreover, this is true for those risks perceived as “intangibles”, such as reputational risk. Given this backdrop, this study investigates the process of risk in terms of interpreting, assessing, and managing reputational risks. The objective is to understand how the risk related to corporate reputation can be included into risk management process under a corporate risk strategy perspective. This research takes a critical step toward building a complete framework of reputational risk management, for understanding the relationships among corporate reputation, firm risk, and reputational risk.