Experts agree that the most effective protection for a reputation is to consistently follow best practices in conducting business so that negative incidents are avoided. However, bad things can happen to good companies – especially when it comes to data integrity in an era of pervasive hacking, viruses, spyware and malware. Therefore, it is important to be prepared to defend your company’s image.
The following five steps proposed by Travelers Insurance Company address both proactive and reactive measures for maintaining your reputation.
1. Assessment. Understand the risks to reputation that your company faces, whether it is from data breaches, product failure, customer complaints or social media attacks. Identify your company’s assets that can be called into action to defend or repair your reputation.
2. Response plan. Create a plan for handling a negative event, including identifying an Incident Response Team. If a data breach occurs, what steps will the company take first? Who will notify authorities, who will handle media, who will be the liaison to customers? What resources are available to handle the extra workload and to provide the expertise necessary to address the situation? The plan should lay out timelines and responsibilities so that key decisions are already in place and do not have to be made on the fly and under the pressure of the moment.
3. Risk transfer. As for any other type of risk, a company should look for ways to transfer the risk of suffering a data breach. Many types of insurance today include coverage for cyber incidents. Look for a policy that offers financial resources to contract for reputation management services and public relations expertise.
4. Relationships. To avoid a steep learning curve in the midst of a crisis, develop relationships in advance with vendors who can provide reputation management assistance. Make sure the vendors understand your company’s values and goals, as well as your marketplace position and brand value.
5. Communications posture. Effective communication is critical during times of crisis. The first few hours and days can make a significant difference in how customers and the general public perceive a company. Is the company transparent, forthright and responsible? Or is there an attempt to gloss over facts, hide pertinent information and deflect blame? Reputation management experts agree that Sony mishandled its network breach by failing to keep customers informed for days after the event, while Heartland has been lauded for directly phoning 175,000 customers and engaging in full public disclosure.