When reputational damage affects the potential economic viability of an organisation, we believe it’s a factor that no organisation can afford to ignore.
The ECB’s suspension of Yorkshire from hosting international and major matches means the club is already set to lose a Test Match and a One Day International in 2022.
It could also miss out as a venue for the 2023 Ashes tour unless it is able to meet the requirements set out by the ECB.
With sponsors also severing ties with the club, financial losses have been estimated to run into millions.
It’s not just the club that will suffer either: the cost to the wider Yorkshire economy will also be measured in millions, with BBC News reporting that test matches bring in about £2.5m to the Headingley area.
Any organisation that finds itself facing environmental, social and governance (ESG) allegations has choices.
How you respond will reflect who you are as an organisation and what you stand for.
And with social media, the world is not just watching, but forming and sharing opinions.
“With social media, the world is not just watching, but forming and sharing opinions.”
David Bennett | Global Markets P&C Hub, Willis Towers Watson
Taking a wrong step may only make your situation worse.
Perhaps more than any other industry, sports organisations understand the value of preparation.
Fortunately, there are steps you can take to mitigate the risks of reputational damage should you find your organisation at the centre of a crisis.
Including reputation on your risk register is a positive step towards understanding the risks you face.
“We advise carrying out regular reputational risk assessments, including risks relating to equality and diversity.”
David Bennett
Global Markets P&C Hub, Willis Towers Watson
We advise carrying out regular reputational risk assessments, including risks relating to equality and diversity.
Make it a senior management responsibility, as part of your ESG agenda and horizon scanning.
Measure how you’re doing, report on it, and have clear plans for how to mitigate any risks that emerge.
This can highlight any gaps or where you’re falling short, helping to prevent issues before they become a crisis.
Even if your organisation has a very positive and inclusive culture, you can never control the actions of every employee.
An isolated incident or the actions of an employee can quickly become big news.
This means it’s vital to monitor what’s being said about your organisation, especially on social media.
Consider whether you have a social media strategy in place, how closely it is aligned to your organisation’s wider strategy, and who owns it at board level.
Make sure that your crisis management plan includes reputational risk scenarios and specifies what to do if an adverse publicity event happens.
What matters is how you respond. In an unfolding situation, how you react in the first hours can either calm the situation or make it much worse.
“What matters is how you respond. In an unfolding situation, how you react in the first hours can either calm the situation or make it much worse.”
David Bennett | Global Markets P&C Hub, Willis Towers Watson
Recognise that a full-blown crisis may be beyond your communication capability and consider getting outside help to advise and manage your response.
Loss of contracts, sponsorships and ticket revenue can represent a serious financial risk.
The damage inflicted by a crisis can linger long after the story recedes from the headlines.
Recovering your reputation from the wreckage can be a long haul, taking months or even years. Make sure you plan for this.
At Willis Towers Watson, we believe sports organisations need a holistic solution that can help prevent a crisis happening in the first place and will support response and recovery if one does occur.
We’ve partnered with some of the global leaders in their fields to develop a comprehensive reputational risk solution that includes:
A Reputational Risk Readiness Review can help your organisation define and quantify its reputational risks, identify the potential impacts, and map any gaps in mitigation that need to be addressed.
Real-time horizon scanning through the powerful Polecat platform. Algorithms powered by artificial intelligence (AI) synthesise data from all online and social media channels into dashboards and risk alerts that link directly to the relevant media.
This can help you get ahead of events and prevent potential reputational issues escalating into a crisis.
Our solution provides access to experienced crisis communications experts who have managed crisis situations of all kinds around the world, including advising on everything from media handling and strategy to senior leader statements and speeches.
Our insurance product underwritten by Liberty Specialty Markets, offers up to $50 million cover for loss of gross profit as a result of a significant adverse publicity event, spread evenly over up to 12 months to help you stay afloat during and after a crisis.
Our experts will work with you over the longer term to develop campaigns and communications that can help you turn the tide of public opinion back in your favour.
To find out more about our Reputational Crisis Insurance and Risk Management Solution, please get in touch.
