Large businesses and corporations are at greater risk for bad publicity, however most have the financial resources in place to repair it. Unfortunately, we can’t always say the same for small businesses. Small businesses have a lot to lose, and are less likely to recover from poor publicity. It’s important to understand the potential reputational risks your company could experience, and how to prevent them before they occur. 

What is reputational risk? 

Reputational risk is the possibility of negative publicity impacting your company’s public image and financial stability. Remember, a company’s reputation is objective and based on public perception. Regardless if the publicity is fact, fiction, negative or positive — it can drive the behavior of consumers, investors, employees, etc. That’s why it’s important to proactively build reputation management. A solid reputation helps businesses gain new customers, attract quality employees, and achieve financial stability. It can also help your company build connections with others in the community such as vendors, suppliers, and more. The scary thing about reputation is that it can take years to build, and only seconds to destroy it. And if you go down…all your partners and connections are going down with it.

What events can hurt my company’s reputation? 

In the IT world specifically, data breaches are the biggest reputational risk for small businesses. There are countless ways a cyber attack can occur, and all of them can prove detrimental to your data. The loss of data not only creates a lack of trust from your customers, but can also require a significant chunk of change to get it back. It is particularly harder for small businesses to financially recover from an event like this. To learn more, check out our blog post on 5 ways to protect your small business from a data breach.

What steps can I take to ensure my company’s reputation is protected?

• Identify potential threats. Make a list of all the potential cyber attacks that could pose a threat to your business. Then, narrow it down to which are most likely to happen. This will give you a better idea of where to shift your focus and what tools are needed to protect you from those threats. 
• Establish a business continuity plan. The way you respond to your customers is arguably the most important part of reputation management. A business continuity plan outlines what steps and procedures will take place should a cyber attack occur. The way your company publicly responds to a data breach can make or break a small business.
• Have the right technology in place. Having a solid tech stack full is critical in stopping an attack before it happens. There are a variety of software tools and services that provide protection in specific areas of cyber security. The stronger and taller your wall is, the harder it is to break it down. It’s an investment, but one worth having. 

Looking for someone to assist you in reputation management? Thinline Technologies provides business continuity consulting services, so your company can put its best foot forward. In addition, we offer a variety of other IT consulting services including cloud solutions, managed services, and more. Visit our services page for more info, and contact us today.