Strategic Focus: Mitigating Reputational Risk In The Age Of Social Media

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Executive Summary

As we head into another era of consumers making their politics understood by the brands that they buy, understanding the context of reputational risks in the age of social media is crucial. Case studies like Bud Light, Maybelline and Tractor Supply demonstrate that a firm’s response to social media backlash can either amplify negative publicity or mitigate it effectively. Organizations should double down on their core values, prioritize stakeholders and lead with authenticity to navigate potential crises confidently. By recognizing the limited influence of internet commentators and avoiding reactive engagement, firms can maintain brand integrity and stakeholder trust. 
Organizations must understand a risk’s context before deciding on how to act
The power of context in risk management
The ‘troll effect’: likelihood and impact to brand reputation
Strategic recommendations for managing reputational risk
Figure 1. Key recommendations for managing reputational risk

About the Authors

Renee Murphy

Renee Murphy

Principal Analyst

Renee Murphy is a Principal Analyst at Verdantix. Her current research targets GRC, with a particular focus on the integration of ESG into GRC. Prior to joining Verdantix, Ren…

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Katelyn Johnson

Katelyn Johnson

Senior Manager

Katelyn is a Senior Manager at Verdantix, specializing in enterprise risk management and external risk and resilience. She helps executives navigate today’s evolving ris…

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