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

Published 30 December 2024 by Renee Murphy & Katelyn Johnson &
Reputational Risk Risk Management Risk Management Strategic Focus

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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. 

Table of contents

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

Table of figures

Figure 1. Key recommendations for managing reputational risk

About the authors

Renee Murphy

Principal Analyst
Renee Murphy is a Principal Analyst in the Risk Management practice at Verdantix. Her current research targets GRC, with a particular focus on the integration of ESG into GRC. Prior to joining Verdantix, Renee was Chief Evangelist at Diligent Software; she also worked at Forrester for a decade, where she was Principal Analyst, covering risk management, audit and sustainability management.

Katelyn Johnson

Senior Manager, Risk Management
Katelyn is the Senior Manager in the Verdantix Risk Management practice. Her current research agenda focuses on climate risk and its integration into risk management frameworks. Prior to joining Verdantix, Katelyn was a climate scientist at GNS Science in New Zealand. She has previously held roles in the energy industry, where she helped projects manage risk due to weather and ocean phenomena. Katelyn holds a PhD in Geology from Victoria University of Wellington and an MS in Earth Sciences from Ohio State University – both focusing on climate science – as well as a BS in Meteorology from Texas A&M University.

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