Reputational Risk

Posted on Wednesday, October 18, 2017

When talking about risk within a nonprofit, it’s common to think of fraud risk - the areas within the organization that are susceptible to fraud occurring.  Or you might think of IT risk - the risk of someone hacking into the organization’s computer system.  Or even legal and compliance risk - the risk of not following applicable laws or requirements. 

What about reputation risk?  Given that a nonprofit’s greatest asset is its reputation, time should be granted to focus on protecting it. 

Reputational risk is the loss due to damages to an organization’s reputation. It includes not only what is true but what is perceived about your organization.  In addition to lost revenue, a bad reputation can lead to the following.

In order to manage reputational risk, you must first understand how your organization is perceived.  The following are ways you can monitor your organization’s reputation.

In addition to monitoring your organization’s reputation, you should also be sure that you respond to any feedback or concerns.  How you respond to these has an impact on your reputation.

Don’t wait until things go wrong to measure or assess your organization’s reputation. 

Posted by: Carrie Minnich, CPA

Posted in Mission Minded Nonprofits

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.

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