Global Risk Landscape 2020
30 June 2020
The fifth annual BDO Global Risk Landscape Report explores insights from more than 500 C-suite executives and senior risk experts globally on how reputational risk is perceived and managed in 2020 and beyond.
Themed ‘The Integrity Index’, the report highlights how being trusted confers extraordinary advantages to a business, now more crucial than ever before.
Key findings from the research:
- Businesses are becoming increasingly vulnerable to reputational risk, with 70% of businesses having experienced an event that has proposed a threat to its reputation.
- One in three (35%) of businesses believe they have a reactive approach to reputational risk, rather than proactive.
- Companies are alert to the dangers, with 25% saying shareholder price is a primary consequence of reputational damage, and a quarter also believing customers will take their custom elsewhere.
- Demonstrating corporate integrity while acting without values is an issue that can touch even reputable companies. Our survey revealed the scale of ‘integrity washing’ - the act of businesses worrying more about the perception of integrity than the practice. A significant 87% of executives believe their organisation is culpable and almost half (49%) agreed with the statement: “Completely, so long as we are perceived to have integrity we do not prioritise putting it into practice.”
- Integrity is vital, with 99% of respondents agreed on that. Customers flock to brands they believe in and trust, and that sense of integrity allows the company to outperform rivals.
In the current climate it is imperative that boards and executives think about risks before they arise and ensure that integrity is woven into the fabric of the company.
Download the Global Risk Landscape Report 2020
For more information, please contact your BDO Risk Adviser.