What Is Reputational Risk? [+ Real Life Examples]

This is defined as any sort of threaten or danger that can damage the good standing of your business and negatively impact your reputation with consumers and overall business success. 

Such risks are usually unexpected and occur with little to no warning. All kinds of reputational risk can cause consumers and sometimes business owners to lose confidence in the business.

1. Direct actions of your company and company practices: actions included here could be by not complying with regulations, data breaches due to unsafe practices, or internal scandals that become public knowledge.
2. Actions of anyone who directly represent your business: employees who poorly represent your brand to others, business leaders with negative reputations, or employee misconduct
3. Direct actions by partners or suppliers: partners or suppliers who speak ill of your business or engaging in misconduct
4. External Factor: Customers: negative social media posts or negative press