According to the Aon-sponsored Reputation Review 2012, a report recently issued by Oxford Metrica, an independent analytics and advisory firm, 7 out of 10 companies “measured in the report that were impacted by disasters in 2011.”
They lost “more than one-third of their value and two companies lost almost 90 percent.” Aon therefore concludes that a focus on the supply chain “can make the difference between organization growth and failure post-crisis.”
The review points out that in order to analyze the “dynamic between corporate reputation and financial performance, it is important to study the effects of large-scale crises, whether manmade or driven by external forces. Events such as the Japan tsunami and earthquake as well as various accounting scandals, have caused many organizations to lose value.”
Randy Nornes, executive vice president with Aon Risk Solutions, also noted: “While the principles of reputation recovery are made more vivid by crisis, they apply equally to lesser events that can still damage a company’s reputation. Last year’s research revealed that 80 percent of firms will lose 20 percent of their value once every five years due to reputational issues.
“Any company
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