Beazley Report: Brand Reputation Management Holds Risks & Rewards

Risk is often as much about sentiment and feeling, than it is about hard data. But there is no doubt that workplaces in the UK are rapidly becoming a minefield of grievance culture, where everyone feels offended by something: Words, action, or lack of action, after all silence is violence – you name it, there is a complaint going into HR about it next week. Then there various activist groups attacking your brand online, depending on the current thing in the news, or a sudden shift in activist tactics or ideology.

So much time can be spent on managing a company reputation now it can require outside consultancy, as well as an ever expanding HR and wellbeing department, especially for larger companies with several geo-locations. Here are some insights from Beazley;

Beazley, the leading specialist insurer, today published its latest Risk & Resilience report: Spotlight On Business Risks 2023. The report reveals how perceptions around business and executive risks, from employee risk to reputation management to ESG regulation, are changing the risk landscape for business leaders. Over a third (35%) of global executives now plan to explore insurance options that include risk and crisis management as business challenges mount.

The report findings show that despite the growing threat of external risks facing global boardrooms, Chief Executive Officers and business executives are increasingly concerned by the risks within their organisations. The data, based upon a survey of 2,000 global business leaders by research company Opinion Matters, reveals how employer risk is rapidly rising up executives’ risk agendas. In 2021, 11% of global executives said this was their top risk but in this year’s survey, it has doubled to 22%.

Among the challenges organisations are grappling with, the growth of the #MeToo movement and a welcome increase in staff reporting workplace issues has led to a rise in allegations being made, and these factors appear to be drivers of concern. Additionally, a worsening of staff mental health post-pandemic has placed a greater emphasis on workplace support initiatives. Worryingly, 1 in 4 (27%) executives surveyed said they feel ill-equipped and unprepared to deal with today’s employer risks.

The research also highlights the interplay between employer risk and reputational risk, with companies increasingly exposed to a potential backlash in the court of public opinion as the treatment of staff is more closely scrutinised. The report illustrates how the so-called ‘culture wars’ and increased pressure on organisations to take a stance on societal issues are creating a further reputational challenge. Business leaders surveyed believe managing their reputations will become increasingly tough in the coming months, with 17% ranking this as their top risk today, rising to 19% in 2024.

Bethany Greenwood, Group Head of Specialty Risks, Beazley said: “Global business leaders are dealing with a challenging array of new and persistent risks that threaten their business models. It might seem counter-intuitive that executives are increasingly looking inward at their workforce and workplace to meet today’s challenges. However, the last few years have shown us the importance of executive decision-making that drives positive change in the workforce and supports colleagues.

“The continued aftershocks of the ‘great resignation’ post the pandemic, consequences of the ‘culture wars’, and continued scrutiny of the #MeToo movement continue to weigh on firms. This makes sound governance and strong communication from the top more important now than ever before as employers navigate an increasingly polarised world.”

The employer risk challenge increases across the globe