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How can you protect your company from reputational risks?

How can you protect your company from reputational risks?

Reputational risk management is becoming the reason for the rise or fall in the value of companies and their executives’ careers.

In a hyper-connected world, where, in a few clicks, society, customers, supply chains, and employees are responsible for giving credibility to brands, the only way to protect your brand is by monitoring – in real-time – all the risks related to your assets.

To understand the challenges of reputational risk management in agribusiness and how our experts can help you protect your brand, read the following article. This content will give you parameters to assess existing and potential threats to your company’s reputation, and to find out if you have the right tools to monitor and take steps to protect your brand. Check it out.

How does a bad reputation affect the value of companies?

The value of a company is composed of two equally important elements: the tangible one, related to assets, and the intangible one, in which the main component is the corporate reputation.

The share of intangible assets, such as brand equity, has grown in importance in the value of companies over the years and it has represented 84% of the market value of S&P members since 2015.

Faced with a competitive scenario aggravated by economic, geopolitical, operational, and health uncertainties, it becomes imperative to map and monitor all the variables that can negatively impact the reputation and value of your brand.

Corporate reputation risks and ESG principles

Banks and financial institutions, in addition to following the guidelines inherent to their business area, must manage risks related to the ESG agenda before validating their operations, since they could be held responsible for irregular actions taken by employees and partners. ESG is the index that assesses the impact of companies’ operations in three sustainability areas: Environmental, Social, and Governance. Corporate reputation is made up of several attributes, including sustainability. Therefore, understanding which situations can weaken your company’s reputation is essential. Among the reputational risks related to sustainability, there are social, attitude, safety, product, integrity, and ethical risks.

How can I protect my brand from reputational risks?

Companies believe that in order to protect the reputation of the brand, it is enough to elect a responsible person to manage eventual crises, either the CEO or the CMO. Unfortunately, once the reputational crisis sets in, there is little that can be done to prevent a drop in the company’s market value. It is crucial to foresee possible reputational risks, map and analyze all the variables of your value chain, even the imponderable ones, to identify weaknesses and, only then, shield your brand. Our data intelligence experts have prepared substantial material that explains what different types of risks you are subject to, the damages they cause, and how to manage and mitigate those risks to protect the value of your brand.

How Agrotools can help in risk management

Agrotools, the largest AgriTech in Latin America, has been securely providing data intelligence in real-time on agribusiness for 15 years, for its customers to foresee opportunities and mitigate risks in the management, monitoring, and validation of risk in their operations. Our digital solutions such as Brand and Safe make it possible to carry out social and environmental monitoring 100% remotely, reducing exposure to the risks of non-compliance with environmental legislation, ensuring compliance with ESG principles, and shielding the brand against financial and reputational damage.

Have you been considering intelligence in agribusiness data in the management, monitoring, and validation of risk in your operations? Consider Agrotools. Access our AT Market portal and choose from our many customizable digital solutions the ones that best fit your needs.


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