Few things are as hard to maintain or as easy or costly to lose as a good reputation. A look through the business section of your favorite tabloid often provides an example of how poorly managed risks can damage a reputation that took years to build. These risks may be internal or external, but either way, reputation risk management failure can significantly affect brand value.

A 2014 Forbes Insight study on behalf of Deloitte Touche Tohmatsu Ltd. surveyed more than 300 executives globally, from companies representing every major industry or geographic region.

Of the 300 executives surveyed, 87 percent rated reputation risk as more important than other strategic risks. The survey found executives believed reputation risk is a strategic business issue driven by a wide range of other business risks that all must be actively managed. Responsibility for managing that risk rests firmly with the board and the C-suite, these executives believed.