CRO Networking Group: Managing Reputational Risk
3 The IERP® Monthly Newsletter July 2018
On March 22, the IERP® invited a group of Chief Risk Officers for a discussion on Managing Reputational Risk. Our keynote speaker for this session was Mr. Nasiruddin Abdullah, formerly General Manager of Risk Management at Barakah Offshore Petroleum Berhad as well as a graduate of the IERP®’s Enterprise Risk Manager (ERM®) Program. Speaking on reputational risk management, Mr. Nasiruddin noted that many organisations are underprepared as well as unequipped in this area. Though stakeholders can agree that reputational damage can be very costly and stressful, reputational risk management is not often integrated into an organisation’s overall strategy.
Mr. Nasiruddin stressed that reputation (in terms of gaining public’s respect, trustworthiness and admiration) is the heart of any organisation, and reflects not only the importance of ethics and integrity of its governance and front-line employees, but also the quality of its strategy and operations, security, and products/services. Merely having a CSR program in place, for example, doesn’t necessarily mitigate reputational risk. This is because reputational risk arises as a consequence of other risks (e.g. operational risk, business risk). As such, it’s vital that organisations have a mature and holistic ERM framework in place that takes into account all risks in relation to each other.
with Nasiruddin Lim Abullah, Former CRO of Barakah Offshore Petroleum