Every week, there seems to be yet another corporation making the news for reasons they’d prefer not to have plastered across every media outlet in the nation. Companies are able to build upon and gain marketing leverage from carefully-crafted reputations, but even some of the most untouchable corporations have had their less-than-stellar moments in the spotlight…and the court of public opinion.
You’d think these public relations fiascos would send concerns about company reputation to somewhere near the top of the priority list for C-level executives, but according to CFO Magazine, that’s not the case after all. Last week’s article on executive reaction to reputational risk offered some interesting survey results: “The 2012 Excellence in Risk Management Survey, a study released this spring by the Risk and Insurance Management Society and Marsh, the big insurance broker, found that members of the C-suite who were polled globally placed brand and reputation as number 16 on their list of concerns. Their top concern was legal or regulatory shifts. Cash-flow liquidity was ranked second.”
At Apptricity, we’re pretty familiar with those priorities as our software solutions help target those concerns for companies looking to improve Sarbanes-Oxley compliance or to meet the exacting standards of other regulatory requirements. The concern over cash flow has also spurred adoption of spend management software, expense report software tools and other means to improve manual processes. Most of the activity has trended toward subscription-based Software-as-a-Service options, which keep company cash from being tied up in expensive equipment or systems.
It seems companies are looking more toward managing the risk of financial disaster rather than reputational fluctuations, a trend that’s unlikely to change until the economy is back on sure footing.