Reputation is a measure or estimate of people’s opinion about a certain entity. The entity may be any organization, firm or company.

Companies spend a lot of their energy in earning reputation. The companies have special departments to manage their reputation. This department works only for the publicity and reputation of the company. The reputation is one of the most value able asset for the company because the company’s whole progress depends on its rate of reputation. If the company have a high reputation in the market or society then it represents that how more progressive is the company. When people hear and talk about your company in good words say great things then all this stuff is reported by the media so a company gets more queries from the customers. In this way, a company or organization get progress.

Not only the companies serve their energy in earning the reputation, the social media activists also work hard to earn reputation. If you have made a website, then you have to put great things of interest on it so that more and more people visit your website and give a positive response. The number of visitors on your website the more reputation you will earn. The greater number of visitors on your website represent your success and your reputation among the people.

There are equal chances of getting the reputation and losing it in a society depending on the number of factors that can be proved the major risks of losing reputation. some of them are discussed below as:

  • Ethical violation
  • In disciplined social policies
  • Poor customer dealings
  • Poor Internal interaction with employs
  • Weak management of database
  • Gap between reality and expectation
  • Old methods of publicity
  • Theoretical evaluation


Ethical violation is one of the major risks that the company may lose hiss good position and reputation in the society or people. The workers of any company when they treat their customers poorly then they lose reputation in society. The poor behavior towards the customer dis-hurt them badly so they never recommend and share your brand or product among their family, friends, and social circle. The people then only share a bad experience of your company with others. It’s the critical issue is also then reported by the media in the whole world in no time a company loses its reputation.


In-disciplined social activities are also included, in serious risks which may lead you to the edge that you may lose your company’s all reputation in no time. The department of your company that dealing with the social policies show irresponsible behavior towards the socially connected people to your company. this decreases the number of queries, in your company.


With the advancement of the time, the things also have been changing. The poor methods of calculation have been changed with the advanced technology. The big account register has been now replaced by a modern database system. The modern database where makes all the process easier it also gives some reputational risk. All the companies use advanced database system but due to poor management of the database the company has to face poor results in the market. It may also harm the reputation of the company. Due to poor accountability, the company bears the loss. There may produce data redundancy, uncertainty and many other instrumental and personal error is of great risk for the company’s organization. Hackers seem to hack the financial data of the company and the customer information. The data breaches become very common from some years which gives reputational risk on the high cost.


The gap between the reality and expectation represents the progress of any company. When there is a large gap between the reality of the product by a company and expectation of the people it will prove a great risk. The company lost his trust and people gives a negative response. In this way, the company loses its reputation among customers, stakeholders and investors.


People, environment, and thoughts are changing with time so the methods of attaining people’s attraction also should be changed. While some companies use old methods of getting attention among people to earn reputation. But these methods are not so effective to get a reputation. In fact, these methods always produce negative reactions. With the growing age, people don’t like the old methods and old things.


It’s very necessary to know about the people opinion to evaluate the company reputation in the market or society but sometimes companies only do theoretical evaluation which is not the written estimate of your reputation in the market so it also is a major risk to the reputation.

These are all above discussed are the major risks to the reputation of any company or organization. A reputation earned by a company in a long time to be established in the society and for this company has to do thousands of various good deeds but a single misdeed can destroy all the struggle and reputation.


Some companies when they get fame forget to treat their customers. The poor dealings with the customers of the company staff lead the company to the edge of their failure. The products produced by the company should be of high quality but after getting reputation the standard of the products start to fall gradually the company instead of earning more money will lose its reputation and finally, fail to align with the reputation.


Poor internal interaction with the employees can also become a risk for the company’s reputation. When the company owners don’t provide basic facilities to their customers, in turn, are losing the trust and loyalty of the employees. Then employees don’t show any responsible behavior towards their duty. So in this way, the standard of the product does not remain the same and company have to face serious negative response in the market and also before stakeholders and investors. All of above discussed are the main reputational risks for any firm.

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