Brian Harrell examines the importance of a positive reputation for energy companies in Energy Central
The most significant risk management challenge for energy companies might surprise you. According to Brian Harrell, director at Navigant, it has less to do with physical and cyber security – big issues for today’s industry – and more to do with reputation.
“Reputational risk is regarded as the greatest threat to a company's market value and standing in the community,” according to an Energy Central article Harrell co-authored. For example, “In a publically-traded company, loss of reputation can lead to swift declines in the share price, which can leave a company prone to takeover, or force it to lay off staff to show an effort to boost share price.”
The article goes on to list some of the factors that can affect a utility’s reputation, including:
“Building a utility’s reputation may take years, but it certainly can be damaged or even destroyed very quickly,” says Harrell.
Learn more about managing security and reputational risk