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Every Brand is Vulnerable
Wednesday, 10 October 2012 11:08

Every organisation faces crises. The Business Continuity Management Survey (2012) revealed that 85% of companies suffer some form of disruption every year. Often these can be large-scale events, such as flooding, fire and terrorism, but lesser events, such as power cuts, an IT systems crash and email mishaps can equally cause as much disruption.

One of the main concerns facing organisations is the reputational damage the disruption will cause. The organisation's inability to fulfill orders, to deliver their service, to lose key data or to contact their customers, can cause significant damage.

The Reputation Review 2012, a report conducted by Oxford Metrica, revealed that crises have caused many organisations to lose value. It was reported that 7 out of 10 companies who were impacted by disasters in 2011 lost more than one third of their value, and two companies lost almost 90%. It was further reported that 80% of firms will lose 20% of their value once every 5 years due to reputational issues.

It is therefore critical that every organisation should take a positive and thoughtful approach to developing a coherent reputation strategy. The culture of 24-hour news cycles and instantaneous social media means the response must be quick and to the point. Not only will it minimise the likelihood of a critical event turning into a reputational crisis, but it will maximise the probability of a recovery.

To ensure an effective reputation strategy, the Report makes the following recommendations:

  • Evaluate reputation equity to benchmark the effectiveness of your current reputation strategy;
  • Analyse the drivers of reputation risks to allocate your financial resources more effectively;
  • Develop a reputation recovery strategy to generate the best chance of recovery in the event of a crisis;
  • Monitor reputation equity to provide senior management with crucial and timely feedback, enabling confident decision-making and rapid response to emerging risks.


It is vital for organisations to revisit the issue of reputational risk on a regualr basis to share experiences, to open their eyes to the what-ifs and consider the tools and solutions available to help them prepare and manage this evolving challenge.

Remember - an effective reputation strategy can be the difference between recovery and failure for many companies.




EPS Client's Testimonials

EPS provided a first class service in guiding us through the BCM process from start to finish.  We now have a well structured, comprehensive and easy to follow BCM plan, an eager Crisis Management Team and a trusty Battle Bag - all we need now is a crisis!

Chris Ross
Partner, John McKee & Son Solictors

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