What is Brand Risk Management?
The definition of brand risk management is identifying, treating and monitoring any threat to a brand, essentially to lessen the possibility of a brand or product failing in the market. Types of brand risk include reputation, recognition, awareness, position, legacy, loyalty and customer perceptions.
Why is Brand Risk Management Important?
Organizations have to rely on their reputations to attract consumers, investors, and business partners. Reputation and brand are complicated, hard to measure, and always changing. It takes consistent effort to monitor and manage external perceptions of a brand, but the cost is the company itself.
Brand Risk Management Factors
A few factors of successful brand risk management are identifying the risks you face, deciding what your priorities are, considering the cost of action versus inaction, and measuring your impact. Reputation management, very similar to brand risk management, is something else to keep in mind.
Reputation management is defined as monitoring your brand perception and addressing any potential issues. It’s slightly more focused on external perceptions of your company/brand, as opposed to compliance, legal, fiscal, or technical issues your brand might face. It’s important to always both monitor and manage these various risks.
While all monitoring is a type of management, managing issues includes more steps than just brand monitoring.
Once you’ve detected or found potential reputational or larger brand risks, being proactive and trying to diffuse or refute them can be an important step. There’s more to do than just keep close watch to mentions of your company, thought that’s always an important step to take.