Cyber threats have emerged as the most prominent risk to corporate reputation, according to the 2024/25 Reputational Risk Readiness Survey from Willis, a WTW business.
The survey, which gathered responses from 500 senior executives worldwide, found that 65% identified cyber attacks as the primary reputational risk, up from 52% in 2023. Environmental concerns followed closely, cited by 64% of respondents, also a rise from 52% the previous year.
Governance and social impact risks were also noted more frequently, with 56% and 47% of respondents flagging them, respectively. The increases come amid evolving regulatory requirements and shifting stakeholder expectations in various jurisdictions.
Despite the perceived risks, many organizations continue to weigh reputational exposure against potential business benefits. According to the survey, 57% of executives would accept a degree of reputational risk if the activity aligns with business objectives, with 69% assessing such situations individually.
Most organizations, or 94%, reported having budget reserves to address reputational issues. However, confidence in modeling the financial impact of such events has declined. Only 11% of respondents said their organizations have strong capabilities to forecast the financial implications of a reputational event. Another 64% said they had a moderate ability to model outcomes, down from 74% in 2023 and 87% in 2022.
While confidence in predictive modeling has weakened, many organizations appear to be investing in crisis readiness. The survey found that 87% have a formal crisis response team guided by performance metrics, and 91% conduct annual drills to test communication plans.
David Bennett, head of reputational risk management, direct and facultative, at Willis, said the findings point to a gap between operational readiness and analytical insight.
“The results of the survey show that while crisis response teams are more robust than ever, modeling capabilities still lag,” he said. “In today’s unpredictable environment, the ability to anticipate and assess costs and liabilities is becoming increasingly critical.”
Bennett added that newer tools, including AI-powered platforms, are improving the ability to monitor sentiment and evaluate potential reputational threats with greater accuracy.
Garret Gaughan, managing director, direct and facultative, said some companies are approaching reputation more systematically.
“Leading businesses are managing reputation as an operational and financial risk, and have moved away from viewing it as a branding exercise,” he said. “To build resilience, companies should develop strong risk management processes, including sentiment tracking and risk intelligence.”
