Branding And Risk Management

A company’s brand reputation gives its clients and prospective clients the ability to trust that the intended product or services to be procured will be delivered satisfactorily, based on the terms and conditions agreed by the client and company.

Having a reputable brand means having a unique name, product or service in consumers’ minds through campaigns, enlightenment and media exposure, using a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers

Risk Management is the process of identifying, assessing and controlling threats to an organisation’s capital, earnings and reputation. The threats include financial uncertainties, legal liabilities, strategic errors, accidents and natural disasters, etc.

How does Branding relate to Risk Management?
Reputational risk is very difficult to recognize, classify or place a value on its protection, but restoring a company’s good name and brand image can take years.

According to Zurich Insider Magazine, a business can achieve its objectives more easily if it has a good reputation among its stakeholders, especially key stakeholders such as its largest customers, opinion leaders in the business community, suppliers, current and potential employees.

By neglecting brand and reputation management, you could risk the following:

  • Adverse publicity
  • Loss of business to competitors
  • Inability to charge a premium for products and services
  • Lack of stakeholder support for your organisation in times of controversy
  • A hit to your organisation’s value in the financial marketplace
  • Lack of staff, volunteer and customer loyalty and awareness
  • Vulnerable figureheads
  • Possible litigation costs
  • Negative attitudes and behaviours leading to:
  • Decreased performance
  • Worsened services provision
  • Decreased customer satisfaction
How should businesses plan and mitigate risk?
The above threats if actualised could damage the reputation of an organisation. Therefore, the threats MUST be properly and consciously managed all the time.

To effectively manage a brand and avoid reputational risks, a company must have management level risk analysis to ensure that potential risks are identified, analysed, prioritised and classified (insurable and non-insurable risks).

Scope of Brand Management
Branding & brand management is always thought of as a company logo, a catchy marketing slogan or attractive advertisements. It is more about the credibility of a company, the quality and relevance of the products or services.

An organization’s brand is its Personality (or Identity). Managing that means ensuring consumers, competitors and employees perceive your products and services – as well as your resilience – in your own perception. This perception must also be backed by reality and not just an image that is packaged in a glossy brochure for the world to believe. In today’s social media world, one mistake (on your Brand) can be quickly exposed around the globe –putting your organization in crisis management mode, rather than a mode of risk and brand management.

A respectable researcher once wrote:

"Well-managed risks equal well-managed brands. In fact, integrated risk management and brand management are arguably one and the same”.

Here’s why: A company’s brand is really the company itself. Therefore, risks that could shake the business to its core, can also shake the brand to its foundation.

written by:
Nnamdi Nweke-Ilozue
Head of Infographics
Insurance Brokers of Nigeria Limited

For more information on any of the above forms of insurances, contact
Insurance Brokers of Nigeria Limited,
4, Ilabere Avenue, off McPherson Avenue, Ikoyi
Tel: 0700 -CALL- IBN (0700-225-5426)
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