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Rimrock Corporation

More Attention Needs to be Paid to Reputational Risk


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Reputational risk is a growing concern for all companies, especially as there is no one executive in a company that will "own" this problem.  You work hard to grow your reputation, to be the “go-to” company that your customers want.  It’s important to work equally hard to protect that reputation because all that you have worked for could be gone in the blink of an eye.

According to “Reputational Risk:  Put Someone in Charge and Act Quickly,” by Caroline McDonald, posted on CFO.com, of the 10 businesses that suffered the highest level of reported reputational damage last year, two businesses lost nearly 90% of their value and seven lost over a third of their value.  Those businesses took a substantial hit to their reputation, and their pocketbook, that could take years to recover from, if they can last long enough to get back up to par.  Taking precautions now can reduce the chance that you find yourself in a similar situation.

Protecting your reputation could start with knowing your potential risks.  As McDonald suggests, there are many areas within your business that can present a risk, such as your supply chain.  Allowing each of your separate departments, or separate facilities, to manage individual supply chains is inefficient, as well as fraught with risk.  For example, one warehouse might be flush with inventory while another warehouse is empty.  You might end up ordering more inventory, which essentially delays a shipment to a customer, and wastes money.  If you integrate your supply chain into a single enterprise resource planning (ERP) solution, you will be able to ship your inventory faster and clear out your warehouse, which saves money and impresses your customer.

An ERP software solution also gives you more control over finances, manufacturing operations, human resources and payroll, and much more.  Monitoring key metrics will give you better control over your operations which, in turn, improves productivity and profitability.  Real-time data also gives you the ability to react faster to problems.  You don’t need to wait until month-end or quarter-end to discover you blew through a budget cap or are dangerously low on key inventory.  A comprehensive ERP software solution can alert you to deviations in key metrics so you can address situations before they create risk.

Building a solid reputation and becoming the go-to company in your marketplace isn’t easy; however, it can be very easy to lose it all.  Protect all that you have worked hard to create by evaluating your risk and by controlling business operations with an ERP software solution.  Integrating operations and monitoring real-time business data can give you the opportunity to fix problems before it’s too late.  Contact Rimrock Corporation for more information about protecting your business with the right ERP: http://www.rimrock.com/about-rimrock/contact-us.

By Rimrock Corporation, a Microsoft ERP Partner out of Toronto

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