Just read the latest industry publications or open up your e-mail newsletters and you will see numerous headlines like: CFPB Hits Three Lenders as Part of False AD “Sweep”, Holder Asks Lawyers to Pursue Bankers in Mortgage Fraud Cases, CFPB Fines Lender $2M for Alleged Kickback Scheme, As Founder Is Pushed Out, Owen’s Future Is Cloudy. Here’s how you can stay out of these headlines:
As you can see, these are not flattering headlines. This type of press can have an extremely negative impact on your business. When these type of stories are published many companies scramble and look to implement a “crisis management” or “reputation management” strategy.
Crisis management is typically thought of as the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. Reputation management normally is referred to as the influencing and/or control of an individual’s or business’s reputation.
The major problem that we typically see when companies are dealing with these situations is that they try to implement these strategies after the fact. The first time that companies think about crisis management and reputation management is after the stories have run and after the reputation of their company and the individuals running it have already be run through the ringer.
Proper reputation management should start long before an issue or situation ever arises. Companies need strong communication strategies that enhance the reputation of their organization and its leaders before a problem arises. They need to deliver thought leadership and valuable insights to the market in a genuine and proactive way.
Companies should never underestimate the cost of a poor reputation in this or any other marketplace.
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