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Reputation Risk

This week, Pepsi unveiled a new offering: Pepsi True, a mid-calorie, lower-sugar soda that uses a mixture of sugar and stevia, a plant-based sweetener. By offsetting some of the sugar with stevia, the company has reduced the sugar content by 30% and the calories by 40%. Each 7.5 oz. can—a smaller serving than the traditional [...]


Many risk managers are struggling to get their arms around reputation risk. One challenge is that risk, a threat to valued asset or desired outcome, is hard to discuss in modern terms without statistics. Statistics, on the other hand, can be mind-numbing. First, the accountancies. Eisner & Amper reports that reputation risk has been the [...]


Properly assessing risk is critical to any business. Successful businesspeople understand that every decision they make must be weighed against the potential risk to the company. This risk assessment must not be limited solely to situations directly related to the business itself, however. They must also consider reputation risk, or the risk events will have [...]


In the May issue of Risk Management, I wrote about CVS Caremark’s bold move to ban the sale of cigarette and tobacco products in its 7,600 pharmacies nationwide. At the time, CEO Larry Merlo said, “We’ve come to the decision that cigarettes have no place in an environment where health care is being delivered.” The [...]

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