Case Study: Using Data to Navigate Geopolitical Reputation Risk

06 February 2024 / Report

To uncover how multinational companies (MNCs) can better prepare themselves to manage geopolitical reputation risk, The Conference Board’s China Center hosted a special member-exclusive webcast featuring two subject-matter experts to discuss the potential reputational impact for MNCs stemming from the Israel-Hamas War. This also discussed the importance of monitoring stakeholder sentiment to make informed data-driven decisions. Download the report to access the key highlights from the discussion.

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Building business resilience against geopolitical volatility has become increasingly important for MNCs. Besides contending with the impact of policies and regulations driven by national security concerns, and with rising risks of armed conflicts and other business-stopping events, MNCs are also operating in an environment where business itself has become increasingly politicized. The result is higher risks of reputational damage, public backlash, and boycotting.
Executives leverage data to inform their decision-making in almost every other aspect of their business, yet the use of data to manage reputation risk is lagging other risk indicators. The solution is creating a framework tailored for reputation risk that leverages the best available data as a foundation for evidence-based decision-making. Introducing data intelligence and measurement as part of an overall risk management program ensures the necessary tools, talent, and processes are in place for navigating geopolitical crises quickly and effectively.
Understanding the reputational and operational trade-offs of geopolitical risk requires tailored data that provides real-time insights into how geopolitics are impacting stakeholders’ perceptions of an MNC’s brand in different markets. Tracking this data enables crisis teams to tailor response strategies that pick up on important market nuance and is responsive to the needs of local stakeholders.
Understanding the exposure of competitors and/or industry peers helps give context to your own brand’s data assessment. Most MNCs look at their brand mentions in isolation, which can lead to incorrect assessments of the centrality of a brand and potential severity of the reputational impact linked to a geopolitical event.
Going forward, a cross-functional team that includes Risk, Operations, Communications and Government Affairs should be engaged to identify the geopolitical reputation risks to be tracked, the stakeholders and influencers leading these conversations, and the right data sets to measure reputational impact.