Companies need to be aware of their risks. They must identify and assess them and ultimately reduce them by taking appropriate measures. At the same time, they should not leave the public in the dark, but actively address their concerns.
Building an image takes a long time. This is especially true for companies that produce goods that are not generally considered good and risk-free by society. Building a positive image is difficult, time-consuming, and seemingly impossible to maintain. Even if it takes a long time to establish a good reputation in society, it can be destroyed in a matter of minutes by a crisis.
But let's take a step back and find a suitable example.
Build trust
Let's assume you are the communications officer for a medium-sized company that produces green electricity. At first glance, you are in a good position in the public eye. After all, you are doing good for the environment, working sustainably, and have a low ecological footprint. In this situation, it is easy to believe that there are only minor risks. At the same time, it is your social responsibility to protect the company from external risks, no matter how unlikely they may seem to you. Discussions affecting society as a whole should not be led solely by the media; companies also have a responsibility to engage in these discussions.
In order to do your job optimally, you must, of course, identify and manage all potential risks. Your goal: to build trust. As a communicator, you must have complete access to facts and background information in order to be prepared for all eventualities. Only then will you be able to act visibly and authentically when dealing with the public.
Establish two-way communication
Viewed objectively, risk for companies consists of two factors: probability of occurrence and amount of damage. The higher one of these two factors is, the greater your risk. A company could now go ahead and mathematically determine whether it is worth taking a risk or whether the costs might be too high after all. An external presentation of these calculations usually fails—often because of the suspicion of trivialization, generalization, or misrepresentation, which is deeply rooted in our society.
Counteract this:
- Utilize experts.
- Get involved in social groups.
- In short: Engage in direct communication with your stakeholders!
Conveying risk awareness
In order to build a relationship of trust between companies and various stakeholders, it is helpful to clearly communicate your knowledge of risk issues. The scientific state of research and current research methods help to provide targeted information. This allows citizens to become active participants in risk debates rather than just observers of discussions. The next step is to communicate the current status of protective measures to counteract risk areas. Transparent communication of these protective measures is key to providing comprehensive information on critical issues and protecting the company from potential damage.
The perception of risks depends broadly on three key factors
- Voluntary assumption of risk,
- Distribution of potential damage and benefits, and
- Meaningfulness of the risk.
One term – two dimensions
A risk can be understood as such both subjectively and objectively. Subjectively speaking, for example, you consider the danger posed by oil platforms to be low. Although most people are aware of the theoretical risks, they consider them to be irrelevant in this particular case—because they trust in the credibility of the responsible organizations and the economy. In contrast, objective risk perception is based on scientific and measurable criteria. You assess the potential risk according to the general probability of occurrence, the expected extent of damage, and reversibility. Take car insurance as an example. You are aware of the contractual services provided by the insurance company and can base your decision on comprehensive data information.
But regardless of whether it is subjective or objective, risk communication is essential for companies. This Obligation on social responsibility. Apart from that, companies are almost obliged to communicate risks for purely economic reasons. This is the only way they can counteract crises and problems – and protect their image.
Yours, Christoph Moss
Collaboration: Patricia Sommer
Photo by Lubo Minar on Unsplash
