Reputability is the leading consultancy for educating Boards and senior leaders about the importance of behavioural, organisational and reputational risks, and instructing them in how to respond to these issues. Reputability is outstandingly effective in this because of our unique blend of research, experience and expertise.
We believe that if there is only one lesson to learn from the corporate catastrophes of recent years it should be that most big problems ultimately emerge from board level, with human frailty in its many forms being a key factor in precipitating the crisis or tipping it into a disaster.
The Financial Reporting Council (FRC) now recommends boards to disclose and describe, in their Annual Report, Principal Risks arising from behavioural and organisational matters.
Our insights will bring you foresight.
The main drivers of reputational risk - behavioural, organisational and board risks - are not included in conventional risk analysis, so they do not feature in risk maps.
As a result, the opportunity to manage potentially catastrophic risks is missed by many large organisations. This gap can prove lethal to the viability of the entire business.
Only board-level intervention and input can deal with this.
We believe that long-term, sustainable business success depends on leaders who understand, and take action to abate, the risks arising from unwanted behaviours from the bottom to the very top of their organisation.
It is common to find that vulnerabilities with the potential to threaten the survival of a firm are well known to people within the firm - whilst the leadership remains in the dark. Internal politics, hierarchies, taboos, culture, incentives and glass ceilings often obscure these risks. This situation is made worse by the inability of people and organisations to see themselves as others can – what psychologists call cognitive biases.
We call this the ‘Unknown Knowns’ problem.
Our latest report, ‘Deconstructing failure – Insights for boards’ confirms that previously unrecognised classes of behavioural and organisational risks both cause crises and tip them into reputational catastrophes. The report goes further, finding patterns and concluding that these potentially lethal risks typically have their origins in the board.
It is especially difficult for boards to uncover these destructive risks because classical risk management hasn’t evolved far enough to find them. That is how boards find themselves with a dangerous hole in the risk management systems for which they are ultimately responsible. And it is why the widely promoted 'Three Lines of Defence' risk management model gives boards a dangerous delusion of security.
Board Vulnerability Evaluation is a new tool designed to help boards to see into this foggy area.
Our approach is individually tailored to the needs of each client. Nothing is assumed and nothing is ignored.
We combine confidential peer review with the know-how we have accumulated from extensive research into reputational risk and its behavioural drivers. We add the experience each of us has gained in senior roles, in diverse fields over many decades, to bring you fresh and compelling insights.
One important but often overlooked requirement, which all boards need to recognise, arises from the Financial Reporting Council (FRC) dictum that boards should regularly update and refresh their skills and knowledge so that they can function effectively.
The FRC now requires that boards' Strategic Reports to Shareholders include a description of principal risks and uncertainties. These specifically include those with their origins in organisational risks and behavioural risks. Boards will need tailored board education to help them understand and tackle this previously under-appreciated family of risks. We are perfectly placed to help.
Our multi-disciplinary team shares deep and broad know-how which has been accumulated through diverse careers and thought-leading research. Each partner brings to bear a lifetime's experience and a different perspective to consideration of your issues.
Together we can offer clear insights and an attractive and persuasive proposition to all those who are seeking protection from, and mitigation of, reputational risk.
View the biographies of our partners to see more:-
Anthony read engineering at Cambridge, then became a solicitor specialising in international liability and insurance law.
During two decades as a partner in one of the leading legal specialists in the handling of international disasters, he refined strategies to prioritise and reconcile the reputational, humanitarian, commercial, legal and insurance issues arising in crises. He also advised major brands in the wake of severe adverse events.
Following his retirement from the law, Anthony founded Reputability, of which he is Chairman. Anthony is a co-author of ‘Roads to Ruin’, the Cass Business School report for Airmic.
Professor Derek has 30 years’ experience in the insurance industry. Formerly UK Strategy Director for Royal and Sun Alliance, he has co-authored many books on risk analysis, risk management and insurance, notably ‘Reputational Risk: A Question of Trust’ and the Chartered Insurance Institute textbook on insurance company management. He was a co-author of ‘Roads to Ruin’.
He currently teaches risk management, reputational risk, and insurance on the Cass Business School MSc course. Derek is chairman of the Board Risk Committee for Trust Re and a partner at Reputability. He was also a member of two UK government working groups on risk related issues, and was awarded the Exceptional Service Medal of the Chartered Insurance Institute.
After graduating as an aeronautical engineer, Mike flew fast jets for the RAF and went on to become the UK’s Chief Test Pilot.
As Group Safety Director and Executive Board Member of the Civil Aviation Authority, he was responsible for all safety regulation in the UK aviation industry and built a global reputation for aviation and safety assessment. He also worked in the design of safety cultures and implementing design changes with aircraft manufacturers worldwide.
A partner at Reputability and a fellow of the Royal Aeronautical Society, Mike was awarded a CBE for services to UK civil aviation.
Rob Haslam spent 40 years as a Government Communicator. After graduating, his varied career included spells at the Department of Health, the DTI, Health and Safety Executive, Prime Minister's Office, Cabinet Office and the Central Office of Information where - as Director of the Government News Network - he was a member of the national media emergency forum.
He was part of the Gold Command response team after the London bombings, having previously been involved with media handling at the scene of events such as the Lockerbie disaster and the Hillsborough Stadium tragedy.
After graduating in economics from LSE, Jane joined a team, which sold into Saatchi and Saatchi. She went on to head the Leedex PR Group, joining the board of its parent company, Birkdale plc.
One of only a few Chartered Communicators, Jane has 30 years’ international and award-winning experience. Republic, the corporate communications business she founded was sold to Engine, the UK’s leading independent marketing services consultancy.
Jane is a partner at Reputability, a fellow of the Chartered Institute for Public Relations, a founding Fellow of the Public Relations Consultancies Association, a trustee of Fair Trials International and a Quantum NED.
After leaving Manchester University where he was a Research Fellow in Monetary Economics, John trained as an equity analyst at Philips and Drew, which later became UBS.
He has dedicated most of his working life as an investment analyst covering banks and financial companies. He was a partner at Laing and Cruickshank and was appointed as Head of European Research at Nomura, before moving on to Société Générale as senior bank analyst in London.
Today John is a partner at Reputability and Chairman of Blue Planet European Trust – a quoted Scottish Investment trust.
A Professor of Psychology at City University, Peter’s research centres on the psychological theories of judgement and discusses how people make decisions and judgements. His published books include ‘Subjective Probability’ and ‘Judgemental Forecasting’.
A member of the European Association for Decision Making, Peter has been a visiting Professor at the Anderson School of Business UCLA, Princeton and Carnegie-Mellon universities in the USA, as well as the Max Planck Institute in Berlin.
Educated at Harvard, Rick went on to become a Director and Executive Committee Member at the IMD Business School in Lausanne.
Later he was first Chief Claims Strategist at Swiss Reinsurance Company, one of the world’s leading reinsurers, General Counsel and COO of Touche Ross, and Global Director of legal and regulatory affairs for Deloittes.
Richard is currently Chairman of the Board of the Center for Capital Markets at the US Chamber of Commerce, a member of the Board of the Centre for the Study of Financial Innovation and Director of Liability Research for the Geneva Association.
Introduction to behavioural and organisational risk
This seminar and discussion draws on topical case studies and the latest research to reveal the ways in which behavioural and organisational risks can inflict lethal reputational damage.
Behavioural and organisational risk workshop
This module combines the introductory seminar with an in-depth case study. Working in small teams, participants deconstruct and consider the root causes of a real reputational crisis, and gain deeper insights into the analysis of corporate disasters.
Board Vulnerability Evaluation
Board Vulnerability Evaluation is designed to deliver a forensic assessment of board-level vulnerabilities, as well as other risks which are visible to the board.
Corporate Vulnerability Evaluation
Corporate Vulnerability Evaluation extends and complements Board Vulnerability Evaluation by drawing on additional knowledge that is often only available below board level - information that leaders want to know, but can't find out.
The result of our input is that you will be able to set your company's reputation on sounder foundations.
"Quite superb. You packed a great deal into the short period available."
''It exceeded my expectations and we now have something to build upon. As I said, the timing could not have been better''.
''Let me thank you cordially for your excellent workshop [for Chief Risk Officers] on organisational and behavioural risk management. We had planned your contribution to be the climax of the event, and so it was.''
''Many thanks again for your presentation.......we got very positive feedback from the Committee members, who found your presentation highly interesting, relevant and well presented.''
''I thought it was a (well moderated!) fascinating discussion and it was great to get so many different perspectives. ..This topic is obviously relevant to a large number of boards and I suspect we're at the beginning of a significant change in the way they address their duties''.
''Your presentations were uniformly well received and highly valued. We are most grateful to you all for making this event such an unqualified success......The feedback from delegates was uniformly positive. ''
Boards need Trust
Financial Times May 2014
Big bonuses bring risks
Evening Standard April 2014
Getting real on reputation protection
Evening Standard January 2014
PR is not always the best response
PR Week 26 July 2013
Reputation at risk
Ace European risk briefing 2013 July 2013
There's no strength in ignoring flaws
London Evening Standard 17 July 2013
The risk of boards
Financial Times video June 2013
A new tool to sniff out boardroom risk
London Evening Standard June 2013
Deconstructing Failure - Insights for boards
Better Boards by Peter Whitehead
Financial Times June 2013
Embattled bank's troubles far from over
London Evening Standard July 2012
Common Core of Corporate Culture Risks
BBC Today Programme July 2011
Here's how firms can learn from Murdoch
London Evening Standard July 2011
Boards can be Blind to Risk
Sunday Times July 2011
When does a tax issue become a risk?
Ernst & Young Tax magazine May 2010
Risks to Performance of the UK Government Service
Civil Service World August 2014
Reporting Principal Risks: Guidance for Chairmen
International Corporate Governance July 2014
FRC Prepares for Action
ICSA Governance and Compliance Magazine March 2014
Response to the FRC’s Consultation on Guidance on Risk Management
Reputability LLP January 2014
'Deconstructing failure': Practical steps for Chairmen and Boards
Governance October 2013
Behavioural and reputational risk for insurers
Journal of the Insurance Institute of London September 2013
Deconstructing failure - Insights for boards
Download the report by Reputability June 2013
Deconstructing failure - Insights for boards
Buy a print copy of the report
The boardroom and risk
Good Governance Forum June 2013
Roads to Ruin
Full Report by the Cass Business School for Airmic July 2011
Roads to Ruin
Download the Analysis July 2011
Catastrophe risks - the Boardroom perspective
Governance December 2011
'Soft' risks - the risk managers' perspective
Geneva Association Risk Newsletter November 2011
Reputational Risk for Chairmen and Company Secretaries
ICSA International June 2010
- Policy and Governance for Risks to Reputation November 2009
Reputational risk - A question of trust
Professor Derek Atkins, Ian Bates and Lynn Drennan 2006
Reputability LLP are pioneers and leaders in the field of reputational risk. We help business leaders to find the widespread but hidden behavioural and organisational risks that regularly cause repetitional disasters.
Here are our thoughts on some recent stories which have captured our attention. We are starting to include views from guest bloggers. We are always interested to know what you think too.
ContactPlease get in touch if there’s anything you’d like to discuss – in confidence, of course.
You can call us on +44 20 3755 3309 or email us at firstname.lastname@example.org
Amadeus House, Floral Street, Covent Garden, London WC2E 9DP
T:+44 20 3755 3309
Financial Reporting Council issues new guidelines to boards on risk17. 09. 2014The Financial Reporting Council has today issued new Guidelines to Boards on Risk.
These guidelines are a substantial revision that brings behavioural and organisational risks into sharp focus. You can download a copy from here.
We are working on a detailed note on the guidelines and their implications.
You can make sure that you keep up to date by 'following' our blog - type your email address in the box in the right hand column of the blog.
Reputability contributes to Civil Service World04. 09. 2014Reducing risks to board performance would reduce staff turnover and cut the number of costly project failures. That was the gist of an Opinion Piece by Reputability partner Rob Haslam in Civil Service World, the magazine for top UK Civil Service professionals.
The piece is the first of a regular series of colaborations between Reputability and Civil Service World.Read more...
Companies must now report behavioural risks with important consequences30. 07. 2014International Corporate Governance, the authoritive publication on corporate governance, has published an article by Reputability Chairman Anthony Fitzsimmons. The article explains the implications of the UK Financial Reporting Council's new Guidance on the Strategic Report. You can read the article here.
The guidance has immediate effect and provides that the Strategic Report should include 'a description of the principal risks and uncertainties facing the entity, together with an explanation of how they are managed or mitigated'.
‘Principal risks’ are defined as including risks and risk combinations that could seriously affect the performance, future prospects, reputation or business model of the entity.Read more...
The guidance explains that the disclosure should include risks with their origins in behaviour and organisation, and that the description of risks should be specific so that a shareholder can understand why the risks are material to the entity.
Financial Times cites Reputability22. 05. 2014Stefan Stern cited Reputability in his Stern Words column today, "Boards need trust but verify".
Having discussed the importance of trust in boardrooms, Stefan Stern wrote:Read more...
"[Behavioural and organisational risks], as Anthony Fitzsimmons, chairman of the consultancy Reputability, notes, have lain at the heart of many corporate disasters in recent years. Dysfunctional or untrusting relationships come before a fall.
But Mr Fitzsimmons cautions against “unquestioning trust”, too.
“Trust has to be of the mutual kind,” he says, “that will, for example, welcome, listen to and digest other perspectives, perceptive questioning, constructive criticism and robust challenge – not to mention unwelcome news.” "
Anthony Hilton cites Reputability29. 04. 2014In an article entitled "Big bonuses are really no incentive", Anthony Hilton cited Reputability's recent blog post on recent large scale research into the effects of big bonuses on performance. This shows that the biggest bonuses bring with them additional risks.
Anthony Hilton drew on a Reputability blog post "Big bonuses lead to poorer performance", which joined up research by Dan Ariely and more recently by US academics Michael Cooper and Huseyin Gulen and Raghavendra Rau of Cambridge on the effect of large incentives on performance.Read more...
Anthony Fitzsimmons participates on BBC Business Matters24. 04. 2014Anthony Fitzsimmons was a guest on the BBCs Business Matters programme, anchored by Mark Whittaker. He discussed issues of the day, including the Rana Plaza disaster one year on, with Mark and Professor Peter Morici
You can download a podcast of the programme through this link.Read more...
© Reputability LLP 2013
Reputability LLP is a limited liability partnership registered in England.
Registration Number: OC371538.
Registered Office: 14 Westmead, London SW15 5BQ.
Reputability Partners LLP is registered for VAT in the United Kingdom.
VAT Registration Number GB 127 7787 71.
We are registered on the UK Data Protection Register, No. Z3134753
We respect the privacy of every individual that enters our website.
All information that you provide to us will be kept private. We will not pass information about you to anyone outside our organisation.
You may from time to time receive emails or other mailings from us. These will typically contain news or other publications from us. If you no longer wish to receive these, please inform us by email or post.