Cyber Threats Emerge as Top Reputational Risk to Corporations
Cyber attacks have become the most significant threat to corporate reputation globally, according to the 2024/25 Reputational Risk Readiness Survey conducted by Willis, a WTW business. The survey gathered responses from 500 senior executives worldwide and found that 65% identified cyber attacks as the primary reputational risk, marking an increase from 52% in 2023. Environmental concerns closely followed, with 64% of respondents citing them as a major risk, up from 52% the previous year.
Governance and social impact risks were also more frequently noted, with 56% and 47% of respondents flagging them, respectively. These increases occur amid evolving regulatory requirements and shifting stakeholder expectations across various jurisdictions. Despite the perceived risks, many organizations continue to weigh reputational exposure against potential business benefits. According to the survey, 57% of executives would accept a degree of reputational risk if the activity aligns with business objectives, with 69% assessing such situations on an individual basis.
Most organizations (94%) reported having budget reserves to address reputational issues. However, confidence in modeling the financial impact of such events has declined. Only 11% of respondents said their organizations have strong capabilities to forecast the financial implications of a reputational event, while 64% reported having a moderate ability to model outcomes, down from 74% in 2023 and 87% in 2022.
Preparedness appears to be improving in other areas, as 87% of organizations have a formal crisis response team guided by performance metrics, and 91% conduct annual drills to test communication plans. David Bennett, head of reputational risk management at Willis, noted a gap between operational readiness and analytical insight. “The results show that while crisis response teams are more robust than ever, modeling capabilities still lag,” he said.
Bennett added that newer tools, including AI-powered platforms, are improving the ability to monitor sentiment and evaluate potential reputational threats more accurately. Garret Gaughan, managing director at Willis, stated that leading businesses are managing reputation as an operational and financial risk rather than a branding exercise. “To build resilience, companies should develop strong risk management processes, including sentiment tracking and risk intelligence,” he advised.
