Reputational damage is becoming a main concern for law firms, a survey says. Vladimir Kim
The survey, conducted by the Economist Intelligence Unit, revealed that 80 per cent of respondents believed reputational issues would become a top issue. The report, titled 'View from the Top: A board-level perspective on current business risks', also found that 43 per cent of Asia Pacific respondents saw a significant increase in the board's time spent on risk management whilst 55 per cent say there has been a significant increase in financial investment.
Increased business risks
The report was commissioned by law firm Clifford Chance whose Sydney head of corporate, Danny Simmons, said that companies were now focusing more on business risks due to the growing culture of regulatory investigation and publicity surrounding events involving companies. He also said that companies have to deal with data and cyber risk, which is extremely important because of the confidential client information put on databases. If that information is released, Mr Simmons said, there would be consequences for the client and significant reputational issues for the law firm. Social media is also an important topic, as bad news about a company can released on the Internet in minutes that can cause reputational damage.' Source: Australasian Lawyer