Michael D. Moberly – January 4, 2024 – Business Intangible Asset Strategy & Risk Mitigation & Founder – Business Intangible Asset Blog
The Business Intangible Asset Blog includes numerous posts about and countless references to business reputation risk. That’s because the ‘reputation – brand – standing of a business leader, an institution, and/or a product, or service, etc., is an intangible asset,
I encourage (as an intangible asset strategist and risk mitigator) prospective targets – preys of reckless reputational accusations, recognize that brands – reputations are perceptions, ala…
- opinions, perspectives, thoughts, feelings, attitudes, judgement, and/or viewpoints, etc., experienced, heard, acquired, and variously believed about people, businesses, institutions, products, services, and/or operating cultures, etc.
- held by customers-consumers-buyers-users-investors at various points along value-supply-distribution chains,
- rooted often in various combinations of need, service, cost, quality, outcome, and/or convenience, etc.
Every business, which I am familiar has devoted time, money, talent, and resources to…
- proprietarily develop, apply, and hold a particular or unique form, context, and/or application of intellectual, structural, and relationship capital,
- differentiate, enhance, and sustain attractivity, competitiveness, and valuation of products and services vis-à-vis reputation and brand.
Routinely though, when reputations experience reckless external shouts that disparage motives – behaviors of business leadership and/or its operating culture, even the best of reputations – brands can ‘take a hit’. That is, either can suddenly convert to a costly and momentum stifling liability.
At this point, a tactical – strategic race commences to react, respond, and try to stop additional economic, competitive advantage, and valuation hemorrhaging.
Unfortunately, the keystroke speed (depth, breadth) which harm(s) materialize, and (asymmetrically) cascade enterprise wide. This can lead to reputation positives abruptly switching to liabilities.
Not infrequently many reputation risk events remain variously portrayed, assessed, and reactions – responses framed in convention-laden contexts, e.g.,
- as if a business’s reputation is a tangible-physical-fixed asset.
- whose contribution to and their depreciation value, insofar as revenue generation capability, wealth creation potential, competitiveness-attractivity, durability, and sustainability, etc., are standardizable.
A practical, expedient, advantageous, and beneficial approach to kick start business leaders, management teams, boards, and investors orientation in brand-reputation risk matters is important, e.g.,
- which, what, when, where, how, why to proactively apply intangible asset-specific safeguards + risk mitigations to ‘mission essential’ brands and reputation(s), in ways that more,
- correctly reflect how brands – reputations embody the right sets of intangible assets being developed, introduced, and applied, in the right way, at the right time, at the right cost.
The approach advocated here, more correctly frames the rationales for assessing, monitoring, and measuring the objectives and outcomes of the intangible asset-specific safeguards and risk mitigators, via this universal business economic – operational reality that…
- 70 – 80+% of most business’s valuation, competitiveness, revenue generation capacity, and sustainability lie in – emerge directly from intangible (non-physical) assets, most of which are developed internally, held proprietarily, embed in operating culture, and convey – characterize reputation and standing. Intangibles | Brookings – Unseen Wealth: Report of the Brookings Task Force on Intangibles on JSTOR – Intangible Assets: Computers and Organizational Capital | Brookings
We are obliged (at Business Intangible Asset Blog) to acknowledge this approach is not a standalone panoply. Rather, there are additional ingredients – components that warrant reader attention insofar as developing good-better-best enterprise-wide approach to mitigate a business’s vulnerability, probability, and criticality to ‘external shouts’ intended to adversely affect and/or bring suspect to a business’s reputation.
In a coming post (now under construction) additional present-day realities are presented to mitigate the public challenges which bringers of business reputation risk now regularly rely.
The Business Intangible Asset Blog was created in 2006 and now includes 1100+ topic specific posts intended to provide readers, ala business leaders, management teams, R&D administrators, boards, and investors, etc., with reliable insights to the application, valuation, competitiveness, revenue generation, and sustainability contributions of intangible assets.
Posts at Business Intangible Asset Blog are intended to draw attention to the development, application, management, safeguards, and risk mitigation of business’s ‘mission essential’ intangible assets.
kpstrat is a Business Intangible Asset Strategy – Risk Mitigation Collaborative.
Readers of this post are respectfully invited to explore other – similar posts, along with books, pamphlets, and papers available @ ‘Business Intangible Asset Blog’ and kpstrat.com.
