Rising Uncertainty Reshapes Reputational Risk Landscape: Insights from Willis Towers Watson

The survey, which included responses from 500 senior executives across various sectors, indicates a significant decline in awareness of reputational vulnerabilities. Only 37% of respondents reported being aware of key hotspots of negative sentiment surrounding their brand, a steep drop from 56% in 2024. This shift reveals a worrying gap in the current understanding of reputational risks that organizations face today.

Moreover, the appetite for engaging in reputationally risky activities has significantly decreased. 56% of respondents expressed a low appetite for reputation risk, compared to 36% in the previous survey. This growing caution reflects the heightened awareness of potential reputational damage amid a backdrop of global instability.

The report identified cyber-attacks as the foremost reputational concern, with 67% of executives ranking it among their greatest risks. This concern has intensified due to the rising threat of AI-enabled cybercrime, which poses unprecedented challenges to brand reputation.

In addition, 57% of respondents cited social harms, such as labor exploitation in supply chains, as a significant reputational risk. This may indicate a decline in oversight as companies increasingly relocate their supply lines in search of cost savings, underscoring the need for more robust monitoring of labor standards.

Notably, the importance of reputation is underscored by the survey's findings that 82% of organizations rank reputation among the top three or top five risks on their risk registers. This statistic highlights a growing recognition of threats to brand and reputation as critical business concerns.

Interestingly, over 30% of organizations reported having strong capabilities to model the financial impact of reputational damage, a notable increase from just 11% in 2024. This shift indicates that companies are increasingly treating reputation as a measurable financial risk, prompting the insurance industry to develop advanced tools to estimate the occurrence and severity of reputation risks akin to models used for natural disasters.

David Bennett, Head of Reputational Risk Management at Willis, emphasized the importance of integrating reputation management into business processes. He stated, “In uncertain and turbulent times, organizations who take a surface approach to reputation as a function of communication and PR may be found wanting. Those that integrate it into their business processes and invest in building trust with stakeholders and customers every day are better placed to build the bases they need to avoid credibility hiccups when a crisis hits.”

Bennett advocates for a risk-based approach that identifies and monitors key vulnerabilities, allowing organizations to allocate resources effectively to neutralize threats and improve perceptions. He also underscores the necessity of developing a deeper understanding of underlying risks through sentiment tracking and risk intelligence, coupled with enhanced crisis preparedness.

The 2026 Reputational Risk Readiness Survey engaged 500 senior executives responsible for risk strategy across various sectors, including retail, manufacturing, leisure and hospitality, transportation, NGOs, and charities. The survey spanned 20 countries across Europe, the Middle East, Asia Pacific, North and South America, and Africa, with a diverse representation of company turnover—37% of respondents from firms with revenues between $1 billion and $2.5 billion, 26% from companies earning $2.5 billion to $5 billion, and 36% from organizations with revenues exceeding $5 billion.

The findings from Willis Towers Watson's latest survey highlight a critical juncture for organizations navigating the complexities of reputational risk. As corporate decision-makers face growing uncertainty, the emphasis on integrating robust risk management practices becomes paramount. By understanding and anticipating potential threats, organizations can better prepare for reputational crises, safeguard their brands, and ultimately enhance their operational resilience in an increasingly unpredictable world.