Mastering Reputational Risk with SCAN-Interfax

Managing reputational risk management is vital in today's fast-paced, highly digitalised world where any adverse media coverage can significantly harm a company’s financial performance and marginalise stakeholder trust. ?

SCAN-Interfax is a leader in risk management solutions that enable organisations to identify, assess, and mitigate reputational risks. It has established itself as an indispensable tool for organisations to navigate the complexities of reputation management, which is especially of great value in unpredictable, high stakes environments.?

Using an integrated approach, SCAN-Interfax provides real-time alerts and news analysis so companies can set up proactive remedial measures rapidly and safeguard their brand value, stakeholder trust and overall financial health.?

“The impact of volatile, and often unsubstantiated, coverage cannot be underestimated, especially when they are associated with ethical scandals and customer data breaches,” said Per, manager at Interfax Europe. “The incidents can lead to legal disputes and commercial instability that can attract more negative exposure.”?

He explained that such episodes can have devastating financial consequences to a company’s commercial viability. “Negative media can cause stock prices to tumble, by as much as 10–20 percent in a single shot,” he said, adding that it also jeopardises partnerships and client relationships, leading to the break of alliances, and the loss of lucrative collaborations, such with other brands or public entities.

As adverse media coverage lives in the public domain, customers who are exposed to it may decide they no longer want to buy from the tainted entity and may choose to share the information to influence their family and friends.

“The importance of proactive monitoring to address issues early is vital to turn around a situation before it becomes amplified to a degree that is unmanageable and can’t be turned back,” the manager added.

In practical terms, when a company that operates in a high-risk jurisdiction uses SCAN-Interfax, the solution would monitor mentions about a supplier, or partner, suspected of malfeasance, he explained, adding, that it would alert the customer, who can then sever ties quickly with the suspect entity, before the story spreads further.

He said an example of this occurred when a multinational firm received real-time alerts about a lawsuit involving a subsidiary. Armed with this knowledge, it was immediately able to set up damage control measures that minimised the fallout.

SCAN-Interfax’s comprehensive media monitoring solution aggregates information from a variety of reliable sources, including news platforms, legal databases, and public records. It flags stories suspected of potential harm and assesses their possible impact on corporate reputation. The real-time alerts feature sends out instantaneous notifications about new risks, enabling organisations to respond promptly. The importance of speed cannot be underestimated, as any delays in addressing negative media reporting can lead to prolonged reputational damage, the manager explained.

SCAN-Interfax’s risk analysis and reporting tools make it possible to evaluate the severity of the reputational risks. After the evaluation, actionable insights are offered, such as the emergence of recurring themes that need to be monitored, triggering vigilance about high-risk associates mentioned in the media.

Setting up the monitoring parameters is the essential first step in the SCAN-Interfax platform: defining the keywords, the regions, and the entities in the monitoring exercise. This ensures the tool is focused on only the most relevant risks for the organisation.

He explained that along with the technology itself, an important success factor is in the preparation and training of internal teams, to be able to interpret SCAN-Interfax reports, understand the gravity of certain data, and implement mitigation strategies immediately.

“Our solution can be integrated into existing risk frameworks and internal protocols for a holistic reputation management approach,” he said, adding that proactive reputation monitoring isn’t just about avoiding losses and maintaining market performance. “In fact, it is competitive advantage that builds resilience and boosts crisis management capabilities.”?

As leader in this space, SCAN-Interfax can empower companies to stay ahead of public perception risks, protect their brand value and safeguard their financial health.?