management department, the author starts his investigation at risk management department first to review its activities and strategy used for mitigating reputation risk. Considering the silo effect within the Vestas risk management, the author also investigated the communication department due to its closeness to the stakeholders. The investigation in two departments provides a vision over reputation risk management reality in Vestas, which provides a platform for model testing and implementation. 4.4.1 REPUTATION RISK MANAGEMENT IN RISK MANAGEMENT DEPARTMENT When investigating the risk staff in Vestas risk department, reputation risk seems to a new concept that has been under debate. Reputation risk from their perspective is link to corporate image, which is important for corporate growth but implicit in the mind. Their understanding of reputation risk is more inclined to be outcome of corporate operational risks which is the key risks they pay attention to. Therefore, good operational risk management is actually mitigating reputation risk. Based on such assumption, reputation risk in Vestas is not specifically defined into one category of risk. (Actually other risk categories such as financial risk, hazard risks, etc are not made yet, though in practice the factors of such risk have been noticed and tried to be mitigated) There is no method in practice to identify and measure them in quantity and no strategy for such mitigation. Reputation risk now is not on the risk register and there is no risk ownership for such risk. When they were asked the consideration of using stakeholder scanning to identify reputation risk, they denied the applicability of such action incorporated into the current daily risk management work within the risk department. From their perspective, the stakeholders behind the risk are implicit but clear in their mind. Currently the risk department has to serve for operational target of production BU s, which is explicit objective while conducting stakeholder scanning involves more paper work and is also out of the departmental capability. Measuring reputation risk via attitude analysis is also hard for the department. Especially nowadays; the Vestas is expanding quickly accompanied with the quick expansion of wind turbine market. In order to reach the target EBIT margin stated each year, Vestas production
management department, the author starts his investigation at risk management department first to review its activities and strategy used for mitigating reputation risk. Considering the silo effect within the Vestas risk management, the author also investigated the communication department due to its closeness to the stakeholders. The investigation in two departments provides a vision over reputation risk management reality in Vestas, which provides a platform for model testing and implementation. 4.4.1 REPUTATION RISK MANAGEMENT IN RISK MANAGEMENT DEPARTMENT When investigating the risk staff in Vestas risk department, reputation risk seems to a new concept that has been under debate. Reputation risk from their perspective is link to corporate image, which is important for corporate growth but implicit in the mind. Their understanding of reputation risk is more inclined to be outcome of corporate operational risks which is the key risks they pay attention to. Therefore, good operational risk management is actually mitigating reputation risk. Based on such assumption, reputation risk in Vestas is not specifically defined into one category of risk. (Actually other risk categories such as financial risk, hazard risks, etc are not made yet, though in practice the factors of such risk have been noticed and tried to be mitigated) There is no method in practice to identify and measure them in quantity and no strategy for such mitigation. Reputation risk now is not on the risk register and there is no risk ownership for such risk. When they were asked the consideration of using stakeholder scanning to identify reputation risk, they denied the applicability of such action incorporated into the current daily risk management work within the risk department. From their perspective, the stakeholders behind the risk are implicit but clear in their mind. Currently the risk department has to serve for operational target of production BU s, which is explicit objective while conducting stakeholder scanning involves more paper work and is also out of the departmental capability. Measuring reputation risk via attitude analysis is also hard for the department. Especially nowadays; the Vestas is expanding quickly accompanied with the quick expansion of wind turbine market. In order to reach the target EBIT margin stated each year, Vestas production
Proactive_reputation_risk_management_in_a_transnational_company.docx