Reputational
Risk Still a Top Concern for Boards
For
a second straight year, boards of directors see reputational
risk as their top concern. They're also displaying a new
optimism about a financial recovery, and are making plans
to hire staff to support CFOs, according to a survey by
EisnerAmper LLP. The study, "Concerns About Risks Confronting
Boards," found that 66% of 193 directors see reputational
risk as their top concern, compared with 59% who view regulatory
risk as the top concern. While survey respondents' worries
about regulatory risk have remained relatively stable, "the
concern about reputation has grown over the last couple
of years," says Kreit. He notes that their reason for
concern is "the very high-profile issues that have
occurred with companies over the last few years," including,
for instance, the BP oil disaster on the Gulf Coast.
Taken
together, the top areas of concern in reputational risk
are product quality, liability, and customer satisfaction,
at 39%. Second is a combination of concerns about integrity,
fraud, ethics, and the Foreign Corrupt Practices Act, which
totaled 24%.
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Best Practice
for Internet Background Checks
Results
of the survey's data around social media and Google background
checks in the Monster/BLR Survey of Recruiting Best Practices.
Do
you visit candidates' social media pages (e.g., FaceBook
pages) as part of your background checking procedures?
Nineteen percent of respondents indicated that they did
visit candidates' social media pages
Have
your hiring decisions been influenced by what you found
online?
Forty-one percent have been positively influenced to hire
based on information they found online, while twenty-six
percent have turned down a candidate based on what they
found online.
To
read more, click here |