'Grey Swan' report analyzes 40 years of incidents that include 300 reputation crises' impacts and recoveries.
The average impact reflects a total of USD
In over 10% of reputation crises, more than 50% of shareholder value is destroyed
'Today, clients are justifiably focused on the unprecedented socioeconomic impact of the COVID-19 pandemic, but they are also increasingly aware of other challenges like climate change, supply chain disruption, reimagining and reconfiguring how and where work gets done and the growing health-wealth gap,' said
Like their better-known 'Black Swan' event cousins, 'Grey Swan' events can greatly impact firms; unlike Black Swans, which seem inconceivable before they happen, Grey Swans are known beforehand. Grey Swans are long-tail risks, known but thought highly unlikely - and thus firms have often neglected to invest scarce resources to prepare for them. Many extreme events, such as the 9/11 attacks, the 2008 financial crisis and, most recently, the COVID-19 pandemic, are considered
The report highlights how crises remain a major risk for organizations globally, analyzing data from 300 corporate crises from the last 40 years, examining Grey Swans' impact on shareholder value and identifying drivers of recovery.
'Risk management awareness has heightened over the last year. This research provides us with an evidence-based picture of the many challenges we face, not only when managing
For most organizations, the likelihood of a
Evidence from the research suggests three areas on which organizations should focus to build resilience:
Reimagining the risk landscape through a broader risk assessment
Acknowledging the seriousness of impact with a focused investment in risk preparedness and crisis management
Translating understanding into action, fostering a responsive and agile culture
Since 2017, Aon and Pentland Analytics have collaborated to produce independent, universal and industry-specific research focused on why some organizations succeed and emerge stronger after a crisis while others do not. To access the latest report, click here. In addition to the 'Grey Swan' analysis this year, Aon and Pentland also published reports analyzing what makes businesses within given sectors more resilient. This industry analysis focused on: Food, Agribusiness & Beverage; Life Sciences; and Financial Institutions.
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About Pentland Analytics
Pentland Analytics provides advanced analytics and advisory services to the executive management of the world's leading companies. The firm converts complex business issues into analytics solutions that yield clear insights and direction. The results inform strategic decisions and help to build clients' resilience, reputation and shareholder value.
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