It's something that everyone who works in PR and reputation management knows - a company's reputation is directly correlated to its value.

There are numerous examples of where bad reputation management has contributed to a dramatic fall in share price (BP Deepwater Horizon oil spill) and even the collapse of companies (Gerald Ratner and the Ratner-effect).

It seems that this concept is now being consider in actual valuations of companies too. However businesses are struggling to issue spot before a risk turns into a problem. This is why when we advise on crisis communications we regularly provide vulnerability audits and scenario planning as well - so that we can preempt situations - thereby stopping issues from escalating to a crisis and ultimately affecting your reputation and value.