Welcome to an insightful conversation with Simon Glairy, a renowned expert in insurance and Insurtech, with a deep focus on risk management and AI-driven risk assessment. With years of experience helping companies navigate complex challenges, Simon has a unique perspective on how reputation plays a pivotal role in corporate success and resilience. In this interview, we dive into the often-overlooked value of reputation as a competitive edge, its critical place in risk management, and the consequences of prioritizing short-term visibility over long-term trust. We also explore how reputation impacts relationships with stakeholders and regulators, and how it can be measured and managed effectively.
How does reputation serve as a hidden source of competitive advantage for companies, and why do you think it’s so often undervalued?
Reputation is a powerful, yet intangible asset that can make or break a company’s long-term success. It’s not just about being known—it’s about being trusted. A solid reputation can attract loyal customers, top talent, and even favorable investment terms. But unlike a flashy marketing campaign, it’s not something you can build overnight, and I think that’s why it’s undervalued. Many companies are focused on immediate results—sales numbers, social media buzz—while reputation is a slow burn that pays off over time. The problem is, when a crisis hits, those without that trust foundation often crumble, no matter how strong their brand appears.
What’s the key difference between branding and reputation, and how does that distinction impact a company’s value over time?
Branding is about visibility and recognition—think logos, ads, and how a company presents itself. Reputation, on the other hand, is about perception and trust—how stakeholders feel about a company based on its actions and consistency. A strong brand might get you in the door, but reputation keeps you there. Over time, a company with a great brand but poor reputation will struggle because trust drives loyalty and resilience. If customers or investors sense inconsistency or a lack of integrity, no amount of branding can save you from the fallout.
Why do you believe reputation should be a core part of a company’s risk management strategy?
Reputation is a linchpin in risk management because it directly affects a company’s ability to weather storms. When trust is low, even a minor misstep can spiral into a full-blown crisis—think customer backlash or loss of investor confidence. Ignoring reputation leaves a company vulnerable to risks that can’t be fixed with a PR campaign. It’s not just about avoiding negative headlines; it’s about building a buffer of goodwill that can help you navigate challenges. Without it, every issue becomes magnified, and recovery is much harder.
How does a strong reputation influence a company’s relationship with regulators and other stakeholders?
A good reputation acts like a currency of trust with regulators and stakeholders. When a company is seen as credible and reliable, regulators are more likely to give them the benefit of the doubt during disputes or compliance issues. It opens doors to constructive dialogue rather than confrontation. Similarly, stakeholders—be it communities or government bodies—tend to support companies they trust. They’re more willing to collaborate or forgive minor errors. Without that reputation, every interaction becomes a battle, and you’re constantly on the defensive.
What drives so many companies to focus on short-term visibility rather than building long-term trust, in your opinion?
It often comes down to pressure—pressure from shareholders for quick returns, from competitors to stand out, or from internal goals to hit growth targets. A viral marketing campaign can deliver instant results, like a spike in users or media attention, and that’s tempting. Building trust, however, takes consistent effort over years, and the payoff isn’t always visible on a quarterly report. Many leaders assume trust will just follow popularity, but that’s a risky bet. It’s a mindset shift that’s needed—valuing steady credibility over fleeting spotlight moments.
Can you share some insights into how reputation can be measured and turned into actionable strategies for businesses?
Measuring reputation starts with looking at both internal and external perceptions—how employees, customers, investors, and even industry peers view the company. We use a mix of surveys, social media sentiment analysis, and key performance indicators like customer retention or trust scores. The goal isn’t just to get a number; it’s to identify gaps between what a company says and how it’s perceived. From there, we can create strategies—whether it’s improving transparency, addressing stakeholder concerns, or aligning actions with promises. It’s about breaking down something abstract into concrete steps that build trust.
Given that a huge portion of a company’s market value comes from intangible assets like reputation, how should this reshape their approach to risk management?
It’s staggering to think that 70% to 80% of a company’s value can be tied to intangibles like reputation, yet so few treat it with the same rigor as financial health. Risk management needs to evolve to include regular reputation audits, just like financial reviews. This means tracking stakeholder sentiment, anticipating potential trust issues, and having crisis plans that prioritize credibility. Companies should see reputation as a core asset to protect, not an afterthought. If most of your value lives in people’s perceptions, ignoring that is like leaving your biggest investment unsecured.
What’s your forecast for the role of reputation in corporate strategy over the next decade?
I believe reputation will become a central pillar of corporate strategy in the next decade, especially as digital transparency grows. With social media and instant information, stakeholders can scrutinize companies like never before, and trust will be the ultimate differentiator. Companies that proactively manage their reputation—using data, AI-driven insights, and authentic engagement—will stand out. Those who don’t will face increasing volatility, as even small missteps can escalate rapidly in the public eye. It’s going to be a make-or-break factor, and I expect more businesses to invest heavily in understanding and shaping how they’re perceived.
