ABSTRACT
There are internal and external stakeholders – people or entities with a stake in what another entity or person is doing for or with them. Some stakeholders are both internal and external and some stakeholders may also be actors. An entity's critical actors create expectations in the entity's stakeholders. A crucial role of stakeholders in reputation risk is that they hold the keys to the entity's reputational trajectory. If expectations are managed rationally and something better than expected happens in terms of performance, results, behaviors, the entity might get a reputation and concomitant financial boost as stakeholder trust increases. To add to the confusion about the already amorphous and malleable nature of reputation risk, reputation itself is a curious thing – it is in many ways in the eye of the beholder. Thus within and outside of an organization, what reputation risk means, whom it means what to, can be multifaceted and diverse.
