Abstract
Consequences of a major accident can take two main forms. The first and most obvious is direct losses arising from the accident, represented by physical damage. In addition to this, a less obvious effect of an accident is damage to the reputation of the company. Estimating this is especially challenging because it can be encountered in various forms. For example, loss of future sales or a change in the relationships with stakeholders, such as lenders and suppliers, resulting in damage to the reputation of a company is often overlooked. This chapter introduces the approaches emerging in the literature that are increasingly being used to quantify the reputational damage of events that companies have experienced in the past. Advantages and disadvantages of the approaches are also discussed. Studying past events helps improve the prediction of potential consequences of an accident in the future and raise risk awareness of analysts.
