At a time of unprecedented transatlantic trade tensions, a new Global Risk Advisory Council survey reveals a growing gap in the reputational risks companies are facing on either side of the Atlantic.  The Q2 Reputation Risk Index shows the top threat confronting companies is disinformation, driven in many cases by polarized political agendas that are increasingly ensnaring the private sector.  Yet, the Council of over 100 preeminent public affairs leaders finds European firms are more vulnerable to perceived deviation from social responsibilities like climate and anticompetitiveness.  In the United States, political issues like association with Elon Musk and DEI backtracking continued to top the Index.

• Recent reputational risks rated as the most severe were AI misuse, association with or criticism from Elon Musk and DEI backtracking.

• 86% believe reputational risks will increase over the next quarter (rating of 6+ on a scale from 1-10, with 1 being a significant decrease and 10 being a significant increase in risk). 

• In the coming months, Council experts from around the world will be monitoring reputational risks related to technology, DEI programs, and geopolitical uncertainties, specifically the shift from traditional U.S. policies and approaches from the Trump administration.

By Ali Bien-Aime

In today’s volatile business landscape, diversity, equity, and inclusion (DEI) efforts have highlighted the tension between political pressure and public backlash, becoming a key axis of reputational risk. The Q1 2025 Reputation Risk Index™ from Global Situation Room (GSR) confirms what many communications and corporate affairs leaders already sense: backlash against DEI is now a defining issue in the reputational risk environment.

Global Situation Room Inc. (GSR) announced that Isabel Guzman, who led the U.S. Small Business Administration (SBA) and is now Founder of Avenida Advisors, will serve as Chair of the Global Risk Advisory Council (the Council).  Made up of more than 100 preeminent public affairs leaders from former heads of state, ministers, and current CEOs, the Council represents an extraordinary breadth of experience across countries and sectors.  It will produce a quarterly Reputation Risk Index, which will help enhance executives’ ability to track and analyze emerging threats.  In accepting the role, Guzman highlighted the need for more mechanisms to identify emerging issues earlier.

New Reputation Risk Index™ (the Index) data suggests companies should proceed with more caution in adopting artificial intelligence. The report includes the views of over 100 preeminent public affairs leaders, including former heads of state and current CEOs on the Global Risk Advisory Council (the Council). Association with billionaire Elon Musk was also a top concern on the Index, which includes analysis of the most negative news coverage around the world during the first quarter of 2025. Avenida Advisors Founder Isabel Guzman, who chairs the Council and previously served as the Administrator of the U.S. Small Business Administration (SBA) knows these turbulent times require executives to monitor emerging issues more closely.

In today's volatile business environment, a company's reputation can be its most valuable asset—or its greatest vulnerability. The Global Situation Room (GSR)'s Q1 2025 Reputation Risk Index™ serves as an essential early warning system for organizations navigating an increasingly complex risk landscape.