Research in the International Journal of Trade and Global Markets has looked at the role of effective brand risk management in improving brand security across the food and drink industry in Vietnam, specifically in the areas of manufacturing and processing.
Hai-Yen Thi Bui of the Hanoi School of Business and Management at Vietnam National University surveyed more than 400 businesses and found a strong correlation between those companies with strong brand risk management practices and the improvements they saw in three key aspects of brand security: safety, stability, and sustainability. She suggests that the findings show how important such brand strategies are in this sector. Ignoring them could lead to problems with a company’s reputation, reduced customer trust, and ultimately, financial losses.
There has previously been much discussion around enterprise risk management and how it can affect a company’s performance. Some studies have shown it to have an economic benefit and that it leads to a better financial bottom-line. However, others have found it not to have as much effect as imagined.
It is, of course, difficult to get a handle on the intangible, assets such as reputation, trademarks, and corporate culture. These all play into how well a company might do in the market and its competitive edge.
Brand risk management, however, defined as the process of protecting a brand through systematic risk assessment and control, is, this new research suggests, vital. Effective brand risk management can protect a company’s reputation, ensure customer loyalty and trust, and preclude financial losses. By preventing crises and ensuring the brand’s safety, stability, and sustainability, it safeguards brand security.
The research has implications beyond the food and drink sector. It may well apply to businesses across very disparate industries, and so could benefit them in nudging them to adopt similar brand risk management strategies in order to safeguard their company reputation and sustain financial success.
Bui, H-Y.T. (2024) ‘Improving brand security through good brand risk management’, Int. J. Trade and Global Markets, Vol. 19, No. 5, pp.1–20.