It is understandable that financial institutions receive massive chances of being advantaged from applying an AI-powered technology like News API into their reputational risk management framework solution. Besides, a news API tracks potential risks earlier for the organizations. Hence, an NLP-enriched news API aggregates comprehensive news articles, events, and topics from across the world, keeping it simple to search and in a structured format. Therefore, when the risk is identified before time, organizations can immediately prepare to take possible actions.
However, the purpose of reputational risk management should not only be to convert mitigating damage into new opportunities. But also to enhance your organization’s reputation and flourish your business. Moreover, a news API can help you identify real-time media trends in the market, along with auguring stakeholders. Let’s say the prompt response to early-stage detecting of risk can give a plus point to your organization’s reputation with competency, clarity, and safekeeping.
Meanwhile, developing reputational resilience can retrieve nearly all damage that emerges during a crisis. Now, when a reputational crisis starts to disappear from the media’s limelight, consequently your organization’s reputation will take time to come back to normal. Thus, the impact might take months or years to process.
In fact, it is very much required to monitor reputation remobilizing plans. You should find out queries and make endpoints based on them. For example:
- How frequently does the media’s attitude towards your organization change?
- Are you beginning to reform your organization’s reputation?
- Is your company still facing a negative attitude?
Therefore, news helps your organization recognize the progress you’ve made and how much more is required to meet the targets.
What is Reputational Risk?
It is said that if your organization’s reputation goes down, no matter what is anticipated by the stakeholders then it would deteriorate. While on the contrary, a firm goal-oriented reputation can lead to prosperity. On the whole, reputation is based on actions and decisions taken by internal stakeholders, and loss happens due to management malpractice, or inefficient authority when a crisis occurs.
Furthermore, reputational risk is also a byproduct of other risks. Hence, such risks are classified, like ethics and integrity, product and services, security, and finance. Few examples of these risks are low financial performance, lack of innovation, senior management misconduct, security breaches, environmental problems.
Besides, Financial organizations suffer a huge loss when their revenue and stock value go down, impacting in loss market value and the need for considerable financing in recovery costs. One such incident happened in 2015, where various organizations lost over one-third of share value that resulted in Deloitte’s damaged reputation.
Implementing News API into your framework
When a trusted media source obtains a story, it augments the intensity around the globe. As, it has the ability to transmit the news among masses, especially if it is a negative sentiment that passes rapidly. Therefore, tracking the news to get risk signals and sentiments should be a priority to each financial institution.
Nowadays, organizations following the traditional media monitoring processes are ineffective, unreliable, and inefficient. Consequently, this leads to missed information of risk signals on reputation, or delay in finding.
Hence, your organization should plan for a news API that can significantly enhance the procedure, delivering NLP, and ML. So as to aggregate and acknowledge real-time news from across the globe, also reputational risk signals do not get mislaid.
Automate the Process
Exchanging manual methods with an inbuilt system can be an advantage to financial institutions. In spite of hundreds of analysts researching and sourcing to find global news in real time that would be a complicated task. A news API can spontaneously ingest thousands of news articles from across the globe in the time it is posted.
Applying NLP extracts potential insights from each news article in real-time, converting them into structured data, stored in a database. As it enables to instantly search for particular categories of news along with entities.
Make Better Informed Decisions
The key role of a news API is to be multilingual to news from across the world, machine-readable into English, and deliver comprehensive coverage of the news stories. Although it was never easy to track events and topics as they go along, due to real-time clustering of similar events it has become possible to augment. Moreover, the volume of a cluster is identified as the number of news articles it has, helps in detecting access, tracks the past, present, and valuable impact of specific events for your reputation.
Free Up Valuable Resources
The automatic process provides valuable resources to financial institutions saving their time, money and efforts. Meanwhile, risk analysts can monitor risk rapidly and accurately from an integrated solution. With a news API you can identify semantic similarities between articles that can provide speed to your analysis process.
All the above theory sums up that organization’s reputation values as it becomes the face of the asset. Likewise, you should take necessary precautions to assure that your organization is safeguarded to the best of your potential. Thus, operating a news API to your reputational risk management framework can lead to enhanced quality, accessibility, and rapidity of risk data that will impact for longer.
Improvising your organization’s attitude can help you stay ahead of the potential risk by taking immediate actions efficiently. Lastly, a news API can help your organization identify and monitor arising risks from across the globe, and work on the subsides of a crisis to transform potential risks into new opportunities.
Visit Newsdata.io website for more valuable information related to your industry. In case you are thinking to ingest high-quality NLP-enriched news data. Contact our data experts today!