Reputation Risk arises from operational failures, ethical lapses, product defects, executive misconduct, or association with controversial issues that damage how customers, employees, investors, or regulators view the organization. Unlike many risks, reputation damage can occur even without direct organizational fault through social media amplification or guilt by association. Consequences include customer attrition, difficulty attracting talent, increased regulatory scrutiny, and lost market value that often exceeds direct costs of triggering events. A food company faces reputation risk if contamination occurs in its supply chain even if its own facilities are compliant. Managing reputation risk requires proactive stakeholder engagement, crisis communication plans, social media monitoring, and strong ethical culture that prevents reputation-damaging incidents.