Reputational damage can result from product failures, ethical lapses, data breaches, or poor crisis response. Unlike operational losses, reputational harm is difficult to quantify but can erode revenue, stock value, and talent attraction. Social media amplifies reputational risk by accelerating public criticism and enabling viral spread. For example, United Airlines faced severe reputational fallout and stock price decline after a passenger-dragging incident in 2017. Managing reputational risk requires proactive stakeholder engagement, transparent communication, rapid incident response, and consistent delivery on brand promises. Reputational risk often manifests as second-order effects from other risk events.