In today’s interconnected world, reputational risk management has become a critical focus for businesses navigating complex global dynamics. Indeed, the growing scrutiny on geopolitical issues, including the ongoing conflict in the Middle East, highlights the importance of carefully assessing one’s own reputation as well as that of suppliers. In regions where geopolitical tensions and historical complexities intersect, even indirect associations can expose companies to potential backlash.
The Challenge: Assessing Reputational Risks in a Sensitive Context
Castor Vali was recently engaged to conduct a reputational risk assessment for a client concerned about their affiliation to contentious geopolitical issues in the Middle East. As the client pursued opportunities globally, they were concerned about potential reputational risks due to perceived associations and whether this would render it a target by various threat actors, thereby increasing its security risk.
Unlike standard due diligence checks, this assessment required an in-depth investigation into the client’s past activities in the Middle East coupled with an understanding of non-state threat actors globally, current socio-political dynamics and whether such actors would view its previous, albeit minor affiliations, sufficient enough to render it a target.
Maritime Security: Risks from Middle East Affiliations
Recent case studies of entities being targeted by non-state actors because of past activities in the Middle East necessitated this investigation. Indeed, since the start of the October 2023 Israel-Hamas conflict, Iranian-aligned groups have targeted organisations directly or indirectly linked to Israel. Attacks have involved both cyber groups and militant groups with a presence throughout the Middle East and South Asia.
With our origins in maritime security, Castor Vali has been particularly involved in supporting clients offshore, as they attempt to navigate high-risk or sensitive waters such as the Red Sea, Indian Ocean, Arabian Sea, Golf of Oman and beyond. While Yemen-based Houthi’s have threatened and attacked maritime vessels, gaining notoriety as a result, other concerns also emerge over Hezbollah’s offshore capabilities in the Mediterranean as well as Iranian interference in waters further east.
The Approach: Tailored Reputational Assessment
Castor Vali employed a comprehensive methodology for this project, we leveraged open-source intelligence (OSINT) and social media analysis to examine online mentions, sentiment trends, and stakeholder perceptions over the preceding four years related specifically to the client and any past activity in the Middle East. Extending the timelines beyond the start of the current Middle Eastern conflict was necessary to assess negative sentiment or reputational risks related to the client’s historical affiliations.
Key aspects of the assessment included:
- Sentiment Analysis: Examining online conversations, including blogs, social media, and press mentions, to identify negative or neutral perceptions of the client.
- Geopolitical Analysis: Analysing how historical affiliations and activities might influence current perceptions in both the operational region and the broader global context.
- Risk Mitigation Insights: Providing recommendations on how to address potential concerns and maintain a positive reputation.
Demonstrating Value: Why This Matters
Conducting thorough background checks has become an essential practice for businesses operating in an increasingly interconnected and volatile world. Global challenges such as geopolitical conflicts, international sanctions, human rights violations, and environmental concerns can expose companies to significant risks if they partner with suppliers or entities linked to these issues. By addressing risks tied to economic instability, illicit trade, or political controversies, businesses not only safeguard their operations but also demonstrate a commitment to ethical practices and long-term resilience in a complex global landscape.
Background checks are no longer optional—they are vital to mitigating risks, ensuring compliance, and building trust with stakeholders.
Contact Castor Vali for Corporate Reputation Risk Assessments
At Castor Vali, we are dedicated to helping you safeguard your business through tailored reputation risk assessments across Africa. Our expert team ensures you have the insights needed to operate with confidence and continuity. To learn more about our services, email us at info@castorvali.com.
