Willis launches model to quantify celebrity endorsement risk

WTW’s Willis business has launched a Reputational Risk Quantification Model designed to measure the financial exposure associated with celebrity endorsements.

The model uses risk analytics combined with datasets from Polecat  to estimate potential impacts on sales and profits if a celebrity endorser faces reputational damage. The approach aims to convert what has traditionally been a subjective assessment into measurable risk scenarios that organizations can factor into decision making.

According to the Global Reputational Risk Readiness Survey 2024/25, 99% of companies rank reputation among their top ten risks, with many placing it in their top five across sectors such as leisure and hospitality, retail, manufacturing, transportation, and nonprofits.

The model analyzes signals from real time data sources to model scenarios where an endorsement could harm a brand’s reputation and financial performance. Willis said the tool is designed to help companies better understand and manage exposures linked to celebrity partnerships.