Reputational risk refers to the potential loss of public trust or brand value associated with negative perceptions of a project, entity, or individual. In this space, it can arise from various factors, including security breaches, fraudulent activities, regulatory issues, or poor management practices.When a company or project faces a scandal, such as a hack or the discovery of illegal practices, it can lead to a widespread loss of confidence among users and investors. This can result in decreased user engagement and a decline in investment, ultimately harming the project’s viability.Social media and online platforms can amplify the effects of reputational risk, allowing news to spread rapidly. A single incident can quickly lead to negative sentiment and erode trust, making it essential for projects to manage their reputation actively. Transparency, strong security measures, and effective communication can help mitigate this risk and maintain stakeholder confidence.