How do you protect your reputation from rumors?

Understanding the source and motive is absolutely critical as a first step. Without this insight, you have to go on guesswork, which won't be as effective. Of course sometimes, its impossible to trace something back - rumours have a habit of morphing and spreading quietly across a variety of sources. I would always encourage businesses to have a reputation management process/practice in place and an appropriately trained person who can determine the necessary steps for managing any potential reputational issues proactively. Having this in place means you can respond faster and more effectively if an issue arises suddenly - giving you better control.

The one piece of advice I have always given in a crisis comms situation, is "no comment" is not an acceptable response to a media enquiry when something has gone wrong. Whether it's a journalist, client, industry contact or employee that has asked a question about the incident or rumour, every member of the leadership team (and the PR/comms team) should be equipped with an agreed reactive statement. If you're completely on the back foot, take down their questions, promise to get some information for them and follow-through with that promise by getting an internally agreed statement sorted and back to them.

Lots of companies feel it's overkill to have a crisis communication plan in place.... until they find themselves in a situation where they need it - then they're on the back foot, scrambling to figure out how to deal. Companies in higher risk industries need to be particularly proactive in this area. But every company should at least have an agreed comms process in the event of an incident or reputational issue. A basic 'calling tree' and pre-agreed roles of who will handle comms with clients, employees and media, is the absolute minimum. Also, every employee should know who is approved to deal with press enquiries.