Steel City Re, an overseas advisor to Lloyd’s Tokio Marine Kiln, is the exclusive provider of parametric reputation risk insurances and advisory services using a risk management framework informed by behavioral economics.
Dread of reputation risk permeates boards’ concerns about governance, counsels’ about compliance, institutional investors’ about equity risk, bond raters’ about credit risk, and others about ESG risk. Reputation value is placed at risk when companies fail to meet stakeholders’ expectations about governance and operations. Among the top 10 perils of setting in motion angry, disappointed stakeholders are impaired strategic power, reduced cash flows, and stock price drops. Accordingly, reputation risk management is valued by institutional investors, credit analysts, equity portfolio managers and board members.
Reputation value is a strategic power. Companies harness their reputation to sell more, faster, and at premium prices; and to obtain labor, vendor services, as well as capital on preferred terms. Enhanced reputational value can help companies outperform competitors, recruit and retain talent, deter activists, and satisfy regulators.
Steel City Re helps mitigate reputation risk. It provides governance, managerial and insurance solutions by combining financial modeling with behavioral economics to enhance governance, leadership and control practices, quantify reputation risk; and it uses parametric insurances strategically—to tell a simple, credible and completely convincing story valued by investors.