Reputation Risk Solutions

Reputation risk has teeth again.

It takes guts to run, or oversee, a business profitably, ethically, and mindfully. The reward can be great. So is the risk—especially today.

C-suite and board members, guided by conviction and counsel, already risk their personal reputations. Now they’re unapologetically shopping for armor for themselves and their firms.

No course of action satisfies everyone. In a chaotic economic and political climate, some customers, employees, regulators, or investors will feel betrayed—and, often through professional activists, will hold leadership in a double bind: liable for actual losses, culpable for alleged future ones. D&O liability insurance covers the former. It does not cover the latter, nor the damage to directors tried in the court of public opinion, where—unlike the court of law—there are few rules. 

This is reputation risk—now less predictable, governable, or manageable.

Personal risk in a corporate crisis is back. Strategies to preserve financial resilience can mean painful board exit conversations—and damaged reputations for the directors who exit. Those voted off the island lose compensation and, more importantly, future opportunities. Clawbacks are no longer unthinkable. Only Steel City Re’s Side R^® D&O parametric reputation insurance—a companion to D&O liability insurance sides A, B, and C—covers these costs, and builds resilience besides.

Resilient companies keep customers buying, not boycotting; employees working, not fleeing; investors buying, not selling; lenders lowering rates, not raising them; regulators deferring, not enforcing; and communities acquiescing, not protesting. But even resilient firms may still be asked for a fall guy.

Steel City Re’s tools help risk managers forecast reputation risk and protect enterprise value—and help companies, C-suites, and boardrooms cover the personal cost of leadership with Side R® D&O parametric reputation insurance.