“Many of you have seen media reports regarding the Novartis relationship with Essential Consultants in the U.S. and many of you will feel disappointed and frustrated…We made a mistake entering into this engagement and as a consequence are being criticized by a world that expects more from us,” wrote Novartis CEO Vasant Narasimhan.
The chief executive of Novartis sent employees an email Thursday seeking to contain intensifying political and business fallout over the revelation that the drug maker paid $1.2 million to President Trump’s personal lawyer to gain access to the White House.
Not a good day for Novartis’: CEO tries to reassure employees amid fury over payments to Trump’s lawyerApril 14, 2018
We made a mistake (and) are being criticized by a world that expects more from us.”
Reputation risk: It is always personal in the C-suite and boardroom.
Reputations are valuable strategic intangible assets. Threats to these assets⏤ enterprise reputation risks, often mislabeled “brand risks” ⏤ need to be managed, and management needs to be overseen through reputation risk governance lest reputational damage or reputational harm result in long-tailed go-forward losses in economic value and/or political power. Because these intangible risks arise from the interplay of stakeholder expectation, experiences, and media amplification, parametric insurances for intangible asset risks, for reputational value, for reputational harm, and for reputation assurance help mitigate risk by telling a simple, convincing and completely credible story of quality reputation governance to stakeholders. This story telling effect is the expressive power of insurance complementing insurance’s better known instrumental power of indemnification.
Risk management, risk financing in insurance captives, and risk transfer through reputation insurances comprise the constituent elements of a comprehensive solution. What’s your strategy?