“The singling out of Wells Fargo by USAA as a target for patent infringement litigation is a reflection of Wells Fargo’s recent loss of reputational value as a result of other well-reported activities,” Kossovsky said. “All other things being equal, Wells Fargo is relatively more vulnerable than its peers, its defenses more likely to be questioned and discounted, because its ‘soft power” – the reputation institutions build through credible communications and authentic trustworthy actions over time – has been significantly eroded.”
June 13, 2018
PYMNTS.COM
“Wells Fargo is (vulnerable) because its ‘soft power’ – the reputation institutions build through credible communications and authentic trustworthy actions over time – has been significantly eroded.”
Reputation risk: Peril of…angry jurors.
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?