“The obvious conclusion is mining professionals are happy to handle technical risks associated with the finding, mining and processing of ore but are less competent in managing their business risks and get exceptionally uncomfortable when asked to deal with soft risks around reputation and social licence,” Mining Journal Intelligence head Chris Cann said.
“(M)ining professionals…get exceptionally uncomfortable when asked to deal with soft risks around reputation and social licence.” Mining Journal Intelligence head Chris Cann said.October 10, 2018
“In terms of operational risk, maybe we need to re-examine how we understand social licence over the life of a mine and then closure.”
Reputation value: going-forward economic benefits of stakeholder expectations.
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?