In 2017, the court also imposed upon PG&E a monitor to supervise its compliance with gas pipeline safety laws. “We’re committed to accurate and thorough reporting…we didn’t live up to that commitment in this case.” Reputation crisis: disappointment, diminished trust, causing economic losses.
“The California Public Utilities Commission says it has opened a proceeding for what its staff says are “systemic violations of rules” governing pipeline safety…(Previously), in 2015, the CPUC fined PG&E $1.6 billion for failing to keep its gas transmission safe. It was the largest penalty ever assessed by the regulatory agency.“ NPR article by Richard Gonzales :December 17, 2018
“We’re committed to accurate and thorough reporting…we didn’t live up to that commitment in this case.”
Reputation crisis: disappointment, diminished trust, causing economic losses.
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?