“Digital and social media had ramped up the risks to reputation:
Christine Heenan, VP for global policy and advocacy at the Rockefeller Foundation, said gaps between rhetoric and reality were a huge risk for companies and organisations. “Part of this ‘age of rage’ has to do with distrust,” she said. “Hypocrisy sells and we are all so ready to look for and believe hypocrisy to confirm our distrust…Living your values and being as airtight as possible becomes important.”January 28, 2019
“In the ‘age of rage’, the risks to corporate reputation are only increasing.”
Reputation value: economic benefits of stakeholders’ 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?