February 22, 2019

“The lasting effect on Nike will be determined by consumers and investors. Some of the indicators for the scale of the impact could be the extent of movement in equity value, credit default swap prices and bond prices over time, Mr. Kossovsky said. Nike shares fell 1% to $83.95 on Thursday.
“The bond guys, they are the most sensitive to risks,” he (Kossovsky) said. “Their risk assessment is the most accurate.” Bonds are a measure that could suggest material cash flow damage, he said.”

The Wall Street Journal
February 22, 2019

“’Cash flow risk is the end state of reputation risk,’ Mr. Kossovsky said.”

Reputation insurances provide indemnification while affirming trust and reducing 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.

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