“But the concentration of technological and market power threatens to turn people like Mr Bezos and Mark Zuckerberg of Facebook into potential single points of vulnerability that could be as worrying. A successful blackmail of Mr Bezos in a decade, when, say, Amazon’s Alexa-controlled devices are widespread, would give the blackmailer a powerful platform.”The Economist
March 1, 2019
“I represent folks who are targeted specifically because they are more vulnerable to having reputations ruined.”
Personal reputation risk may underpin extortion risk.
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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