“Steel City Re, a Pennsylvania-headquartered risk management company, has announced the launch of a new website that will act as a source for reputation risk essentials for corporate, governance, risk and regulatory professionals. For insights, visit steelcityre.com/category/newsworthy/.
‘Reputational risk is a concern for every company, organization, or individual in corporate leadership,’ said Nir Kossovsky, CEO of Steel City Re. ‘No-one is immune from the risk of reputational damage – the tangible, material peril imposed by angry, disappointed stakeholders whose expectations have not been met. Enterprise risk planning backed by big-data analytics, proven algorithms, and transparent communications to stakeholders through insurance and other financial signals, can help forge reputation resilience.’
Steel City Re provides both advisory and reputation underwriting services and insurance products to hundreds of public and private companies.”Business Insurance
March 6, 2019
“Risk of reputational damage – the (real) peril imposed by angry, disappointed stakeholders whose expectations have not been met.”
Reputation risk management: concurrent mitigation of false expectations, negative experiences, and noxious media amplification.
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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