“With everything being interconnected, we’re at a point in time when the risk for all companies is elevated,” says Hahn-Griffiths. “There is a higher potential than ever before for reputation risk to be around the corner, and because of that, this year’s study shows we’ve reached a reputation judgement day—there is no place to hide.”Forbes
March 16, 2019
“They’re saying, ‘Give me a good reason to believe you’re trying to do the right thing.’”
Reputation value is the 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.
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