“Reputation risk is a battle for the mind of stakeholders. It must begin preemptively with stories that speak to authentic systems for risk management, quality governance and compliance in terms that for all stakeholders, are simple, convincing and completely credible. Insurances can be a key part of this story telling effort.”
Note: Boeing Company is not a client of Steel City Re nor is it insured with Steel City Re’s Reputation Assurance products.
Steel City Re F8005 Report
March 25, 2019
“Boeing’s reputation resilience is evidenced by the stability of expected revenue, net income, profitability, and equity value.”
Reputation resilience: the benefit of prepositioning an authentic risk management story stakeholders can appreciate and value.
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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