Critics claim “Boeing appeared to be caught flat-footed by the growing public outcry.” Like Rolls-Royce, which was silent when critical engine problems grounded fleets of aircraft in 2010, Boeing will need to rely on a third party to reaffirm safety with the public. Rolls-Royce told its safety story through British Airways’ purchase of more engines. With airlines today largely discredited, Boeing should look to pilots to tell its safety story in a way that is simple, easy to understand, and completely credible.New York Times
March 27, 2019
“As the pilots of the aircraft, we need more direct interaction with Boeing going forward.”
Meeting stakeholders’ expectations is a proven strategy for mitigating reputation risk—the peril of stakeholders’ disappointment and anger.
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.
What’s your strategy?