“Boeing departed from its historical precedent by designing an automated system that took control away from its pilots. Personally, after 34 years of flying only Boeing airplanes, I am disappointed by this revelation….For my fellow pilots, trust has been seriously eroded…(C)an pilots trust Boeing with any of its other products? They are right to ask, ‘What else is Boeing not telling me?’”CNN
April 2, 2019
“Boeing departed from its historical precedent (and) took control away from its pilots…I am disappointed by this revelation.”
Reputation risk is 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?