Miami-based Carnival has been on probation for two years as part of a $40 million settlement for illegally dumping oil into the ocean from its Princess Cruises ships and lying about the scheme, according to court filings. Carnival’s Chief Communications Officer Roger Frizzell said “our environmental responsibility has been and continues to be a top priority for the company…(The Judge) said, ‘Obviously they talk the talk, but they aren’t walking the walk.”
Time
April 15, 2019
“‘I’m impressed,’” (the Judge) said, “Obviously they talk the talk, but they aren’t walking the walk.”
Reputation risk: the peril of economic harm from angry disappointed stakeholders.
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?