“Cognizant Technology Solutions Corp. neared a dubious milestone on Friday after a disappointing forecast led at least nine analysts to cut their ratings on the stock, approaching the most downgrades in a single day this century…Wall Street bulls were quick to throw in the towel as eight buy-rated analysts trimmed their ratings to neutral, including Deutsche Bank, which wrote that it was ‘still confused on what happened during the qtr so suddenly.’”Bloomberg
May 7, 2019
“A disappointing forecast led at least nine analysts to cut their ratings on the stock.”
Reputation risk, a peril of anger and disappointment, can be seen in the reactive behaviors of equity analysts, for example.
For a broader view of reputation risk, discover additional articles by Steel City Re here, mentions of Steel City Re here, and comments on newsworthy topics by Steel City Re here. To read an abstracted summary of reputation risk, see below
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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