[Lead Independent Director David Calhoun, a senior managing director at Blackstone,] said “Boeing’s future would depend on restoring the trust of the flying community in the safety of its planes, but added that there is ‘no advertising campaign that we could organise that would mean a hill of beans’ to reassuring passengers. ‘We have to do what we do, engineer it with pride and put it in the air and make sure everything around it is safe.’”Financial Times
May 13, 2019
“There is ‘no advertising campaign that we could organise that would mean a hill of beans’ to reassuring passengers.”
Reputation insurance: indemnification affirming trust and reducing economic losses.
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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