“The proposed settlement would resolve various cases known as shareholder derivative lawsuits. They are filed by shareholders who are seeking to recover money not for themselves, but for the company in which they are part owners….Damages include…an estimated $1.4 billion to $2.4 billion in lost income due to factors such as reputational harm.”American Banker
May 22, 2019
“‘While the size of the settlement is record-setting, it makes sense given how the reputational value losses reduced income and swelled costs,’ Nir Kossovsky said.”
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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