“Germany’s Bayer AG sought to repair its reputation on Friday after damage caused by U.S. litigation over claims its glyphosate pesticide causes cancer, saying it would invest €5 billion ($5.6 billion) in weedkiller research…. ‘We listened. We learned,’ Bayer said on its website, adding that it had ‘heightened responsibility and … unique potential to advance farming for the benefit of society and the planet.’”
Business Insurance
June 15, 2019
“(T)o repair its reputation…after damage caused by U.S. litigation, (Bayer said) it would invest $5.6 billion in weedkiller research.”
It is reputation risk management only if there are authentic governance and process changes. Else, it is marketing.
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.
What’s your strategy?