“The chief executive brought in to clean up Oxfam was last night accused of covering up a sex scandal at another major charity (the Royal Commonwealth Society, whose patron is the Queen)…Lawyers for Mr McCollum (the accuser) said the dossier related to ‘inappropriate behaviour and unprofessional conduct’ that posed a ‘significant threat to the Royal Commonwealth Society’s reputation’. Last night, Tory MP David Morris demanded an urgent investigation. He said: ‘It stands to reason that the person brought in to clean up Oxfam must himself be beyond reproach.’”
Daily Mail
June 18, 2019
“These days we expect transparency but we didn’t get it on this.”
Reputation risk: peril of stakeholders’ disappointment and anger from a failure to meet expectations.
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?