“Insured business risk and mitigation strategies are becoming more complex worldwide as companies large and small are more interconnected, according to CNA Hardy’s recently-published 2019 Global Risk & Confidence Survey.
Property Casualty 360
‘In an increasingly complex, tech-led, interconnected global economy, business leaders are being tested like never before,’ CNA Hardy CEO Dave Brosnan said in a press release. ‘The result is that confidence has dipped, investment in business fundamentals is down across the board, and reputation risk has emerged as the new threat that stalks the corridors of power.’”
June 28, 2019
“(R)eputation risk has emerged as the new threat that stalks the corridors of power.”
Reputation risk: peril of stakeholders’ disappointment and anger.
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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