“Boeing Co.’s credit rating is at risk as the grounding of the 737 Max drags into a fifth month, Fitch Ratings said. Uncertainty around the return to service of Boeing’s best-selling jet and the “growing logistical challenge” of getting parked planes back in the air threaten the company’s credit, Fitch Ratings said in a statement Monday. Fitch affirmed Boeing’s A rating while cutting the outlook to negative, the first credit warning after the grounding, which was prompted by two deadly crashes.”
Bloomberg
July 22, 2019
“Max’s grounding…remain(s) a risk for ‘Boeing’s reputation and brand’ into next year and beyond, Fitch said.”
Reputation crisis: disappointment, diminished trust, causing 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.
What’s your strategy?