“Companies in this industry that are positioning themselves for private equity investment need to take note of this increased attention to reputational resilience. According to a new white paper, the Private Equity Roadmap for Assessing Reputational Risk, developed and published by my company Steel City Re, these reputational risks ‘present themselves across a broad spectrum of companies . . . and highlight the need to add reputational risk to investment evaluation criteria as well as to governance and oversight practices for board members.’Cheddar
This shift is prompted by the recent disappointing IPOs of well-known, private equity–backed companies—Uber being a notorious example, as well as the pre-IPO value collapse of The We Company, and the post-acquisition disappointment at companies like Kraft Heinz—where the combination was supported by private equity funding.”
September 25, 2019
“To put investors at ease, companies…need proof that they understand their reputational risks and have an effective, ongoing plan to manage them.”
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Reputation insurance sends a message to the markets about the quality of governance, affirms trust, and reduces economic losses.
Risk governance and management, risk financing in insurance captives, and risk transfer through reputation insurances comprise the constituent elements of a comprehensive enterprise reputation risk solution.
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