“Even before the coronavirus pandemic, more and more companies were beginning to treat reputation as a precious intangible asset, according to corporate leaders, risk professionals and academic experts. Executive attention to this risk mirrors investors’ growing scrutiny. A 2012 World Economic Forum study estimated that reputation accounts for more than 25% of a company’s market value; by 2019, a global survey of 2,000 executives put that share at 63%. […] Corporate leaders who remain complacent about reputation may change their minds as investors win more cases arguing that reputation is a “mission critical” asset. Nir Kossovsky, CEO of Pittsburgh-based Steel City Re, a provider of reputation risk-management services and insurance, cites a growing number of legal decisions holding the board of directors accountable for financial losses related to reputation.”
Global Finance
December 9, 2020
Recently “reputation risk joined the kind of risks that risk professionals…understand: angry shareholders…and litigation, says Kossovsky.”
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Reputation is a mission-critical asset; managing its risk, a mission-critical service.
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.
Risk governance and management, risk financing, and risk transfer through insurances comprise the constituent elements of a comprehensive enterprise reputation risk management solution.
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