October 2, 2022

Radical collaboration for sustainability strategy. Sustainability has to exist in organisations as a strategy, not just a buzzword.

Radical Collaboration for Sustainability Strategy

There are many potential benefits lauded from a well-developed sustainable business strategy. Good for the people, good for the planet. Perhaps also good for reputation, risk management and revenue growth? Simply put, it is all of those things. However, if businesses only treat sustainability as a PR exercise and a brand positioning tool, they may well find themselves subject to consumer activism and fall foul of regulatory standards. Both will inevitably cause reputational and financial damage.

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Sustainability has to exist in organisations as a strategy, not just a buzzword.

CEO Today: October 2, 2022

Steel City Re is an insurance intermediary and risk advisor for reputation and ESG-linked reputation risk. Auditors’ reports on controls are how boards can signal to regulators that their management processes are effective. Reputation and ESG insurances are how boards can signal to investors and the courts (and regulators) that their governance processes are effective.

Reputation is Mission-Critical

A management program for ethics and compliance can forestall prosecution and mitigate fines. Similarly, oversight of “mission- critical” issues can forestall securities litigation. A program for reputation resilience–Radical Collaboration for Sustainability Strategy–comprising both risk management and authenticated oversight for all that is mission-critical, can create value in many ways. To this end, Steel City Re offers a Reputation Resilience Program.

Having a robust Reputation Resilience Program in place offers, amongst other benefits:

  • Protection for the company, its staff, executives, and board from litigation and regulatory challenges
  • Improved governance processes and better enterprise risk management protocols
  • Establishment of an agile operating, communications, and decision-making team, with clear roles and responsibilities, trained and ready to handle all reputational threats
  • Proactive management of risks that could give rise to delays or derailing concerns around new product and strategic partnership launches
  • Captured behavioral economic value from stakeholders
  • Reduced costs of debt and risk transfer while boosting equity value

A hazard of reputation risk is a lurking gap between stakeholder expectations and reality. Another hazard is the emotional intensity associated with expectations. The peril is anger from disappointed stakeholders. This video and this written summary explain the behavioral economic features of the many perils of reputation risk.

Mitigating risk strategically through expectation management and operational adjustments evinces thoughtful management and dutiful governance. Financing such risks evinces prudence, and doing so publicly enables stakeholders to appreciate and value the effort. These comprise the core of Steel City Re’s professional services.

One Question

Radical collaboration for sustainability strategy. ESG-linked reputation risks are prevalent and material. Are insurances for ESG-linked reputation risk part of your strategy?