“Trying to recover from a reputational crisis without having done the earlier foundational work is like the blundering knights of Monty Python’s Arthurian legend sending their Trojan Rabbit into the French fortress — only to be flummoxed when the plan failed because they hadn’t put any soldiers inside.
Risk & Insurance
Bearing this vital lesson in mind, here is the story of reputation risk — its triggers, its strategic management — and the 7 tactical steps companies and their leadership can take to recover from a reputational crisis.”
March 14, 2019
“Know what your stakeholders expect of you, what might trigger disappointment, and its potential economic impact.”
Reputation risk management success: mitigating both disappointment and noxious media.
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?