April 5, 2024
It’s the end of a miserable quarter as Boeing Company’s reputation crisis hits day 92. Equity is down 35% to peers: 22% worse than Southwest Airline’s 13% day 92 under performance.
Cost of Reputation Loss
April 1, 2024
Bud Light reputation crisis at one year. $1.4bn estimated loss in sales. Equity lagging S&P Food and Beverage Index (IFB) by 12% (~$14bn); and Molson Coors (TAP) by ~40%.
With reputation risk forecasting, management, and insurance, Steel City Re helps companies build and prove to stakeholders their thoughtful risk management and dutiful governance over all that is mission-critical. It is an authenticated story stakeholders can appreciate and value.
Boeing’s Hidden Costs of Reputation Value Loss
Boeing’s hidden costs of its reputation crisis. Shifting expectations among four stakeholder groups have shifted expectations, altered behaviors, and reduced Boeing’s bottom line.
February 3, 2024
Forty years after a tsunami of lawsuits demanded action for the risks of D&O liability, history is rhyming with the risks of D&O culpability. Here are the top 3: Risk governance, ESG strategy, and C-suite experience.
January 6, 2024
Southwest Airlines reputation crisis. At crisis day 375, Southwest equity is under performing the S&P500 index by 41.4%. Steel City Re’ Resilience Monitor warned that an operational failure was likely to trigger a reputation crisis.
September 29, 2023
Qantas cost of reputation damage mount There is a long, costly tail to reputation risk from stakeholders claiming pounds of flesh.
July 11, 2023
Southwest Airlines (LUV) equity returns at 193 days normalized to the S&P500 returns are -10.3% (predicted based on historic reputation risk for LUV: -7.0%). It is under performing the Dow Jones US Airlines Index (DJUSAR) by 28.7%. The implied loss to shareholders is $2bn.
February 20, 2023
Mission critical risk denial can be costly. A holiday flight cancellation fiasco by Southwest Airlines crushed the company’s market capitalization and caused the company to take an $800 million dollar write-down for Q4 and record losses three times greater than analysts had expected. Equity returns 42 days into the crisis show Southwest trailing the Dow Jones U.S. Airlines Index by 18.4%. Had it merely kept pace with that index, Southwest’s market cap would have been more than $3.3 billion higher.
January 30, 2023
Southwest Airlines Reputation Crisis Day 35. Equity returns at 35 days normalized to the S&P500 returns are -6.2% (predicted -5.7%). It is under performing the Dow Jones US Airlines Index (DJUSAR) by 15.4%. The regression technology powering the equity impact model was derived from a study by Steel City Re, an ESG and reputation insurer.
January 28, 2023
Liquidity Issues at Blackstone. [There are now] questions about whether the people actually knew the risks, from higher fees than stock and bond funds to the illiquidity of the assets, and even the incentives advisers might get to push certain products. “Blackstone has to prevent a catastrophic shift in stakeholder expectations,” says Kossovsky.