Podcast #12. Board Inquiry: D&O Reputation Insurance Assessment: A CLO, Corporate Secretary, and Enterprise Risk Manager Walk into a bar. In this episode, a newly appointed CLO — tasked by the board and CEO with assessing D&O reputation insurance — works through the question with the firm’s corporate secretary and enterprise risk manager.
From the Society for Corporate Governance Society Alert: In this article, “Has D&O Liability’s Dangerous Twin Arrived?,” a specialty insurer posits that increasing public scrutiny of directors and officers is creating reputational risks that may not be addressed by traditional D&O liability coverage.
Reputation risk is manageable rather than merely meteorological. A board that has neither governed its reputation risk nor transferred it has a plausible negligence story forming against it—in the court of public opinion first, and potentially thereafter in courts of a more formal variety.
Has D&O Liability’s Dangerous Twin Arrived? D&O liability insurance—the governance safety net predecessors fought to establish forty years ago—does not respond to D&O professional disability. D&O reputation insurance does.
If reputation risk is real, directors and officers stand to be professionally disabled by a crisis exploited by investor, social or political activists.
Captive programs can extend to cover corporate and D&O reputation risk — a strategic governance safeguard.
Podcast #11: Boards Reject Personal Reputation Harm as the Price of Board Service: D&O Reputation Insurance Enhances Governance: In this episode, after an outspoken director on the board of Netflix finds herself in political crosshairs, directors demand protection from the personal cost of chaos-driven events.
The issue at Campbell’s is neither one of compliance nor enterprise risk management, but rather one of reputation risk governance. The question is therefore how did reputation resilience become so impaired that that one-year old stupid comment by an allegedly impaired senior executive, then into his 5th month of employment, exposed weak governance, reputation risk management, and reputation crisis management?
To recruit and retain robust diverse boards, companies need the protection of Steel City Re’s Side R® D&O parametric reputation insurance.
Risk governance disclosures boosted equity value relative to peers at 1, 28, 56, and 84 days by averages of 0.3%, 5.6%, 3.7% and 4.1%.