December 5, 2022

ESG-related false advertising litigation. Consumers are increasingly questioning environmental claims, sometimes landing directors in court.

ESG-related false advertising litigation. Since the onset of 2021, there have been multiple class actions filed in federal courts over greenwashing claims targeting companies from the retail industry, such as H&M and Allbirds, and food manufacturers, like Vital Farms. The statements attacked by consumers in these lawsuits varied due to the wide-ranging nature of the marketing techniques used by the companies, including the use of internal sustainability metrics as well as the reliance on benchmarks created by third parties.

November 29, 2022

The bottom line: Mitigating an expectation shift by adapting or managing expectations reduces the risk of costly ESG | reputation risk.

Mitigating an expectation shift: An effective, thoughtful risk strategy. Of the many on offer, only our solution is quantitative, battle-tested, quality management-proven, and grounded in four Nobel Prize winning insights. The bottom line: mitigating costly reputation risk by targeting factors that would lead to a shift in expectations

October 18, 2022

Shifting expectations: bank run. A bank run in our model … is caused by a shift in expectations, which could depend on almost anything.

Shifting expectations: bank run. Douglas Diamond and Philip Dybvig won the Nobel Memorial Prize in economics this year for their work on (bank runs). “A bank run in our model,” they write, “is caused by a shift in expectations, which could depend on almost anything, consistent with the apparently irrational observed behavior of people running on banks.” “Almost anything” could include social media rumors, why not. […] “Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone.” 

October 17, 2022

Well-underwritten parametric reputation insurance. Parametric insurance policies have been in use for years by Tokio Marine Kiln for reputation loss.

Well underwritten parametric reputation insurance. Parametric triggers for insurance can be anything quantifiable. In the case of my firm, Steel City Re, we use parametric measures of reputational value in our Tokio Marine Kiln policies. Parametric policies provide for ease of underwriting, facilitate claims adjustment, and enable coverage to insure complex risks including reputation and environmental, social, and corporate governance (ESG) factors-linked reputation loss.

October 5, 2022

Oversight of Ethics Risk Management. Insurance can authenticate the effectiveness of a board’s reputation risk oversight.

Regardless of one’s moral compass, the practical risks of failing to uphold business ethics are very real, transcending any legal or regulatory requirements. A company’s most valuable asset may be its reputation, yet that asset appears nowhere on the company’s balance sheet. Board members’ oversight of risk management should therefore include reputational risk as a key element, which requires attention to business ethics throughout the company’s activities, both current and planned. This book provides excellent examples — good and bad — that will be instructive for board members in overseeing management of reputational risk.

September 14, 2022

NACD Summit ESG Beast. Effective risk management and governance, validated by insurance, forestalls regulators, litigators, and activists.

NACD Summit ESG Beast. Effective risk management and governance of ethics, compliance, ESG, and reputation risks, validated by insurance, forestalls regulators, litigators, and activists. In this workshop, Steel City Re CEO Nir Kossovsky conveys the nuts & bolts of an enterprise reputation risk management apparatus, and the governance, leadership, controls and insurances therein. Directors will …

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September 12, 2022

Reputation and ESG insurances are how boards can signal to investors and the courts (and regulators) that their governance processes are effective.

Ethics Compliance Management Governance. An effective management process for [ethics, compliance, ESG risk, reputation risk…] creates value with regulators. An effective governance process creates value with investors and the courts. 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 …

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September 8, 2022

“’Captives show risk management can be a value centre,’ say representatives from Steel City Re.”

Captive Insurance Can Be a Value Center Captives enable risk professionals to play a tangible and demonstrable role in enhancing corporate profitability. It also allows them to control management and decision-making with respect to claims – a key function that is often overlooked […] Perhaps most importantly, it provides captive managers witha simple, clear, and …

September 8, 2022 Read More