However, since 2014, the American Law Institute has been developing a framework titled “Compliance, Enforcement, and Risk Management for Corporations, Nonprofits, and Other Organizations.” The work products remain a well-protected secret, but based on the type of intelligence Kremlin watchers used to gather to discern Soviet-era intentions, it can be expected that the ALI standards …
Rarely has the disconnect between negative media coverage and reputational damage been this clear. And it demonstrates in vivid and tangible ways how leaders of financial institutions need to rethink reputational risk – how to define it, defend against it and mitigate the damage when reputational events occur. President Trump returns from Helsinki to a …
Companies that want to thrive in this new cultural climate need to embrace the concept that reputational risk is at least as consequential as operational risk. They need to task their enterprise risk management teams with the mission of understanding stakeholder expectations and building reputation resilience. And they need a risk management plan that enables …
Unfortunately, the industry’s reputation for corporate governance and corporate practices do not share that insulation and, in fact, the industry has been a popular target for many years among politicians, the media and public policy activists. The reputation of the pharmaceutical industry runs along two tracks. Because of a long and positive record supported by …
So, what is the difference between a reputational hit that ends up being just a blip, and one that becomes an extinction level event? Following are five ways to assess your exposure. Yet new studies are telling us that even after a crisis of major proportions, most companies’ share price returns to normal valuation in …
Irrespective of your strategic issues, there are practical measures that can limit or deter altogether the reputational tornadoes wreaking havoc in the corporate and financial sectors. As reputation tornadoes like #MeToo, #TakeAKnee, and #DumpNRA rip through society, it might appear that reputation risk is the peril of negative social media. But we’re seeing things differently. …
Reputation risk is rampant, insurance is prudent, and loss is likely. Reputation insurance should be viewed in much the same way as property insurance for a town in tornado country. By defining reputation risk this way, rather than as the risk of negative public opinion to be managed by marketing departments, the peril is measurable …
What all these events have in common is that they are altering, suddenly and profoundly, the risk environment for businesses. As they have done for years, companies need to be constantly challenging their own assumptions about future events and stakeholder expectations—protecting themselves against every “what if” they can imagine. But today, they need to do …
We live in an age where those expectations can change in what feels like an instant. A short time ago, the top reputation risk was allegations of unethical and inappropriate executive behavior that gained prominence through #MeToo. At this particular moment, it is gun violence. No matter how well a company plans, unanticipated risks can …
“When a crisis hits, does the board have a simple to understand and completely credible story to their stakeholders, validating their good governance practices and attesting to their prudent stewardship of the company? Whatever steps they have taken over the years to manage reputational risk, do they have third party warranties, in the form of …