Reputation risk management is a battle for the mind of the stakeholder. A range of parametric insurance products linked to reputation value and volatility help authenticate stories about the quality of risk management. It is how risk management and risk communications work together to create value.
5-Minute Adventures in Risk & Resilience: The Podcast A Reputation for Truth Neutralizes Fake News at a $7bn Media Company: Getting Valued For Good Information That Neutralizes Bad Information.: In this episode, as a matter of national security after the fake tweet at Eli Lilly, a risk executive outlines a sophisticated strategy to make his …
Seventy-seven per cent of respondents to the July 25 2024 Airmic Big Question said their organisations model and quantify reputational risk – making it the top climate transition risk that their organisations measure. […] With the rise in cases of greenwashing reported around the world, reputational risk – as it relates to the climate transition – has emerged as a top concern.
We need to start focusing on relevance, client solutions and value. Solutions that address complex connected risks such as reputation value.
How to protect a firm from the humiliation of corporate swatting by fabulist whistleblowers using the Department of Justice.
Captives are a solution to the lack of innovation. Martin South, president and chief executive officer, Marsh, was being interview by Penny Randall Seach, group chief underwriting officer, Zurich Insurance Company in a Global CEO fireside discussion at AIRMIC called ‘Global forces driving change: a future outlook’ Because the industry is not offering products that address clients’s needs as risks evolve, “some $25 billion of Marsh clients’ premium is now being retained using this form of risk transfer.“ In other news, insurer AXA is reorganizing US operations. Layoffs are expected. Meanwhile, Steel City Re has on offer a remarkably innovative original outcome-based solution to the most complex risk of all. It is a solution insureds have wanted since 2005, and it is backed today by Tokio Marine Kiln.
Take up rates for parametric risk transfer, insurance and reinsurance solutions have grown “dramatically” over the last year, according to broker Aon. In particular, Aon highlights a rapid shift in both insurance market and corporate risk transfer buyers perceptions of risk transfer alternatives, which is helping to drive more rapid uptake of parametric solutions. […] “There has never been a greater need for alternative risk transfer solutions, including parametric solutions and captives.”
Manifestations of complex interconnected risks generally culminate in reputational crises, but they can be managed. Relying only on reporting systems when insiders may become aware of such risks…is not risk management. Reporting systems are unlikely to mitigate federal investigations and follow-on issues because today the risk/reward balance favors whistleblowing over internal reporting. In fact, the rewards of whistleblowing are so great right now that corporate swatting–calling the DoJ or SEC with a hot tip when there is no known issue just to see if something shakes looses–is no longer unthinkable.
Reputation risk emerges from a sea of choice. Choice can be influenced. “What was effective at an individual level was targeting habits (helping people to stop or start a behavior), behavioral attitudes (having people associate certain behaviors as being “good” or “bad”), and behavioral skills (having people learn how to remove obstacles to their behavior). […Socially, ] What was most effective was focusing on targeting access (like providing flu vaccinations at work) or social support (facilitating groups of people who help one another to meet their physical activity goals).”
Risk Management and Governance Look Smart. Investors comment on Astrazeneca’s brilliant resilience insurance solution.