ROI of Reputation Risk Management

February 20, 2024

Boeing Company reputation crisis day 41. With the erosion of Boeing’s reputation as backdrop, the aerospace and defense giant's equity is sinking as shareholders contemplate the long costly tail of reputation damage the firm faces. Its ROI since the January 5 safety incident when a door plug detached mid flight is under performing the FTSER US aerospace and defense Index (FTWIUSA502010Y) by 20.2%. This is comparable to the 18.2% equity under performance of Southwest Airlines relative to the US airlines index (DJUSAR) on the 41st day of its reputation crisis following its IT systems meltdown.

Boeing Company reputation crisis day 41. With the erosion of Boeing’s reputation as backdrop, the aerospace and defense giant’s equity is sinking as shareholders contemplate the long costly tail of reputation damage the firm faces. Its ROI since the January 5 safety incident when a door plug detached mid flight is under performing the FTSE US aerospace and defense Index (FTWIUSA502010Y) by 20.2%. This is comparable to the 18.2% equity under performance of Southwest Airlines relative to the US airlines index (DJUSAR) on the 41st day of its reputation crisis following its IT systems meltdown.

February 8, 2024

Pharma has a misinformation problem — and execs could be on the hook. While vaccine-related misinformation is prevalent, it’s not the only threat. False information can arise around ethics, innovation or safety, and threaten a pharmaceutical firm’s reputation, viability and profitability. Reducing the damage from these threats requires a proactive approach. […] Kossovsky agrees.

September 26, 2023

In a world of polycrisis, […] risk managers need to… market the elevated quality of their risk management processes.

In a world of polycrisis, […] risk managers need to… market the elevated quality of their risk management processes. The author thanks for their contributions to this article:
Courtney Davis Curtis, University of Chicago; Deyna Feng, Cummins, Inc.; Mary C. Friedl, Redbox; Kathleen A. Graham, The HQ Companies; Chris Hammond, Stepan; Enya He, Blu Clarity PBC; Carnell R. Jones, Trinitas Ventures; Christy Kaufman, Zillow Group; John C. Kline, Discover Financial Services; Manuel Padilla, MacAndrews & Forbes Incorporated; Soubhagya Parija, FirstEnergy and New York Power Authority; Kristen Peed, CBIZ; Theresa Severson, Kite Realty Group; Seung Yoo, Regal Rexnord Corporation; and Denise Williamee, Steel City Re.

September 5, 2023

“ESG risk is just one more thing under the big heading of ‘reputation risk’,” Kossovsky said

“Lightning does strike,” (Kossovsky) said, but firms that can demonstrate that they have developed effective governance systems and implemented thoughtful risk management experience a much different impact: “That’s where enterprise risk management creates value.”

February 6, 2023

Authenticated Risk Strategy. If no one knows your firm has effective risk strategy, can it possibly be strategic?

A risk strategy, is, well, strategic. You know, it boosts value. If no one knows your firm has effective thoughtful risk management and dutiful governance over all that is mission critical, can it possibly be strategic? As the path to boosting equity value through share buybacks becomes increasingly expensive, this is a vital question CRO’s, CFO’s and board risk committees need to ask their risk leadership.