ROI of Reputation Risk Management

January 24, 2023

Building resilience requires a demonstrably effective, insurance-authenticated system.

Risk Strategy Authentication and Communication.If you oversee an effective reputation risk strategy process, but no one knows it, is it actually effective? This is a vital question boards of directors, senior executives, and risk professionals need to ask themselves in this era of enhanced regulatory enforcement. Building resilience requires a demonstrably effective, insurance-authenticated system.

December 23, 2022

Third party authentication (insurance as a signaling device) deters reputational attacks and mitigates crises.

Eli Lilly defused a tweet-induced reputational crisis. […] In the days since that event took place, Lilly’s stock underperformed the S&P and underperformed some of its pharmaceutical industry peers. Why the lingering effect on Lilly’s stock price? What could it have done differently? What could a company in its position do now? And how could have third party (insurance) authentication played a strategic role?

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

November 14, 2022

Parametric insurance ESG authentication. How can companies use parametric insurance to prove their ESG bona fides?

Parametric insurance ESG authentication. Parametric insurance, which has long been popular in disaster recovery, is gaining steam as a proxy for proving the effectiveness of ESG programs. Nir Kossovsky and Denise Williamee of insurer Steel City Re explore details of this novel ESG solution. Insurance-based authentication — a regulatory lynchpin — is a recent innovation made possible by parametric insurance solutions.

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 10, 2022

The reputation premium-seeking RepuSPX is out-performing the S&P500 Index by 384.39%.

Reputation Arbitrage October 2022. The reputation premium-seeking RepuSPX is out-performing the S&P500 Index by 384.39%. The trailing twelve month spreads over the S&P500 of the three reputation-linked indices comprising RepuStars Variety Corporate Reputation Composite Equity Index family range from 1.09% to 3.19%. The trailing twelve month return spread between the two reputation-based price-only indices, REPUVAR and REPUSPX, is at a low of 2.1%. All three indices are outperforming the S&P500 this calendar year.

October 2, 2022

Radical collaboration for sustainability strategy. Sustainability has to exist in organisations as a strategy, not just a buzzword.

Radical Collaboration for Sustainability Strategy There are many potential benefits lauded from a well-developed sustainable business strategy. Good for the people, good for the planet. Perhaps also good for reputation, risk management and revenue growth? Simply put, it is all of those things. However, if businesses only treat sustainability as a PR exercise and a …

October 2, 2022 Read More

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 …

September 12, 2022 Read More