“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.”
The industry saw its biggest decline in sentiment since 2018, according to American Banker’s annual reputation survey, with regional banks accounting for the bulk of this deterioration. […] the findings were a “powerful” showcase of how vulnerable banks’ reputations are to periods of crisis.
Not Want to Fly Southwest Airlines. Our measurements of reputational health indicate danger! #LetRiskManagersManageRisk
Lead enterprise-wide strategy. Risk management is surely broken. Ambitious risk managers committed to upgrading risk strategy and creating enterprise value with better enterprise intelligence, strategic packaging and a unified organization can fix it.
Disclosing parametric insurance to all stakeholders helped boost First Republic’s equity returns by 15% above the KBW Index (net $4bn).
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.
Reputation value arbitrage. The reputation premium-seeking RepuSPX is out-performing the S&P500 Index by 414.86%
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.
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?
SteelCity Re’s reputation premium-seeking RepuSPX equity portfolio is out-performing the S&P500 Index by 421.16%