April 16, 2024
Triggered by the challenges at the Boeing Company, a risk executive and her leadership team use insurance strategically to allay her firm’s customers’ new fears of quality and safety.
Video Commentary
Boeing’s Hidden Costs of Reputation Value Loss
Boeing’s hidden costs of its reputation crisis. Shifting expectations among four stakeholder groups have shifted expectations, altered behaviors, and reduced Boeing’s bottom line.
February 3, 2024
Forty years after a tsunami of lawsuits demanded action for the risks of D&O liability, history is rhyming with the risks of D&O culpability. Here are the top 3: Risk governance, ESG strategy, and C-suite experience.
January 23, 2024
$5 trillion worth of shareholder votes want more ERM this year. The investment stewardship team at Blackrock, the world’s largest asset manager, will put “increased focus on how companies are strengthening financial resilience.” It is a is a challenge Steel City Re has been anticipating since 2007.
February 12, 2023
Demonstrating Quality and Effectiveness. In this recent post by the National Association of Corporate Directors, the lawyer authors write, “Documenting the board’s activities is a critical component of demonstrating management’s efforts to monitor relevant risks and board review of these efforts.” Under the DoJ’s enhanced enforcement guidelines, simply demonstrating effort is not sufficient. Demonstrating effectiveness—not merely effort—is crucial; and it is one of the strategic benefits of ESG and reputation insurances.
February 7, 2023
All risk is connected. As in Dirk Gently’s world, everything in the risk world is now connected, but without the humor of Douglas Adams. The consequences of operational perils between and among employees—the sorts of things that might have triggered coverage with Employment Practice Liability insurance, is now a matter for derivative litigation and the SEC.
February 6, 2023
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.
January 10, 2023
The military, and many corporate leaders, think in terms of an ‘OODA loop’ — the amount of time it takes to Observe, Orient, Decide and Act. We live in an era where weaponized social media has compressed OODA time frame for reputation risk management dramatically, especially when institutional investors are on tenterhooks.
January 3, 2023
Reputation risk emerges when the expectations of a critical mass of stakeholders shifts, and the value of favorable expectations transforms into the costs of emotionally-rich disappointment. Twitter’s blue check “chaos” shows that the velocity of reputation risk boosted is approaching military-grade speeds.
November 29, 2022
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