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.
![Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk, said his firm’s Reputation Resilience Monitor for Tesla indicated little concern about Musk’s pay package, but real concern about the firm’s cost of operations, declining net income and future prospects. […] “However, should stakeholders become excitable, then any incident — even another round on the pay package — could trigger a shift in their expectations from fandom-level support to anger and disappointment,” he said.](https://steelcityre.com/wp-content/uploads/2024/02/20240205-Tesla-Musk-Pay-Package-Reputation-Steel-City-Re.jpg)
Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk, said his firm’s Reputation Resilience Monitor for Tesla indicated little concern about Musk’s pay package, but real concern about the firm’s cost of operations, declining net income and future prospects. […] “However, should stakeholders become excitable, then any incident — even another round on the pay package — could trigger a shift in their expectations from fandom-level support to anger and disappointment,” he said.
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.
$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.
Southwest Airlines reputation crisis. At crisis day 375, Southwest equity is under performing the S&P500 index by 41.4%. Steel City Re’ Resilience Monitor warned that an operational failure was likely to trigger a reputation crisis.
Environmental issue? Investors scrutinizing! According to Kossovsky, shareholders seem most concerned about the impact of fines and other costs, but, in the long run, usually don’t expect environmental incidents to materially impair revenue.
![“Over the course of four days at NACD Summit 2023, speakers pushed nearly 1,500 in-person and virtual attendees to think about new approaches and ways of thinking about their roles as directors in a world of crisis. […] One area that is an emerging risk in today’s environment is a company’s reputation. ‘We failed to predict that trust could be a target, just like information systems, and that there are entities out there that want you to diminish trust in our institutions…’”](https://steelcityre.com/wp-content/uploads/2023/11/20231122b-Steel-City-Re-1.jpg)
“Over the course of four days at NACD Summit 2023, speakers pushed nearly 1,500 in-person and virtual attendees to think about new approaches and ways of thinking about their roles as directors in a world of crisis. […] One area that is an emerging risk in today’s environment is a company’s reputation. ‘We failed to predict that trust could be a target, just like information systems, and that there are entities out there that want you to diminish trust in our institutions…’”
Tolerable Risk podcast. 🔊 My guest is Nir Kossovsky, CEO of Steel City Re and an expert in the area of reputational risk management. Nir has the most interesting background which gives him multiple perspectives on the topic of reputational risk.
During the episode, Nir and I discuss:
👀 What “agitation” and “behavior perils” are and why you should be aware of them
🤔 Why perception is as important (if not more!) than reality
💰 How taking an active approach to reputational risk management can help you with fundraising
🦁 And how it all starts with courage
✅ Nir also discusses how the “Big Six” – Ethics, Innovation, Safety, Security, Sustainability, and Quality – are the best place to begin.
Chicago, 13-13 2-23. Innovative solutions for underwriting “reputation risk; e.g., parametric modeling of enterprise value impairment for an outcome trigger.
![Reputational risk from $1.5 Trillion ESG debt. Bankers servicing one of the world’s biggest ESG debt markets are now actively seeking legal protections to guard against the potential greenwashing allegations that may be ahead. […] Lawyers advising SLL bankers say the reputational risks associated with mislabeling such products are now too big to ignore.](https://steelcityre.com/wp-content/uploads/2023/11/20231107-Steel-City-Re.jpg)
Reputational risk from $1.5 Trillion ESG debt. Bankers servicing one of the world’s biggest ESG debt markets are now actively seeking legal protections to guard against the potential greenwashing allegations that may be ahead. […] Lawyers advising SLL bankers say the reputational risks associated with mislabeling such products are now too big to ignore.