ROI of Risk Management

Reputation risk management, financing, and insurances from Steel City Re can deter and mitigate reputational attacks, reducing the cost of negative events and the ensuing media coverage. Our products reduce boards’ exposure to shareholder derivative suit liability and companies’ cost of capital at the same time.

Reputation risk is a battle for the mind of stakeholders.

It must begin preemptively with stories that speak to authentic systems for risk management, quality governance and compliance in terms that for all stakeholders, are simple, convincing and completely credible. Insurances can be a key part of this story telling effort.

Capital markets will reward authentic stories of upgrades in enterprise reputation risk management with better bond and credit ratings and lower credit costs.

“Companies could add 20% of value or lose up to 30% of value depending on their reputation risk preparedness, and (crisis) management behaviour.”

Joint study by Aon and Pentland Analytics

Benefits of Reputation Risk Management

Equity investors in companies paying less for capital will see higher earnings and a stock boost; bond holders will see bond values rise up to 20 basis points.

Employees directly experiencing that which is captured in stories of improved reputational risk governance will be more engaged.

Board members backed by authentic stories of reputation risk governance gain enhanced personal protections against culpabilities in the court of public opinion.

CEOs recognized in authentic stories of enterprise reputation risk management leadership will create enterprise value, and are at least less likely to be seen as having failed and forced to walk the plank to atone for reputational crises.

A “risk management system built into (Merck’s) governance structure…(has strengthened their ability) to fend off future reputational issues.”

Nir Kossovsky, CEO, Steel City Re