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 management is a battle for the mind of stakeholders.

Strong corporate governance and reputation risk management are the kind of authentic, simple to understand story marketers and investment relations professionals need to be telling stakeholders.

Not only does it inspire their confidence, it’s compelling to ESG raters, bond raters, and investors; and it shields the personal reputations of individual board members and provides leverage in negotiating D&O liability coverage in a hard insurance market.

“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

Relevant Articles

January 11, 2022

In Episode 5 of A Day in the Life, Darren interviews Nir Kossovsky, CEO of Steel City Re, the world’s only parametric reputation insurer. Writes …

December 2, 2021

“Companies must mitigate reputation risks before they impair value. To achieve this, companies must establish effective processes, controls, systems, and insurances that are robust to …

December 1, 2021

“Companies once relegated the management of reputation risk to the public relations or communication functions, often in response to a specific crisis. The time for …