Many corporate hands create the expectations and potential failures that underpin reputation risk. Steel City Re’s services deliver enterprise-wide frameworks for assessing and quantifying reputational risks and potential corporate and personal impacts, and for estimating the benefits of using reputation insurance products to manage and mitigate those perils.
Comprehensive Reputation Risk Solutions
The time-tested and proven solutions of Steel City Re combine technology-driven quantitative rigors with a behavioral economic risk management framework and parametric insurances. If reputation risk is an emerging material issue to you and your firm, and its management is under your purview or should be, here are five questions to ask as you benchmark your strategy:
- Does your firm’s reputation risk management program speak to the expectations of institutional investors and bond analysts? Notwithstanding top-notch ESG marketing at even the best firms, BlackRock, SEC, analysts, etc. are asking harder questions and demanding proof. Steel City Re’s comprehensive reputation risk solution framework incorporates a quantitative rigor that has been proven effective in both insuring and arbitraging reputation risk. The framework speaks to institutional investor concerns exemplified by BlackRock’s 2021 proxy voting guidelines. Capital markets appreciate and value substance. As proven by Apollo Global, the right reputation risk management framework disclosed transparently to your stakeholders transforms the expanding morass of 21st century perils into an asset that is valued by analysts, institutional investors, bond and ESG raters. At the same time, earnings multiples may be boosted.
- Does your firm’s reputation risk management program protect its Board of Directors from drowning in endless piecemeal issues and threats? A typical Board is peppered with ESG-like crises over ethics, safety, security and sustainability. Stakeholders expect the board to pay detailed attention. Board members expect to focus on big strategic issues. Steel City Re’s comprehensive reputation risk solution framework transforms the spectrum of mission-critical 21st century ESG issues into a coherent, seamless business process packaged for oversight. It restores the governance experience corporate directors expect and makes the job of governance fun(ctional) again (See at top Strategic Risk Consolidation Illustration).
- Does your firm’s reputation risk management program reduce your tactical workload? Being an enterprise-wide family of perils with lasting implications for human capital, investor and regulatory relations, reputation risk management requires enterprise-wide intelligence gathering and analysis. It requires quantitative instruments to estimate financial losses. Steel City Re’s comprehensive reputation risk solution framework transforms a tangle of mission-critical 21st century business activities into a coherent manageable business process comprising a cross-functional matrix of intelligence activities. These activities are executed under the aegis of counsel, treasury, or chief of ERM by individuals drawn from the network of corporate silos.
- Does your firm’s reputation risk management program truly advance ESG objectives? The debate between shareholder and stakeholder primacy, articulated in the Business Roundtable declaration to which your firm may be a signatory, is premised on a false choice. Steel City Re’s comprehensive reputation risk solution framework, sensitive to expectations, behaviors, and economics, transforms a chaos of competitive interests into a balanced systems-based sustainable strategy that advances the interests of both shareholders and stakeholders alike.
- Does your firm’s reputation risk management program simply, credibly and convincingly authenticate governance and management changes? Will legal reviews, underwriting assessments, or insurances be understood and appreciated by institutional investors, regulators, bond raters, and others? Will the proof lend credence to dutiful governance and oversight in a Caremark pleading?
What’s your strategy?
Reputational risk is a concern for every company, organization or individual in corporate leadership. Let us help develop your strategy for reputational resilience.