Good governance does not shield directors from liability risk nor reputation risk. The former is the hard lesson learned by everyone in the mid 1980’s; the latter is being learned now. The reputations of board members have increasingly become targets in a time of heightened activism and social media activity. Read the article in Directors & Boards to learn what experts say directors should do.
Podcast: Target’s stock price drop suit calling for a board refreshment convinces directors to mitigate humiliation risk with reputation insurance.
Affirming in practice what it disclosed in January, Blackrock “engaged 2,683 times on strategy, purpose and financial resilience-related themes with 2,014 companies — more than any of its other engagement priorities — this proxy year. Given this information, board directors may want to prioritize financial resilience in their own work and in engagement with index funds.” Steel City Re can provide metrics and tools to support innovative strategies for strengthening financial resilience.
32.9% of companies, including American Airlines and US Bancorp, have compensation clawback policies for reputation harm.
Investors are not good at predicting the net impact of reputation risk. They tend to over or underestimate the net impact on future cash flows on the basis of sentiment and noise rather than on indicators of stakeholder disaffection and behavioral change such as those integral to Steel City Re’s premier reputation risk prediction tool, its Resilience Monitor.
5-Minute Adventures in Risk & Resilience: The Podcast A Reputation for Truth Neutralizes Fake News at a $7bn Media Company: Getting Valued For Good Information That Neutralizes Bad Information.: In this episode, as a matter of national security after the fake tweet at Eli Lilly, a risk executive outlines a sophisticated strategy to make his …
Captives are a solution to the lack of innovation. Martin South, president and chief executive officer, Marsh, was being interview by Penny Randall Seach, group chief underwriting officer, Zurich Insurance Company in a Global CEO fireside discussion at AIRMIC called ‘Global forces driving change: a future outlook’ Because the industry is not offering products that address clients’s needs as risks evolve, “some $25 billion of Marsh clients’ premium is now being retained using this form of risk transfer.“ In other news, insurer AXA is reorganizing US operations. Layoffs are expected. Meanwhile, Steel City Re has on offer a remarkably innovative original outcome-based solution to the most complex risk of all. It is a solution insureds have wanted since 2005, and it is backed today by Tokio Marine Kiln.
5-Minute Adventures in Risk & Resilience. Southwest Airlines’ reputation crisis helps a risk executive persuade leadership to invest in value-enhancing mission-critical risk management services.
Steel City Re CEO and former Los Angeles County deputy coroner on what derailed the ESG movement & what boards expect from risk management in the aftermath.
![In a world of polycrisis, […] risk managers need to… market the elevated quality of their risk management processes.](https://steelcityre.com/wp-content/uploads/2023/09/20230926-Steel-City-Re.jpg)
In a world of polycrisis, […] risk managers need to… market the elevated quality of their risk management processes. The author thanks for their contributions to this article:
Courtney Davis Curtis, University of Chicago; Deyna Feng, Cummins, Inc.; Mary C. Friedl, Redbox; Kathleen A. Graham, The HQ Companies; Chris Hammond, Stepan; Enya He, Blu Clarity PBC; Carnell R. Jones, Trinitas Ventures; Christy Kaufman, Zillow Group; John C. Kline, Discover Financial Services; Manuel Padilla, MacAndrews & Forbes Incorporated; Soubhagya Parija, FirstEnergy and New York Power Authority; Kristen Peed, CBIZ; Theresa Severson, Kite Realty Group; Seung Yoo, Regal Rexnord Corporation; and Denise Williamee, Steel City Re.