The issue at Campbell’s is neither one of compliance nor enterprise risk management, but rather one of reputation risk governance. The question is therefore how did reputation resilience become so impaired that that one-year old stupid comment by an allegedly impaired senior executive, then into his 5th month of employment, exposed weak governance, reputation risk management, and reputation crisis management?
To recruit and retain robust diverse boards, companies need the protection of Steel City Re’s Side R® D&O parametric reputation insurance.
We. Communications launches reputation forecast: A board-level framework for managing reputation value and risk for governance and ERM. The new offering combines financial-grade data from Steel City Re, the pioneering advisory firm behind reputation risk insurance, with We.’s full-stack communications intelligence including media monitoring, audience polling, social analytics and AI insights.
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.
Facebook recognized the reputational risk associated with its users’ privacy, and the shareholders homed in on this in their lawsuit. […] “Facebook is in the business of collecting user data, and if its reputation is damaged such that users lose their trust, it has the potential to damage the company’s and its investors’ long-term interest beyond the fines and penalties already paid” […] Mission-critical risks have become intertwined with boards’ fiduciary duties … reputation can be a mission-critical risk for many companies, according to Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk.
Podcast: Target’s stock price drop suit calling for a board refreshment convinces directors to mitigate humiliation risk with reputation insurance.
Disappointed stakeholders—the product of missed expectations and a feature of reputation damage—are a force to be reckoned with. Adidas chair in re-election fight as investors plot revolt. DWS, the asset management arm of Deutsche Bank, told the Financial Times that it would vote against Rabe’s re-election as chair of the German sportswear company’s advisory board at the annual meeting on Thursday because of a “repeated breach of expectations”.
PR nightmares mount for Pirates, who can’t win — on or off the field. […] Chatter about the team on social media might be loud, but that does not necessarily make it a concern, according to Nir Kossovsky, CEO of Steel City Re, a Pittsburgh-based reputation risk management and insurance firm. […] When a team’s reputation takes a grave hit, Mr. Kossovsky said, relationships with all stakeholders are at risk. The city or state could roll back any tax benefits or waivers they offer the franchise. The Pittsburgh Sports and Exhibition Authority, which collects $100,000 in base rent from the Pirates for PNC Park each year, could raise that rent or amend the lease. Vendors could pull out of contracts. Loans could become more expensive.
DEI-linked stock price drop lawsuits may lead to painful board exit conversations and impair board member’s’ personal reputations. “Companies are going to be scrutinized for the statements and positions that they’ve taken in these areas,” said Troy Harder. “I wouldn’t be surprised to see a lot more lawsuits like this.” […] “(H)ow companies monitor risk matters just as much as how they disclose it,” Jennifer Wu, an assistant professor of finance at the University at Buffalo’s School of Management, told Agenda. That’s why Steel City Re developed a comprehensive reputation risk monitoring, management, and insurance solution.
There are 45 companies (combined value $10 trillion) on the MAGA anti-DEI hit list.“The worst thing that can happen to a company is: You’re still on that list, but you’ve lost all your good faith and credibility with folks on the other side of these issues.” We call this situation a reputation crisis and a clear need for reputation insurance.