Consumer Goods & Services

June 13, 2024

The last lap of Southwest's 18-month reputation crisis. Activists investors! Link to a podcast on the meaning of all this for your company.

And now, the last bits of the tail of a reputation crisis. “Hedge fund Elliott Investment Management announced yesterday that it has a $1.9bn position in Southwest Airlines, comprising 11% of the company’s shares. It issued a letter to the airline’s board, calling for new directors, a new CEO, more executives from outside, and a comprehensive business review. In its letter, Elliott wrote, ‘While Southwest has a proud history, that history is not an argument for supporting poor leadership and sticking with a strategy that no longer succeeds in the modern airline industry.’” Relevant podcast on what this means for your company: https://5-minute-aventures-in-risk-resilience.zencast.website

June 8, 2024

Lacking good solutions, $25 billion of Marsh clients’ premium is going to captives. Hey! Steel City Re's insurance is made for complex risk!

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.

April 7, 2024

“Unsavory” may be forgiven, if not forgotten. Speculation aside, objectively, none of Steel City Re's reputation risk measures indicated a problem with MSGE. The obvious benefit of such objective metrics is that it protects CEOs’ reputation-linked compensation and shields boards from attacks. Is your reputation risk management process insurance-authenticated?

“Unsavory” may be forgiven, if not forgotten. Speculation aside, objectively, none of Steel City Re’s reputation risk measures indicated a problem with MSGE. The obvious benefit of such objective metrics is that it protects CEOs’ reputation-linked compensation and shields boards from attacks. Is your reputation risk management process insurance-authenticated?

April 1, 2024

Bud Light reputation crisis at one year. $1.4bn estimated loss in sales. Equity lagging S&P Food and Beverage Index (IFB) by 12% (~$14bn); and Molson Coors (TAP) by ~40%.

With reputation risk forecasting, management, and insurance, Steel City Re helps companies build and prove to stakeholders their thoughtful risk management and dutiful governance over all that is mission-critical. It is an authenticated story stakeholders can appreciate and value.

October 16, 2023

Mitigate value-destroying legal risk. For Fox, Kossovsky said. “This new reputation at FOX Corporation, if it [is] indeed forming, is or will be value-destroying.”

Fox experienced a surge in reputational risk in the summer of 2021, according to reputational risk insurance provider Steel City Re’s resilience monitor. […] “Reputation risk is usually triggered by missed expectations,” Kossovsky said. “Arguably, stakeholders expected that Rupert Murdoch would once again pull the organization back from the brink after an ethically questionable strategy went sour. They’ve been disappointed.”