“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?
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.
The new program “will create new incentives for individuals to report misconduct,” “If anything (said a defense lawyer), I think you’re going to see more scrutiny on this, […] And the risks are increasing.” The increased risk of discovering an adverse event is not unlike placing an additional bullet in the chamber in a game of Russian Roulette. But with risks increasing to all companies, and risk being the basis for discounting value, all companies will be equally discounted. That will be hard to appreciate in a stock market that is soaring. Until it isn’t. That’s where we come in. 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.
![Exec Chair Misconduct Allegations […] TKO saw a "massive reputation value drop," according to Steel City Re's Resilience Monitor.](https://steelcityre.com/wp-content/uploads/2024/03/20240320-agenda-TKO-director-independence-mcMahon-Steel-City-Re.jpg)
Exec Chair Misconduct Allegations […] TKO saw a “massive reputation value drop,” according to Steel City Re’s Resilience Monitor.
A “flurry of securities filings noting potential legal and reputation risks stemming from diversity, equity and inclusion efforts follows the US Supreme Court’s June decision .” […] “If we do not successfully manage expectations across these varied stakeholder interests, it could erode stakeholder trust, impact our reputation, and/or constrain our investment and fundraising opportunities,” one filing said.
Reputation risk management is an efficient strategy for interconnected risk. “Risk interconnectivity — the interdependence of various risks, illustrating how one risk can affect or amplify others across systems — is of growing concern to global risk managers. […] Andrew Chung, litigation, arbitration and investigations partner at Linklaters, said the key enterprise risks that are top of mind for clients today are interconnected. He explained: “We are seeing how risks across financial crime, cyber, ESG and energy transition, digital transformation and AI, and geopolitics including supply chain and sanctions all have common elements and data, so now require an enterprise-wide and holistic lens more than ever, to properly manage the risks.”
Pharma has a misinformation problem — and execs could be on the hook. While vaccine-related misinformation is prevalent, it’s not the only threat. False information can arise around ethics, innovation or safety, and threaten a pharmaceutical firm’s reputation, viability and profitability. Reducing the damage from these threats requires a proactive approach. […] Kossovsky agrees.
![Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk, said his firm’s Reputation Resilience Monitor for Tesla indicated little concern about Musk’s pay package, but real concern about the firm’s cost of operations, declining net income and future prospects. […] “However, should stakeholders become excitable, then any incident — even another round on the pay package — could trigger a shift in their expectations from fandom-level support to anger and disappointment,” he said.](https://steelcityre.com/wp-content/uploads/2024/02/20240205-Tesla-Musk-Pay-Package-Reputation-Steel-City-Re.jpg)
Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk, said his firm’s Reputation Resilience Monitor for Tesla indicated little concern about Musk’s pay package, but real concern about the firm’s cost of operations, declining net income and future prospects. […] “However, should stakeholders become excitable, then any incident — even another round on the pay package — could trigger a shift in their expectations from fandom-level support to anger and disappointment,” he said.
Forty years after a tsunami of lawsuits demanded action for the risks of D&O liability, history is rhyming with the risks of D&O culpability. Here are the top 3: Risk governance, ESG strategy, and C-suite experience.
$5 trillion worth of shareholder votes want more ERM this year. The investment stewardship team at Blackrock, the world’s largest asset manager, will put “increased focus on how companies are strengthening financial resilience.” It is a is a challenge Steel City Re has been anticipating since 2007.