Southwest’s Culture Problem Fortune

Culture limits risk strategy. “The reputational damage may lead to more volatility…according to Nir Kossovsky, CEO of reputation risk insurer Steel City Re.”

Culture limits risk strategy. Southwest was overwhelmed and unable to adapt as a severe storm swept the US. But behind those specific issues is an insular management team that critics say lacks the imagination and technology expertise to help avoid such crises. […] The carrier has a long-standing reputation of being slow to adopt new technology, and spent years implementing a new reservation system and updating its maintenance operations.

December 13, 2022

The velocity of reputational risk is approaching the speed of a nuclear assault on a nation, said Nir Kossovsky, Steel City Re CEO.

The velocity of reputational risk is approaching the speed of a nuclear assault on a nation, said Nir Kossovsky, Steel City Re CEO. A “Military grade” response to sped up reputational crises requires cold war game theory strategy and preemption.

November 29, 2022

The bottom line: Mitigating an expectation shift by adapting or managing expectations reduces the risk of costly ESG | reputation risk.

Mitigating an expectation shift: An effective, thoughtful risk strategy. Of the many on offer, only our solution is quantitative, battle-tested, quality management-proven, and grounded in four Nobel Prize winning insights. The bottom line: mitigating costly reputation risk by targeting factors that would lead to a shift in expectations

October 28, 2022

Mitigating the Hazards of ESG-Linked Enterprise Risk. Two of every 3 directors prefer value-creation through an ESG-linked reputation strategy.

Carnell and Nir are two of the three speakers who will be delivering the general session titled, “Mitigating the Hazards of ESG-Linked Enterprise Risk,” at the RIMS ERM Conference on November 11th at 11:30 am. This session will explore the value proposition of how to manage ERM to mitigate ESG-linked reputation risk strategically. It will focus on the cultural aspects of rounding up the collaborators from legal and communications and risk insurance. Two of every 3 directors prefer value-creation through an ESG-linked reputation strategy.

October 13, 2022

Effective defense of oversight claim. An insurance-authenticated thoughtful and dutiful risk strategy over all that is mission-critical.

You can never completely prevent litigation over liability due to oversight issues. That being said, steps can be taken to help better defend against these suits, including successfully moving to dismiss, reducing settlement values even after an unsuccessful motion to dismiss, and perhaps even a successful defense at trial, if necessary.

October 5, 2022

Oversight of Ethics Risk Management. Insurance can authenticate the effectiveness of a board’s reputation risk oversight.

Regardless of one’s moral compass, the practical risks of failing to uphold business ethics are very real, transcending any legal or regulatory requirements. A company’s most valuable asset may be its reputation, yet that asset appears nowhere on the company’s balance sheet. Board members’ oversight of risk management should therefore include reputational risk as a key element, which requires attention to business ethics throughout the company’s activities, both current and planned. This book provides excellent examples — good and bad — that will be instructive for board members in overseeing management of reputational risk.

October 4, 2022

Pay by ESG Performance Metrics. “Difficulties in boiling (ESG) down to a few performance indicators to link to pay are numerous, (said Nir Kossovsky).”

Pay by ESG Performance Metrics. While environmental, social and corporate governance (ESG)-linked pay and bonuses are increasingly popular in big businesses, the concept found a lack of support among two recent visitors to Intelligent Insurer’s hub for debate and discussion: Nir Kossovsky, head of Steel City Re, an insurance intermediary and risk advisor for reputation and ESG linked reputation risk; and GCY Associates’ founder Gerald Chen-Young, who specialises in institutional investment management, consulting and advice, and has worked with several boards on ESG issues.

September 27, 2022

DEI and Reputation Risk. Companies can always buy insurance. Insurers like Steel City Re are developing creative ESG parametric products.

DEI – Diversity Equity and Inclusion Disappointment Risk “Really, what is needed is what we’re calling ESG-linked reputation insurance,” Kossovsky said. “ESG is all about setting expectations for better environmental stewardship, better social justice, more dutiful governance. The risk arises from some failure to understand stakeholder expectations — the failure to set those expectations, and …

September 27, 2022 Read More