Governance

March 1, 2024

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.”

February 8, 2024

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.

February 5, 2024

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.

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.

November 24, 2023

“Over the course of four days at NACD Summit 2023, speakers pushed nearly 1,500 in-person and virtual attendees to think about new approaches and ways of thinking about their roles as directors in a world of crisis. […] One area that is an emerging risk in today’s environment is a company’s reputation. ‘We failed to predict that trust could be a target, just like information systems, and that there are entities out there that want you to diminish trust in our institutions…’”

“Over the course of four days at NACD Summit 2023, speakers pushed nearly 1,500 in-person and virtual attendees to think about new approaches and ways of thinking about their roles as directors in a world of crisis. […] One area that is an emerging risk in today’s environment is a company’s reputation. ‘We failed to predict that trust could be a target, just like information systems, and that there are entities out there that want you to diminish trust in our institutions…’”

November 14, 2023

Tolerable Risk podcast. 🔊 My guest is Nir Kossovsky, CEO of Steel City Re and an expert in the area of reputational risk management. Nir has the most interesting background which gives him multiple perspectives on the topic of reputational risk. During the episode, Nir and I discuss: 👀 What "agitation" and "behavior perils" are and why you should be aware of them 🤔 Why perception is as important (if not more!) than reality 💰 How taking an active approach to reputational risk management can help you with fundraising 🦁 And how it all starts with courage ✅ Nir also discusses how the "Big Six" - Ethics, Innovation, Safety, Security, Sustainability, and Quality - are the best place to begin.

Tolerable Risk podcast. 🔊 My guest is Nir Kossovsky, CEO of Steel City Re and an expert in the area of reputational risk management. Nir has the most interesting background which gives him multiple perspectives on the topic of reputational risk.

During the episode, Nir and I discuss:

👀 What “agitation” and “behavior perils” are and why you should be aware of them
🤔 Why perception is as important (if not more!) than reality
💰 How taking an active approach to reputational risk management can help you with fundraising
🦁 And how it all starts with courage

✅ Nir also discusses how the “Big Six” – Ethics, Innovation, Safety, Security, Sustainability, and Quality – are the best place to begin.

November 7, 2023

Reputational risk from $1.5 Trillion ESG debt. Bankers servicing one of the world’s biggest ESG debt markets are now actively seeking legal protections to guard against the potential greenwashing allegations that may be ahead. […] Lawyers advising SLL bankers say the reputational risks associated with mislabeling such products are now too big to ignore.

Reputational risk from $1.5 Trillion ESG debt. Bankers servicing one of the world’s biggest ESG debt markets are now actively seeking legal protections to guard against the potential greenwashing allegations that may be ahead. […] Lawyers advising SLL bankers say the reputational risks associated with mislabeling such products are now too big to ignore.

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.”