April 16, 2024
Adventures in Risk & Resilience Podcast. A risk executive uses insurance strategically to allay customers’ new fears of quality and safety.
Industrials & Technology
Boeing’s Hidden Costs of Reputation Value Loss
Boeing’s hidden costs of its reputation crisis. Shifting expectations among four stakeholder groups have shifted expectations, altered behaviors, and reduced Boeing’s bottom line.
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.](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.
Tech Companies Changed Policies – Corporate Counsel
Tech companies changed policies. “(S)parking outsized emotional reactions, Kossovsky said,…are a hallmark of matters carrying serious reputational risks.”
April 19, 2023
Intelligence Unit Briefing. Our reputation risk management advisory services integrate principles of quality management and behavioral economics, substantiated by a proprietary quantitative methodology. Our ESG | reputation insurances are parametric.
April 14, 2023
Lead enterprise-wide strategy. Risk management is surely broken. Ambitious risk managers committed to upgrading risk strategy and creating enterprise value with better enterprise intelligence, strategic packaging and a unified organization can fix it.
March 16, 2023
The U.S. Department of Labor has now launched an investigation and said it will hold not only companies that employ child labor accountable, but the larger, better known companies that have child labor in their supply chains. The new regulatory stakeholders in companies’ supply chains bring with them investors and litigators, who had material financial consequences to activities already being followed by activists.
February 21, 2023
The settlement with Activision Blizzard could have widespread implications for how companies choose to manage risk, according to Nir Kossovsky, CEO of Steel City Re, which provides insurance for reputation and assists companies in establishing risk management functions. Kossovsky said that companies should create “reputation risk leadership committees” composed of representatives from “every silo” of the company that interacts with a critical stakeholder group…“No one can argue with thoughtful risk management and dutiful oversight, but you need a demonstrable, effective process to make that claim.”
January 10, 2023
The military, and many corporate leaders, think in terms of an ‘OODA loop’ — the amount of time it takes to Observe, Orient, Decide and Act. We live in an era where weaponized social media has compressed OODA time frame for reputation risk management dramatically, especially when institutional investors are on tenterhooks.
January 3, 2023
Reputation risk emerges when the expectations of a critical mass of stakeholders shifts, and the value of favorable expectations transforms into the costs of emotionally-rich disappointment. Twitter’s blue check “chaos” shows that the velocity of reputation risk boosted is approaching military-grade speeds.