Quality Archives – Steel City Re

May 8, 2025

Consumer Goods & Services, Governance, Quality

PR nightmares mount for Pirates, who can’t win — on or off the field. […] Chatter about the team on social media might be loud, but that does not necessarily make it a concern, according to Nir Kossovsky, CEO of Steel City Re, a Pittsburgh-based reputation risk management and insurance firm. […] When a team’s reputation takes a grave hit, Mr. Kossovsky said, relationships with all stakeholders are at risk. The city or state could roll back any tax benefits or waivers they offer the franchise. The Pittsburgh Sports and Exhibition Authority, which collects $100,000 in base rent from the Pirates for PNC Park each year, could raise that rent or amend the lease. Vendors could pull out of contracts. Loans could become more expensive.

December 25, 2024

Case Studies, Consumer Goods & Services, Ethics, Industrials & Technology, Quality, Safety, Security, Transportation

Investors are not good predictors of reputation value loss. At crisis day 155 for Crowdstrike, Boeing, and Southwest, the firms’ equities were -1.4%, -36.4%, and -26.8%. vs S&P500.

December 23, 2024

CFOs, CLOs, Consumer Goods & Services, D&Os, IR/CMOs, Quality, Safety, Transportation

Southwest Airlines reputation crisis. AAt crisis day 725, Southwest equity is under performing the S&P500 index by 62% and the US airlines index by 66.9%. Steel City Re’ Resilience Monitor warned that an operational failure was likely to trigger a reputation crisis.

October 28, 2024

D&Os, Ethics, Governance, Innovation, Parametric Reputation Insurance, Personal Cost, Quality, Safety, Security, sustainability

An industry that is using parametric technology to insure losses from natural disasters caused by wrathful deities can now also provide meaningful insurance for losses from reputation disasters caused by emotional mortals. The 4-M parametric framework of metric, model, monitor and market for natural earthquakes disclosed at the 2023 Hawaii Captives Insurance Conference makes parametric insurance for metaphorical earthquakes easy to back, underwrite, broker and bind.

August 31, 2024

Captives, Commercial Services, Consumer Goods & Services, D&Os, Energy & Mining, Ethics, Food, Governance, Health, Innovation, Personal Cost, Quality, Safety, Security, Transportation, Utilities

32.9% of companies, including American Airlines and US Bancorp, have compensation clawback policies for reputation harm.

August 16, 2024

Finance, IR/CMOs, Parametric ESG insurance, Parametric Reputation Insurance, Quality

Reputation risk management is a battle for the mind of the stakeholder. A range of parametric insurance products linked to reputation value and volatility help authenticate stories about the quality of risk management. It is how risk management and risk communications work together to create value.

June 13, 2024

Case Studies, CLOs, Consumer Goods & Services, D&Os, Industrials & Technology, Legal, Quality

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

Captives, CFOs, Commercial Services, Communications (Corp) & Media, Consumer Goods & Services, Energy & Mining, ESG/Social Responsibility, Ethics, Finance, Food, Health, Innovation, Parametric ESG insurance, Parametric Reputation Insurance, Quality, Safety, Security, Transportation, Utilities

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 16, 2024

Case Studies, CFOs, CLOs, Communications (Corp) & Media, Industrials & Technology, Parametric ESG insurance, Parametric Reputation Insurance, Quality, Safety, Transportation, Video Commentary

Adventures in Risk & Resilience Podcast. A risk executive uses insurance strategically to allay customers’ new fears of quality and safety.

March 1, 2024

ESG/Social Responsibility, Ethics, Governance, Innovation, Legal, Parametric Reputation Insurance, Quality, Safety, Security

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.”

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