December 25, 2024
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.
Quality
December 23, 2024
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
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
32.9% of companies, including American Airlines and US Bancorp, have compensation clawback policies for reputation harm.
August 16, 2024
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
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 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
Adventures in Risk & Resilience Podcast. A risk executive uses insurance strategically to allay customers’ new fears of quality and safety.
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.”
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.