April 16, 2024
Triggered by the challenges at the Boeing Company, a risk executive and her leadership team use insurance strategically to allay her firm’s customers’ new fears of quality and safety.
Triggered by the challenges at the Boeing Company, a risk executive and her leadership team use insurance strategically to allay her firm’s customers’ new fears of quality and safety.
It’s the end of a miserable quarter as Boeing Company’s reputation crisis hits day 92. Equity is down 35% to peers: 22% worse than Southwest Airline’s 13% day 92 under performance.
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.
Southwest Airlines reputation crisis. At crisis day 375, Southwest equity is under performing the S&P500 index by 41.4%. Steel City Re’ Resilience Monitor warned that an operational failure was likely to trigger a reputation crisis.
In the past six months, more than $130 billion in shareholder value was lost by 39 banks due to reputational risk—the risk of unmet stakeholder expectations resulting in incinerated business value–flawed stakeholder intelligence.
Steel City Re CEO and former Los Angeles County deputy coroner on what derailed the ESG movement & what boards expect from risk management in the aftermath.
Qantas cost of reputation damage mount There is a long, costly tail to reputation risk from stakeholders claiming pounds of flesh.
In a world of polycrisis, […] risk managers need to… market the elevated quality of their risk management processes. The author thanks for their contributions to this article:
Courtney Davis Curtis, University of Chicago; Deyna Feng, Cummins, Inc.; Mary C. Friedl, Redbox; Kathleen A. Graham, The HQ Companies; Chris Hammond, Stepan; Enya He, Blu Clarity PBC; Carnell R. Jones, Trinitas Ventures; Christy Kaufman, Zillow Group; John C. Kline, Discover Financial Services; Manuel Padilla, MacAndrews & Forbes Incorporated; Soubhagya Parija, FirstEnergy and New York Power Authority; Kristen Peed, CBIZ; Theresa Severson, Kite Realty Group; Seung Yoo, Regal Rexnord Corporation; and Denise Williamee, Steel City Re.
We help risk managers manage risk and add value across Boardrooms, C-Suites, and operational silos through reputation resilience.
Southwest Airlines (LUV) equity returns at 193 days normalized to the S&P500 returns are -10.3% (predicted based on historic reputation risk for LUV: -7.0%). It is under performing the Dow Jones US Airlines Index (DJUSAR) by 28.7%. The implied loss to shareholders is $2bn.