In the era of instant news and social media, a crisis can spread in seconds with the risk of reputation damage having an immediate financial impact on a business.
JLT Specialty (JLT) has launched a new corporate reputation insurance product in partnership with Allianz Global Corporate & Specialty.
Reputation Protect Plus, a corporate reputation insurance product provides coverage against the loss of net operating profits from a crisis combined with a comprehensive crisis response service.
While the financial loss cover under the JLT exclusive policy wording with Allianz is a game changer, we also set out to find a way of expanding this solution by helping clients identify the potential risks their business face and develop tangible response and prevention strategies.
WHAT WE DO
Reputation Protect Plus has been designed to deliver a physical asset to the board room enabling proactive management of reputational risks, in addition to the traditional benefits of investing in an insurance policy that are realised only when a loss is experienced.
Understanding the factors that determine reputational risk enables a business to take actions to address them. We can offer protection for:
Protection for up to 180 days of falling net operating profits from when the reputational harm is first discovered including the cost of an external expert required to prepare and present the quantity of the financial loss.
The policy will cover external expert costs to identify the underlying cause of a crisis and to advise on steps to prevent such a crisis in the future.
Reputational crisis response
24/7 access to a pre agreed panel of professional crisis communication consultants supported by real time media monitoring assessing the effect of the crisis ongoing and post the incident.
A strategic media analysis report
Hosted by a leading international media analysis institute, you will receive a strategic media analysis report following a briefing with your senior management.
The assessment is designed to:
- Highlight senior management’s awareness of stakeholder and typical industry risks
- Detect vulnerabilities in the business to lower and mitigate reputational risks before a crisis
- Deliver an impartial view to form the basis for a proactive crisis communication strategy.
JLT Specialty has launched a new corporate reputation insurance product in partnership with Allianz Global Corporate & Specialty. This provides coverage against the loss of net operating profit from an insured reputational crisis combined with a crisis response service.
Features at a glance:
- Simple application form
- Exclusive JLT Specialty policy wording
- Cost of the annual media analysis assessment is included within the annual premium
- Limits of up to GBP 10 million with higher available on request
- Broad triggers
- Limited exclusions
- Nil retention with the exception of financial loss and mitigation costs
- Full cost cover for expert panel with 24/7 availability
- Crisis response for both the business and an individual
- Real time and global media monitoring of the crisis
- Insurers prior approval is required only for rectification advice costs
- Minimum annual premium of GBP/EUR 20,000.
5 Steps To Managing your Corporate Reputation
A common mistake most companies make concerning their reputation is focusing their resources purely on responding to a reputational crisis once the damage has already been done, rather than pre-emptively creating an effective risk management plan in advance.
Our five step guide can help you to prepare for the worst and minimise your losses when the inevitable happens:
Most importantly, CEOs need to assign specific responsibility for reputational management to their ‘reputational executive’. This person needs to have the credibility and all the necessary resources to fill the position. They should not feel conflicted by their existing role within the company. For example, the CFO or General Counsel.
The first role of the reputational executive is to assess your company’s reputation across all functions and identify any major risk exposures. Media analysis, clipping services, surveys, focus groups and opinion polls, supplemented with strategic media intelligence, will all help to determine the public’s perception of your business.
Reputational damage occurs when a stakeholder or customer’s experience with the company doesn’t match up to their expectations. The 2019 Allianz Risk Barometer Report identifies reputation in the top ten most important risks for businesses.
The second role of the reputational executive is to ensure that brand reputation and performance are aligned. This activity can help to highlight any weak spots in your organisation’s productivity, manage stakeholder expectations to meet your fiduciary obligations and determine how well your media strategy is going.
Your media presence needs to be consistent and predominantly positive to boost your public reputation.
Once this information has been collected, the reputational executive can work with the board to create an effective reputational risk management strategy to ensure
immediate and appropriate action in the case of a scandal.
Applying these principles consistently by implementing quality processes and a strong corporate culture reflective of your brand’s core values can help your reputation to flourish and prevent a scandal simultaneously. This process can be pretty cost effective and fast if your company coordinates existing elements of the strategy to improve decision making.
During a scandal, unexpected costs can be covered by corporate reputation insurance including; lost revenue, consulting fees and PR/crisis response costs. Having a comprehensive insurance solution can also provide tangible and practical benefits for CEOs in the form of a strategic media analysis report, which exposes any potential vulnerability in your plan for you to rectify.
How a CEO responds to a reputational crisis can make or break a company’s reputation and have an immediate effect on your revenue and share value.
You must act decisively and respond with sincerity. Building strong relationships and credibility with the press can also be your saving grace when looking for a powerful platform to share your side of the story or apology.
Scandals and reputational loss are universal risks that can affect every business. Therefore it is imperative that boards take a proactive approach to risk management and protect themselves with innovative insurance solutions.
Having the right tools and procedures in place can help you avoid becoming the latest headline, but if this advice comes too late, there is always a way to change the narrative and evolve your strategy.