Community Home

Announcements

  • RIMS, AIRMIC, REPTRAK COMPANY REPORT: CLOSING THE GAPS ON REPUTATIONAL RISK MANAGEMENT

    Traditionally, risk is dealt with by risk experts, while reputation tends to be managed by the corporate affairs or corporate communications teams. When those two teams work in silos risks to reputation can develop and remain undetected until it is too late, and an organisation can find itself as unplanned headline news.

    Airmic, The Risk and Insurance Management Society (RIMS) and the RepTrak Company commissioned interviews with over 40 leading risk professionals in Europe and the US to discuss how reputational risk management can be improved.

    Furthermore, professors and industry thought leaders were brought together in working groups to discuss challenges and best practices. The resulting report,  “Closing the Gaps on Reputational Risk Management”, provides guidance to help close the gaps on reputational risk management.

    Six Challenges

    Risk professionals face six challenges to understanding and addressing risks to reputation, according to the report:

    1. Unclear definition of reputation.
    2. Confusion on the categorization of risks to reputation.
    3. No commonly agreed upon, consistent measurement of the business impact from specific risks to reputation.
    4. No framework for linking the strategic, operational, and tactical aspects of reputational risk management.
    5. An absence of integrated ownership and accountability across organizations.
    6. Slow development of solutions for risk transfer including insurance.

     

    At a Crossroads

    The report’s release coincides with Airmic Fest, held September 22-24, 2020, marking Airmic’s first virtual conference and the first such event of its kind for risk management and insurance professionals in the UK. The theme of Airmic Fest is “Working together in a time of accelerated change” – echoing the message that collaboration is crucial to close the gaps on reputational risk management. The conversation will continue at the RIMS ERM Virtual Conference 2020, held November 4-5, 2020 with a discussion of the results.

    The report states that risk professionals today are at a crossroads, where they can follow one of two paths: the first, where they have the responsibility but no influence and control; or the second, where they can contribute value to the organization by leading implementation of a structured, data-driven and systematic approach to reputational risk that draws the whole organization together around a common framework.

    Julia Graham, Deputy CEO, Technical Director, Airmic, said: “We hope this guide to reputational risk will encourage and help more risk professionals to travel the second path. We are delighted to have worked with RIMS and The RepTrak Company on this paper, which puts forward a guide for risk professionals to work strategically with others within their organizations, to measure and tackle reputational risks today.”

    Hoe-Yeong Loke, Research Manager, Airmic, added: “As organizations manage issues arising from the Covid-19 pandemic, they face increasingly interconnected and complex risks. Reputational risk takes on even greater importance. Previous studies from Airmic and RIMS suggest that the risk community continues to struggle with reputational risk, and with reputation as an intangible asset. There is a gap between what senior executives and risk professionals know is important to manage and the work that is being done.”

    Carol Fox, VP Strategic Initiatives, RIMS, continued: “During our research journey with Airmic and RepTrak, we learned from our collective focus group participants that unlocking reputational value is as important as closing reputational gaps. Greater collaboration between risk and corporate communications professionals in using data to detect reputational risk early on helps unlock reputational value as well as produce an agile and decisive crisis management response.

    Kasper Ulf Nielsen, RepTrak Chief Strategy Officer, Co-founder, noted: “Most organisations deal with reputational risk at the operational level only. This is not out of choice, but because they lack the data and framework to bring the operational and the strategic together. Frameworks such as the RepTrak® reputationalrisk framework with its use of the seven drivers of reputation, provides a basis for measurement, monitoring and collaboration between different functions within an organization.

    About Airmic

    The leading UK association for everyone who has a responsibility for risk management and insurance for their organisation, Airmic has over 450 corporate members and more than 1,300 individual members. Individual members include company secretaries, finance directors, internal auditors, as well as risk and insurance professionals from all sectors. Airmic supports members through training and research; sharing information; a diverse programme of events; encouraging good practice; and lobbying on subjects that directly affect our members. Above all, we provide a platform for professionals to stay in touch, to communicate with each other and to share ideas and information.

     

    About RIMS

    As the preeminent organization dedicated to promoting the profession of risk management, RIMS, the risk management society®, is a global not-for-profit organization representing more than 3,500 industrial, service, non-profit, charitable and government entities throughout the world. Founded in 1950, RIMS is committed to advancing risk management capabilities for organizational success, bringing networking, professional development and education opportunities to its membership of 10,000 risk management professionals who are located in more than 60 countries.

     

    About The RepTrak Company

    The RepTrak Company™ is the world leading reputation data and insights company. We provide the only global platform for data-driven insights on Reputation, Brand, and ESG. Our proprietary RepTrak® model is the global standard for measuring and analyzing the sentiment of the world using proven data science models and machine learning techniques across industries and geographies.

  • RIMS Board Director Patrick Sterling, who is the senior director of Legendary People and Risk Manage

    RIMS Board Director Patrick Sterling, who is the senior director of Legendary People and Risk Management at Texas Roadhouse, joined Congresswoman Carolyn B. Maloney (D-NY) and stakeholders from the small business community and the insurance industry to emphasize the urgent need for Congress to pass the H.R. 7011, the Pandemic Risk Insurance Act (PRIA).

     

    On June 4th, RIMS officially announced its support for a PRIA solution. Introduced by Rep. Maloney on May 26, PRIA would create a framework for insurance companies to offer business interruption insurance policies that cover pandemics, and would create a reinsurance program with a federal backstop to ensure the insurance industry has enough capacity to insure losses caused by pandemics. The Federal backstop will make sure that these business interruption policies are both widely available and affordable for small businesses, and maintain marketplace stability.

     

    “As the risk management lead for Texas Roadhouse, my industry peers, and many others, are continuing to struggle to manage the complexities of the COVID-19 pandemic - as many of our existing policies fail to cover its impact,” said Sterling. “RIMS does not agree with those who say that pandemics are not insurable. As a united front, carriers and the federal government can develop a solution to share the financial risk of future pandemics. RIMS members believe a public-private program will establish a viable insurance market and create certainty for businesses across the country. This collaboration makes sense and that is why we support the Pandemic Risk Insurance Act of 2020 – HR 7011.”

     

    In a press release issued by her office, Congresswoman Maloneysaid, “As we saw during today’s roundtable, there is broad consensus that we need a program like the one created by PRIA – to provide business owners and our economy with better stability in the event of any future pandemics. A forward-looking, public-private partnership like this, one supported by a federal backstop, will help businesses keep their employees on payroll and weather the storm that a public health emergency brings. Congress needs to be proactive in helping businesses protect themselves from economic losses as a result of pandemics, which, as we’ve seen, can be devastating to businesses of all sizes — from the mom and pop grocery down the street to institutions like Lord & Taylor.”

     

    This week, RIMS is hosting Advocacy Week, giving risk professionals the opportunity to meet and discuss regulatory matters, such as PRIA, directly with Congressional leaders. The virtual event features remarks from Florida Insurance Commissioner and NAIC President-Elect David Altmaier and Geoffrey Skelley, election analyst for political website FiveThirtyEight.  To learn more about RIMS’ advocacy efforts or Advocacy Week, visit the Society’s Advocacy Center.

     

    For more information about RIMS, the risk management society®, its online learning opportunities and resources, visit www.RIMS.org

Latest Shared Files

Community Blogs

  • Why Grow an Online Community? Whether you’re an influencer, a business, or a marketer, you understand that creating an online community can be hard work. It takes effort to gather many people around one thing – even if it’s something they all have ...

  • Vaccines can help to prevent illness from infectious diseases, which is why Medicare covers the cost of some important ones. Medicare Part B covers flu, hepatitis B and pneumonia vaccines as part of its preventative care cover.  People do not have ...

  • Online stores thrive on site traffic for the generation of leads and conversions. Your eCommerce pet store’s website is not different and you will want to optimize it to attract higher traffic for better business.  The focus should be on ways that ...

  • Mobile gaming addiction has been officially recognized by the World Health Organization as a mental health condition. The problem that this creates for parents is to be able to identify when healthy enjoyment of mobile gaming becomes unhealthy.  ...

  • Online shopping has revolutionized business for merchants and consumers alike, increasing sales volume and providing a pleasant customer experience. The recent COVID-19 pandemic restrictions helped entrench online shopping in the general population, ...