MISSION INTANGIBLE

M:I Products

MISSION:INTANGIBLE, the blog of the Intangible Asset Finance Society, offers critical comments on intangible asset, corporate reputation, and finance; supplemented by quantitative reputation metrics. Intangible assets include business processes, patents, trademarks; reputations for ethics and integrity; quality, safety, sustainability, security, and resilience; and comprise 70% of the average company's value. MISSION:INTANGIBLE is a registered trademark of the Intangible Asset Finance Society.

Read future M:I posts via RSS RSS

Unaddressed Enterprise Risks Leave Boards Exposed

C. HUYGENS - Tuesday, November 07, 2017
Only 61% of respondents use enterprise risk management to inform strategy, says the Risk and Insurance Management Society.

“Responses from 397 respondents from more than 14 different industries were collected online from March 6 to May 6, 2017, according to RIMS….87% agree that executive management expects the ERM program to identify, prioritize, manage and monitor major risks.”

Read more in Business Insurance.

Read more on Enterprise Risk Management

Linking Enterprise Risks, Governance, and Reputation

C. HUYGENS - Sunday, November 05, 2017
“BP, Target and Volkswagen, (among others) have been prosecuted for various scandals and suffered financial and reputational damage…Ultimately, their failures can be attributed to poor governance and risk management…”

Read more in Risk Management Monitor.

Read more on Enterprise Risk Management

Wells Fargo: Another Damning Report

C. HUYGENS - Sunday, October 22, 2017
The latest blow to the reputation of Wells Fargo, #reputation #risk. OCC issues report on the bank's improper auto insurance practices...problem surfaced in July, after The New York Times obtained an internal report prepared for the bank’s executives.

“The comptroller’s findings …could force the bank to curb, or at least more closely monitor, its practices across the entire company. ”

Read more in New York Times.

Read more on current poster child for reputation risk, Wells Fargo

Headline-Sourced Reputation Risk

C. HUYGENS - Wednesday, August 23, 2017
“We’re in the era of weaponized social media….Companies need to set clear expectations of what (behavior) is acceptable.”

“Companies need to communicate with stakeholders about the values embedded in their corporate culture and set clear expectations of what is acceptable and what is not. In the current political climate, companies should have been considering this question all along, not just waiting for (Charlottesville) to stimulate that discussion. ”

Read more in Business Insurance.

Reputation Risk Due to Ethical Controls Failure

C. HUYGENS - Monday, July 31, 2017
Germany's big three groups, Volkswagen, Daimler and BMW, and VW units Porsche and Audi have been accused of holding secret meetings and colluding on technology. There are controls to prevent such ethical breaches. How can they fail?

“German managers are less aware of the financial consequences of wrongdoing than their US counterparts,” she says. There is less of a recognition that fines imposed by regulators for lawbreaking “can sometimes be so big they can ruin the company”.

Read more in the Financial Times.

Ruthless Blame Game: From 2x4s to nuclear weapons

C. HUYGENS - Sunday, May 31, 2015
It's the CEO's fault, of course, reports Fortune Magazine. According to a survey of 200 Directors conducted by the New York Stock Exchange, more than 2 in 5 respondents said the CEOs should face the brunt of…breach-related backlash. The same seems to be true for any enterprise-level risk.

Damage the firm's reputation, and Directors can get very aggressive. It's no different than in the 1990's when Warren Buffet warned employees at Solomon that if they damaged "a shred" of the firm's reputation, he would be ruthless. Except it is different.

Today, investors are getting very aggressive. They are using enterprise-level disasters to indict the Board of Directors, and build the case that Proxy Access--the right to nominate directors without approval of the Board--is an essential strategic "weapon" to help focus the board's attention. Apparently, we've come a long way from needing merely a 2x4.

Read more (Fortune)

Citi: Opportunity for enterprise risk management grand slam

C. HUYGENS - Wednesday, September 03, 2014
Other than BNP Paribas, which is actively struggling with serious compliance issues and reputation damage, the large banks appear to be stabilizing. Jonathan Salem Baskin of Consensiv, writing for Forbes, notes that for a financial conglomerate such as Citi, stability is a misnomer -- its very essence is a conflict of narratives.

"Citi’s brand possesses at least four major attributes, by my accounting, and each comes with varying degrees of credibility and meaning: Evil lender, reward points-giver, 200 year-old company, and friend to small business. If it could express them as an integrated, coherent whole, it would be a branding grand slam."

The value of Citi's integrated coherent whole, that is to say, its reputational value, is much better than it has been in the past, but it is still relatively dynamic with at least around $14.3B in play (~10% of market cap) over the trailing twelve months.

"Figuring out how to weave together at least four of its brand attributes would be a grand slam," affirms Baskin. If it could transform that collective reputation into a stable source of value, it would be an enterprise risk management grand slam.


Recent Comments


SuMoTuWeThFrSa
   1
2
3
4
5
6
7
8
9
10
11
1213
14
15
16
17
18
19
202122232425
2627282930  
 

Subjects

Archive