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

Unrealistic Expectations Create Risk of Earnings Torpedo

C. HUYGENS - Saturday, September 09, 2017
A reminder of the value of corporate governance and prompt candid disclosure of bad news especially when expectations are unrealistic.

“…the longer a company takes to come clean, the bigger and more damaging the ‘earnings torpedo’ that hits its share price and its reputation once the true numbers come out.”

Read more in Financial Times.

Reputational Benefits of Exceeding Expectations

C. HUYGENS - Tuesday, August 01, 2017
Exceeding low expectations out of the box (stock dropped 1% the day he was appointed), now

"the board and investors are betting he can work...magic in resuscitating the reputation of the entire company..."

Read more in the Financial Times.

Email Reputation Risk: Summer 2017 Edition

C. HUYGENS - Wednesday, July 19, 2017
Reputational risk is the risk of a verdict of culpability with prejudice and damages for emotional harm in the court of public opinion. The purpose of a reputation risk management strategy is to foster reputational resilience and a verdict of exculpation due to mitigating factors, according to Nir Kossovsky of Steel City Re.

“The entire notion of reputational risk is essentially a battle for the mind of the stakeholder. When a bad thing happens — as they always do — will the stakeholder say, ‘Yeah, that’s a bad thing, but it’s such a good company. It’s unfortunate, but they’re good people and they’ll recover.’  Or will they say ‘Yep, that’s what we expected. That’s a bad company and that’s one more thing we expected to come out of them.’”

Reputation risk management products such as insurances that behave like warranties help foster reputational resilience.

Read more in the Business Insurance.

Reputation of Global Economy Impaired

C. HUYGENS - Monday, May 29, 2017
US consumers’ trust deficit is permanent, expectations reset, #reputation impaired. #risk

As Allianz’s chief economic adviser Mohamed El-Erian puts it: “You cannot underestimate the economic and political effects of the profound loss of trust that the public has had in the core managers of the global system.” Rebuilding that trust would be the best kind of fiscal stimulus. But it will require heavy lifting.

Read more in the Financial Times.

Activists Seek to Exploit Misplaced Expectations

C. HUYGENS - Thursday, May 18, 2017
A tsunami of emotionally charged disappointed stakeholders expected: #reputation #risk looks like this.

In a letter to investors earlier this month, explaining why they were opening to new capital, Mr Singer said he believes “that there has never been a larger (and more undeserved) spirit of financial market complacency in our experience”.


Read more from the Financial Times:

Expectations for Cyber Security

C. HUYGENS - Saturday, May 13, 2017
Reputation risk results from emotionally charged disappointment brought on by perceived failures in ethics, innovation, quality, safety, sustainability and security. Patients and regulators expect reasonable security; known vulnerabilities create #reputation #risk. Use NIST 800-53.

Authorities around the world are scrambling to tackle one of the most virulent cyber attacks to date, as fears mount over the safety of huge amounts of sensitive data, ranging from medical records to corporate databases. Hospitals across the UK have been severely disrupted; postal delivery and logistics services hit in the US and university networks in China shut down. Some of Europe’s biggest companies have been affected, including Telefónica, the Spanish mobile phone giant, Deutsche Bahn, the German national railway operator and Renault, the French carmaker. Russia’s interior ministry said more than 1,000 of its computers had been taken offline.

Read more in the Financial Times.

Expectations for the Short Haul

C. HUYGENS - Friday, May 12, 2017
#reputation #risk. CEOs in UK can expect a short run; are long-term incentives less valuable?

Average time heading a company can seem short, but CEOs may be cheered to know that their staying power compares favourably with UK football managers, whose average tenure is 1.23 years.

Read more in the Financial Times.

Expectations for Quality Accounting

C. HUYGENS - Thursday, May 11, 2017
#risk Alan Greenspan noted in 2008 that in a business based on trust, #reputation has significant value.

The UK’s accounting watchdog has fined professional services firm PwC a record £5m for “misconduct” in relation to the audit of Connaught, a FTSE 250 social housing maintenance group put into administration in 2010.…The latest ruling is another blow to PwC’s reputation following its Oscars envelope mishap and a $3.1bn legal battle with MF Global in the US.

Read more in the Financial Times.

Silicon Valley Reputation At Risk Over Trust

C. HUYGENS - Monday, May 08, 2017
Talk about emotionally-charged disappointment: “From terrorist content, sexism claims and trolls to mind-reading privacy invasion, unpaid tax and robots taking jobs, the charge sheet is growing rapidly. Technology executives risk attracting an opprobrium that is traditionally reserved for bankers.”

From terrorist content, sexism claims and trolls to mind-reading privacy invasion, unpaid tax and robots taking jobs, the charge sheet is growing rapidly. Technology executives risk attracting an opprobrium that is traditionally reserved for bankers. Stories have emerged of tech billionaires building bunkers in New Zealand to hedge against a revolt by the 99 per cent.

Until recently, the technology sector has been more trusted than any other. In the latest Edelman annual survey, 76 per cent of people trust technology companies, compared with about 60 per cent for most industries and 54 per cent for finance.

That trust underpins Silicon Valley’s economic miracle almost as much as the technology. The halo of pioneering innovation for the advancement of humankind — embodied by Apple’s “think different” slogan and Google’s “don’t be evil” motto (now abandoned) — makes consumers feel good.


Read more in the Financial Times.

Accounting Scandals Put the Big Four on the Spot

C. HUYGENS - Thursday, May 04, 2017
"...there is a wide gap between auditors’ own idea of how far their responsibilities stretch and the expectations of investors and the general public."

From the shambles of the Oscars ceremony to the more serious matters of US lawsuits and UK regulatory investigations, it has been a difficult year for PwC. Its rival KPMG is hardly faring better. The Big Four accountancy firm was castigated by Senator Elizabeth Warren for failing to spot dubious practice at the lender Wells Fargo. Now its auditing of Rolls-Royce is under investigation in the UK after the engineering company admitted bribery and corruption offences going back 20 years.

These scandals are not on the grand scale of the Enron fraud, which led to Arthur Andersen’s demise. Yet they highlight the failure of the accountancy profession and its regulators to resolve, in the intervening 15 years, the fundamental question of how far auditors should be expected to go in their efforts to uncover bad behaviour.


Read more in the Financial Times.

Recent Comments


SuMoTuWeThFrSa
     1
2
34
5
6
7
8
9
10
11
12
13
14
1516
17
1819
20
2122
23
24252627282930
 

Subjects

Archive