Risk Insider: Shep Tapasak

Managing Reputational Exposures

By: | July 13, 2017 • 2 min read
Shep is Managing Principal for Integro, and Healthcare Practice Leader for the Southeast. Shep has 25+ years of experience in property/casualty. He is passionate about specialization and innovation. He can be reached at: [email protected]

Benjamin Franklin is credited with saying, “It takes many good deeds to build a reputation, and only one bad one to lose it.”

While a sobering perspective in the 1700s, there is even greater risk in the age of social media and the Internet. Although intangible, reputation can be a valuable asset. And like all assets, it needs to be managed and protected. Following these five steps can help you do so.

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  1. Identify Key Stakeholders

Identifying key stakeholders is critical to understanding what may impact reputational value. Typical stakeholders include: customers, potential customers, employees, prospective employees, regulators, creditors, owners/shareholders, and vendors. Yet not all of these stakeholders are crucial to the brand or reputation of a firm.

For example, in the food and beverage industry, consumers (and prospective consumers) are dominant stakeholders. If they are disappointed, there will be value loss.

In many firms, the responsibility of assessing and managing reputational exposures is not clearly delineated.

  1. Evaluate Stakeholder Expectations

Consider the following hypothetical situation. I own a fast food chain that is well known for fresh, quality ingredients. My dominant stakeholders are customers and prospective customers. If a widespread and well-published E. coli outbreak is traced back to my restaurants, there is a high probability that my dominant stakeholders will take their business elsewhere.

Depending upon how this crisis is managed, there is a risk that my business might never recover. Compare this with Starbucks’ focus on social responsibility issues, and the social media backlash around their announcement to hire 10,000 Muslim refugees around the world. While some portion of potential customers decided to buy their morning latte somewhere else, this plan resonated with the vast majority of current customers.

  1. Establish Clear Roles and Accountabilities

In many firms, the responsibility of assessing and managing reputational exposures is not clearly delineated. Reputation is recognized as important with a degree of focus in different parts of the organization, but with little or no coordination.

With significant reputational assets at risk, a member of senior management should be designated with the responsibility to assess reputational exposures, lead coordination among different departments, and develop strategies to improve resilience.

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  1. Plan for Reputational Resilience

Different parts of the organization often focus upon specific stakeholders. Some are better at planning strategies, while others tend to be more reactive. Crisis or catastrophes present challenges, but if robust plans are in place to help companies navigate crises, there are opportunities to enhance reputational value.

  1. Explore Insurance and Risk Financing Options

The insurance industry is ripe for innovation. There are different kinds of insurance products that can narrowly address risks to reputation. Most are more crisis management in nature, providing expert resources or reimbursement of certain expenses. There are a few more holistic approaches, which can offer advisory services, analytics and some level of risk financing. Captives can provide much needed flexibility in what is currently an immature insurance market.

Conclusion: Reputation can represent a very valuable asset. Crisis should be expected. By planning around these five areas, this asset will not only be protected, but it can be enhanced—even in the face of crisis.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

After 20 years in the business, Navy Pier’s Director of Risk Management values her relationships in the industry more than ever.
By: | June 1, 2017 • 4 min read

R&I: What was your first job?

Working at Dominick’s Finer Foods bagging groceries. Shortly after I was hired, I was promoted to [cashier] and then to a management position. It taught me great responsibility and it helped me develop the leadership skills I still carry today.

R&I: How did you come to work in risk management?

While working for Hyatt Regency McCormick Place Hotel, one of my responsibilities was to oversee the administration of claims. This led to a business relationship with the director of risk management of the organization who actually owned the property. Ultimately, a position became available in her department and the rest is history.

R&I: What is the risk management community doing right?

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The risk management community is doing a phenomenal job in professional development and creating great opportunities for risk managers to network. The development of relationships in this industry is vitally important and by providing opportunities for risk managers to come together and speak about their experiences and challenges is what enables many of us to be able to do our jobs even more effectively.

R&I: What could the risk management community be doing a better job of?

Attracting, educating and retaining young talent. There is this preconceived notion that the insurance industry and risk management are boring and there could be nothing further from the truth.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

In my 20 years in the industry, the biggest change in risk management and the insurance industry are the various types of risk we look to insure against. Many risks that exist today were not even on our radar 20 years ago.

Gina Kirchner, director of risk management, Navy Pier Inc.

R&I: What insurance carrier do you have the highest opinion of?

FM Global. They have been our property carrier for a great number of years and in my opinion are the best in the business.

R&I: Are you optimistic about the US economy or pessimistic and why?

I am optimistic that policies will be put in place with the new administration that will be good for the economy and business.

R&I: What emerging commercial risk most concerns you?

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The commercial risks that are of most concern to me are cyber risks, business interruption, and any form of a health epidemic on a global scale. We are dealing with new exposures and new risks that we are truly not ready for.

R&I: Who is your mentor and why?

My mother has played a significant role in shaping my ideals and values. She truly instilled a very strong work ethic in me. However, there are many men and women in business who have mentored me and have had a significant impact on me and my career as well.

R&I: What have you accomplished that you are proudest of?

I am most proud of making the decision a couple of years ago to return to school and obtain my [MBA]. It took a lot of prayer, dedication and determination to accomplish this while still working a full time job, being involved in my church, studying abroad and maintaining a household.

R&I: What is your favorite book or movie?

“Heaven Is For Real” by Todd Burpo and Lynn Vincent. I loved the book and the movie.

R&I: What’s the best restaurant you’ve ever eaten at?

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A French restaurant in Paris, France named Les Noces de Jeannette Restaurant à Paris. It was the most amazing food and brings back such great memories.

R&I: What is the most unusual/interesting place you have ever visited?

Israel. My husband and I just returned a few days ago and spent time in Jerusalem, Nazareth, Jericho and Jordan. It was an absolutely amazing experience. We did everything from riding camels to taking boat rides on the Sea of Galilee to attending concerts sitting on the Temple steps. The trip was absolutely life changing.

R&I: What is the riskiest activity you ever engaged in?

Many, many years ago … I went parasailing in the Caribbean. I had a great experience and didn’t think about the risk at the time because I was young, single and free. Looking back, I don’t know that I would make the same decision today.

R&I: What about this work do you find the most fulfilling or rewarding?

I would have to say the relationships and partnerships I have developed with insurance carriers, brokers and other professionals in the industry. To have wonderful working relationships with such a vast array of talented individuals who are so knowledgeable and to have some of those relationships develop into true friendships is very rewarding.

R&I: What do your friends and family think you do?

My friends and family have a general idea that my position involves claims and insurance. However, I don’t think they fully understand the magnitude of my responsibilities and the direct impact it has on my organization, which experiences more than 9 million visitors a year.




Katie Siegel is an associate editor at Risk & Insurance®. She can be reached at [email protected]