Via Digital Journal:
“The recent stock market rise has masked weaknesses that could lead to massive losses linked to corporate reputational crises in the coming year, according to research conducted by Steel City Re, which analyzes reputational risk and provides insurance to protect companies and their leadership.
A number of companies have undergone reputational crises in the past year and, as a result, have significantly underperformed compared to their industry peers. Despite this, they still have seen their market caps rise—temporarily quelling stakeholder anger and reducing the severity of losses one might otherwise expect. When the equities markets go through an inevitable correction, those companies will likely sustain the biggest losses and, once again, become the focus of stakeholder hostility—leading to a potential avalanche of reputational attacks and related financial losses.”
Read More: Massive Financial Impact Possible in 2018 from Corporate Reputational Crises
