Nir Kossovsky, Steel City Re
24 March 2023Analysis

Steel City Re to offer RVM reports as stand-alone products

Reputation insurer Steel City Re is offering access to its proprietary Reputation Volatility Metrics (RVM) Reports as a stand-alone product to boards of directors seeking timely, actionable intelligence tools to help them oversee mission critical risks.

Previously, these reports were offered only as bundled benefit with Steel City Re’s reputation risk management advisory services and parametric ESG / reputation insurances.

According to Steel City Re recent bank crises have demonstrated the need for corporate boards to have better risk oversight tools to recognize mission-critical crises before they trigger bank runs or equity value incinerations.

“Our metrics signalled jumps in the volatility of the reputation value measures for Silicon Valley Bank, Credit Suisse, Signature Bank, First Republic and other distressed entities – months before social media posts started ‘runs on the bank’ and a global crisis,” said Steel City Re chief executive Nir Kossovsky.

“Aside from compliance and solvency risks, boards usually have limited visibility into operational, social, technological or managerial risks that may trigger panic-driven bank runs or stock dumps,” Kossovsky continued. “Volatility in reputational value – a quantitative measure of stakeholders’ certainty in a company’s ability to meet their expectations – is a leading sign of the type of shifting stakeholder expectations that can trigger bank runs and stock price collapses.”

Best governance practices encourage boards to improve their risk oversight with independent intelligence sources. At a time when companies face multiple shifting and diverse risks that are magnified and accelerated by weaponized social media, Steel City Re said that its RVM report is a powerful tool for board members overseeing the management of enterprise risks such as ESG, reputation, ethics, safety, and security.