Reputation insurer Steel City Re is offering boards of directors access to its proprietary reputation volatility metrics (RVM) reports as a standalone product in response to recent bank crises. The product measures reputational value and volatility alongside peer benchmarking and trend analysis, with data sourced from more than 8000 public companies and updated weekly. The reports provide boards with timely and actionable intelligence tools to oversee mission-critical risks and recognise crises before they cause bank runs or equity value incinerations. Previously, RVM reports have only been made available as a part of the company’s broader reputation risk management advisory services and parametric ESG and reputation insurances. Steel City Re’s RVM metrics showed jumps in the reputational volatility of distressed entities including Silicon Valley Bank, Credit Suisse and Signature Bank months before social media posts began runs on the banks, the company says. Nir Kossovsky, CEO of Steel City Re, says: “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. “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.”
