Church Benefits Association

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Church Benefits Association Annual Meeting
Linking ERM and Reputation Management December 3,
2008
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Linking ERM Reputation Management

• It takes many good deeds to build a good
  reputation, and only one bad one to lose it.
• Benjamin Franklin

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Linking ERM Reputation Management

• Communications Workshop
• Important Definitions
• A few illustrative cases
• Three tools for the journey
• Open mike and discussion

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Linking ERM Reputation Management

• Important Definitions
• Reputation the regard with which one is held by
  others
• Reputation Management the intentional efforts
  to impact perceptions of oneself
• Reputation Managers those who hold the
  organizational accountability for the perceptions
  of others
• Risk Profile an organizations tolerance for
  risk
• Reputational Risk Management an organizational
  approach to recognizing and proactively managing
  reputational assets

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Linking ERM Reputation Management

• Reputational Risk Management
• Case Study
• Audit Firms, in the Wake of Enron
• Challenge Effectively balancing the notions of
  one bad apple and acceptable levels of new
  oversight.
• Key Tools LOTS of face-to-face communication
  humbling interactions with regulators/legislative
  leaders.
• Result Consolidated, more focused audit
  organizations.

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Linking ERM Reputation Management

• Reputational Risk Management Case Study
• Southwest Airlines, 2005
• Challenge Restoring confidence after a runway
  accident that killed a six-year old.
• Key Tools CEO public apology high-profile
  efforts to explain operational changes / refunds
  aggressive incentives to customers.
• Result Traffic and share price each recovered
  within days of the debacle.

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Linking ERM Reputation Management

• Reputational Risk Management Studies in Progress
• Institutional Banks
• Lehman Brothers
• DeutscheBank
• SEC
• Federal Reserve
• Congressional oversight committees

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Linking ERM Reputation Management

• Tools for the Journey Building Tolerance for
  Reputational Risk
• Awareness Familiarity .. Preference

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Linking ERM Reputation Management

• Tools for the Journey Maintaining Perspective

The Positioning Process
Key Messages (Content)

Organization Brand Structure
Investors Customers Employees Communities Governme
nts
Business Strategy
Corporate Position
Vehicles
Identity (Design)
Public Relations Public Affairs Reputation
Management
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Linking ERM Reputation Management

• Tools for the Journey A Team Approach to
  Reputational Risk Management
• Liabilities Assets
• -investment performance investment performance
• -select vendor relationships select vendor
  relationships
• -regulatory infractions customer recognition
• -negative publicity positive publicity
• -low awareness management visibility
• -management turnover community engagement

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Linking ERM Reputation Management

• Open Microphone / Discussion
• What keeps YOU awake at night?
• Do you have lessons learned to share?

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Linking ERM Reputation Management

• Thank You