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The potential for damage from corporate reputational crises is greater than ever, with market cap, sales, margins, and profits all in danger. But in today’s heated social media environment—in which the public and key stakeholder groups seem all too ready to personalize their criticism and affix blame on individuals—CEOs are now personally at great risk.

Professional risk managers—whatever their positions—need to understand that traditional executive liability solutions are ineffective for these new risks. They need to be able to advise company leadership on new tools available to deter attacks and to insulate their clients when attacks do occur.

Reputational Risk Evolution

In the past, companies had to worry only about the direct financial consequences of workplace accidents, lawsuits, or investigations; officers and directors felt secure with traditional D&O policies; and brand executives were skilled at deploying the full spectrum of marketing tactics.

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