The potential for damage from corporate reputationalcrises is greater than ever, with market cap, sales, margins, andprofits all in danger. But in today's heated social mediaenvironment—in which the public and key stakeholder groups seem alltoo ready to personalize their criticism and affix blame onindividuals—CEOs are now personally at great risk.

Professional risk managers—whatever their positions—need tounderstand that traditional executive liability solutions areineffective for these new risks. They need to be able to advisecompany leadership on new tools available to deter attacks and toinsulate their clients when attacks do occur.

Reputational Risk Evolution

In the past, companies had to worry only about the directfinancial consequences of workplace accidents, lawsuits, orinvestigations; officers and directors felt secure with traditionalD&O policies; and brand executives were skilled at deployingthe full spectrum of marketing tactics.