I would be the last person to suggest that the media, of which I am a proud member, can or even should be “managed.” But the fact is that demands for information by journalists at a time of crisis (and even during routine periods) present a reputational exposure that risk managers can (and should) help their organizations more effectively prepare for. That was the central message delivered by a press panel I moderated today at the RIMS conference in San Diego.

I realize it is somewhat ironic for a bunch of editors to be lecturing anyone about handling reputational risks, given the lousy job the press has done maintaining its own good name in the face of challenges to the mainstream media's credibility and perceived bias (yes, even among the folks at Fox News, who mock the journalistic ideal of objectivity with its “fair and balanced” motto). But that discussion is for another day, and perhaps another future RIMS panel.

Whether or not you like or trust the press, organizations of all stripes–from the private sector, non-profits and, of course, government agencies–must come to grips with the reality that what is reported about them in print, over the airwaves and online has a huge impact on how they are perceived, especially during a crisis.

Joining me were all my risk management competitors: Gavin Souter, Managing Editor of Business Insurance (talking about reputational risks facing service firms, such as airlines), Jack Roberts, Editor In Chief of Risk & Insurance (addressing the media fallout from product recalls), and Bill Coffin, publisher of Risk Management–the magazine put out by the Risk and Insurance Management Society (examining the role of the risk manager in dealing with the media).

My assignment was how to manage the reputational risks facing the poorly perceived insurance industry–perhaps the only sector with a worse image than that of the media these days!

Below are the “Press Tips” offered by yours truly on how insurers might do a better job maintaining a somewhat positive reputation:

Make reputational risk management part of every CEOs job description. Insurer CEOs need to be visible during a crisis, accessible to the media, and on site after a major disaster.

Use public relations reps as booking agents for top leaders, not spin doctors. The press needs more than statements from the top dogs–they need access and straight answers to quell wild speculation about the true motives of insurers, and to show that top insurance company leadership cares about whats happening to their policyholders.

Actively engage the press and public. Have top officials meet with newspaper editorial boards and set up community forums to answer questions about key public policy issues involving insurance, and to address criticisms after a crisis.

Dont Just Say No to proposed reforms of the insurance system. Be part of the solution, not just part of the problem. Be proactive in crafting compromises.

Turn employees into good-will ambassadors. The industry has a huge work force that are key members of their communitiesin PTAs, Chambers of Commerce, local clubs, gyms, bowling leagues, etc. With the proper training, guidance and motivation, such experts could help explain and defend the industry generic image. Dont allow the fear of lawsuits make you cut off your nose to spite your face.

Speak English, not jargon. People think actuarially sound is a body of water somewhere. How about saying you need to charge people a rate that will make sure everyone's claims can be paid while allowing enough of a profit to keep capital flowing into the business, which helps keeps everyone's rates lower?

Give the press and public honest answers, and show some genuine sympathy for their plight. Policyholders in general, and claimants in particular, are not the enemy.

Do a better job of generating public support in areas of common interest–in combating fraud, for example. Explain how fraud raises everyones costs and engenders cynicism on both sides.

For press tips from my colleagues, e-mail me at sfriedman@nuco.com and I'll e-mail back a copy of the PowerPoint.

What do you folks think?

Special Reports /

Risk Managers Can Help Deal With The Press

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