Tag Archives: reputational risk

Oil Spill Floats on Water But Sinks BP

Reuters published rather pointed points today related to the Gulf oil spill:

Analysts … cited rising takeover speculation [of BP], although they said reputational damage and the unknown financial cost of the spill would deter suitors for the moment.

BP could now be easy prey having lost over a third of its market value or 46 billion pounds ($67 billion) in six weeks.

“Given the collapse in the share price and the potential for it to fall further we expect that it (BP) could become a takeover target – particularly if its operating position in the U.S. becomes untenable,” said Dougie Youngson, analyst at Arbuthnot Securities….

The cost of protecting the company’s debt against default rose sharply, with five-year BP credit default swap widening by 71 basis points to 173 basis points.

The linkage of environmental risk management and financial impacts doesn’t get much clearer – or bigger – than that.

Elm and Sentiment360 Featured in Leading Insurance/Risk Management Publication

Business Insurance, one of the insurance/risk management industry’s top publications, today published an article highlighting The Elm Consulting Group International, LLC and Sentiment360.

The article, BP spill response tars reputation, features Scott Marticke, COO of Sentiment360 and Lawrence Heim, Director of Elm’s Atlanta, office discussing BP’s environmental and reputational risk assessment in the shadow of the Deepwater Horizon spill in the Gulf of Mexico.

Elm and Sentiment360 announced earlier this year the formation of a cooperative relationship to identify, track and assess reputational risk related to environmental, health, safety and sustainability matters.

Tracking Reputational Value of Sustainability and Corporate Responsibility

Companies who implement sustainability and corporate responsibility (CR) efforts universally cite reputation enhancement as one of the key benefits from the investments in such programs.  Oftentimes, generic survey information (sometimes generated by popular media sources) is used as supporting data.

However, with current real-time communications technology literally “in the hands” of an overwhelming segment of the population located in key markets globally, other methods of gathering customer-generated reputational data are available.

Social networking enabling technology can be leveraged to more clearly define a company’s sustainability and CR message and direction to harvest greater return on the program investments.

An article published in Social Media Explorer discusses a few methodologies that exist today.  The article features Sentiment360, with whom Elm has formed a cooperative relationship to provide expertise on sustainability and climate matters.  Read more about the announcement.