© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 1 Managing Reputation Risk: a Low-Tech, High-Touch, Cross- Functional Process October 18, 2016 © Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved.

2 Contextualizing Today’s Reputation Economy ®

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 3 REPUTATION MOST IMPORTANT / VOLATILE PIECE Increasing value in intangible assets* across four decades Stockholders’ Equity 100% 80% 60% 40% 20% 0% %68%32%20%16% 17% 32% 68% 80% 84% 40-Year Market Value Breakdown of the S&P 500 Intangible Assets

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 4 WINNERS WILL FIGURE IT OUT Intangible asset breakdown of some of the (publicly-traded) companies in today’s audience Source: Yahoo! Finance, October 2016 (Reported Stockholder’s Equity – Market Cap) Stockholders’ Equity Intangible Assets $0.8 (25%) Snapshot of Today’s Audience – Market Value Breakdown October 2016 $15.3 (56%)

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 5 MANAGING THE RED CAN GET COMPLICATED Your Company Customers Investors Employees Partners Online Influencers General Public Previous Customers Other Policy Shapers Politicians Regulators Opinion “Elites” Analysts NGOs Industry Lobby Potential Employees Environmental Groups Traditional Media Social Media Suppliers Governments Bloggers Competitors

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 6 REPUTATION VALUE EQUATION IS THE TOOL Effective analytics allow you to make investments that drive value for the business Touchpoints & Influence Channels Awareness&Familiarity Purchase,Recommend, Invest In, Work For, Give Benefit of Doubt DiscoveryDiscovery Perceptions of the Organization Stakeholder Behaviors Business Results Behaviors Perceptions of the Organization Discovery Business Results Touchpoints & Influence Channels Direct Experience w/ Product/Service What Company Says/Does What Others Say About Company Purchase, Recommend, Invest In, Work For, Give Benefit of Doubt Awareness&Familiarity Today’s CRO requires a reputation plan…that isn’t a plan for reputation

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 7 The Emerging Importance of Reputation Risk

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 8 METEORIC RISE IN FOCUS Ok, finance “gets it”

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 9 THAT, AND THEY SEE THIS TYPE OF THING If a working process covered reputation, Wells Fargo would not be in this mess “Um, yes Senator, I first heard about this by reading an article in the L.A. Times” John Stumpf, Chairman and CEO, Wells Fargo & Company September 20, 2016

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 10 TIME FOR A NEW APPROACH Enterprise risk management has identification and prioritization covered, BUT: Outputs Lack Depth and Absence of Strategic Planning CFO/CRO Remain Uncomfortable with Breadth and Subjectivity of Reputation Risk Chief Communications Officer is Only Empowered to do Crisis Planning Other Functions/Business Units Lack Accountability – Silos Block View Board-Level Demand for More on Reputation Risk Planning Subjectivity Silos BOD Demand CCO

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 11 TALKING WITH LEADERS WHO GET IT RIGHT Panel Discussion – What does it take to implement a new approach? Managing Reputation Risk: A Low-Tech, High-Touch, Cross-Functional Process In collaboration with:

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 12 Allstate The Conscious Choice Model

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 13 Hired by one of America’s largest insurers in the wake of Hurricane Katrina, Joan Walker knows Reputation Risk. Over the course of nearly 10 years as EVP, Corporate Relations, for Allstate, Joan forged and led one of the most capable perception management and reputation risk management functions in the Fortune 500. Before joining Allstate in 2005, Walker held communications, marketing and public affairs leadership roles at Qwest, Pharmacia, Monsanto and Ameritech. Joan currently serves as a member of the board of trustees of the Arthur W. Page Society, the Insurance Education Institute, the Business Civic Leadership Center, WTTW- 11, the Peggy Notebaert Nature Museum and the Chicago Architecture Foundation. She received a bachelor's degree in sociology from Douglass College at Rutgers University and a master's degree in sociology from Rutgers University. JOAN WALKER Former Executive Vice President, Corporate Relations, Allstate Insurance Company

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 14 Capital One New Frontiers in Reputation Risk Management

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 15 RICHARD WOODS Senior Vice President of Corporate Affairs, Capital One Richard Woods, Senior Vice President of Corporate Affairs, is responsible for Capital One's corporate communications, philanthropy, and reputation risk management programs. Before joining Capital One in 2000, Richard served as Senior Vice President of Corporate Communications at Revlon, Inc. Prior to Revlon, Richard served as Vice President of Corporate Communications at Eli Lilly and Company and as Senior Vice President, Director of Communications for MasterCard International. Richard also serves as a member of the Washington-based Federal City Council's Executive Committee, and is a member of the boards of JA Worldwide and Junior Achievement, National Capital Area. He earned a B.A. from Pomona College, a B.S. from the University of Southern California and an M.B.A. from Columbia University's Graduate School of Business. Richard lives in Virginia with his wife and three children.

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 16 A New Low-Tech, High-Touch, Cross-Functional Process

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 17 KEY BEST-PRACTICES A low-tech, high-touch, cross-functional process for managing reputation risk

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 18 The new way forward: Reputation Risk Workgroup overseas the new infrastructure Analyze: Evaluate Root Cause and Business Impact Lead: Ensure Cross-Functional Collaboration for Plan Execution Report: Document and Deliver to Senior Management/Board Plan: Develop Action Plans for Reputation Risk Management Monitor: Track Top Risks and Evaluate Mitigation Efforts BOD-DRIVEN, CONTINUOUS PROCESS = SUSTAINABILITY

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 19 WHEN EXECUTED EFFECTIVELY A low-tech, high-touch, cross-functional process for managing reputation risk

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 20 PLEASE SHARE YOUR EXPERIENCES WITH ME Feel free to contact us directly ANTHONY JOHNDROW Co-Founder & CEO Reputation Economy Advisors New York Washington, D.C. DIRECT:(917) (917) WEB:

© Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. 21 © Copyright 2016 Reputation Economy Advisors, LLC All Rights Reserved. Managing Reputation Risk: a Low-Tech, High-Touch, Cross- Functional Process October 18, 2016