1. Church Benefits Association Annual Meeting Linking ERM and Reputation Management December 3, 2008

2. Linking ERM & Reputation Management “It takes many good deeds to build a good reputation, and only one bad one to lose it.” Benjamin Franklin

3. Linking ERM & Reputation Management Communications Workshop  Important Definitions  A few illustrative cases  Three tools for the journey  Open mike and discussion

4. Linking ERM & Reputation Management Important Definitions  Reputation: the regard with which one is held by others  Reputation Management: the intentional efforts to impact perceptions of oneself  Reputation Managers: those who hold the organizational accountability for the perceptions of others  Risk Profile: an organization’s tolerance for risk  Reputational Risk Management:: an organizational approach to recognizing and proactively managing reputational assets

5. Linking ERM & Reputation Management Reputational Risk Management: Case Study Audit Firms, in the Wake of Enron  Challenge: Effectively balancing the notions of ‘one bad apple’ and acceptable levels of new oversight.  Key Tools: LOTS of face-to-face communication; humbling interactions with regulators/legislative leaders.  Result: Consolidated, more focused audit organizations.

6. Linking ERM & Reputation Management Reputational Risk Management: Case Study Southwest Airlines, 2005  Challenge: Restoring confidence after a runway accident that killed a six-year old.  Key Tools: CEO public apology; high-profile efforts to explain operational changes / refunds; aggressive incentives to customers.  Result: Traffic and share price each recovered within days of the debacle.

7. Linking ERM & Reputation Management Reputational Risk Management: Studies in Progress  Institutional Banks Lehman Brothers DeutscheBank  SEC  Federal Reserve  Congressional oversight committees

8. Linking ERM & Reputation Management Tools for the Journey: Building Tolerance for Reputational Risk Awareness … Familiarity.. Preference

9. Linking ERM & Reputation Management Tools for the Journey: Maintaining Perspective The Positioning Process Investors Customers Employees Communities Governments Investors Customers Employees Communities Governments Key Messages (Content) Key Messages (Content) Business Strategy Business Strategy Identity (Design) Identity (Design) Public Relations Public Affairs Reputation Management Public Relations Public Affairs Reputation Management Vehicles Organization & Brand Structure Corporate Position Corporate Position

10. Linking ERM & Reputation Management Tools for the Journey: A Team Approach to Reputational Risk Management LiabilitiesAssets -investment performance+investment performance -select vendor relationships +select vendor relationships -regulatory infractions+customer recognition -negative publicity+positive publicity -low awareness+management visibility -management turnover+community engagement

11. Linking ERM & Reputation Management Open Microphone / Discussion  What keeps YOU awake at night?  Do you have lessons learned to share?

12. Linking ERM & Reputation Management Thank You