Archive for December, 2009

Brand Reputation – How Important to you is Managing Media Risk to prevent the damage from Negative Press?

December 2, 2009

I won’t take credit for this since my morning e-mail from RightNow Technologies is a promotion of their upcoming webcast and their firm’s services but…do read.

It is a very interesting article re Media Risk and much of what I have been recently stating on my various WRiskManager platforms on Plaxo, Facebook, etc.  I know that a market capitalization reduction of $180 Million caught my attention – how about you?  It could be a much smaller business but how much effort will now be required to rebuild the reputation you have lost?  How much revenue and profit has been foregone by some needless act?  How will your bankers react?

RightNow Webcast: United Breaks Guitars with Dave Carroll

Dave Carroll’s story depicts the value of great customer experience and illustrates that spending a little can save millions when it comes to your brand’s reputation.

In 2008, Dave was flying United Airlines with his band Sons of Maxwell when a passenger sitting next to the window exclaimed that the baggage handlers were “throwing guitars out there.”

Carroll’s guitar was broken. He spent the next nine months in a service maze pursuing compensation. Eventually, customer service at United Airlines told him they were closing the incident and would not respond to any further emails.

Carroll vowed to write three songs about the experience and post them on YouTube, hoping to achieve a million views with all three combined. But he did much better. He hit one million on the first song within one week, and is at six and a half million views at last count. A media frenzy ensued and United’s market capitalization dropped $180 million over the next three weeks.

Register for this live webcast and hear Dave Carroll tell his remarkable story. He will be joined by Jason Mittelstaedt, RightNow’s CMO and Bruce Temkin, Vice President & Principal Analyst at Forrester Research, for a discussion on customer experience in the age of the social web.

There’s no better way to understand how powerful the voice of the consumer has become than to attend this webcast.

View the United Breaks Guitars video.

Join us:

Thursday, December 10, 2009
11:00 a.m. – 12:00 p.m. Pacific
2:00 p.m. – 3:00 p.m. Eastern

Register Now!

See you on the 10th,
RightNow

136 Enterprise Blvd. | Bozeman | MT | 59718 | 866.630.7669 |

http://www.rightnow.com/summit/Americas/2009/presentations/dave_carroll_tues.php

What else can I say about managing media for both positive and negative reaction – the value of ensuring positive images will definitely outweigh the negative as seen here from the views of YouTube and what someone has now done.  Am I not correct in emphasizing managing positive media as opposed to the damage done from something like this?

There are countless examples of companies who do not emphasize the importance of “perception” and how the public perceives their image of one’s business.  Not training your staff to contemplate the damage that can be done by one little act will cost so much more in lost revenues and profits than any employee will ever realize.  Can this cost be managed?  You bet!  But not by standard Risk Transfer – Insurance!  Only by better training, support, etc. can you ever manage media risk which, in my mind, is a very worthwhile investment in your business.

Use expert Risk Management to reduce the consequences of a similar occurrence happening to you!  Contact the WRiskManager today – larryewinsurance@gmail.com 

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How Much Employee Dishonesty Insurance Should Any Business Owner Or Non-Profit Organization Purchase?

December 2, 2009

EMPLOYEE DISHONESTY COVERAGE (FIDELITY BONDS)

A USUALLY OVERLOOKED COVERAGE!

One of the most severe crime problems any business owner or non-profit organization can face is that of a loss from employee dishonesty.  Amazingly, this insurance coverage is often overlooked!  The loss of merchandise, valuable records, accounts receivables, and money and securities from dishonest acts of employees has been estimated to cause 30% of business failures!  For every dishonest employee caught, it’s estimated that another 100 are not and, thus, get away with their crime!

Insurance coverage for Employee Dishonesty is usually purchased in one of two forms:

  1. Commercial blanket coverage, which provides a blanket limit covering all employees.  The amount of the bond is an aggregate or all-inclusive limit.  It is the most that could be paid in any one loss.
  2. The blanket position bond also covers all employees, but the difference is that the limit of the bond applies to each employee separately.

For example…a firm suffers a loss of $30,000 caused by three employees acting in collusion.  If the firm carried a $10,000 commercial blanket bond, total recovery would be limited to $10,000.  This is the maximum for one loss, regardless of the number of employees involved.

If the firm carried a blanket position bond of $10,000, recovery would be the full $30,000.  The $10,000 limit applies separately to each employee involved.

There is a formula that was developed and tested by two reputable American organizations who know all about dishonesty and its financial consequences.  It provides the best basis available for determining the amount of coverage needed per loss and can be accessed by contacting the WRiskManager to work with you.  Do you need to review the amount and kind of coverage you have?  We will be happy to assist at a very affordable cost!

For any business-owner, non-profit, lawyer or accountant – why not communicate with us for a simple and inexpensive means of protecting against a potentially significant financial loss?

We are just an e-mail away—an e-mail that might save you from a catastrophe.

Larry.wettlaufer@riskreview.ca  aka WRiskManager