Chapter 6 - Managing the Risk of Intangible Assets

Question 1

Types of Intellectual Property

Answer 1

(Intangible)
Patent
Used for an invention; grant of a property right to the inventor, issued by the US Patent and Trademark Office
Copyright
Gives protection to the author’s original work
Trademark
Words/Symbols used to represent a company or product
, Service Mark, Registered Mark, Trade Secret, License, Franchise, Concession.

Question 2

Control Options

Answer 2

Risk Control
1. Protecting the organization’s assets (our stuff)
Identify infringements
- Outsource to conduct surveys
- Rely on observant employees/concerned third parties
Obtain necessary protections
- Within the purview of the legal document
- Protections (Trademarks, copyrights, patents)
2. Not violating anyone else’s assets (their stuff)
Usually the responsibility of research and development, product development, marketing or advertising departments.
Must be ascertain that products and services are not previously protected by other parties

Question 3

Create a Plan for Protecting the Various Types of Intellectual Property in his/her institutution.

Answer 3

1. Cyber insurance for both first and third party intellectual property may be available for purchase.
2. Generally, insurance mechanisms for intellectual property can be manuscript policies or endorsement to an existing policy, which are flexible, but must be individually read and reviewed as they vary greatly.
3. Alternative financing methods such as a captive, funded or unfunded segregated accounts.

Question 4

Logo

Answer 4

A symbol or design that identifies a brand. Many organizations think their logo is their brand; however, the values and associations that customers and others have when thinking about the company are the most important elements of the brand.

Question 5

Brand

Answer 5

A set of perceptions or expectations that represent a company, product or service and differentiate it from its competitors (NFL, Rolex)

Question 6

Reputation

Answer 6

Collective assessments of a corporation’s past actions and the ability of the company to deliver improving business results over time. Think of consumer perception of trust, corporate responsibility and citizenship (ex. TOMS shoes)

Question 7

Factors influencing reputation and brand

Answer 7

Corporate behavior, Individual Behavior, Criminal Acts

Question 8

How does Corporate Behavior influence reputation or brand?

Answer 8

Business philosophy
Marketing and communications - should be cognizant of infringement issues (yahoo alerts). It must be real and truthful.

Question 9

How does Individual Behavior influence reputation or brand?

Answer 9

1. Abuse of Authority
2. Careless or negligent acts of employees
   a. Can give rise to catastrophic equipment failure or faulty products and services to enter the market and/or stream of commerce.
   b. Disclosure of confidential information
   c. Improper use of Social Media

Question 10

How does Criminal Acts influence reputation or brand?

Answer 10

the acts themselves may not damage reputation and brand unless the organization’s response is ill-perceived or if the organization fails to mitigate further perpetuation of criminal acts.

Question 11

Management of Organization’s Reputation & Brand (Risk Control Mechanisms)

Answer 11

Policies and Procedures
- Establish and enforce codes of ethics and conduct.
- Social Media and Blogging policy
Goodwill
Monitoring - only certain people can update the website
Communication
- Rumor Control
- Risk Finance - Adverse reputation coverage

Question 12

Critical Communication Events

Answer 12

Critical Communication Events
-New Hire
-New Product line
-Merger, acquisition or divestiture
- Community initiative
- Major organizational change
- Crisis

Question 13

Recipients - Who Receives the Communication?

Answer 13

1. Employees (on-site & off-site)
2. Visitors, customers, or service providers
3. Media Outlets
4. Regulatory agencies
5. Law enforcement and more…

Question 14

Delivery channels for communication

Answer 14

1. Text Alerts
2. Email
3. Social Media
4. Website
5. Press Release
6. Press conference or other public appearance

Question 15

Content - what key components should be communicated?

Answer 15

1. What happened? Prompt, concise and accurate descriptions - (relevant, extent of damages and injuries, acknowledge uncertainty, Acknowledge tension and emotions as legitimate).
2. What information is critical to the recipient? - Available assistance, evacuation and safety instructions, expected duration of the crisis
3. What is being done to manage the event? - Immediate actions taken and by whom, actions taken to mitigate further loss/damage, how future communications will be made, descriptions of preparations made in advance for the crisis and how they are being implemented.
4. Addressing questions and control rumors - never say “no comment” or “I don’t know”, deflection should be used judiciously, but it should not be used when the questions persist, Prepare the spokesperson on how to answer questions including those not relevant to the event.