Adobe InDesign CC (Windows) •Responsibility for reputation risk resides with the highest levels of the organization – board and C-How endstream endobj startxref A concise and and easy to follow introduction to financial risk management This basic survey text offers an accessible introduction to financial risk management, covered in its major components: credit, market, operational, liquidity, legal, and reputational, along with user-friendly processes and tools to conduct your own risk assessments and risk alignments. 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Hence the importance of reputational risks management as a measure to maintain the delicate loyalty of stakeholders. Reputational risk in our view is a risk that ultimately manifests in multiple risks such as liquidity and funding risk, asset growth and business risk, ability to issue capital instruments, etc. The GRRC, which was established by the Group Chief Risk Officer to help him discharge his reputational risk oversight accountabilities, comprises the Group Chief Risk Officer, the Director of Regulatory Affairs, the NWH Risk … The purpose of this document is to elaborate an effective approach of managing reputational risks in banks. 504 0 obj <>stream Linking Strategy, Tactics and Operations 5. A reputational crisis can deal a devastating blow to customer confidence. endobj endobj In fact, reputational challenges tend to be fluid and fickle. Of note, the top three reputational risk concerns of 300 respondents to a Deloitte/Forbes Insights survey were issues arising from ethics and integrity such as fraud, bribery and corruption; security risks (both physical and cyber); and product and service risks. <> �vґ�� NYC-OWY01801-028; Risk Reputation NYC-OWY01801-028; NYC-OWY01801-028 310 0 obj <> How do we manage reputational risk? • The initial reputation/brand of a firm was an important factor driving the loss, with the reputation risk losses more than doubling when an event happens to a firm with a strong brand. �1�B��T����+?� endstream endobj 474 0 obj <>/Metadata 52 0 R/Names 495 0 R/Pages 469 0 R/StructTreeRoot 103 0 R/Type/Catalog/ViewerPreferences<>>> endobj 475 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 4/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> endobj 476 0 obj <>stream �o3�`fa ���I6�HP{'� � false endobj “Ethics” refers to the application of moral judgment to the challenges of running the Global Fund. 9a7c3adff4cf62ab8dd381b30ebbb8e7006bbe2a Reputational risk is governed by the Reputational Risk Framework, which was established to provide consistent standards for the identification, assessment and management of reputational risk issues. adobe:docid:indd:5e8f0d10-c089-11dd-8e1d-d1417dac0bfb This latter survey also aimed to illustrate the ‘current’ state and planned activities of reputational risk management, but with only leading German financial institutions as its foundation. ԏ*�����wF�3,�VU.��N5�J�oV�P�6��K]-Y��M� �È{?������J���%�DBtN]��{��ZX=4�q`�SX�2?Ei�M�+yC7z� .� �P�QR�Dh6j?�>nX�"㵛�[��J�%��@���ʭi �T�����I�����b(�����vt'�=�� ��+*=�9��5E$�ۃZ��&���w�q��J�J�]��[)�f���@��b����qf������.�f,�!V�g��4&�Z놠;ù�c9@�/�n >tm'�mE1��7 a�Q���:��]��>�>M�u�FE�NC�T�pB'�C@��œJzC��?������(���8#���D����v[yd�L�!���P� /6(�����_r=2 � ���R֒����sg��=�r|P�� converted <> 2014-07-15T11:34:55.000-04:00 Risk Reputation Measuring the Impact of Reputational Risks 4. “Reputational risk” is the risk of damage to a bank’s reputation as a result of any reputational event, arising from negative publicity about its business practices, conduct or financial condition. endobj endobj Reputational risk is governed by the Reputational Risk Framework (the Framework), which was established to provide consistent standards for the identification, assessment, and management of reputational risk issues. A company finds an error in its accounting and need to restate its results for the past 2 … 2016-01-19T17:46:01.512-05:00 285 0 obj reputational risk, particularly within the banking sector and among its customers. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Tabs/W/Thumb 306 0 R/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> 320 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]/XObject<>>>/Rotate 0/Tabs/W/Thumb 301 0 R/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> • It can be caused by an individual or by the behaviour of a company as a whole. Reputational risk is defined as the current or prospective risk to earnings arising from the adverse perception of the image of the Organisation by patients, partner organisations and individuals, the local community or regulators. 473 0 obj <> endobj Without this bond of respect, employees will leave their positions, investors will look for other projects to finance and customers will opt for competition. xmp.did:8069B7E27ACCE3118073F2CC38F36180 Since reputational risk carries such a high level of concern for board directors and senior-level executives, it makes sense that boards should give reputational risk a high priority. from application/x-indesign to application/pdf 313 0 obj • Reputational damage can be caused by many factors such as dishonesty, incompetence, activities that do unnecessary harm to the environment or unethical behaviour. <> endobj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Tabs/W/Thumb 302 0 R/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> ��*{���)�M�6.pa?O��Χ�z>�d9A(�㑋�]��u���9���rp�ڨX%��I}s��kͩ�Ԅ��Yƙ�ш�2��O�sQ�e{=B?xpvޮ��� uuid:27f4cbbe-8da3-4571-9301-01cb174c782d Identification of reputational risk. "NYC-OWY01801-028; Risk Reputation NYC-OWY01801-028; NYC-OWY01801-028"; Risk Reputation NYC-OWY01801-028; NYC-OWY01801-028 This is often measured in lost revenue, increased operating, capital or regulatory costs, or destruction of shareholder value. MEASURING THE IMPACT OF LEGAL PROCEEDINGS ON THE REPUTATION OF COMPANIES to highlight several keys for the management of corporate reputation that might and should be applied as regards the reputational management of the litigation. 2. h�bbd``b`.�@� �zH�X�X� � �h � ��@���0��2�$�>�X�@�@Lm@B�H�71012f Y�D�d� ��< endobj Reputational risk is not a new concept, but the efforts to manage it as a self-standing type of risk, rather than within an operational risk framework, are quite recent. %PDF-1.6 %���� <> Conclusion 3. Reputational risk strikes without warning and shifts your corporate landscape. The scholarship on reputational risk management in banks is still limited in size. Reputational Risk Committees are established in customer facing businesses with the Group Reputational Risk Committee (GRRC) considering the most material cases. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]/Properties<>/XObject<>>>/Rotate 0/Tabs/W/Thumb 309 0 R/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> 1205647 Threats can spring from many different sources (see Exhibit 1), and stakeholder tolerances can fluctuate. endstream 125 0 obj Adobe PDF Library 10.0.1 Reputational Risk Financing 7. <>/ExtGState<>/Font<>/ProcSet[/PDF/Text]/XObject<>>>/Rotate 0/Tabs/W/Thumb 308 0 R/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> <> 162 0 obj ���߬��]�s�R8�����ذf " u���d�D��& 㰄��(Ko{um��/���$��Q�N^:��]XƁ#5��o�*Ь_���첼]� Reputational risk is not considered in most risk-management frameworks to be a primary risk; rather, it is an outcome, or a consequential risk, that arises from other types of risk. ��2�x�¸��]y��&fV�p? reputational risk of furloughing staff Furlough furore after Premier League ignores aim of protecting jobs “Selfish in a crisis,” FT’ Lex column on Tesco paying its dividend. Risk Reputation NYC-OWY01801-028 Trust is the foundation on which companies build their relationships with all stakeholders, from company workers to consumers. KPMG reputational risk study which was conducted and published in 2012. reputational risk is the risk that people will have a negative opinion of an organisation and share that opinion with other people. Nonetheless, the term “reputational risk ” is used in this discussion paper to simply describe the risk of damage to reputation. reputation risk losses (over 100% of the announced loss), while execution and process errors tended to have only minor reputational impacts. Successful reputational risk management is determined by effective cooperation and communication between senior management who determines the target reputation and the overall risk strategy, the centralized risk management functions who undertakes the methodologies and processes for any risk management framework among which, is the reputational risk, the corporate … However, financial firms are unavoidably subject to reputational risk as a result of the announcements related to these operational risk events, which ultimately encompass elements of ‘poor internal controls’ as posited by Chava et al. ow:practice/risk-management An ethics and reputational risk assessment is a systematic way to identify the ethics and integrity risks that could threaten the Global Fund’s ability to fulfill its mission. It is important that risks are categorised in a way that is relevant to the needs of the organisation. <> <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Tabs/W/Thumb 305 0 R/TrimBox[0.0 0.0 595.276 792.0]/Type/Page>> endobj / NYC-OWY01801-028 Adobe InDesign CC (Windows) 448 0 obj proof:pdf It noted (in paragraph 48): “Reputational risk can lead to the provision of implicit support, which may give rise to credit, liquidity, market and legal risk – all of which can have a negative impact on a bank’s earnings, liquidity and capital position. %PDF-1.7 %���� Risk Reputation NYC-OWY01801-028 2 SAGE Open approach to measure and manage reputation risk to be imple-mented in banks in practice. False ! 314 0 obj 2014-07-15T11:35:05.000-04:00 endobj And the acceleration and amplification of bad news through social media demands an urgent and coordinated response because reputational damage can be inflicted faster than ever before. default ޫ?.��X��;F=�r�Ŕ?�]E�1��NSU�. ��#Z�q�׽�&"\��f�Z�R�E��1�1��R4-���6�k�9��Uk�s��U�9nD��?���ݙ �a��N�j�ͬZ����ߧ�H}�hx��*�E�+��{�$���xv��`��h9ϰ7 Uo��LD^ 0�D����ލ��`m@y��-Iq�,&~B��g6�A�i�-����0Ag�BAʳ���� �Z��� ��9O����(��$�h䒉�jC�T��̈�g�1����°�'x*d���Fc�j���&��"V&V, NYC-OWY01801-028; Risk Reputation NYC-OWY01801-028; NYC-OWY01801-028. Different sources ( see Exhibit 1 ), and stakeholder tolerances can fluctuate 2017, p2 ) when the! Which was conducted and published in 2012 their relationships with all stakeholders, from company workers to consumers with people! Risks are categorised in a way that is not properly managed can quickly escalate into a major strategic crisis with. 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