It is agreeable by all that reputation
is very important and that it can be damaged very easily. One of the main
problems with Reputational Risks (RR) is that there is no agreed upon
definition. It’s definition changes depending on whom it concerns whether it be
academically, business or governance, it’s definition continues to evolve. RR is
becoming increasingly factored into business strategy, and with the increasing
use of social media, company’s reputation can be tarnished much easily and
quicker than before. Whether a reputation is harmed or improved always depends
on how well the company handles and manages the crisis.
This report is going to be looking at the
4 key areas where RR stem from, they are Employment activities, Product or
Customer Issues, Governance and Other areas such as Media and Corporate Social Responsibility.
It is going to be examining where these risks come from, how it can tarnish a
banks reputation and effective ways to manage it.