Approaches to reputation risk vary around the world – survey

Surveys of financial firms in Germany and around the world find a wide spread of methods for measuring, managing and reporting reputational risk, Thomas Kaiser writes

Reputational risk can be defined as a risk of unexpected losses due to the reaction of stakeholders (such as shareholders, customers, and employees) to an altered perception of an institution.

Reputation management serves the purpose of affecting the public perception of the bank, as experienced by the stakeholders. In contrast, reputational risk management is concerned with the systematic identification and assessment of incidents that could jeopardise the goal of reaching or keeping up with