Reputational RIsk Management in Financial Institutions

Reputation risk is generally understood as the risk arising from adverse perception of an institution by its stakeholders. In the financial services industry, the aftermath of the global financial crisis has seen a proliferation of non-financial risks; amongst these, reputation risk is one topic that has grown in prominence, with headlines around the world highlighting its importance. This paper assesses reputational risk from a financial institution's perspective and lays down a basic framework through which reputational risk can be assessed and managed.

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