The reputation risk is defined as the risk related to a possibility of negative variations from the planned financial results of the Bank due to the deterioration of the Bank’s image. The objective of managing the reputation risk is to protect the Bank’s image and limit the probability of the occurrence and level of reputation loss.
Reputation risk management in the Bank involves in particular:
- execution of communication protective measures,
- media monitoring: television, radio, press, Internet in terms of identifying image-related events effects and distribution of information in this regard,
- recording image-related events effects,
- analysing and evaluation of image-related events effects and determining the level of reputation risk.
The main tools for the execution of activities related to the assessment of the Bank’s reputation risk level are:
- a catalogue of image-related events categories containing a list of image-related events categories with appropriate weights assigned.
A catalogue defines the risk profile by assigning appropriate weights to particular categories of image-related events. - a register of image-related events effects used to recording identified image-related events effects – media monitoring result and complaints and requests.
The reports on the level of reputation risk are prepared in the Bank on an annual basis. The reports are addressed to the Management Board, the Supervisory Board and organisational units of the Banking Risk Division.