Reputational Risk is the potential for negative impact on an organization’s reputation due to actions, behaviors, or events that lead to public perception issues. This risk can arise from factors such as unethical conduct, product failures, customer complaints, or negative media coverage. Reputational damage can result in lost sales, decreased customer trust, regulatory scrutiny, and long-term financial consequences. Effective management involves proactive communication strategies, maintaining high ethical standards, monitoring public sentiment, and quickly addressing issues that could harm the organization’s image.

Basel scope:

• Pillar 2

Capital requirements:

Mitigated by Capital

Related Links:

•       Basel Framework