Become an Expert in Reputational Risk in Banking and Finance

Become an Expert in Reputational Risk in Banking and Finance

"All truths are easy to understand once they are discovered; the point is to discover them"

- Galileo Galilei

Got a name?

Everything in this world with a ‘name’ needs to deal with Reputational risk to avoid earning a ‘bad name’.

Be it individuals like us or big brand like Apple, onus is always on the name owner to protect it with all her might.

We all feel the urge to ensure that we are perceived by the world exactly how we want them to!

But it’s easier said than done! As the very difference between who we are and how the world perceives us; leads to a massive risk to our image.

 

Maintain it!

Although, it is totally acceptable to see an entity engaged in damage control while facing image crisis. Yet, when we see a company or even politicians; actively trying to manage people’s perception about themselves; we ironically tag them as manipulative or fake.

Thus, managing reputation is not an easy task as one needs to maintain a fine balance between being manipulative to being reactive after earning bad rap.

If managing reputation is such a challenging task, then what  happens when it’s a bank in question struggling with its deteriorating image in public?

 

Be Bankable..

While, we heavily rely on these institutions to keep our money safe & secure however, what if they lose our trust?

Wondering if it ever happened in the history of banking when people lost trust on their bank and rushed towards its branches to withdraw all their money?

Well, it happened and not just once but many times. Nations across the globe have seen banks falling due to Reputational crisis and bank run (a phenomenon when a considerable part of the bank’s customers withdraw their money at the same time due to the fear that the bank won’t fulfil its obligations).

If a bank run takes place, it doesn’t really matter whether the fear is well-founded or only based on rumours, the result will always be the same, bank failure. No bank can survive if all its customers withdraw their money at the same time. Thus, a bank run is a self-fulfilling prophecy, it increases the likelihood of bank failures and destabilisation of entire economy.

This also explains why it is so important for a bank to maintain its image of a trustworthy and sound institute as they are the flag bearers of a functional economy.

 

Because Reputation is Everything

It’s not an easy task to characterize Reputation risk. We all know about it and have our own understanding on how to manage it.

For some, it is a specific risk with clear drivers and tangible business consequences, even if these are hard to quantify.

For others, it is a risk of risks that does not exist on a standalone basis.

A third perspective is that reputation risk is not a risk at all, simply an outcome of other risks.

While, these three views capture the 'essence of reputation risk' yet a lot is left unsaid about it.

Therefore, I decided to capture all the aspects of Reputational Risk in this course and you will find that there is much more to this risk than meets the ‘naked’ eyes.

Why Enroll?

This course will take you through a journey of interesting real world stories entangled within the Reputational risk concepts to ensure that every topic is covered in an engaging and non-imposing manner.

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Overview of Class

We will cover the following topics in detail:

• Why Study Reputational Risk?
• Hypothesis “Reputation is Everything”. Stories:
  • Northern Rock Bank
  • ICICI Bank

• Hypothesis “Reputation is Everything”. Stories:
  • 3 Major Definitions
  • Basel Committee on Reputational Risk

• What is at Stake?
  • Valuing Intangibles
  • Goodwill vs Reputation
  • Story of Royal Bank of Scotland
  • Qualitative & Quantitative Methodologies

• Managing Reputational Risk
  • 5 Steps Process
  • Why Manage Reputation
  • Who Should Manage
  • Story of SunTrust Banks
  • Advantages & Disadvantages

• Reputation Management vs Crisis Management
• Rightful place of Reputational Risk in Building Strategies
• Essence of Reputational Risk
• Summary

Learn how Reputational Risk is Quantified and why is it considered a "Terminal Risk" with the help of real world stories

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What you will learn

• Clear understanding of how Reputational Risk can prove to be a 'Terminal Risk' in Banking and Finance world
• Good knowledge of Historic Events involving crisis to Reputation - Royal Bank of Scotland, Nortern Rock Bank, ICICI Bank, SunTrust Banks
• Understand how Reputational Risk is Defined, Measured and Managed

Rating: 4.4

Level: Beginner Level

Duration: 1.5 hours

Instructor: Sanjeev Kaushik