Reputational risk and risk of damage to reputation

Risk that a bank and, in general, a company may suffer a loss of confidence among business partners and customers as a result of incorrect behavior on the part of individuals, groups or special circumstances, such as non-performing securities issued by related special-purpose entities or adverse events at related companies, but also events such as a power outage. For example, customers broke off their relationships with Ergo Insurance after “high-performing employees” were sent to brothels in Budapest at the company’s expense and apparently with the approval of the management in 2007 and to sex trips to Mallorca and faraway Jamaica in 2012. – Reputational risk is considered a special form of operational risk and has received special attention from regulators since about 1998. – See outsourcing, badwill, brokerage, compliance, fault tolerance, fault disclosure, incentive travel, insourcing, outsourcing risks, risk, banking, risk, operational, risk, personnel, risk, strategic, setback effect, spillover effect, special purpose vehicle allocation.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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https://www.jung-stilling-gesellschaft.de/merk/
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