— Banking Exchange
IN THE complex world of finance, where numbers rule and data drive decisions, there is an intangible factor that holds immeasurable value — reputation. The banking industry, often seen as the bedrock of global economies, is no stranger to the perils of reputational risk. In an era of instant communication and heightened scrutiny, safeguarding reputation has become paramount for banks worldwide.
The fallout from a tarnished reputation can be catastrophic. We do not need to look far back to find examples of institutions whose reputations crumbled like a house of cards, with far-reaching consequences. The 2008 financial crisis, fuelled partly by reckless lending practice, forever scarred the reputation of many banks and shattered public trust.
But reputational risk is not limited to a singular catastrophic event. It is a constant undercurrent that can be triggered by various factors, including unethical behaviour, cyber…
