Description

All truths are easy to understand once they are discovered; the point is to discover them”- Galileo GalileiGot 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 itwith all hermight.We all feel theurge to ensure that we are perceived by the world exactly how we want them to!But its easier said than done!Asthe verydifference 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 peoples 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 its 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 banks customers withdraw their money at the same time due to the fear that the bank wont fulfilits obligations).If a bank run takes place, it doesnt 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 allits customers withdraw their money at the same time. Thus, a bank run is a self-fulfilling prophecy, itincreases the likelihood of bank failures and destabilisation ofentire 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 EverythingIts 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 interestingreal world stories entangled within the Reputational risk concepts to ensure that everytopicis covered in an engaging and non-imposing manner……………………………………………………………………………………………………………………………………………………………………Overview of ClassWe will cover the following topics in detail:Why Study Reputational Risk?Hypothesis Reputation is Everything. Stories:Northern Rock BankICICI BankHypothesis Reputation is Everything. Stories:3 Major DefinitionsBasel Committee on Reputational RiskWhat is at Stake?Valuing IntangiblesGoodwill vs ReputationStory of Royal Bank of ScotlandQualitative & Quantitative MethodologiesManaging Reputational Risk5 Steps ProcessWhy Manage ReputationWho Should ManageStory of SunTrust BanksAdvantages & DisadvantagesReputation Management vs Crisis ManagementRightful place of Reputational Risk in Building StrategiesEssence of Reputational RiskSummary