Reputational risk
From Wikipedia, the free encyclopedia
| Categories of |
| Financial risk |
|---|
| Credit risk |
| Market risk |
| Liquidity risk |
| Operational risk |
| Reputational risk |
| Volatility risk |
| Settlement risk |
| Profit risk |
| Systemic risk |
Reputational risk, often called reputation risk, is a type of risk related to the trustworthiness of business. Damage to a firm's reputation can result in lost revenue or destruction of shareholder value, even if the company is not found guilty of a crime. Reputational risk can be a matter of corporate trust, but serves also as a tool in crisis prevention.[1]
This type of risk can be informational in nature or even financial. Extreme cases may even lead to bankruptcy (as in the case of Arthur Andersen). Recent examples of companies include: Toyota, Goldman Sachs, Oracle Corporation, NatWest and BP. The reputational risk may not always be the company's fault as per the case of the Tylenol cyanide panic after seven people died in 1982.[2]
See also [edit]
- Reputation management
- Audit
- COSO framework, Risk management
- Quality audit
- Continuous auditing
- Center for Audit Quality
References [edit]
External links [edit]
- Reputation Damage: Risk Event or Risk Consequence?
- U.S. FFIEC's definition
- Managing Reputational risk
|
||||||||||||||||||||||||||||
