All together to prevent and control

Reputational risk is the risk arising when the expectations of stakeholders (e.g. customers, shareholders, employees, investors) are not met and their reaction can adversely affect existing or future business relationships with them.

The aim of reputational risk management is to prevent the risks, identifying and controlling them pro-actively to reduce their probability of occurrence and mitigate their impact. The entity has various tools at its disposal for this:

• Regular measurement of the perception and expectations of the entity's main stakeholders based on RepTrak®, the international standard for reputation measuring and management.
• Monitoring and analysis of mentions of the entity in conventional and social media, in addition to active listening to gauge trends in the market and environment.
• Assessment of reputational risk before marketing a product or outsourcing a service.
• Monitoring and quarterly reporting to senior management of metrics for each stakeholder.
• Crisis management protocol to preserve reputation and business continuity.

All employees are responsible for safeguarding the entity’s reputation, guided by a number of professional conduct and ethics manuals. Therefore, training and awareness of all staff is crucial for creating a strong internal culture of prevention.

As a collective body with a basic remit in this respect, the entity has a cross-cutting brand and reputation committee led by the Chairman.

One of the biggest challenges with this type of risk is financial quantification. Several improvements were made to the economic valuation model over the course of 2019.