THE ESSENCE OF REPUTATION RISKS AND THEIR MANAGEMENT IN THE BANKING SECTOR

Oleg M. Zagurskіy

Abstract


The financial services sector is closely linked not only with the risks that are present in almost any financial transaction, but also reputational risks. The latter remains one of the most elusive risks because of the difficulty of their measurement, as well as in connection with the lack of understanding of the mechanisms of their forming.

The article analyzes the scientific approaches to the understanding of reputational risk, in which it considered solely from the standpoint of the capitalization of goodwill, without explaining the relationship of reputational risk with other risk types.In our work reputational risk is characterized not only as an individual risk, but as risks arising from the organization's relationship with stakeholders and which are enhanced in identifying violations in the activities of the organization. It depends on the specific property of the system network: organization–society that is a potential threat to change the results of the perception and evaluation of the organization's key stakeholders. Reputational risk for the banking sector is largely associated with the possible loss of the market value of the organization (and the loss of income) and the level in Ukraine in recent years has grown substantially.

The substantiation of theoretical and methodical bases of improvement scenarios analysis reputational risk is inherent in banking institutions. Proposed methodological approach to the management of reputational risk, considers their expectations of the stakeholders.

Promising directions for further research are: development of methods for the prediction of the reputational risk study of the management of reputational risk; study of the structure and prospects of reputational environments of the banking sector and development of institutional methods of regulation.


Keywords


business reputation; information; communication; reputation risk; stakeholders.

References


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DOI: https://doi.org/10.18371/fcaptp.v2i23.121163

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770