Reputational risk

Reputational risk

A specific prevention model

Reputation risks are risks arising from a negative perception by customers, counterparties, shareholders, investors or regulators that can unfavourably affect a bank's capacity to remain in existence or establish new business relations and continue accessing sources of financing.

Given the wide variety of reasons that can lead to this type of risk, it must be managed under a single model, separate from other risks, although within the thresholds established in the Bank's risk appetite framework.

The purpose of managing these risks consists in their prevention, identification and control in such a way as to reduce the likelihood that they will occur and mitigate their potential impact and the Bank has various tools available to do this.

For example, the perceptions and expectations of the Bank's main stakeholders are diagnosed and measured on a regular basis. This system, based on the RepTrak® methodology, enables Bankinter to identify its key reputation drivers and actively influence them.

Trend monitoring

One of the most important aspects in preventing reputational risks is to understand market and environment trends, and monitor what is being said about the Bank in the mass media and on social networks. Bankinter therefore has a comprehensive system for monitoring, analysing and assessing its reputational impact.

Furthermore, Bank's Products Committee identifies and assesses potential reputational risks prior to launching a new product or service.

In accordance with the directives set by the European Banking Authority, this risk is monitored on a quarterly basis using a series of internal and external event indicators with reputational impact.

In addition, the Bank's Corporate Reputation department has developed a crisis management plan, for the purpose of establishing communication channels and action protocols for any emergency or crisis, in order to protect the Bank's reputation and ensure business continuity.

Bankinter also provides employees with different professional conduct and ethics manuals, with a view to raising awareness about the importance of this risk, in order for them to act as the first line of defence to protect the Bank's reputation.

We use our own and third-party cookies to improve our services and show you advertising related to your preferences by analyzing your browsing habits. If you go on surfing, we will consider you accepting its use. You can get more information, or know how to change the configuration in our Cookies Policy. Accept