Reputational risk

Prevention and proactive control

Reputational risk is the risk arising when the expectations of stakeholders (customers, shareholders, employees, investors) are not met and their reaction can adversely affect existing or new business relationships with them. Therefore, it depends on an external assessment and can arise from a wide variety of sources, derive from other risks and even from the social, economic or sector environment.

To ensure optimal management of these risks, they should be prevented, by means of identifying them and controlling them with a proactive approach, so their probability of occurrence decreases and so their impact can be mitigated. Bankinter has different tools that contribute to this goal:

• Regular measurement of the perception and expectations of its main stakeholders (internal climate, reputation and customer satisfaction surveys, analyst ratings, etc.)
• Monitoring and analysing mentions of the bank in the media and social networks, as well as active listening to understand market and environmental trends.
• Assessment of reputational risk before marketing a product, outsourcing a service, partnering with a third party or sponsorship.
• Reputational risk map, which includes a catalogue of 34 possible events related to products and services, conduct, finances, leadership, innovation, labour aspects, sustainability and image. Risk events are ranked based on bank performance, potential impact, social sensitivity and level of control.
• Crisis management protocol to preserve reputation and business continuity.
• Training and raising awareness among the bank's employees to strengthen the preventive culture.
• Communication to the different governing bodies.

In addition, in 2024 progress was made in the analysis of the materiality of reputational risk derived from climate risk.