Reputational Risk Management in Financial Institutions

Thomas Kaiser
Thomas has been working in the risk management profession for more than 15 years. Through membership in several international and German banking organizations, he has been closely involved in the creation of the operational risk rules of the Basel II accord and their interpretation. Thomas is a director with the financial risk management practice at KPMG, and is responsible for operational and reputational risk management consulting projects across the globe. Together with Petra Merl, he has started a regular exchange of reputational risk management professionals of major German banks and insurance companies. Thomas is also honorary professor at Goethe University in Frankfurt, teaching risk management at graduate and executive level. He holds a master degree in business administration from Saarbrücken University and a PhD in financial econometrics from Tübingen University. Thomas is a professional member of the Institute of Operational risk and member of its German chapter’s inner circle.

Petra Merl
Petra has been working in the risk management profession for more than 15 years. Her career includes various roles in Risk Control, most of which were focused on counterparty and market risk control. She worked for Commerzbank AG and was Head of Market Risk in HypoVereinsbank AG, Milan. She joined the OpRisk community 3 years ago and has implemented the Reputational Risk Framework in HypoVereinsbank AG in 2012. Petra is a First Vice President with HypoVereinsbank AG, and is responsible for Operational and Reputational Risk Control in Unicredit Bank AG and has functional authority over all divisional Operational Risk Managers in the AMA Subgroup. Here responsibility encompasses governance, qualitative and quantitative aspects of those risk types. Together with Prof. Thomas Kaiser, she has started a regular exchange of reputational risk management professionals of major German banks and insurance companies, which also resulted in publications and conference presentations. Petra holds a Diploma in Mathematics and Business Administration from University of Regensburg. She is a professional member of the Institute of Operational risk and member of its German chapter’s inner circle. Petra is a Subject Matter Expert in the PRIMIA’s advisory group for Reputational Risk.

Reputational Risk Management in Financial Institutions

Introduction: Thomas Kaiser (KPMG and Goethe University) and Petra Merl (UniCredit Bank AG)

PART 1: REPUTATION AND REPUTATIONAL RISK MANAGEMENT

Reputational Risk: A Short Introduction

David Shirreff

What History Teaches Bankers about Reputation Management

Richard J. Parsons

An Asset–Liability View of Banks’ Reputation

Sergio Scandizzo, European Investment Bank

Reputational Risk in the Universe of Risks: Boundary Issues

Hema Parekh

Corporate Governance Changes Following Reputational Damage in the Financial Industry

Ahmed Barakat, Nottingham University Business School

PART 2: METHODOLOGIES AND PROCESSES FOR MANAGING REPUTATIONAL RISK

Reputational Risk and Prudential Regulation

Mattia L. Rattaggi, UBS

Managing Stakeholder Expectations

Sandra Dow, Middlebury College

Environmental and Social Risks from the Perspective of Reputational Risk

Nina Roth and Olivier Jaeggi, UBS and ECOFACT

The Relationship between Reputational Risk Management and Business Continuity

Alexander Klotz, Tibor Konya; Abtin Maghrour, UniCredit Bank AG; Transfer of Innovative and Integrative Management Solutions (tiim)

Tracking Reputation and the Management of Perception at UniCredit

Armin Herla, UniCredit

PART 3: BEST-PRACTICE EXAMPLES

Successful Recovery from Reputational Crises: Legitimate versus Illegitimate Risk Case Studies

Steffen Bunnenberg, Bunnenberg Bertram Rechtsanwaelte

Reputational Risk Management Across the World: A Survey of Current Practices

Thomas Kaiser, KPMG and Goethe University

Governance as the Starting Point for a Reputational Risk Management Process

Carsten Steinhoff and Rainer Sprengel, Norddeutsche Landesbank and Portigon Financial Services

Managing Reputational Risk in a Major European Banking Group

Davide Bazzarello, UniCredit

The Implementation of the UniCredit Group Approach

Thomas Beil, UniCredit Bank AG

Promotional Banks: An Introduction to Reputational Risk Management

Heidi Rudolph, KfW Bankengruppe

Reputational Risk Management in a Global Insurance Company

Claudia Meyer and Maurice LeBlanc, Allianz SE

Reputational Consequence Management: The Future

Mike Finlay, RiskBusiness International Limited