Reputation Risk And Management in Banks

Reputation, defined as an indicator of an organization's ability to deliver the desired outcomes by its stakeholders and as a common measure of its past activities and outputs, is also a valuable resource that adds value and cannot be easily imitated, seen, touched, or substituted with something else. In a world of globalization and increasing competition, the importance of corporate reputation as a valuable resource has become more evident. In banks, which have become an important source of finance for sectors, reputation is crucial in terms of both competition and the solidity and reliability of the financial system and the national economy. Therefore, a good reputation requires proactive reputational risk management, which involves identifying, evaluating, and taking preventive actions against risks that can damage reputation. Effective reputational risk management should ensure that there is no significant gap between stakeholders' perceptions and the reality of banks, thanks to their transparent structures, and maintain confidence in the banking system. The main purpose of this study, which addresses reputational risk management in banks, is to raise awareness about reputational risk, which is considered as the "risk of risks" in the banking system, and to provide models that will assist in reputation risk management.