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Reputational risk management

Reputational risk is the potential for damage to our franchise, resulting in loss of earnings or adverse impact on market capitalisation as a result of stakeholders taking a negative view of the organisation or its actions.

Reputational risk will arise from the failure to effectively mitigate one or more of country, credit, liquidity, market, regulatory, operational, environmental or social risk. All employees are responsible for day-to-day identification and management of reputational risk.

The Group Head of Corporate Affairs is the risk owner for Reputational Risk. The Wholesale Banking Responsibility and Reputational Risk Committee and the Consumer Banking Reputational Risk Committee have responsibility for managing reputational risk in their respective businesses, while the Group Risk Committee provides oversight, sets Group-wide policy and monitors any material risk issues.

At country level, the Head of Corporate Affairs is the risk owner and it is their responsibility to protect our reputation in that market with the support of the country management team. To achieve this, the Head of Corporate Affairs and Country Chief Executive officer must actively:

  • Promote awareness and application of our policy and procedures regarding reputational risk
  • Encourage business and functions to take account of our reputation in all decision-making, including dealings with customers and suppliers
  • Implement effective in-country reporting systems to ensure they are aware of all potential issues in tandem with respective business committees
  • Promote effective, proactive stakeholder management through ongoing engagement
Annual Report and Accounts 2010