This is another type of risk that is defined as the risk associated with changes in the perception that stakeholders (customers, shareholders, employees, etc.) have of the Group or its component brands. Credit and market risk may generate reputational risk. However, operational risk is considered to be by far the most likely to lead to reputational risk.
Reputational risk is analyzed and managed at country level using methodologies developed by the Operational Risk Central Unit and the Corporate Responsibility and Reputation Unit. Each country has a Corporate Responsibility and Reputation Committee to assess and oversee the management of this class of risk. The action plans themselves belong to the business and support units. The parent company also has a Global Corporate Responsibility and Reputation Committee for management at Group level.