Reputational risks mainly include civil litigation cases, public complaints, financial crime cases, etc.

1. Civil litigation cases

Commercial banks failed to fulfill their obligations, causing losses to their customers, thus triggering civil litigation. Once a bank is involved in a civil litigation case, if it is handled improperly, it will obviously damage its reputation. The main situations that trigger civil lawsuits include fraudulent withdrawal of deposits and stolen credit card funds; false publicity when expanding business, resulting in failure to fulfill promises; and lawsuits caused by suspected unfair transactions.

2. Public complaints

For example, in retail counter business, complaints caused by misunderstandings or disputes with customers; customers are dissatisfied with the quality of products or services and pass Media exposure, etc. If public complaints cannot be resolved promptly through bank complaint channels, it will have a negative impact on the reputation of the bank.

3. Financial crime cases

Financial crime cases in commercial banks will make the public doubt the bank's business management capabilities, thus damaging the bank's reputation.

Reputational risk management process:

1. Reputational risk identification

The reasons for reputational risk are very complex and may be a combination of internal and external risk factors of financial institutions. As a result, very simple risk factors may trigger serious reputational risks. It is necessary for financial institutions to proactively identify and manage reputational risks across the entire institution.

2. Reputation risk assessment

Reputational risk assessment helps financial institutions prioritize risks according to their impact and optimize management. First, clearly define the responsibilities of financial institutions to each type of stakeholder and the corresponding risks that may arise from the decisions to be implemented. Second, the reputation risk management team is on the front line of reputation risk management and needs to promptly and accurately assess stakeholder concerns.

3. Monitoring and reporting

The reputation risk management team needs to carefully analyze and monitor the comments received and take appropriate follow-up measures. The reputation risk management team must use an effective reporting and response system to promptly report positive and negative evaluations or actions of interest holders on financial institutions, all communication records and results, and the response measures that financial institutions should take at any time.