Ads
related to: reputational risk management in banks
Search results
Results From The WOW.Com Content Network
De-banking, more commonly spelled debanking, also known within the banking industry as de-risking, is the closure of people's or organizations' bank accounts by banks that perceive the account holders to pose a financial, legal, regulatory, or reputational risk to the bank.
Reputational damage is the loss to financial capital, social capital and/or market share resulting from damage to an organization's reputation. This is often measured in lost revenue , increased operating, capital or regulatory costs, or destruction of shareholder value . [ 1 ]
Basel II attempted to accomplish this by establishing risk and capital management requirements to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending, investment and trading activities. One focus was to maintain sufficient consistency of regulations so to limit competitive inequality amongst ...
Regulatory risk are possible losses due to changes of the law and regulations. Reputational Risk is potential loss caused by the damage to a firm's reputation. All these risk types are closely related. In the case of a data leak (which is a cyber risk incident), the reputation of the company as a whole might be at stake. [4]
The definition of operational risk, adopted by the European Solvency II Directive for insurers, is a variation adopted from the Basel II regulations for banks: "The risk of a change in value caused by the fact that actual losses, incurred for inadequate or failed internal processes, people and systems, or from external events (including legal ...
Ultimately, the bank that sticks to what it does best is the best at avoiding risk. Stay tuned as we continue to dig into U.S. Bancorp on our journey to better understand banks. More Foolish ...
Ads
related to: reputational risk management in banks