The activities related to reputation risk are undertaken on the basis of periodical management reports.
The reputation risk is understood as the risk of deterioration of reputation among clients, counterparties, investors, supervisory and control authorities, and the general public as a result of business decisions, operating events, instances of non-compliance or other events. The objective of managing the reputation risk is to protect the Group’s reputation by counteracting the occurrence of reputation losses and limiting the negative effect of image-related events on the Group’s reputation.
Reputation risk management in the Group includes mainly:
- mass media monitoring: television, radio, press, and Internet in terms of identifying the effects of image-related events and distribution of information in this regard;
- execution of communication protective measures;
- recording image-related events and their effects in the form of reputation losses;
- analysing and evaluating reputation losses and determining the level of reputation risk;
- identifying potential reputation threats.
The main tools for carrying out activities related to the assessment of the Group’s reputation risk level are:
- a register of image-related events, reputation losses and their categories;
- a questionnaire designed to identify reputation risk sources and factors;
- reputation risk indicators as auxiliary business environment measures.
The activities related to reputation risk are undertaken on the basis of periodical management reports. They concern, in particular, avoiding or discontinuing activities generating reputation risk and communication activities undertaken by the Group for protection purposes.