Tracking Reputation and the Management of Perception at UniCredit

Armin Herla

REPUTATION IN THE BANKING SYSTEM

The end of the 2000s was marked by the subprime mortgage crisis and the insolvency of many banks, events that kicked off an unprecedented global recession. The subsequent crisis of the European sovereign debt, together with the erosion of the reputation of the financial sector, has undermined public confidence in the ability of banks to support the real economy. The 2008 financial crisis turned the spotlight on the issue of trust and has shown how essential it is for a bank to operate in a sustainable manner. This has led to an increasing focus on the long-term stability of the financial sector, as well as on the professional conduct of banks and their ability to be responsible “corporate citizens”.

While reputational risks concern precise actions, events or situations, reputation itself is a more general and long-term concept. It can be seen as a result of several actions, events and situations over time, all of which build an overall perception of how a company behaves. Or, in short, reputational risk control is one of the means to achieve a good reputation as the end result. Therefore, not only is the regular monitoring of reputation necessary