Become an Expert in Reputational Risk in Banking and Finance
3.9 (6 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
23 students enrolled

Become an Expert in Reputational Risk in Banking and Finance

Learn how Reputational Risk is Quantified and why is it considered a "Terminal Risk" with the help of real world stories
3.9 (6 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
23 students enrolled
Created by Sanjeev Kaushik
Last updated 6/2018
English
Current price: $23.99 Original price: $34.99 Discount: 31% off
5 hours left at this price!
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This course includes
  • 1.5 hours on-demand video
  • 5 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Assignments
  • Certificate of Completion
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What you'll learn
  • Clear understanding of how Reputational Risk can prove to be a 'Terminal Risk' in Banking and Finance world
  • Good knowledge of Historic Events involving crisis to Reputation - Royal Bank of Scotland, Nortern Rock Bank, ICICI Bank, SunTrust Banks
  • Understand how Reputational Risk is Defined, Measured and Managed
  • Characteristics of Reputational Risk
Requirements
  • Basic Understanding of Banking
Description

"All truths are easy to understand once they are discovered; the point is to discover them"

- Galileo Galilei

Got a name?

Everything in this world with a ‘name’ needs to deal with Reputational risk to avoid earning a ‘bad name’.

Be it individuals like us or big brand like Apple, onus is always on the name owner to protect it with all her might.

We all feel the urge to ensure that we are perceived by the world exactly how we want them to!

But it’s easier said than done! As the very difference between who we are and how the world perceives us; leads to a massive risk to our image.

 

Maintain it!

Although, it is totally acceptable to see an entity engaged in damage control while facing image crisis. Yet, when we see a company or even politicians; actively trying to manage people’s perception about themselves; we ironically tag them as manipulative or fake.

Thus, managing reputation is not an easy task as one needs to maintain a fine balance between being manipulative to being reactive after earning bad rap.

If managing reputation is such a challenging task, then what  happens when it’s a bank in question struggling with its deteriorating image in public?

 

Be Bankable..

While, we heavily rely on these institutions to keep our money safe & secure however, what if they lose our trust?

Wondering if it ever happened in the history of banking when people lost trust on their bank and rushed towards its branches to withdraw all their money?

Well, it happened and not just once but many times. Nations across the globe have seen banks falling due to Reputational crisis and bank run (a phenomenon when a considerable part of the bank’s customers withdraw their money at the same time due to the fear that the bank won’t fulfil its obligations).

If a bank run takes place, it doesn’t really matter whether the fear is well-founded or only based on rumours, the result will always be the same, bank failure. No bank can survive if all its customers withdraw their money at the same time. Thus, a bank run is a self-fulfilling prophecy, it increases the likelihood of bank failures and destabilisation of entire economy.

This also explains why it is so important for a bank to maintain its image of a trustworthy and sound institute as they are the flag bearers of a functional economy.

 

Because Reputation is Everything

It’s not an easy task to characterize Reputation risk. We all know about it and have our own understanding on how to manage it.

For some, it is a specific risk with clear drivers and tangible business consequences, even if these are hard to quantify.

For others, it is a risk of risks that does not exist on a standalone basis.

A third perspective is that reputation risk is not a risk at all, simply an outcome of other risks.

While, these three views capture the 'essence of reputation risk' yet a lot is left unsaid about it.

Therefore, I decided to capture all the aspects of Reputational Risk in this course and you will find that there is much more to this risk than meets the ‘naked’ eyes.


Why Enroll?

This course will take you through a journey of interesting real world stories entangled within the Reputational risk concepts to ensure that every topic is covered in an engaging and non-imposing manner.

.........................................................................................................................................................................................

Overview of Class

We will cover the following topics in detail:

  • Why Study Reputational Risk?
  • Hypothesis “Reputation is Everything”. Stories:
    • Northern Rock Bank
    • ICICI Bank
  • Hypothesis “Reputation is Everything”. Stories:
    • 3 Major Definitions
    • Basel Committee on Reputational Risk
  • What is at Stake?
    • Valuing Intangibles
    • Goodwill vs Reputation
    • Story of Royal Bank of Scotland
    • Qualitative & Quantitative Methodologies
  • Managing Reputational Risk
    • 5 Steps Process
    • Why Manage Reputation
    • Who Should Manage
    • Story of SunTrust Banks
    • Advantages & Disadvantages
  • Reputation Management vs Crisis Management
  • Rightful place of Reputational Risk in Building Strategies
  • Essence of Reputational Risk
  • Summary
Who this course is for:
  • Students with interest in the world of banking & finance.
  • Any professional directly or remotely linked with the world of banking & finance
Course content
Expand all 18 lectures 01:16:21
+ Hypothesis: "Reputation is Everything"
4 lectures 22:41

Learn in layman terms why is it important to Study Reputational Risk.

Preview 03:58

Learn how Northern Rock could not survive the crisis to its reputation.

Preview 07:23

Learn how both Northern Rock as well as ICICI bank were facing similar crisis to their reputation and what is it that ICICI did differently to eventually survive the crisis.

The Curious Case of ICICI Bank
04:52

Learn how the 3 major financial hubs in the world define Reputational Risk.

Also, gain insight on Basel Committee along with its official definition on reputational risk.

3 Major Definitions - UK, USA & HONG KONG
06:28

Pick the right answer for the multiple choice questions.

Let's test your understanding on Reputational Risk!
2 questions
+ Foundation Building Quantification of Reputational Risk
4 lectures 18:10

Learn if intangibles can be quantified in terms of monetary value?

Valuing Intangibles
03:08

Learn what are the similarities and disparities between Goodwill and Reputation.

The Case of Goodwill - Goodwill v Reputation
06:15

Learn about Rise & Fall of Royal Bank of Scotland within a decade.

Story of Royal Bank of Scotland - Part 1
03:44

Learn about Rise & Fall of Royal Bank of Scotland within a decade. And, how Goodwill and Reputation go Hand in Hand!

Story of Royal Bank of Scotland - Part 2
05:03
Reputation Risk and Goodwill
2 questions
+ What is at Stake?
4 lectures 17:08

Learn Qualitative ways of identifying, tracking and measuring Reputational risk.

Quantifying Reputational Risk - Qualitative Approach
04:59

Learn Quantitative ways of measuring Reputational risk.

Quantifying Reputational Risk - Quantitative Approach
06:47

Learn Quantitative ways of measuring Reputational risk.

Quantifying Reputational Risk - The 3 Types of Analytical Models
03:22

Learn Quantitative ways of measuring Reputational risk.

Final Result of Analytical Models - What is at Stake?
02:00
Go through the Quantification_Handout and try to compute the losses a firm will incur, on the basis of information provided.
Quantify Losses using the methodology described in Quantification_Handout
3 questions
+ Managing Reputational Risk
3 lectures 11:20
5 Steps of Managing Reputation. Why manage it and Who Should Manage Reputation?
05:10
Managing Reputation
1 question
Story of SunTrust Banks
03:11
Advantages & Disadvantages
02:59
+ Reputation - Crisis, Characteristics and Strategy
3 lectures 07:02

Differences between Reputation and Crisis Management. And how, most of the firms still get it wrong.

Reputation Management vs Crisis Management and Rightful Place of Reputation
02:51

Express your opinion about Essence of Reputation. Get the gist of it.

Essence of Reputational Risk and Final Thought!
02:14

You are an expert on Reputational Risk. Go flaunt your newly learned skill :)

Summary & Thank You Note!
01:57
Characteristics of Reputational Risk
1 question