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Reputational Risk

What is Reputational Risk?

The potential for damage to an organization's public image and stakeholder trust resulting from negative events, actions, or perceptions.

Risk Management

Each of these is named in at least one of the same controls as reputational risk. The number is how many controls name both.

What the standards actually require on reputational risk

Requirements naming reputational risk across 6 standards, quoted from the control text.

The bank must apply the operational risk definition covering losses from failed processes, people, systems or external events, including legal risk and excluding strategic and reputational risk (OPE10.1), and build the Business Indicator from the interest, lea...

basel-iii-international-banking-framework::OPE25 · Calculate operational risk capital with the standardised approach (BI, BIC and ILM) →

When assessing an AI system, evaluate the likelihood and consequence of each risk and the consequence of not deploying the system, by: (a) identifying the severity and likelihood of harms to stakeholders from the stakeholder impact assessment;

australia-guidance-for-ai-adoption-2025::3.2.3 · 3.2.3 Evaluate likelihood and consequence, including of not deploying →

The bank consistently observes the prescribed liquidity requirements, including the thresholds that trigger supervisory action (for internationally active banks no lower than the Basel standards), reflecting its on- and off-balance sheet liquidity profile, and...

basel-core-principles-for-effective-banking-supervision-2024::P24 · Principle 24: liquidity risk →

Risk assessment is proportionate. For critical or important functions it weighs expected benefits and costs against significant risks, and assesses legal, ICT, compliance and reputational risk and oversight limits arising from the chosen service and deployment...

eiopa-guidelines-on-outsourcing-to-cloud-service-providers-eiopa-bos-20-002::8 · Guideline 8: Risk assessment of cloud outsourcing →

The institution identifies the key business and support functions whose failure would create material operational or reputational risk, significant financial loss or harm to Hong Kong's financial stability, the critical services or systems under each with thei...

hkma-cyber-resilience-assessment-framework-c-raf::ICAST.3 · iCAST scoping: key functions, critical systems and test goals →

Questions people ask about reputational risk

What is Reputational Risk?
The potential for damage to an organization's public image and stakeholder trust resulting from negative events, actions, or perceptions.
Why is Reputational Risk important for compliance?
Reputational Risk is a key concept in Risk Management. Understanding reputational risk helps organizations meet regulatory requirements, reduce risk, and demonstrate due diligence during audits. Our compliance platform maps 1,016 frameworks with 316K cross-framework control mappings.
Which compliance frameworks address Reputational Risk?
Reputational Risk appears in the requirement text of Basel III International Banking Framework, Australia Guidance for AI Adoption (2025), Basel Core Principles for Effective Banking Supervision (2024), EIOPA Guidelines on Outsourcing to Cloud Service Providers (EIOPA-BoS-20-002), HKMA Cyber Resilience Assessment Framework (C-RAF). Across these standards we have identified 7 controls that name it directly, each linked to the control text on the compliance platform.
Where can I learn more about Reputational Risk?
Explore our compliance framework pages to see how reputational risk applies across different standards and regulations. Our implementation guides provide step-by-step guidance, and the compliance platform offers AI-powered analysis of how this concept maps across 1,016 frameworks.

See how Reputational Risk applies across compliance frameworks

Our platform maps 1,016 frameworks with 316K cross-framework control mappings. Explore how this concept is addressed across standards.

Written and maintained by Gerard Blokdyk, The Art of Service.