Lisa Valentine, Banking Exchange, October/November 2015
Reputation is all about perception: how customers, employees, investors, and other stakeholders view your financial institution. The goal is alignment between the image you think you portray and what people really think. Reputation drives revenues–and it can also help insulate your institution from brand damage due to events such as cyber attacks and regulatory actions. They key is to build your brand resilience so that customers perceive your institution positively, even when unfortunate situations occur.
So how can financial institutions approach reputational risk, given the challenges of managing and measuring the risk?
For most financial institutions, the best defense will be a good offense: going out of their way to build goodwill that can carry them through a tarnish to their brand; monitoring their reputation on social media; and preparing for the inevitable event that can potentially damage reputation with a well-thought-out crisis playbook.
This article discusses these three strategies and a fourth – the importance of being flexible – with the experts.
“A great reputation can get you through a problem,” points out Davia Temin, president and CEO of Temin and Company. “It’s a simple concept, but people often forget it.” […read more]