Generated on 2014/06/19 at 04:58:34 AM

Risk Item: Reputation Risk

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Description (HTML)	The assessment of reputation risk recognizes the potential impact of public opinion on a company’s franchise value. Asset management activities are likely to produce a high level of reputation risk. As a company’s vulnerability to public reaction increases, its ability to offer innovative products and services may be affected. An institution’s reputation is enhanced through competitive investment performance, state-of-the-art products and services, high-quality customer service, and compliance with applicable law. Some examples of issues that could raise an institution’s level of reputation risk are Lack of a strong and enforced ethical culture and risk control environment. Lack of a clearly defined and consistently applied investment management philosophy. Deficiencies in the integration of sales-oriented businesses with the responsibilities associated with fiduciary relationships. Marginal or poor customer service and product performance. Adverse regulatory enforcement actions. Liability for damages or restitution as a result of litigation.
Source Description	OCC Handbook - Asset Management
Source URL	http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/assetmanagement.pdf
Document	No document attached...
Item Quality Status (Item Quality Status)	Acceptable
Updated by	webea.09
Updated on	2014-04-07 15:54:01
categorised by	Risk Type Control Risk People Risk