Some thoughts on reputation and challenges for global financial institutions

Abstract

Reputation is an amorphous concept. It is intangible. It can change over time (for better or worse). It is difficult to define. It is difficult to measure. It is difficult, if not impossible, to value (and is assigned no value by our accounting conventions). And yet it is, without question, among the most valuable assets of any company, particularly a global financial institution. But what exactly is reputation in this context? In my view, reputation is a multi-faceted concept derived from many different individual components. A company's reputation, however, is a blended perception that transcends its individual component parts. For a financial institution, these component parts are multiple and include: financial performance and strength, client trust and confidence, client service, corporate social responsibility, corporate governance practices, corporate ethics, corporate disclosure practices, as well as relations with regulatory authorities and compliance in a broad sense. © 2006 The International Association for the Study of Insurance Economics.