Digest Finance
 

Statistical and scoring methods to assess reputational risks of commercial banks

Vol. 24, Iss. 2, JUNE 2019

PDF  Article PDF Version

Received: 17 August 2016

Received in revised form: 20 September 2016

Accepted: 16 October 2016

Available online: 28 June 2019

Subject Heading: RISKS, ANALYSIS AND EVALUATION

JEL Classification: D81, G21, G32

Pages: 191–206

https://doi.org/10.24891/df.24.2.191

Manuilenko V.V. North-Caucasus Federal University (NCFU), Stavropol, Stavropol Krai, Russian Federation
vika-mv@mail.ru

ORCID id: not available

Kunitsyn I.I. North-Caucasus Federal University (NCFU), Stavropol, Stavropol Krai, Russian Federation
kunitsyn92@mail.ru

ORCID id: not available

Importance When the reputational risks management concept is outlined, it is very important to adequately evaluate reputational threats and possible losses the bank can bear.
Objectives The research provides theoretical substantiation of methodological approaches to assessing credit institutions' reputational risks, and pursues their practical application in financial management.
Methods Using the framework of statistical analysis and scoring method, we described the procedure for assessing the level of reputational risks the commercial bank was exposed to.
Results We devised a mechanism to assess reputational risks considering how the bank’s business reputation depends on some parameters. As part of the scoring method, we assessed the bank's reputational risk by three aspects, i.e. image, organizational functioning, corporate communication.
Conclusions Currently the Russian banking system adopts international business standards. In this respect, it is especially important to improve risk assessment and management methods. The proposed methods and recommendations have practical value since they can underlie the decision-making mechanism to implement and optimize the risk management system in regional banks.

Keywords: reputational risks, bank reputation, business reputation

References:

  1. Astrelina V.V., Bondarchuk P.K. [Assessment of the bank's business reputation]. Den'gi i kredit = Money and Credit, 2012, no. 12, pp. 16–23. (In Russ.)
  2. Evstifeeva N.A., Krylov G.O., Ryabkov V.E. [The formation of attribute space to address issues of analyzing credit institutions' reputational risks as agents of financial and information security]. Bezopasnost' informatsionnykh tekhnologii = IT Security, 2013, no. 1, pp. 95–97. (In Russ.)
  3. Zaman A. Reputatsionnyi risk: upravlenie v tselyakh sozdaniya stoimosti [Reputational Risk: How to Manage for Value Creation]. Moscow, Olimp-Biznes Publ., 2008, 416 p.
  4. Andrianova E.P. [Specifics of managing the commercial bank's business reputation]. Politematicheskii setevoi elektronnyi nauchnyi zhurnal Kubanskogo gosudarstvennogo agrarnogo universiteta, 2013, no. 87, pp. 1–19. (In Russ.) URL: Link
  5. Vazhenina I.S., Pestrikov S.A., Sharipov T.R. [Business reputation risks]. Zhurnal ekonomicheskoi teorii = Russian Journal of Economic Theory, 2011, no. 3, pp. 11–20. (In Russ.)
  6. Shamin V.P. [Basic approaches and measures to mitigate the business reputation risks]. Biznes v zakone = Business in Law, 2011, no. 1, pp. 205–207. (In Russ.)
  7. Osipenko T.V. [Setting up a comprehensive system for managing banking risks]. Den'gi i kredit = Money and Credit, 2004, no. 3, pp. 34–37. (In Russ.)
  8. Moskvichev A.A., Nazarova L.N. [The role of reputational risk management in the commercial bank]. Aktual'nye voprosy ekonomicheskikh nauk = Current Issues of Economic Sciences, 2009, no. 7, pp. 29–33. (In Russ.)
  9. Pestrikov S.A. [Improving the management of motor transport organizations' reputational risks as their sustainable development driver]. Transport. Transportnye sooruzheniya. Ekologiya = Transport. Transport Facilities. Ecology, 2012, no. 1, pp. 178–190. (In Russ.)
  10. Savina T.S. [Managing business reputation of the company: monitoring the reputational risk]. Vestnik Novgorodskogo gosudarstvennogo universiteta im. Yaroslava Mudrogo = Vestnik of Yaroslav the Wise Novgorod State University, 2013, vol. 1, no. 74, pp. 57–61. (In Russ.)
  11. Blinkov M.A. [The concept of business reputation in banking]. Politematicheskii setevoi elektronnyi nauchnyi zhurnal Kubanskogo gosudarstvennogo agrarnogo universiteta, 2012, no. 77, pp. 1–13. (In Russ.) Available at: Link
  12. Ermakova A.A. [On reputational risks and scientific endeavors: An interview]. Vestnik Finansovogo universiteta = Bulletin of Financial University, 2013, no. 1, pp. 146–147. (In Russ.)
  13. Goidenko Yu.N. [Attacks against the bank's reputation: theoretical considerations about the anthropological nature of the phenomenon]. Vestnik Tikhookeanskogo gosudarstvennogo universiteta = Bulletin of PNU, 2009, no. 1, pp. 51–56. (In Russ.)

View all articles of issue

 

ISSN 2311-9438 (Online)
ISSN 2073-8005 (Print)

Journal current issue

Vol. 24, Iss. 2
June 2019

Archive