Reputational risk

Reputational risk is defined by the Bank of Spain as the risk stemming from actions taken by the Bank that may led to negative publicity regarding its practices and business relationships, potentially causing a loss of trust in the institution and thus affecting its solvency. Reputational risk may also arise from actions attributed to the Bank, and may affect not only its solvency but also other aspects such as loss of customers, sanctions, difficulty in accessing funds, etc.; in short, the business itself.

Taking into account the various sources from which it may arise, the purpose of managing reputational risk consists of identifying and controlling these sources in order to reduce the probability of occurrence and mitigate any potential impact.

In order to manage its reputation, the Bank has a diagnostic and periodic measurement system to gauge the perception and expectations of its main stakeholders. Based on the RepTrak® methodology, this system identifies the key reputation drivers and actively influences those that are of most concern to the Bank.

Bankinter's reputational risk map is key for identifying the risks and establishing levels of prioritisation for these risks. The main risks are included in the corporate risk map, and action plans are designed to reduce their probability of occurrence and mitigate any potential impact.

One of the most important aspects in preventing reputational risks is to understand market and environment trends, and monitor what is being said about the Bank in the media and in social networks. Bankinter therefore has a measurement system that analyses all of this information and assesses its reputational impact.

The Bank's Products Committee identifies and assesses potential reputational risks prior to launching a new product or service.

A series of internal and external indicators that impact the Bank's reputational risk have also been identified, in accordance with the directives set by the European Banking Authority.

Lastly, it merits mention that the Bank's Corporate Reputation Department has developed a crisis management plan, for the purpose of establishing communication channels and action protocols for any emergency or crisis, in order to protect the Bank's reputation and ensure business continuity.