Reputational Risk / Compliance

Reputational risk

The risk of deteriorating perception of a company or individual by clients, banks, partners and regulators as a result of connections, publications, conflicts or decisions.

01

Practical significance

Reputational risk materializes in concrete consequences: a bank's refusal, a partner's withdrawal, a failed deal, heightened scrutiny. It often arises not from one's own actions but from connections to persons involved in public conflict.

02

Where it is used

  • assessment of partners and investments
  • preparation for a public role
  • bank onboarding
  • crisis situation management
03

What the term does not mean

Not the same as the presence of negative publications: what matters is their origin, whether they are confirmed, and their capacity to influence counterparties' decisions.

04

How it differs from «Adverse Media»

Adverse media - specific negative mentions. Reputational risk - an assessment of the impact these and other circumstances will have on decisions. More about this term

05

Illustrative example

A company's partner becomes party to a high-profile dispute: the company itself has committed no violations, but the bank requests additional clarification regarding the entire group.

06

Related terms, services and guides

Definition verified 3 August 2026

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