Managing Reputational Risk
Integrating Reputational Risk Management in our operations
What do we mean by Reputational Risk Management?
Commerzbank's corporate responsibility includes the targeted management of sustainability-relevant topics and projects. This also includes identifying environmental and/or social risks in credit business at an early stage and addressing them appropriately. The assessment of these risks is incorporated into the group’s overall risk strategy and management as part of the management of reputational risk.
Reputational risk is the danger of a loss of confidence or reputation for Commerzbank among its stakeholders or the harming of its image as a result of negative events in the course of its business activities. Stakeholders comprise members of the general public, the media, employees and customers, rating agencies, shareholders and business partners.
The Reputational Risk Management department takes a qualitative approach and is in close contact with the relevant units of the bank. The department researches and analyses business, business relationships and projects in which sustainability aspects in particular play an important role. A differentiated assessment is carried out on the basis of this test. This assessment can lead to the rejection of the relevant transaction, business relationship or project.
Emerging sensitive issues and risks, especially environmental and social ones, are continuously monitored, reviewed and taken into account in the specifications and processes as required. Additionally, the department is responsible for raising awareness of reputational risks and supports the relevant units of the bank in the timely identification of fundamental risks.
Sensitive topics that are subjected to regular and thorough analysis by Reputational Risk Management include particularly defence business or business related to energy production or the mining of commodities. Commerzbank's stance on these issues is reflected in positions and guidelines that are binding for all employees. Further information on these positions and guidelines, as well as more detailed information on the assessment process can be found in the General Finance chapter of Commerzbank’s ESG Framework.