Page 88 - ACCESS BANK ANNUAL REPORTS_eBook

KEY DRIVERS OF REPUTATIONAL RISK
Backward- Forward-looking
looking Analysis
Analysis

Credit
Market Identification of Identification of Corporate
Operational past events with events that could Objectives
or Business high impact on affect reputation
Risk events stakeholder value going
expectations and forward;
market Assessment of
Financial premium; the likelihood Corporate
MarketData, Assessment of and impact of Social
e.g.Share severity and du- such potential Responsibility
Price ration of impact events on (CSR)
on market reputation value; Agenda
premiums and and
reputation value; Analysis of
and underlying Audit/Risk&
News Assessment of reputation ControlSelf
Flows the effectiveness drivers. Assessment
of the response. (RCSA)findings

Outputs
Prioritisation of key risks to reputation
value
•Portfolio view of reputation risks
•Underlying risk drivers and
•Historical information of effectiveness
of response

In identifying reputational risk factors, the Bank makes use scenario planning processes in mitigating reputational risk
of the output of a risk identification process. At the end of issues
the risk identification sessions, risk profiles are derived and
analyzed and risk events identified with possible negative COMPILATION OF TRIGGER EVENTS
reputational Impact on the Bank.
In order to assist in the identification of key reputational risk
This analysis is performed against the background of the events, triggers that would set off the risk drivers should be
Bank’s corporate objectives, its corporate social respon- compiled through workshops with participants from rele-
sibility agenda and external factors. Access Bank seeks to vant business units. The following table illustrates few
leverage existing information from audit findings, risk and trigger events for relevant risk drivers.
control self-assessments, environmental scanning and

risk Drivers Trigger Events

Corporate governance and • Corporate frauds and scandals;
leadership • Association with dishonest and disreputable
characters as directors, management
• Association with politically exposed persons
• Incidence of shareholders conflict and Board
Instability.

Regulatory Compliance • Non - Compliance with laws and regulation;
• Non submission of Regulatory returns

Delivering customer promise • Security Failure
• Shortfall in quality of service/fair treatment;
• Bad behavior by employees

88 Access BAnk Plc
Annual Report & Accounts 2017