Page 88 - Capricorn IAR 2020

GOVERNANCE REPORT RISK REPORT REMUNERATION REPORT
Reputation risk Reputation risk is mainly a consequence of other risks materialising. It is the risk of failing to understand, identify or manage events that harm the Group’s reputation. The Group has no appetite for conduct that
places its reputation at risk.
How we mitigate this risk
A Group Reputation Risk Framework and strategic stakeholder engagement plan are in place.
Each entity’s PRO for reputation risk continuously receives reputation risk management best practices, case studies as well as tips on dealing with a crisis from a communication and media perspective are continuously shared with the principal risk owners for reputation risk in all entities.
External consultants have been contracted to monitor the Group and its subsidiaries’ online presence, including traditional and social media channels. Monthly reports are generated and assist in adjusting strategies and responses to mitigate any potential reputation risks.
Key risk indicators
• Percentage of negative, neutral or positive reporting on social media
• Number of incidences not reported which had or could have had a reputational impact
• Customer service survey results
• Number of customer complaints
• Percentage of negative media reports on the subsidiary per month
GOVERNANCE OVERSIGHT
The Group and subsidiary boards receive reports on material reputation risk issues via the BARC or a board risk committee (as the case may be). Quarterly reputation risk profiles are compiled for all entities and reported to the BARC.
PRIORITIES FOR 2020 AND PROGRESS MADE
• Crisis communication plans were developed and implemented to respond to the COVID-19 pandemic
• The Group’s Reputation Risk Framework was reviewed and enhanced
• GPRO oversight of reputation risk management improved, and subsidiaries’ reporting was enhanced
• We planned a brand audit to test stakeholders’ perceptions of Capricorn Group for May 2020, but it was
postponed to August 2020 due to the COVID-19 pandemic
• A compliance audit was conducted on the application of the Group’s brand manual, and corporate
identity guidelines on the banking brands and gaps were remedied
A quick step-by-step reference guide for stakeholder relationship management and engagement was developed and shared with all the subsidiaries. The Group’s strategic stakeholder engagement plan was reviewed and enhanced, after which several stakeholder engagements supported our brand position of being Connectors of Positive Change. We standardised the reporting process for all stakeholder relationship management and engagement initiatives to BSEC.
• Internal awareness was created on reputation risks, and GPRO oversight in managing and reporting reputation risk issues was increased
• An internal campaign was launched to raise awareness of the Tip Off anonymous line in line with the ethics strategy
• A communication plan was also developed to build a strong ethical culture with the theme “Do the right thing”
MORE INFORMATION
Read more in the Group chairman’s message from page 10 and the BSEC report from page 96.
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FUTURE FOCUS AREAS
• Monitorcompliance with the new brand manual (visual identity guidelines) and endorsement strategy among all entities
• Implementthebrand and communication strategy to address the risks and opportunities associated with the Capricorn brand
• Build a strong ethical culture through employee communication and engagement initiatives
• Continue implementing the Group’s strategic stakeholder engagement plan
• Use the Capricorn Foundation’s launch to build a positive reputation for the Group as Connectors of Positive Change