Davia Temin, American Banker, June 28, 2018
From #MeToo to lending to gunmakers, from compliance issues to cyberhacks, from questionable marketing practices to persistent gender inequality — political, economic, and social issues are all directly impacting bank operations and reputations like never before.
Moreover, the rules appear to be changing in real time. Where the “Boom Boom Room” was an aberration that took a long time to be taken seriously and then addressed, today almost any whiff of sexual harassment will find bankers on the curb in a nanosecond, as the public’s tolerance for such behavior is plummeting.
Yet new studies are telling us that even after a crisis of major proportions, most companies’ share price returns to normal valuation in months. (Note how quickly Equifax rebounded after its massive hack.)
So, what is the difference between a reputational hit that ends up being just a blip, and one that becomes an extinction level event? Following are five ways to assess your exposure. […read more]