Abstract
Moving on from a comparison of the analysed case studies, this chapter highlights the main findings and discusses the relevant phases of reputational crisis management for banks and provides helpful suggestions and advice to scholars and practitioners. In addition, the chapter focuses on the methods and tools that are beneficial in the various phases of a reputational crisis. Finally, useful guidelines for enhancing the effectiveness of banks’ reputation management are suggested.
Although this chapter is the result of the collaboration between the authors, paragraphs 1 and 3.2 can be attributed to Stefano Dell’Atti, paragraph 2 can be attributed to Vincenzo Pacelli, paragraph 3.1 can be attributed to Stefania Sylos Labini and paragraph 4 can be attributed to Annarita Trotta.
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Notes
- 1.
Like other ‘contingency plans’, the reputational crisis plan is a document that identifies within it more or less detailed guidelines for the actions that each of the parties that must execute the plan must implement upon the occurrence of a risk event. It is a planning tool fundamental to the management process of reputational risk, whose contents range from defining notions to the subjects and skills that should be involved, depending on the different types of risk events and, finally, to the actions to be taken.
- 2.
In case of crisis of maximum severity, the Committee may be called upon to intervene, even within 24 h after the event. The use of technology, including the use of technical tools such as video-conferencing systems and/or the Wi-Fi/GSM can increase the performance of the committee in terms of efficiency and enhance their availability.
- 3.
If resorting to social media, one needs to pay attention to the language used because it is specific and differs from other traditional communication tools. It is particularly important to identify the persons whose opinion can influence a large number of people (e.g., experts in the area) and monitor their behavior. In this phase, the communication department of the bank plays a central role.
- 4.
The previously cited Société Général case is emblematic of the great opportunity that can derivate from reputational crisis of a certain relevance to the banks that are able to acknowledge their own limits and own deficiencies and to remedy them. In the case of fraud committed by the trader Jerome Kervier, it is amazing that a single entity without full power could operate without authorization, bypassing the control system of a bank, and that other colleagues acted in the same way, albeit at a lower level, according to the declaration of the trader. This testifies to serious deficiencies in the organizational structure of the bank, in the information system and in staff recruitment (Bianchi 2008), as well as the urgency of conducting a structural revision.
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Dell’Atti, S., Pacelli, V., Sylos Labini, S., Trotta, A. (2016). Managing Reputation: Reflections and Operational Suggestions. In: Dell’Atti, S., Trotta, A. (eds) Managing Reputation in The Banking Industry. Springer, Cham. https://doi.org/10.1007/978-3-319-28256-5_8
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