Non-Financial Reporting and Reputational Risk in the Romanian Financial Sector

Customer Experience in Fintech

“…In order to prevent such security leaks, fintechs implement multiple security checks: electronic keys, encryption and biometric identification, service, platform, network, and device security [9]. The availability of privacy and security policies, along with a good reputation should not be neglected [97,98]. Where possible, fintechs might offer credential from a third party, regulatory or certification body.…”

Reputational Risks in Banks: A Review of Research Themes, Frameworks, Methods, and Future Research Directions

“…The concept of reputational risks is complex, difficult to define and quantify, and dependent on external perception. The literature notes that, with qualitative risks, banks have to act proactively to decouple reputational risks as a "stand alone risks" (Tăchiciu, Fülöp, Marin-Pantelescu, Oncioiu, & Topor, 2020). Reputation is an important factor for long-term stability, competitiveness, and success of all contemporary organizations (Zaby & Pohl, 2019).…”

“…Following the global financial crisis (GFC), reputational risk has become one of the most significant risks confronting banks. The crisis and post-crisis periods have put trust in the integrity of the financial sector on a downward trend, as misconduct and unethical managerial behavior in the pre-crisis period get exposed (Miklaszewska, Kil, & Pawłowska, 2020;Tăchiciu, Fülöp, Marin-Pantelescu, Oncioiu, & Topor, 2020). Consequently, confidence in banks decrease drastically following financial crisis, and this phenomenon manifested in the increased public opposition to banks' rescue (Miklaszewska et al, 2020).…”

“…Consequently, confidence in banks decrease drastically following financial crisis, and this phenomenon manifested in the increased public opposition to banks' rescue (Miklaszewska et al, 2020). This expression of a lack of confidence in the social responsibility of banks resulted in increased disclosure requirements (Tăchiciu et al, 2020) as well as the enactment of stringent prudential regulations and new prudential powers for central banks to uphold financial stability (Born, Ehrmann, & Fratzscher, 2012;Hungin & James, 2019). A decade after the global financial crisis (GFC), corporate reputation has improved but suffered a loss of customer support, suggesting that customers will not give an organization the benefit of doubt (Tăchiciu et al, 2020).…”

“…In the banking sector, reputational risk management (RRM) frameworks are still underdeveloped (Fiordelisi, Soana, & Schwizer, 2013;Zaby & Pohl, 2019) and reactive, suggesting that RRM of banks are developed mainly in the context of minimizing losses after a scandal, rather than as a strategic, long term goal (Eccles, Newquist, & Schatz, 2007;Trostianska & Semencha, 2019).This may be attributable to a delay in understanding the significance of reputational risks (Tăchiciu et al, 2020;Zaby & Pohl, 2019) and difficulty with its measurement (Gatzert, Schmit, & Kolb, 2016;Miklaszewska et al, 2020); although, awareness of reputational risks has increased considerably, relative to other risks (Heidinger & Gatzert, 2018).Over the last decade, numerous studies have discussed various themes in RRM, including sources/determinants of reputational risks (Fiordelisi et al, 2013;Zaby & Pohl, 2019), measurement (Miklaszewska et al, 2020;Trostianska & Semencha, 2019), implications (Fiordelisi, Soana, & Schwizer, 2014;Gillet, Hübner, & Plunus, 2010), and mitigation measures (Zaby & Pohl, 2019) What are the methodologies adopted by previous studies on reputational risks in banks? (5) What are the most frequently identified research frameworks adopted in the study of reputational risks in banks?…”