Abstract

The paper explores reputation and reputational risk in banks starting from a review of the literature concerning both financial and non financial institutions. Methodologies aimed at estimating risk and their implementation in risk management policies are also discussed. The paper examines furthermore the regulatory approach of Pillar 2 to the reputational risk in order to evaluate the expected behaviour of regulators after the recent financial turmoil. Finally, tasks and responsibilities in measuring reputational risk by risk management are commented, even considering a number of crucial issues which may arise from the reputational profile of banks' business portfolios.