Considering the high awareness of business ethics and the growing interest in the valuation of intangible assets, Intesa Sanpaolo has developed a model to actively manage its reputation with all its stakeholders with a view to preventing and minimising potential negative effects on its image. Intesa Sanpaolo’s reputational risk governance model assigns the Corporate governance bodies the function of strategic supervision and to the Enterprise Risk Management Head Office Department the responsibility for governing reputational risk processes. Each company function is involved in the process of safeguarding the corporate image by identifying the reputational risks associated with the activities under its responsibility.
The Group attaches great importance to non-financial risks and, as part of the main risk-taking strategies set out in the Risk Appetite Framework (RAF), it has produced a qualitative statement dedicated to the protection of its reputation. The reputational risk management system is based, on one hand, on systematic and independent monitoring by the corporate Structures with the specific duty of protecting reputation (including Compliance, CSR, Investor Relations, Institutional Affairs and External Communication, Internal Communication) and, on the other hand, on reputational risk management processes implemented through the Enterprise Risk Management Head Office Department.
These processes are aimed at the Reputational Risk Clearing, with the objective of ex-ante identification and assessment of potential reputational risks connected with the most significant business transactions, the main strategic projects and the selection of Intesa Sanpaolo’s suppliers/partners. By providing an advisory opinion, the clearing seeks to identify the potential risks associated with a specific transaction and/or counterparty to enable informed risk taking, within the decision-making processes concerned. In addition, Reputational Risk Monitoring processes are in place to monitor the evolution over time of Intesa Sanpaolo’s reputational positioning and identify the main areas of exposure, through periodic analysis of its web reputation or observation of appropriate Key Risk Indicators. The monitoring processes are performed on the basis of the reputational dimensions identified in the Group's approach and enable the integration of the internal perspective (based on the Bank’s internal data and assessments including, for example, those of compliance risk management activities and of the monitoring of the application of the Code of Ethics) with the external perspective (based on analyses/surveys conducted by third parties to monitor stakeholder perception and expectations, including aspects such as stakeholder engagement and web reputation).
The mitigation of reputational risk is entrusted both to the Structures directly supervising the reputation and corporate image, and to the Structures responsible for managing primary risks, in view of the consequential nature of reputational risk. In addition, with regard to significant reputational risks, the Enterprise Risk Management Head Office Department may promote the establishment of specific mitigation measures.