Welcome » IT Booklets » Wholesale Payment Systems » Wholesale Payment Systems Risk Management » Reputation Risk
Reputation risk is the risk that potential negative publicity
regarding a financial institution's business practices could cause
a decline in the customer base, costly litigation, or revenue
reductions. Reputation risk is relevant to wholesale payment
systems because of the large dollar value of the transactions.
Errors or fraud can have serious ramifications on the public
perception of a financial institution.
Management can mitigate reputation risk for wholesale payment
systems by having an effective public relations program, by
developing and maintaining strong customer relationships, and by
enacting adequate internal controls over all aspects of the
wholesale payment system so that errors do not happen in the first