Reputational risk

We have an unwavering commitment to operating at high standards in every jurisdiction. Any lapse in standards of integrity, compliance, customer service or operating efficiency represents a potential reputational risk.

What is reputational risk?

Reputational risk is the risk of failure to meet stakeholder expectations as a result of any event, behaviour, action or inaction, either by HSBC itself, our employees or those with whom we are associated, that might cause stakeholders to form a negative view of HSBC.

How do we manage reputational risk?

We have a reputational risk policy which sets out the responsibilities and requirements for identifying, assessing, managing and escalating reputational risk. Reputational risk matters are managed across the business and infrastructure teams through relevant and risk management processes, governance and senior management oversight.

What is our governance around reputational risk management?

The governance of our reputational risk management is integrated into HSBC’s broader risk governance framework. The Group Chief Risk and Compliance Officer (GCRCO) is the senior executive accountable for reputational risk at Group level.

The Group Reputational Risk Committee is the principal Group-level governance and decisioning forum for the most material reputational risk matters. It oversees and considers matters that present significant potential reputational risk to HSBC or require a Group-level decision.

Supporting governance arrangements operate across HSBC’s businesses and markets to oversee and decide reputational risk matters within delegated authority, with the most material or unresolved matters escalated to the Group level.