Sample interview questions: How do you evaluate and manage reputational or brand risk in financial analysis?
Sample answer:
Evaluation of Reputational Risk:
- Conduct materiality assessment: Determine the potential impact of reputational damage on the company’s financial performance and stakeholder relationships.
- Monitor external sources: Track news articles, social media, and industry reports for mentions of the company and potential reputational issues.
- Analyze company disclosures: Review public announcements, financial statements, and investor presentations for any potential triggers of reputational risk.
- Conduct risk scenario analysis: Identify potential events or actions that could damage the company’s reputation and assess their probability and impact.
Management of Reputational Risk:
- Establish a strong ethical foundation: Implement clear ethical guidelines and compliance programs to minimize the likelihood of reputational damage.
- Build and maintain positive stakeholder relationships: Engage with stakeholders through open communication, transparency, and proactive outreach.
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