Reputational risks in banks: A review of research themes, frameworks, methods, and future research directions

Abstract

This study examined the research trends on reputational risk in banks using a systematic literature review and network analysis (SLRNA) approach on 35 research articles published between 2010 and 2020. It was found that only developed countries (i.e., the United States and Europe) has been actively contributing to research on reputational risks in banks, suggesting that reputational risks management of banks has not gained the global attention it deserves. Moreover, we identified five broad research themes from the thematic network analysis, namely, reputational risk of operational losses, reputa national effects of media tone, performance implications of reputational risk management, management of reputational risk in banks, sustainability practices, and reputational risk of banks in the project finance market. Nonetheless, there are still several areas that require further attention. These include the conceptualization of reputational risk management in banks that explore the dynamic and interdependencies in a system think ing framework, the role of corporate governance, environmental and social issues on reputational risk, how sustainability practices shape reputational risk management, the role of political connections in mitigating the reputational effect of operational loss events, and how information and communication technology (ICT) mechanisms impact reputational risk management in banks.