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Definition of "Reputation Risk" |
A threat or danger to the good name or standing of a business or entity. Reputation risk can occur through a number of ways: directly as the result of the actions of the company itself, indirectly due to the actions of an employee or employees, or tangentially through other peripheral parties, such as joint venture partners or suppliers. In addition to having good governance practices and transparency, companies also need to be socially responsible and environmentally conscious to avoid reputation risk. |
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