Table 1 Examples of risk headings related to reputational risk in Section 1A of Form 10-K.
From: What drives reputational risk? Evidence from textual risk disclosures in financial statements
No. | Risk headings of risk factors relating to reputational risk | Implied risk drivers |
|---|---|---|
1 | We may be liable for invasion of privacy or misappropriation by others of our users’ information, which could adversely affect our reputation and financial results. (From THINKORSWIM GROUP INC’s Form 10-K in 2006) | Information security |
2 | Our exposure to legal liability is significant, and damages that we may be required to pay and the reputational harm that could result from legal or regulatory action against us could materially adversely affect our businesses. (From EDELMAN FINANCIAL GROUP INC’s Form 10-K in 2010) | Legal and regulatory action |
3 | Employee misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm. (From LAZARD LTD’s Form 10-K in 2016) | Employee misconduct |
4 | Fraudulent activity on our platform could negatively impact our operating results, brand and reputation and cause the use of our loan products and services to decrease. (From SENMIAO TECHNOLOGY’s Form 10-K in 2019) | Fraudulent activity |
