Develop hypotheses of the research model on the impact of operational loss events on reputational loss

Abstract

In recent years, the number of banking scandals has been increasingly appearing in the media. These cases
or operational loss events not only cause financial losses to the banks in which the events occurred but also
can seriously damage their reputation. The serious consequences of reputation damage may include decline in
stock value and market capitalization; decline in expected cash flow in the future; loss of current customers and
potential customers in the future; loss of trust in banks and competitive advantages; decline in existing or future
business relationships and greater compliance burdens able to be imposed by regulators. The paper reviews
studies of the impact of operational loss events on reputation loss, which help to develop hypotheses of a model
which can observe this relationship in the context of Vietnam