China Fund News reporter Zhang Yanbei
Many recent rumors have disturbed the fund industry, and the reputation risk management of fund companies has attracted attention and discussion. According to industry insiders, when negative news about fund companies is fermented and spread in society, whether fund companies should take a cold approach or respond in a timely manner must be judged based on the specific situation. As a public offering manager, we need to strengthen the prevention and control of reputational risks and maintain the industry's credit system no matter what.
Responding to reputational risks based on specific circumstances
Recently, there have been many negative rumors in the fund industry, such as the resignation of a star fund manager during the product fundraising period, which has attracted investors' attention. The fund company involved did not respond to the rumors.
From the perspective of reputation risk management, how do you evaluate this "cold treatment" approach?
A public fundraiser in South China said that when rumors are still in the "rumor" stage, companies should understand the situation as soon as possible, clarify the facts, provide symmetrical information, pay close attention to the development of public opinion, and analyze response strategies rationally, rather than rushing to respond and speaking out rashly. "On the premise of insisting on protecting the legitimate rights and interests of customers, scientific and reasonable countermeasures should be taken to eliminate or reduce the adverse effects that may be caused by rumors. As for whether to treat it coldly or respond in a timely manner, it must be judged based on the specific situation."
Another A person from the fund company also said that cold treatment is a common method before relevant information does not cause major reputational risks determined by the company.
A person from the Public Offering Compliance Department said, “Reputational risk refers to the risk that the operation, management and other behaviors of financial institutions or external events lead to negative evaluations of the institution by stakeholders. Compared with other risks, some special attributes make financial institutions have negative opinions on the institution. Reputation risk management is more difficult.”
The person from the compliance department further said that online communication will amplify the impact of negative rumors. For rumors that attract high industry attention, if an internal investigation is initiated and a clear conclusion is reached, a timely response should be made through media with strong credibility or its own platform.
Some people also believe that if the news is untrue and causes the company to suffer reputational risks, it needs to respond publicly in a timely manner to set the record straight.
Although there are difficulties in management, for fund companies, a good reputation is the basis of survival and a guarantee for maintaining good investor relations, customer relations and even the entire credit system.
has a good reputation, and stakeholders will maintain trust in the institution. Such a cyclical upward process can bring more resources to the fund company. On the contrary, when reputational risks are caused, the downward cycle will have a negative impact on the future operations of fund companies, and in serious cases may even lead to the collapse of the credit system.
At present, some fund companies still have insufficient understanding of the importance of reputational risk management and are somewhat at a loss when facing sudden reputational risk events.
Fund companies strengthen reputation risk prevention and control
The market is becoming increasingly complex and risk exposures are intensifying. The reputation risk of financial institutions has attracted public attention. Fund companies should actively take measures to strengthen reputation risk prevention and control.
In order to improve the risk management system of fund management companies, promote the establishment of industry reputation restraint mechanisms, and maintain industry image and market stability, in mid-June this year, China Fund Management Association issued and implemented the "Reputational Risk Management Guidelines for Fund Management Companies (Trial)" ( (hereinafter referred to as the "Guidelines").
Over the past two months, fund companies have actively implemented the requirements set forth in the "Guidelines".
Chuangjin Hexin Fund introduced that the company has formulated and issued documents such as the "Reputational Risk Management System" in accordance with the requirements of the "Guidelines" and in combination with the company's actual situation.
A person from the public offering products department said, "Our company has started to formulate the company's exclusive reputation risk management methods with reference to industry reputation risk guidelines and shareholders' practical experience. It will further standardize the reputation risk management process and clarify the functions of relevant departments."
Shenzhen One A public fundraiser said bluntly, "We already have a crisis public relations system. We are currently implementing and optimizing reputation risk prevention and control methods in accordance with the "Guidelines" one by one."
Chuangjin Hexin Fund stated that the "Guidelines" have relatively clear requirements for reputational risk management.From the company's perspective, there are two aspects of work that are particularly important at present. One is to adhere to the reputation risk management concept that focuses on prevention. Reputation risk management relies more on taking preventive measures rather than making up for them before they happen. It requires regular investigation and judgment of the reputation risks that may be involved in the company's business. Second, on the premise of improving the system, improve employees' awareness of reputation risks and maintain appropriate standards. Some are professionally prudent, honest and trustworthy, diligent and conscientious, consciously practice industry norms, and enhance professional ethics and ethics; in addition, it is more necessary to encourage employees to establish correct values, have an awareness of the overall situation and a sense of responsibility, and consciously safeguard the public fund industry and the company's integrity. reputation.
A person from the Supervision and Audit Department of a fund company said that strengthening reputational risk management is an inevitable requirement for the high-quality development of the fund industry. It will help urge fund companies and employees to set high standards and strict requirements, consciously abide by regulations and disciplines, and adhere to professional ethics. , pay attention to every word and deed, put the interests of investors first, and actively maintain the good image of public funds.
Specific to the practices of fund companies, the above-mentioned supervision and audit department sources said that first, reputation risks are included in the industry risk governance structure, and fund companies establish reputation risk management strategies that match the overall development strategy and risk appetite of the institution. The second is to establish a reputational risk management mechanism involving all employees, all lines, and the entire process, and form an indicator quantification system. At the same time, we will adopt more proactive management measures to promptly respond to social concerns and reasonable demands of customers, propose solutions, and guide public opinion to a positive effect. The third is to lay a solid foundation for preventing reputational risks in terms of risk culture and assessment incentives.
