Glossary term
Reputational Risk
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Risk of harm to an organization's reputation by non-compliance or bad faith.
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Reputational risk is the potential for damage to a company's public image, trust, or credibility, which can arise during or after a merger or acquisition. Negative publicity, stakeholder concerns, cultural clashes, or unmet expectations can harm brand value, customer loyalty, and investor confidence, ultimately affecting the company’s financial performance and long-term success.