Representations and warranties and Reputational risk: Difference between pages

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A section of a loan agreement in which the borrower asserts the truth of information regarding the borrower's state of affairs.
1. ''Risk identification and management.''


They generally assert that the borrower is empowered to borrow, that it is legally constituted and so forth.   
The risk of adverse consequences arising from a worsening of the reputation of a business or other organisation.   


They may also assert that there is no legal claim against the borrower at the time of the agreement being made.
For example, as a result of adverse publicity.


Whilst there are some technical differences between the effects of representations and of warranties, most loan agreements in practice set out these clauses to be both representations ''and'' warranties.


2. ''Costs.''


== See also ==
The risk of incurring costs, or limiting the flexibility of commercial actions, because of the need to protect the reputation of the business from damage.
* [[Condition]]
* [[Covenant]]
* [[Event of default]]
* [[Loan agreement]]
* [[Warranty]]


[[Category:Treasury_operations_infrastructure]]
 
 
==See also==
*[[Brand]]
*[[Compliance risk]]
*[[Ethics]]
* [[Financial risk]]
*[[Franchise viability risk]]
*[[Media risk]]
*[[Operational risk]]
*[[Risk management]]
*[[Run]]
*[[Sustainability]]
*[[Working capital management]]
 
[[Category:Financial_risk_management]]

Revision as of 04:09, 17 January 2022

1. Risk identification and management.

The risk of adverse consequences arising from a worsening of the reputation of a business or other organisation.

For example, as a result of adverse publicity.


2. Costs.

The risk of incurring costs, or limiting the flexibility of commercial actions, because of the need to protect the reputation of the business from damage.


See also