Reputation risks are the major issue that arises from the set of problems affecting TBS Plc. This risk refers to the perception that customers would develop about the company based on the complaints registered by its clients. All the four major issues affecting the company highlighted in the report all have the potential to negatively influence the firm’s reputation. The effects could be two-fold because insurance agents and customers are affected. For example, inaccurate and late policy documentation processes and missing claims target settlement dates affect customers in the same manner as insurance agents are affected by a slow response time when providing business quotations. These findings mean that customers and insurance brokers are affected by the complaints registered at TBS Plc.
Both parties are likely to fuel a narrative that the insurance firm is incompetent in undertaking its tasks, thereby causing reputational damage. This type of risk emerges in all the four types of complaints mentioned, meaning that its scope is wide. This type of risk portends significant ramifications for the business if it goes on unchecked. For example, it could lead to the loss of social capital, which is needed in selling insurance products. Additionally, it could lead to the loss of financial capital, as investors would shy away from doing business with a company that has a poor reputation in the manner it conducts its business. This outcome could occur in a number of ways, including an increase in capital acquisition costs, lost revenues, and a decline in shareholder value.