1. Loan officers at microfinance institutions face tremendous pressure from management to meet quotas and deadlines. This pressure can include disbursing more loans, reducing late payments, and working long hours.
2. This unrealistic pressure has several negative consequences, including reduced productivity, high turnover, and compromising the quality of loans. It can also damage the employer-employee relationship and the institution's reputation.
3. To reduce pressure on loan officers, managers should implement ethical human resources policies, set realistic targets, provide support and training, strengthen communication, and ensure a balanced workload and work environment. Addressing pressure on frontline staff benefits both individuals and the overall sustainability and performance of microfinance organizations.
This case examines seven commonly accepted myths about corporate governance. How can we expect managerial behavior and firm performance to improve, if practitioners continue to rely on myths rather than facts to guide their decisions?
This Research Spotlight provides a summary of the academic literature on whether companies with an independent chairman of the board exhibit better governance quality than companies with a dual chairman/CEO.
It reviews the evidence of:
• The relation between independent chair and market value
• Shareholder reaction to a decision to separate chairman and CEO roles
• Separation during the succession process
• Separation to improve oversight
• The impact of separation on performance
This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”
This case examines seven commonly accepted myths about corporate governance. How can we expect managerial behavior and firm performance to improve, if practitioners continue to rely on myths rather than facts to guide their decisions?
This Research Spotlight provides a summary of the academic literature on whether companies with an independent chairman of the board exhibit better governance quality than companies with a dual chairman/CEO.
It reviews the evidence of:
• The relation between independent chair and market value
• Shareholder reaction to a decision to separate chairman and CEO roles
• Separation during the succession process
• Separation to improve oversight
• The impact of separation on performance
This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”
Our major goal is to help you achieve your academic goals. We are commited to helping you get top grades in your academic papers.We desire to help you come up with great essays that meet your lecturer's expectations.Contact us now at http://www.premiumessays.net/
In this presentation, we will discuss about employee relations in small & medium enterprises, focusing on the concept of small firms, importance of small and medium sized firms, necessity of human relations in small firms.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Authored by: avid F. Larcker, Brian Tayan, CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April 2020
This Research Spotlight provides a summary of the academic literature on board composition, quality, and turnover. It reviews the evidence of:
The appointment of outside CEOs as directors
The importance of industry expertise to performance
The relation between director skills and performance
The stock market reaction to director resignations
Whether directors are penalized for poor oversight
This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Selection, Compensation, and Removal.
MBAA/NAMS 2013 paper presentation, "CEO Decision Making Challenges in a Stressful Environment: A Delphi Study." Bill Minnis, Eastern Illinois University and William Wilhelm, Indiana State University
By David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April 2016
Download
This Research Spotlight provides a summary of the research literature on whether companies with diverse boards (in terms of background, gender, or ethnicity) exhibit better performance and governance quality than companies without diverse boards.
It reviews the evidence of:
The relation between diversity and corporate performance
The relation between diversity and compensation
The relation between diversity and governance quality
The impact of mandatory quotas
The impact of diversity on group performance
This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”
Authors: Professor David F. Larcker and Brian Tayan, Researcher, Corporate Governance Research Initiative, Stanford Graduate School of Business
Other organizational structures exist besides public corporations. Examples include family-controlled businesses, venture-backed companies, private equity-owned businesses, and nonprofit organizations. Each of these faces their own issues relating to purpose, ownership, and control.
This Quick Guide reviews the governance features adopted by these entities.
It provides answers to the questions:
• What are the purposes of these organizations?
• What governance solutions do they adopt?
• How effective are they in meeting their objectives?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
Staggered Boards
Authors: Professor David F. Larcker and Brian Tayan,
Researcher, Corporate Governance Research Initiative
Stanford Graduate School of Business
This Research Spotlight provides a summary of the academic literature on how staggered boards impact shareholder value by insulating management from the pressures of capital markets.
It reviews the evidence of:
-Staggered board provisions in IPO charters
-The impact of staggered boards on merger activity
-The relation between staggered boards and market value
-Shareholder reaction to a decision to (de)stagger a board
-Firm outcomes following a decision to (de)stagger a board
This Research Spotlight expands upon issues introduced in the Quick Guide “The Market for Corporate Control.”
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Discussion assignments will be graded based upon the criteria and .docxduketjoy27252
Discussion assignments will be graded based upon the criteria and rubric specified in the Syllabus.
For this Discussion Question, complete the following.
******1. Review the two articles about bank failures and bank diversification that are found below this. Economic history assures us that the health of the banking industry is directly related to the health of the economy. Moreover, recessions, when combined with banking crisis, will result in longer and deeper recessions versus recessions that do occur with a healthy banking industry.
*****2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.
*******3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.
4. word count 350 and more would we consider highest grade.
5. Your replies must focus on increasing knowledge of the class and must advance the discussion further. Simply affirming your peers does not count as a substantive reply.
Need replay for this below 2 discussion
Discussion-1
According to the journal article published by Musdholifah, Hartono and Wulandari (2020), several attempts have been made over time to determine the actual causes of banking crisis. But researchers are unable to bring about a full proof list of causes that lead to the downfall of the banks as a whole. Using the crisis and default index, the authors of the article have tried to formalize a series of causes of banking failures and how these can be avoided in the future. The case of the Indonesian banks and their problems is taken to know about the main causes that are leading to their troubles in today’s business environment. The analysis of the case studies of these banks reveals that the internal bank processes and actions are the primary source of the troubles. It is highly essential for banks to use probability factors and predictions to determine the outcomes of their actions in the short term and long-term both.
According to the second journal article written by Ramirez and Shively (2012), a time series model can be used to evaluate the causes of the bank failures and their contribution towards economic crisis. The scales of 1920s crisis were taken to review the banking and economic conditions. Other variables were also accounted to know the main reasons for the failure and how it could have been avoided. Bank Failure Channel is the main agenda used by the authors to distribute causes, analyze them and emphasize on the things that could have been done right to achieve stability. Since banks hold the money of the customers and use them to derive economic profit, they tend to be highly responsible for the same. Every effort should be made to keep liquidity and offer stability to the customers and the economy both. Overall, the banking system is the economic foothold of an econom.
Running head: BANKING RISKS 1
BANKING RISKS 4
Bank Risk
Notes from the teacher:
The project is a good start, but for full credit you will need to identify an organization and provide deeper details on that organization. Also, I have a few thoughts as you progress deeper into the weeks:
-Recommend you combined module 1 and 2 together - keep adding each week to the prior. Once you have it threaded together, concentrate on transitions and good visual aspects such as headers and various fonts and mediums.
-Consider using bullets to list several ideas
People risks
There are huge risks that are experienced when a company is dealing with money. People risks associated with a bank are numerous. Banks deal with people including employees, creditors, debtors and others. Employees can be a source of great risks especially when they expose confidential information to the public. The information can be accessed by criminals who can cause a great loss in regards to the company’s information and money. Debtors are people who can result in great risks when they fail to repay their debts together with interests, and this affects the existence of the bank. Creditors affect the bank when they withdraw their money at once to go to other banks or use their money. This situation causes a company to have less amount of money to lend, and this can affect the bank's existence. The managers of a bank can also put a bank in risks by making wrong decisions by doing things that put the bank's existence in jeopardy
Financial risks
There are different types of financial risks that faced by banks. One risk involves the bank paying its creditors. Banks usually use the money of clients who deposit their money in bank accounts to lend to borrowers. Banks create money by charging interest on loans and therefore return their clients’ money and also pays a small percentage of interest. When creditors withdraw their money at one time, the bank lacks money to lend, and this increases the risk to a bank as it can become bankrupt (Fight, 2014).
The other risk is recovering money from debtors. Banks get funds from the interest that they charge for loans and when debtors fail to pay the bank can be in trouble since it needs the money to pay creditors as well as get its operating cash. Errors that are caused by people and machines can be a source of great risks as the bank can lose money.
Operational risks
Operational risks are termed as risks of losses that may result from the processes that are inadequate or that have failed. Additionally, these risks may be attributed to people, external events, and systems. The operational risks that might be associated with the Bank of America may emanate from the installation of new systems of banking that have not ye ...
Financial incentives and loan officer behavior: multitasking and allocation o...FGV Brazil
We investigate the implications of providing loan officers with a compensation structure that rewards loan volume and penalizes poor performance. Using a unique data set provided by a large international commercial bank, we examine the three main activities that loan officers perform: monitoring, origination, and screening. We find that when loan officers are at risk of losing their bonus, they increase monitoring and origination, but not screening effort. On the other hand, having lost a bonus in the previous period does not entail higher effort. We document unintended consequences of the incentive contract showing the incompleteness of such contracts.
Date: 2015
Authors:
Behr, Patrick Gottfried
Drexler, Alejandro
Gropp, Reint
Guettler, Andre
Our major goal is to help you achieve your academic goals. We are commited to helping you get top grades in your academic papers.We desire to help you come up with great essays that meet your lecturer's expectations.Contact us now at http://www.premiumessays.net/
In this presentation, we will discuss about employee relations in small & medium enterprises, focusing on the concept of small firms, importance of small and medium sized firms, necessity of human relations in small firms.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Authored by: avid F. Larcker, Brian Tayan, CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April 2020
This Research Spotlight provides a summary of the academic literature on board composition, quality, and turnover. It reviews the evidence of:
The appointment of outside CEOs as directors
The importance of industry expertise to performance
The relation between director skills and performance
The stock market reaction to director resignations
Whether directors are penalized for poor oversight
This Research Spotlight expands upon issues introduced in the Quick Guide Board of Directors: Selection, Compensation, and Removal.
MBAA/NAMS 2013 paper presentation, "CEO Decision Making Challenges in a Stressful Environment: A Delphi Study." Bill Minnis, Eastern Illinois University and William Wilhelm, Indiana State University
By David F. Larcker, Brian Tayan
CGRI Research Spotlight Series. Corporate Governance Research Initiative (CGRI), April 2016
Download
This Research Spotlight provides a summary of the research literature on whether companies with diverse boards (in terms of background, gender, or ethnicity) exhibit better performance and governance quality than companies without diverse boards.
It reviews the evidence of:
The relation between diversity and corporate performance
The relation between diversity and compensation
The relation between diversity and governance quality
The impact of mandatory quotas
The impact of diversity on group performance
This Research Spotlight expands upon issues introduced in the Quick Guide “Board of Directors: Structure and Consequences.”
Authors: Professor David F. Larcker and Brian Tayan, Researcher, Corporate Governance Research Initiative, Stanford Graduate School of Business
Other organizational structures exist besides public corporations. Examples include family-controlled businesses, venture-backed companies, private equity-owned businesses, and nonprofit organizations. Each of these faces their own issues relating to purpose, ownership, and control.
This Quick Guide reviews the governance features adopted by these entities.
It provides answers to the questions:
• What are the purposes of these organizations?
• What governance solutions do they adopt?
• How effective are they in meeting their objectives?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
Staggered Boards
Authors: Professor David F. Larcker and Brian Tayan,
Researcher, Corporate Governance Research Initiative
Stanford Graduate School of Business
This Research Spotlight provides a summary of the academic literature on how staggered boards impact shareholder value by insulating management from the pressures of capital markets.
It reviews the evidence of:
-Staggered board provisions in IPO charters
-The impact of staggered boards on merger activity
-The relation between staggered boards and market value
-Shareholder reaction to a decision to (de)stagger a board
-Firm outcomes following a decision to (de)stagger a board
This Research Spotlight expands upon issues introduced in the Quick Guide “The Market for Corporate Control.”
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Discussion assignments will be graded based upon the criteria and .docxduketjoy27252
Discussion assignments will be graded based upon the criteria and rubric specified in the Syllabus.
For this Discussion Question, complete the following.
******1. Review the two articles about bank failures and bank diversification that are found below this. Economic history assures us that the health of the banking industry is directly related to the health of the economy. Moreover, recessions, when combined with banking crisis, will result in longer and deeper recessions versus recessions that do occur with a healthy banking industry.
*****2. Locate two JOURNAL articles which discuss this topic further. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.
*******3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.
4. word count 350 and more would we consider highest grade.
5. Your replies must focus on increasing knowledge of the class and must advance the discussion further. Simply affirming your peers does not count as a substantive reply.
Need replay for this below 2 discussion
Discussion-1
According to the journal article published by Musdholifah, Hartono and Wulandari (2020), several attempts have been made over time to determine the actual causes of banking crisis. But researchers are unable to bring about a full proof list of causes that lead to the downfall of the banks as a whole. Using the crisis and default index, the authors of the article have tried to formalize a series of causes of banking failures and how these can be avoided in the future. The case of the Indonesian banks and their problems is taken to know about the main causes that are leading to their troubles in today’s business environment. The analysis of the case studies of these banks reveals that the internal bank processes and actions are the primary source of the troubles. It is highly essential for banks to use probability factors and predictions to determine the outcomes of their actions in the short term and long-term both.
According to the second journal article written by Ramirez and Shively (2012), a time series model can be used to evaluate the causes of the bank failures and their contribution towards economic crisis. The scales of 1920s crisis were taken to review the banking and economic conditions. Other variables were also accounted to know the main reasons for the failure and how it could have been avoided. Bank Failure Channel is the main agenda used by the authors to distribute causes, analyze them and emphasize on the things that could have been done right to achieve stability. Since banks hold the money of the customers and use them to derive economic profit, they tend to be highly responsible for the same. Every effort should be made to keep liquidity and offer stability to the customers and the economy both. Overall, the banking system is the economic foothold of an econom.
Running head: BANKING RISKS 1
BANKING RISKS 4
Bank Risk
Notes from the teacher:
The project is a good start, but for full credit you will need to identify an organization and provide deeper details on that organization. Also, I have a few thoughts as you progress deeper into the weeks:
-Recommend you combined module 1 and 2 together - keep adding each week to the prior. Once you have it threaded together, concentrate on transitions and good visual aspects such as headers and various fonts and mediums.
-Consider using bullets to list several ideas
People risks
There are huge risks that are experienced when a company is dealing with money. People risks associated with a bank are numerous. Banks deal with people including employees, creditors, debtors and others. Employees can be a source of great risks especially when they expose confidential information to the public. The information can be accessed by criminals who can cause a great loss in regards to the company’s information and money. Debtors are people who can result in great risks when they fail to repay their debts together with interests, and this affects the existence of the bank. Creditors affect the bank when they withdraw their money at once to go to other banks or use their money. This situation causes a company to have less amount of money to lend, and this can affect the bank's existence. The managers of a bank can also put a bank in risks by making wrong decisions by doing things that put the bank's existence in jeopardy
Financial risks
There are different types of financial risks that faced by banks. One risk involves the bank paying its creditors. Banks usually use the money of clients who deposit their money in bank accounts to lend to borrowers. Banks create money by charging interest on loans and therefore return their clients’ money and also pays a small percentage of interest. When creditors withdraw their money at one time, the bank lacks money to lend, and this increases the risk to a bank as it can become bankrupt (Fight, 2014).
The other risk is recovering money from debtors. Banks get funds from the interest that they charge for loans and when debtors fail to pay the bank can be in trouble since it needs the money to pay creditors as well as get its operating cash. Errors that are caused by people and machines can be a source of great risks as the bank can lose money.
Operational risks
Operational risks are termed as risks of losses that may result from the processes that are inadequate or that have failed. Additionally, these risks may be attributed to people, external events, and systems. The operational risks that might be associated with the Bank of America may emanate from the installation of new systems of banking that have not ye ...
Financial incentives and loan officer behavior: multitasking and allocation o...FGV Brazil
We investigate the implications of providing loan officers with a compensation structure that rewards loan volume and penalizes poor performance. Using a unique data set provided by a large international commercial bank, we examine the three main activities that loan officers perform: monitoring, origination, and screening. We find that when loan officers are at risk of losing their bonus, they increase monitoring and origination, but not screening effort. On the other hand, having lost a bonus in the previous period does not entail higher effort. We document unintended consequences of the incentive contract showing the incompleteness of such contracts.
Date: 2015
Authors:
Behr, Patrick Gottfried
Drexler, Alejandro
Gropp, Reint
Guettler, Andre
Loren Domingo-TangcoBUS-470 Applied Business ProjectSladan Sin.docxwashingtonrosy
Loren Domingo-Tangco
BUS-470 Applied Business Project
Sladan Sinanovic
May 31, 2020
Problem Statement
The bank has faced a high increase in cross-selling scandal cases, which has profoundly damaged its reputation. The mission and the value of the bank were to satisfy the customer's needs and help them succeed financially. Contrarily, a close look at the scandal and reasons for its existence went far away from the bank key goal.
Problem Statement Worksheet
Organizational problem
Organizational Ethics
The most affected stakeholder by the problem
The problem is most likely to affect the company staff, shareholders as well as customers. The Cross-selling scandal means fewer earnings for the shareholder, who are the critical beneficiaries of the profits attained through daily transactions (Tayan, 2019). The money lost at the course of the scandal will significantly reduce regular earnings. Customers of the bank are also other victims of the problem; the bank staff uses unethical means to exploit money from customers when unable to meet their daily targets.
The employees of the company were also affected by the problem; those found guilty of opening new accounts without customer permission were laid off their duties. Opening of unauthorized customer accounts was fueled by high targets, which were set by the management (Klemash et al. 2019).
Type of the problem
The problem is based on self-interests, knowledge, and skills among the staff and poor organizational structure (Klemash et al. 2019). The action of the bank staff to exploit money from the customers to attain their daily targets is entirely unethical.
Suspect causes
Among the critical causes of the problem are the splitting of customer deposits, overbearing sales culture, employees’ misconducts, excessive pressure of employees by the top management, and Illicit practices (Tayan, 2019).
Improvement goal and the long-term impact
The main goal is to identify a solution to the five leading causes of the scandal, which will help prevent the company staff from participating in any unethical practice that is not in line with its goals.
Impacts to the stakeholders
The cross-selling scandal has caused significant loss of finances to both customers and company shareholders.
Customers were able to lose significant amounts of money, which was withdrawn from their accounts without their consent.
Solution
proposal
The company should consider making the roles of different executive directors clear. Having a clear and distinct role will help in holding individual staff accountable. Caution employees from doing any form of the transaction without customers' permission.
Those found guilty of exploiting customers for self-interests should be laid off their duties and prosecuted in a court of law.
Final problem statement
The cross-selling cases which go against organizational ethics have highly increased among the bank employees. The targets set by the management are putting employees under pressure to perfo.
Loren Domingo-TangcoBUS-470 Applied Business ProjectSladan Sin.docxdesteinbrook
Loren Domingo-Tangco
BUS-470 Applied Business Project
Sladan Sinanovic
May 31, 2020
Problem Statement
The bank has faced a high increase in cross-selling scandal cases, which has profoundly damaged its reputation. The mission and the value of the bank were to satisfy the customer's needs and help them succeed financially. Contrarily, a close look at the scandal and reasons for its existence went far away from the bank key goal.
Problem Statement Worksheet
Organizational problem
Organizational Ethics
The most affected stakeholder by the problem
The problem is most likely to affect the company staff, shareholders as well as customers. The Cross-selling scandal means fewer earnings for the shareholder, who are the critical beneficiaries of the profits attained through daily transactions (Tayan, 2019). The money lost at the course of the scandal will significantly reduce regular earnings. Customers of the bank are also other victims of the problem; the bank staff uses unethical means to exploit money from customers when unable to meet their daily targets.
The employees of the company were also affected by the problem; those found guilty of opening new accounts without customer permission were laid off their duties. Opening of unauthorized customer accounts was fueled by high targets, which were set by the management (Klemash et al. 2019).
Type of the problem
The problem is based on self-interests, knowledge, and skills among the staff and poor organizational structure (Klemash et al. 2019). The action of the bank staff to exploit money from the customers to attain their daily targets is entirely unethical.
Suspect causes
Among the critical causes of the problem are the splitting of customer deposits, overbearing sales culture, employees’ misconducts, excessive pressure of employees by the top management, and Illicit practices (Tayan, 2019).
Improvement goal and the long-term impact
The main goal is to identify a solution to the five leading causes of the scandal, which will help prevent the company staff from participating in any unethical practice that is not in line with its goals.
Impacts to the stakeholders
The cross-selling scandal has caused significant loss of finances to both customers and company shareholders.
Customers were able to lose significant amounts of money, which was withdrawn from their accounts without their consent.
Solution
proposal
The company should consider making the roles of different executive directors clear. Having a clear and distinct role will help in holding individual staff accountable. Caution employees from doing any form of the transaction without customers' permission.
Those found guilty of exploiting customers for self-interests should be laid off their duties and prosecuted in a court of law.
Final problem statement
The cross-selling cases which go against organizational ethics have highly increased among the bank employees. The targets set by the management are putting employees under pressure to perfo.
Running head BANK OF AMERICA1BANK OF AMERICA4.docxsusanschei
Running head: BANK OF AMERICA 1
BANK OF AMERICA 4
Bank of America
**notes from the teacher: Thanks for the submission and glad to see you attach each module making it a working/living document.
As the final weeks progress, consider adding a table of contents/executive summary and visuals that could add value for the reader.
Introduction
The banking risk is exposure that might result to uncertainty of the outcome. There are various risk types that are categorized based on different aspects such as the causes and the area affected. These types are operational risk, credit risk, sovereign risk, trade risk, foreign exchange risk, and interest rate risk. Risk trends are various changes that occur in these types of risks and they are most influenced by the changes in the economy among other factors. Risk mitigation. Credit risk is the exposure that the creditors bear when lend money to individuals. Lending practices vary among lending institutions change and are influenced by various factors. Capitalization refers to when the cost of acquisition of the assets are expensed over the period over life of the asset instead of the period it was incurred. Solvency is the ability of a firm to meet long term financial obligations.
Bank of America is a multinational bank that has its headquarters in the United States. This bank offers banking and financial services and has its headquarters in Charlotte in North Carolina. The bank offers its products also services through 5100 bank centers as well as 16300 ATMs, online, mobile banking platforms as well as call centers. The company offers products such as consumer banking, finance, and insurance, mortgage loans, private equity, investment banking, corporate banking, wealth management, private banking as well as credit cards. The aim of this paper is to create a risk management plan for the Bank of America.
There are strategic, operational, finance as well as compliance risks that are associated with the Bank of America as well as the banking industry in general. Banks are faced with various types of risks in the process of their operation. The risks include credit risk, market risk, operational risks, liquidity risks business risk, reputational risks and many others (James, 2012).
The banking industry has encountered some risks that have emerged in the recent times that were not considered as important previously. Regulators demand that banks understand these risks to ensure that solutions are obtained to help in managing these risks. Some of the key emerging risks include corporate governance risks, quality of assets, dangers of gearing and over-leverage, risks of inadequate risk transfer and many other trending risks.
According to a recent report is that banks have continued to ease their lending standards as well as terms in the past three months which have increased their risks. Banks have not altered the lending standards for home equity lines of credit in accordance to wh ...
Running head REASSESSMENT AND ADJUSTMENT .docxtodd581
Running head: REASSESSMENT AND ADJUSTMENT 1
REASSESSMENT AND ADJUSTMENT 2
Reassessment and Adjustment
Name
Prof
Institution
Reassessment and Adjustment
When downsizing the workforce, it is very imperative for employers to remain proactive by looking into both the long-term goals and problems. One of the modifications to the solutions that I can make based on the reassessment is ensuring strategic downsizing such that the numbers of employees who remain in the organization are adequate so that their productivity meets supply effectively. The business should downsize all the poor performing employees and retain those with a remarkable performance. The business should be transparent enough and explain to the employees the reason for downsizing so that they can remain positive and engaged in the transition process (Cooper, Pandey, & Quick, 2012). Strategic downsizing will assist the business to meet the customer's demand for products.
Strategic downsizing of the employees will help the company to retain its suppliers since the level of productivity will not decline. There will thus be lower chances of suppliers trying to argue that the company is in a financial turmoil and doubt its ability to pay them. If the business retains good performing employees, the level of output will effectively meet demand in the market, and it will thus be easy to retain customers. The business will have adequate resources to pay its suppliers while avoiding the expenses of switching from one supplier to another, helping it to compete effectively in the market and maintaining a good relationship with suppliers.
The local community is an important aspect of the stakeholders in an organization. Strategic downsizing will not affect the relationship between a business and society since the business can meet the needs of its customers effectively. The business will also have a good relationship with the employees in the community because the employee clearly understands the reason for downsizing and this reduces the chances of any rumors that are likely to cause distraction and worry in the community (Gandolfi, 2006). The organization will thus be in a position to retain a good relationship with the community.
References
Cooper, C., Pandey, A. & Quick, J. (2012). Downsizing: is less still more. Cambridge: Cambridge University Press.
Gandolfi, F. (2006). Corporate downsizing demystified: a scholarly analysis of a business phenomenon. Hyderabad, India: ICFAI University Press.
Running Head: IMPACT IDENTIFICATION 1
IMPACT IDENTIFICATION 2
Impact Identification
Name
Institution
Impact Identification
Oftentimes, b.
Running head BANK OF AMERICA1BANK OF AMERICA12.docxsusanschei
Running head: BANK OF AMERICA 1
BANK OF AMERICA 12
Bank of America
NOTES FROM TEACHER:
This section of your risk management plan addresses credit risk in relation to retail banking. It should have investigated retail banking services and the risks associated with providing consumer credit individuals and institutions. Also, are the risk mitigation plans in place and are they effective?
The project on B of A is becoming a robust document with good data, but for this week's submission would have liked deeper insights into the risks and mitigation plans and processes.
Now, I would encourage you to begin the final revisions, consider incorporatation new headers (not just the question from the module) but thought provoking headers,visuals and look ahead to the final submission requirements.
Table of Contents
Executive Summary 3
Introduction 3
Banking Risks 4
People risks 5
Financial risks 5
Operational risks 6
Risk mitigation 6
Bank of Americas board of directors 7
Bank of America’s executive committee 7
Sarbanes-Oxley Act and other legislation 8
Asset-liability management 8
Credit risks faced by retail banking 9
Credit risks associated with individuals and institutions 9
Retail banking services for individuals 9
Retail banking services for institutions 10
Bank Assessment of Credit Risk 10
References 11
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BANK OF AMERICA
BRIAN FISHEL AND JAY CONGER
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Pressure on loan officers in microfinance institutions an ethical perspective
1. Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)
Vol.4, No.12, 2013
84
Pressure on Loan Officers in Microfinance Institutions: An
Ethical Perspective
Debashis Sarker
European Microfinance Program, Solvay Brussels School of Economics and Management, University Libre de
Brussels, Belgium and Team Leader, BRAC Microfinance Programme, BRAC, Bangladesh. Email:
deb_sarkar30333@yahoo.com
Abstract:
Loan officers play diverse and significant role in microfinance institutions. But they encounter tremendous
pressure while performing their job. Some of pressures are like meeting deadlines and quotas, powerful
hierarchical pressure, reducing Portfolio at Risk, working more than normal functioning hours outside office,
structural pressure etc. These types of pressure reduce productivity, creates dissatisfaction with job, lower
confidence, hamper relationship, and most importantly attack personal life. This unrealistic pressure on loan
officers is an ethical issue. In this paper, some management consequences are shown as a result of unethical
pressure like reducing staff productivity, high turn-over, hindering portfolio quality, employer-employee
relationship, image of the organization etc. Besides that some practical recommendation for the managers of
microfinance institutions are suggested like proper implementation of Human Resource Policy and Procedures,
appropriate planning and supportive culture, effective communication and feedback, adequate staff training and
mentoring, following bottom-up approach, strengthening effective communication, logistic support etc.
Keywords: Loan Officers, Pressure, Microfinance, Ethics
1. Issue Definition and Objective:
Loan officers work as an intermediary between Microfinance institutions and clients. Loan officers are front line
staff and as they spend most of the times with clients, their direct communication allows them to see, hear or
even experience the need of the clients. (Gray, B. 2013). Considering most of the methodologies, loan officers
are mainly in charge of screening potential customers, screening the loan applications, continuous monitoring
and follow up of the loans, producing required reports. (Holtmann and Grammling, 2005; Labie et al., 2009).
Loan officers take a major role in selection of clients who will finally be financed. (Labie et al., 2009; Agier and
Szafarz, 2011). The performance of microfinance highly depends on the success and failures of loan officers. If
they fail, microfinance also fails with them especially for group based lending. (Dixon et al., 2007). But in most
of the time, they get huge pressure from the higher management on different issues like disbursing more loans,
new clients’ selection, high repayment collection etc. Loan officers always face an inherent tension as they
consider the well being of the clients; on the other hand, they also have a stake in the successes of their
employees. (Gray, B. 2013). Beyond following rules and policies of the organizations, sometimes they need to
compromise a lot of things especially when it requires. In most circumstances, loan officers do a numerous work
outside of their regular and usual work hours. Bad things happen when they smash the rules; they become fired
by the organization. (Gray, B.,2013). However, the priorities of today’s organizations are to attract and retain
meritorious and talented employees. These employees have a positive impact of the performance of
organizations. (Saleem, S., 2011). By the way, the main objective of this paper is to discuss how loan officers in
MFIs are becoming pressurized unethically and some management consequences resulting from that pressure as
well as some practical recommendation for managers to reduce pressure.
2. Issue Description:
Pressure on Loan officers is an ethical issue in microfinance institutions. Every individual needs to be treated
with respects and dignity in the workplace. The absence of remedial measure or consideration of the effect of
issues related to ethics on the workplace environment leads to reduced output and dissatisfaction with work,
hamper intra and interrelationship in the workplace, lower confidence, affect personal life, drop respect on rules
and values of organization, stimulate malpractices in the operation etc. Lowered efficiency and performance is
the first sign of a stressful atmosphere. The employer-employee relationship should not be looked at simply in
economic terms. It should be an important human relationship of mutual understanding and reliance which could
have greater impact on all the people associated and of course, for both employee and employer should produce
some moral obligation resulting from this relationship. But severe unexpected and unrealistic pressure is putting
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on the shoulder of loan officers. Sometimes pressure is artificially created to achieve a harmful objective of the
organization. According to Leka et al. (2003), it is normal to see pressure in the workplace because it is the
command of the modern-day workplace. Excessive pressure or sometimes unmanageable pressure creates stress.
Stress could be bad for staff’s health and performance of the business. Stress could be come out because of the
weak work organization meaning that the way job is designed or system is developed or even they way it is
managed, weak management, working condition without satisfaction and absence of support from co-workers as
well as supervisors. Loan officers want to leave their job as because of the pressure from their organization and
unusual situation they face dealing with group members. They need to play positive and negative games with
clients for balancing their work to clients and organization but when repayment issues come; loan officers
become bad people. (Gray, B., 2013)
3. Literature Review:
There is no paper written specifically on ethical issues on pressure of loan officers in microfinance institutions.
Very few research work done on loan officers, their activities and ethical challenges in microfinance practices.
By the way, loan officers face a tremendous pressure for meeting deadlines. When the deadline comes close,
loan officers get pressure and lose their focus on the given task at hand. They face to meet up deadline of loan
disbursement, loan recovery, admitting new clients, overdue collection etc. Senior managers always keep
pressure on loan officers for their operational work. Loan officer faces powerful hierarchical accountability
pressure as well as dealing with clients for repayment. (Dixon et al., 2007). Some MFIs want to expand rapidly
and increase the number of loan disbursement without considering quality. Higher management makes the plan
and pushes it to the frontline officers. For meeting the demand of the management and to save them from the
pressure, loan officers provide loan as many as possible. For increasing scaling up, loan officers face serious
pressure to achieve their quotas. Meanwhile, they are giving loan to borrowers who are realistically unable to
pay back. (Munir, K., 2012). Loan officers usually works with insufficient resources and investors always want
to see MFIs to do well in terms of international profitability standards. This motive directly influences to reduce
labor cost and enhance staff productivity. This also creates another pressure on loan officers. An extra pressure
loan officers’ face is PAR (Portfolio At Risk) rate. They always want to reduce this rate and do unethical
practices. This is also happening as donors and funders judge them accordingly. (Khan, M.M., 2012). Loan
officers not only face pressure from employers, or target but also face a serious pressure to pay their own money
to recover the overdue amount. This statement is reflected it another paper saying that loan officers also
pressurized to repay arrears of clients’ from their own remuneration (Armendariz and Morduch, 2010, p.367).
Loan officers usually work hard and sometimes they are bound to work till night. Loan officers have to deal with
clients’ directly and this is not possible staying in the branch offices. For doing all these, they spend 75% of their
working time outside of their office. (Holtmann and Grammling, 2005, P.5). Sometimes the role of loan officers
contradicts with the policies of the MFIs. In microfinance practice, standardize and automate decisions for
lending creates huge challenges to loan officers’ capabilities to manage clients. Centralized policies can’t be
implemented because of the uncertain context in the practical field or at the operational level. (Canales, R.,
2012). Pressure for doing work, especially when to achieve unrealistic target, could create breakdown in ethical
judgment. Loan officers are sometimes not prepared for a job that leads them to do bad behavior to clients’ they
work for. Loan officers suffer a lot when clients don’t repay. On the other hand, clients also suffer in return in
some cases. With a small guidance on the ethical orientation, loan officers sometimes violate the ethical concern
just for recovering their debt from clients. Treating badly with clients is not a policy but respecting clients it’s a
mantra. But this mantra doesn’t work always specially when there is a bad performance of loan portfolio.
(Wardle, L., 2011). MFIs always try to reduce staff costs by standardizing of policies and create another pressure
to loan officers. One of the ways to reduce cost per loan officers is when they serve increased number of
customers. This is might be good for MFIs but it also decreases the quality of the work. Technology based
procedures and standardization can restrict the decision of the loan officers. As a result, these things basically
enhance structural pressure on loan officers. (Canales, R., 2012).
4. Management Consequences:
Unethical pressure creates multiple affect in the organization. Due to this, the quality of microfinance operation
becomes questionable. Loan officers do not spend required time to ensure portfolio quality, hide information and
eventually lead to the worst situation. Sometimes MFIs introduce incentives to motivate their front line staff but
it does not work always. Loan officers have a limitation in their capacity to manage extreme workload. These
pressures do not only reduce staff productivity but also destroy employer-employee relationship, complicate the
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image of the organization to internal and external stakeholders etc. Following are the some of the management
consequences of unethical pressure on the loan officers:
Diminish staff’s productivity and causes of high turnover: Loan officers always busy with huge
workload. At the time of pressure, they can’t focus on the proper planning, setting strategic goal and
also don’t know how to cope up with stress. This is how pressure reduces staff productivity. Besides
that pressure is one of the causes of high turnover. Some organizations are always creating a threatening
environment against staff’s bad performance. If loan officers don’t perform as expected by the
organization, then organization can even fire them. This type of threat always creates frustration and
makes loan officers less efficient and the end result is high turnover.
Hinder portfolio quality, destroy credit culture and long term sustainability: At the time of pressure,
loan officer select bad clients to provide loan. They ignore the procedural bindings to screen clients and
disburse loan. Primarily, it may appear that portfolio quality is good but eventually it could drastically
affect the portfolio in future. Pressure could create corruption and fraudulence which could ultimately
affect the credit culture of microfinance institutions. Unrealistic pressure could distress long term
sustainability of microfinance organizations.
Obliterate image of the institutions and stimulate unethical practice: Extra pressure leads to the loan
officers to misbehave with customers for repayments, collecting household goods as well as create
panic to customers. This is how it produces negative image to the clients and communities as well as
other stakeholders. On the other hand, for meeting the extra burden of expectation, loan officers become
involve with fraud, misappropriation and corruption.
Far above the ground pressure affect customers: After pressurized from organization, loan officers keep
pressurizing clients for loan repayment. Due to this, poor clients gets loan from other MFIs to repay
loan and then become over indebted. Time comes when they have nothing to repay anymore then face
credit trap. Even customers can commit suicide as we can remember the Andhra Pradesh incident in
India.
Affect employee-employer relationship: Unethical pressure leads to disrespect existing relationship
between employee and employer. Employees don’t feel ownership in their assigned job as well as
create negative perception to the organization. Thus creates mistrust and affect normal relationship in
the workplace.
5. Practical Recommendations
MFIs can focus on several areas to avoid or reduce this unethical pressure on loan officers. The effective
measures could be from initiating and implementing internal to external mechanisms. If MFIs successfully
handle this type of unethical pressure in the workplace then the benefits would ultimately go to the all hands of
all parties involved in the organization. Effective human resource policies and necessary supportive culture,
proper communication among the staff, setting realistic target, ensuring intra and inter relationship of employees
could be some of the tools to make light of the pressure. Here are some of the issues discussed to show the
practical recommendation how to deal with the situation:
Effective Implementation of Human Resource Policy and Procedures (HRPP): Managers should initiate
HRPP and stick to that procedural issues for all staff of the organization. Code of conduct and ethical
behavior should be included in the policies and require time to time monitoring on the implementation.
All issues related to staff, program operation and organizational support should be specified in an
understandable way so that employees can get the exact meaning of the policies. There could be an
internal team to look after implementation of all the procedural issues and if there is any deviation
occurs then the team could treat the case in a flexible way with logical perspective to adjust with the
need of the time, work place as well as frequency.
Supportive management and diversification of workload: Managers could create supportive attitude
culture for directing staff. This supportive culture can give some motivation which is really important in
an organization. Besides that Managers should not put all the responsibilities on the shoulders of loan
officers. Loan officers could work for screening clients and approving loan but for repayment
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collection, there could be other unit or people to do that job. Proper balance of responsibilities could
create work friendly environment which would ultimately reduce pressure.
Enhance better communication and feedback: Managers can ensure effective communication regarding
strategic decision through meeting and field visit so that every staff can understand the organizational
policies and objectives. Managers should create favorable environment so that loan officers can raise
questions about difficulties they face in the operation. On the other hand, managers can organize
feedback session for loan officers regarding their activities and performance maintaining regular
interval. Organizing open session could be very useful tool to do some internal research on the issue
and analyzing all these information could open new ideas for the managers for designing strategies.
Bottom-up approach and realistic target set up: Managers should not set target by following only top-
down approach. They have to be realistic designing different targets like loan disbursement, admitting
new clients’, repayment collection, and overdue collection etc. Managers should also be consultative
with loan officers before setting target so that loan officers could be committed for attaining their target.
For avoiding this unethical pressure, managers should be more realistic before taking any financial
decision.
Strengthening employer-employee relationship and ensuring fearless environment: This is one of the
most important issues to make loan officers satisfied and feel out of pressure while doing their daily
job. Managers should work on strategically to build up profitable relationship with loan officers. Loan
officers always are under pressure to lose job anytime in most complex working environment.
Managers could ensure fearless and comfortable working environment by transparency, effective
communication, introducing incentives and rewarding staff.
Supply necessary logistics support for monitoring clients: Sometimes loan officers’ needs to move long
distance and remote areas for group meeting, visiting individual clients, collection etc. For doing so,
they need some sorts of logistics support. Managers should provide necessary transportation or
allowances. Managers should not think loans officers as a robot or machine. Redesigning or merging of
group or branch offices could play an important role to reduce this type of hassles.
Provide need based training on stress management and competency as well as initiate mentoring
program: Managers should fix logical budget for loan officers training on different issues like
developing competency, dealing with delinquent clients, time management, stress management and
other soft skills training. These sorts of training could help loan officers to prepare themselves to face
challenges in the workplace. Managers can introduce mentoring program for the new and existing staff
so that proper guidance and advice are available to all staff.
6. Conclusion:
Loan officers offer their best to make the business successful for the organization. Their role is multidimensional
in the work environment. It is true that in every work, there exists pressure but the issue is whether this pressure
is within the limit or not. When extra and illogical pressure creates lots of misery for loan officers then it
becomes very unethical. Like others, loan officers in microfinance institutions expect to get respect in the
workplace. If they get required attention from the organization and supervisors, their pressure could be
minimized and they feel proud of their work. Sometimes unethical pressure leads them to evade their own moral
values. For ensuring sustainability of the organization, reputation, achieving desired ethical objectives, Managers
of MFIs should be more proactive to deal with this issue.
References:
Armendariz, B. and J. Morduch (2010). The Economics of Microfinance, 2nd
Edition, MIT Press, Cambridge,
p.367.
Agier, I. and A. Szafarz, (2011), ‘Credit to Women Entrepreneurs: The Curse of the Trustworthier Sex’, CEB
Working paper N. 11/005, University Libre de Bruxelles-Solvay Brussels School of Economics and
Management, Belgium, p.5.
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Vol.4, No.12, 2013
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Agier, I. and Assuncao, J. (2009), ‘The role of credit officers in the performance of microcredit loans: evidence
from Vivacred in Brazil’, available at: http://www.microfinancegateway.org/gm/document-1.9.41334/13.pdf
Canales, R. (2012). ‘The Stranger as Friend: Loan Officers and Positive Deviance in Microfinance’. Using a
Positive Lens to Explore Social Change and Organizations: Building a Theoretical and Research Foundation,
431, p.4-5.
Dixon, R. and Ritchie, J. and Siwale, J., (2007) ‘Loan officers and loan delinquency in microfinance: a Zambian
case.’ Accounting Forum., 31 (1). Pp. 47-71, p.1-26
Gray, B., 2013, ‘Voices from the frontlines: A Research Project Focused on Listening to Microfinance Credit
Officers’, Working paper, Freedom from Hunger, p. 1-20
Holtman, M. and Grammling, M., (2005), ‘A Toolkit for designing and Implementing Staff Incentives Schemes’,
Microfinance Network and CGAP, p.53.
Khan, M.M., (2012), ‘Microfinance is Down, But Not Out’, Society and Culture: Huffington Post: Impact Blog,
available at: http://www.huffingtonpost.com/moushumi-m-khan/microfinance-is-down-but-_b_1773696.html,
accessed on: 15.04. 2013.
Labie, M., Meon, P-G, and A. Szafarz, (2009), ‘Discrimination in Microfinance: The role of credit officers’,
CEB Working paper N 09/017, University Libre de Bruxelles-Solvay Brussels School of Economics and
Management, Belgium, P.3-6
Leka, S., Griffiths, A., and Cox, T., (2003), ‘Work Organization and Stress: systematic problem approaches for
employers, managers and trade union representatives’, Protecting workers’ health series; no.3, World Health
Organization: Geneva. Available at: http://www.who.int/occupational_health/topics/stressatwp/en/, accessed on
25.03.2013
Munir, K., (2012), ‘Akhuwat: Making Microfinance work’, A ground breaking microfinance model is bringing
out the best in society, Stanford social and innovation review, blog,
available at : http://www.ssireview.org/blog/entry/akhuwat_making_microfinance_work, access on 15.03.2013.
Saleem, S., (2011), The impact of Financial Incentives on Employees Commitment, European Journal of
Business and Management, Vol 3, No. 4.
Wardle, L., (2011), ‘The Hardest-Working People in Microfinance’, Center for financial inclusion blog, Accion.
available at: http://cfi-blog.org/2011/11/02/the-hardest-working-people-in-microfinance/, accessed on:
18.03.2013.
About the Author: The Author is now doing an advanced master program in Microfinance at University Libre
de Brussels, Belgium with full scholarship. Before joining this course, he worked four years in BRAC
Microfinance Programme, BRAC (www.brac.net), Bangladesh. He was born in a city of Bangladesh named
Mymensingh. He did his Bachelor and Master in Business Administration from University of Dhaka,
Bangladesh.
Dedication: This article is dedicated to my respected Uncle and Aunty (Dr. Sukumar Sarker and Aloka Rani
Sarker) and my lovely cousins (Aparna Sarker, Subarna Sarker, Alpana Sarker & Pranab Sarker).
6. This academic article was published by The International Institute for Science,
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submission. Prospective authors of IISTE journals can find the submission
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The IISTE editorial team promises to the review and publish all the qualified
submissions in a fast manner. All the journals articles are available online to the
readers all over the world without financial, legal, or technical barriers other than
those inseparable from gaining access to the internet itself. Printed version of the
journals is also available upon request of readers and authors.
IISTE Knowledge Sharing Partners
EBSCO, Index Copernicus, Ulrich's Periodicals Directory, JournalTOCS, PKP Open
Archives Harvester, Bielefeld Academic Search Engine, Elektronische
Zeitschriftenbibliothek EZB, Open J-Gate, OCLC WorldCat, Universe Digtial
Library , NewJour, Google Scholar