Risk Management at Hsbc - 2578 Words

Strategic Risk Management HSBC Market Risk Evaluation Table of contents 1. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 HSBC and Research Qestion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦3 2. Methodology. 3 3. Analysis 4 3.1Managing Risk at HSBC and SWOT Analysis 4 3.2Credit Risk 6 3.3 Market Risk 7 3.3 Operational risk 9 4. Discussion 11 Scenarios 11 5. Conclusions 12 5. Perspectives 12 6. References 13 7. Annex index 24 1. Introduction Starting with the early 90’s the focus on risk management has been increasing leading to a change in the business models adopted by different companies. The recent crisis has revealed that managing risk is not an option but a necessity, and it can be stated that lately the banking†¦show more content†¦In accordance with FSA (Financial regulator in UK), the group is publishing each year the Pillar 3 Disclosures; banks are required to disclose all their material risk in order to encourage market discipline by developing a set of disclosures which allow market participants to asses certain specified information on the scope of application of Basel II (capital risk exposures, and risk assessment processes). SWOT Analysis Strengths †¢ The global presence (Europe, Asia and South America) helps the bank to spread risk. †¢ Good capitalization which enabled the bank to perform relatively well during the crisis. †¢ The good capitalization allows more autonomy, which means that the bank will not need to borrow money in the near future. †¢ Strong presence in emerging markets, which favors the bank to take advantage of future growth in those economies. †¢ Sustainability (reducing operating costs with the launch of a series of projects to reduce energy, carbon emissions, water and waste between 2008 and 2011). Weaknesses †¢ Strong branding of global presence might be seen negative by some of the customers. †¢ Weaknesses through the framework of internal control.[2] †¢ By introducing founds for small and medium sized enterprises (SME), the bank is exposed to the risk due to the current economic situation.Show MoreRelatedRisk Management and Prevention: Case Analysis of HSBC Bank1404 Words   |  6 PagesIntroduction- HSBC Bank is the second largest banking and financial services group globally. It originated in Hong Kong and Shanghai in 1865, and now boasts over 7,500 offices in 87 countries and territories. In the United States it has almost 500 branches, over 200,000 shareholders and millions of customers. With such a large and global enterprise, HSBC has a complicated service profile for both clients and employees it must balance the services and products offered with what is reasonable for thatRead MoreHsbc Case Study1316 Words   |  6 Pages1) What problem did HSBC fac e in this case? What management, technology, and organization factors were responsible for the problem? Did HSBC management correctly identify the problem? HSBC Holding, with headquarters in London, is one of the worlds biggest and most successful banks. Like many others, the bank ran into problems during the global financial crisis of the late 2000s due in large part to its heavy exposure to the U.S. subprime mortgage market. HSBC not only originated mortgages, butRead MoreIncrease in the Significant Role in Compliance in Financial Service Firms727 Words   |  3 Pageswell as risk management and corporate governance in the financial intermediary. Additionally, policy makers also have focused on issues associated with stakeholders of the financial service firms and public interest such as consumer protection, insider trading, LIBOR manipulation and money laundering. An effective compliance, risk management and internal audit are major mechanisms to create strong corporate governance (The Chartered Institute of Internal Auditors, 2013), which can reduce risks arisingRead MoreInstruments Used for Hedging Exchange Rate Risks in the For ex Market, Based on the Practices of Hsbc Brazil1464 Words   |  6 Pagesfor  hedging  exchange rate risks  in the forex market,  based on the  practices  of HSBC  Brazil Final Paper International Financial Management Since Multinational Corporation’s performance is affected by exchange rate fluctuations the  assessment of their vulnerability  relating to unexpected developments in the foreign exchange market is one of the  biggest  challenges  for risk management. Due to the  prevailing volatility of financial markets, finding mechanisms to hedge companies against exchange rate risks when tryingRead MoreFinancial Services : Hsbc Bank1663 Words   |  7 PagesHSBC Model 2009 October 9, a conference hosted by UK Financial Services Authority referred to the liquidity management in HSBC Bank, seen from the statistics of annual report of HSBC, this bank did not suffer a great impact of 2008 financial crisis. Analysts focus on the efficiency of HCBS model, make some general experiences that banks can learn from the HSBC bank (Choudhry, Landuyt 2010). In fact, the HSBC model did not was a very specific model to rescue the bank in liquidity management risksRead MoreTechnology Hsbc Case Study977 Words   |  4 PagesTechnology-HSBC Case Study March 10, 2012 Professor Shaw Argosy University How has the company chosen to improve its knowledge of customers and therefore its decision making? Analyze the management, organization, and technology dimensions of the solution. HSBC, as with other banks, took advantage of many poor consumers looking to own their own home. These consumers had low credit scores, are in default or have low income, which means there was a higher probability of them not paying backRead MorePest Analysis of Hsbc1690 Words   |  7 PagesREPORT ON HSBC History of HSBC HSBC ( Hongkong Shangahai and Banking corporation) is among the largest banks in the world. It came into being in the year 1865 to enhance the growing trade between India, China and Europe. The idea of forming the bank came from the mind of Thomas Sutherland who had envisioned the growing demand of banking facilities in Chinese market and consequently the bank was opened in 1865 in Honkong and Shangahai. Very soon the bank had opened up branches around the worldRead MorePrivate Banking And Wealth Management1088 Words   |  5 Pages†¢ Private Banking HSBC achieved a huge success in this field through comprehensive wealth planning solutions. Euromoney Private Banking and Wealth Management survey awarded the bank internationally as the best Private Banking Company over the globe. Client’s personal affairs have assessed and managed by wealth planners who are the specialists. †¢ Capital During the financial crisis of 2007-2010 HSBC demonstrated strong capital structure which assist in surviving the bankruptcy. It was benefited fromRead MoreChallenges in Implementing Csr1580 Words   |  7 Pageshuman resource management, safety and health, environmental impact and corporate change. External dimension focus on an organization practices towards external stakeholders which should be in business practices. It includes business partners, local communities and human rights. (Elijah Ezendu) The challenge of getting along with employee When HSBC implementing human resource management and safety and health, they find there are some problems to manage them. From ethic and moral, HSBC should controlRead MoreWhat Are the Pros and Cons of Hsbc’s â€Å"Managing for Growth† Strategy?762 Words   |  4 Pagesof HSBC’s â€Å"Managing for Growth† strategy? The HSBC managing for growth strategy is a plan that provides HSBC with a blueprint for growth and development. The key point of the strategy was to build on HSBC’s strengths and address it’s weaknesses. HSBC plans to deliver its strategy for growth by focusing on enhancing HSBC’s revenue generation culture, further developing its brand managing costs strategically , maintaining a prudent credit/market risk stance and investing further in people. The core