Risk Management Program For A Financial Institution . As

1220 WordsJan 7, 20175 Pages
Risk Management Program for a Financial Institution As time has shown, financial institutions undertake an abundance of uncertainty causing unpredictable risk consequences. As a result, executives instill risk management programs to assist in managing the organizations risks so they align with the company’s goals. Commonly sought goals include legal and regulatory compliance, tolerable uncertainty, survival, business continuity, earnings stability, profitability and growth, social responsibility and economy of risk management operations. Through the implementations of goal oriented programs, an organization can effectively minimize risk uncertainty. All organizations including financial institutions encounter risks from each risk…show more content…
Furthermore, outdated technology would impact the facilities ability to prevent cyber-attacks, compete with competitors, provide superior customer service, and maintain workplace efficiency. Additionally, events influencing the economic and political environment could impact financial stability for the organizations. External environmental hazards include extreme weather conditions that affect customer and employee safety. In addition, factors within ABC Community Banks internal environment include communications channels, as well as, the facilities culture. Communication channels impact the institutions policies, procedures and trainings, which when inadequate may cause work place errors. Moreover, assessing the culture will determine the general attitude and viewpoints of employees (Elliott, 2012). In scanning the environment of ABC Community Bank, the organizations can identify areas of weakness and adapt, in order to maintain tolerable uncertainty, while increasing business continuity and ultimately survival. Therefore, ABC Community Banks internal and external analysis will provide the groundwork for creating a risk management program that aligns with the organizations goals and risk aptitude. Identifying Risks Through the examination of ABC Community Banks environments, both internal and external risks of the organizations can be identified. External
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