Risk Management
As a financial institution in current volatile financial market, we
engage in both commercial and investment banking activities and are
registered to do business in Germany and the US.
Our business are providing multi-product financial service to clients,
such as understanding service and stock research, as well as the
traditional funding and investment activities. Our company tries to
provide high service quality, innovation. The most important is we
remain the maximization of shareholders profit as the Board's aim
forever. In order to perform the business efficiency and effective,
normally the board is responsible for approving group's strategy,
principle market and acceptable risk.
Most of shareholders are risk averse; they prefer low risk and stable
return for their investment. So as the manager, we provide the
analysis base on risk management. Currently, our company are heavily
affected by external factors, such as the interest rate change, new
regulation issued. All of related factors will influence company
business strategic planning, asset decision, and profitability
forward.
Interest rate risk management:
Our group mainly focuses on US and Germany market. There exist some
uncertainty in these two markets, such as the European Central Bank
has raised short-term interest rate to adjust accelerating inflation.
The interest rate changes affect group negatively and positively. It
means group should pay more to depositors for next future years, the
cost of liability will increase and the spread income will decline,
and the value of most bonds and fixed-rate loans that a bank may hold
to fall. If ...
... middle of paper ...
...el of risk and keep well
positioned in competitive market.
There are several factors affected our company's performance and
income generation, the US SEC directly prevent our main underwriting
service, cause we lose a main source of revenue. But base on the hard
working of management team, who change the business strategy suitably
and in time. Finally our business is all performing extremely well,
and get the opportunity of underwriting Berlin municipal bonds. In
order to implement corporate strategy to keep good relationship with
clients, we can provide long term financing to these high-profile
clients. Although we can not predict with certainty whether US and
Germany markets will continue in their friendly mood, we are committed
to again securing for our shareholders the best possible returns in
following year.
This short report aims to give a brief overview of Deutsche Bank’s alarming situation and describe the sharp decrease of its profitability. It will briefly introduce the context of this crisis and aim to explain it through an analysis of one of the most used indicators of performance for banks, the return on equity (ROE).
Identify the potential risks which affect the company and manage these risks within its risk appetite;
The Group is exposed to a various financial risk which mainly includes liquidity risk, market risk, credit risk and cash flow risk. BDEV manages these risk by maintaining
Thread-these days there are so many threats to the company like increasing retail rental rates which increases the expenses of the company and increase in the interest rates in US affect the company and company suffers lot due to these problems.
Obviously, financial establishments can endure breathtaking misfortunes notwithstanding when their risk management is top notch. They are, all things considered, in the matter of going out on a limb. At the point when risk management fails, be that as it may, it is in one of the many fundamental ways, almost every one of them exemplified in the present emergency. In some cases, the issue lies with the information or measures that risk directors depend on. At times it identifies with how they recognize and impart the risks an organization is presented to. Financial risk management is difficult to get right in the best of times.
In the BB HOLDINGS LIMITED article about the Placing of US$50,000,000 fixed rate 10 per cent on unsecured Loan Notes due 2013 and the Issue of Warrants to subscribe for 7,692,308 new ordinary shares at US$6.50 per new ordinary share. At that time BB holdings was seeking to expand these operations and exploit c...
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As has been discussed before, risk identification plays an important part in the risk such as unique, subjective, complex and uncertainly. There are no two identical leaves in the world; similar, there are no two exactly the same risk either. Hence the best risk manger could not identify risk completely. Besides, risk identification assessment is done by risk analysts. As the different level of risk management knowledge, practical experience and other aspects between individuals, the result of risk identification may be difference. Furthermore, the process of identifying risk is still risky. Once risks have been identified, corporations have to take actions on limiting risky actions to reduce the frequency and severity of risky. They have to think about any lost profit from limiting distribution of risky action. So reducing risk identification risk is one of assessments in the risk
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BMW and Audi, two German automobile manufacturers, have a reputation for making some of the best cars in the industry. Not only are both companies superior in their production, but their financial statements also indicate stability and efficiency. Looking at financial ratios, we will compare both companies on a basis of management efficiency and debt status. As a bank analyst, we will make a recommendation as to which company would be better to approve a loan for. A recommendation will also be made regarding management effectiveness and which company would make a better investment.
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I dealt with strategy and financial matters for our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investments for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which have been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthened my negotiation skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of the second-best team.
“Financial management is just managing the limited financial resources of the organization has." This includes the use of cash and other assets such as equipment. Financial management has a different meaning than “financial management is the study of obtaining funds and their effective and judicious use, in terms of the overall objectives of the company." The important role of financial management has increased significantly in recent times. Factors such as economic unpredictable turns, fluctuations in interest rates, inflation and disinflation require processing financial management skills of first level. There is a demand for financial management in many sectors of society, including the construction industries. Study of financial management has developed over time in response to changing needs of business management. In general, the field of finance is attached to the economics and accounting. Finance was recognized as an independent field of study in 1900. Due to the Great Depression of the 1900s, the emphasis shifted from the capital fund for the perseverance of capital and maintenance of liquidity. Government intervention in the financial side of the business was strengthened in this period. The most important steps of contemporary financial management began in the mid- 1950s. The nature of financial management was interested in studying the fixed assets management of capital budgets , the efficient use of existing assets , capital structure the composition and the dividend policy . The risk-return relationship has also been emphasized by the last 30 years. Overall objective is to maximize long- term shareholder of the company’s wealth, increasing the market value (price) of shares