Every Royal Bank customer has a relationship with the bank, but the nature and definition of the relationship vary according to the needs and requirements of the customer. As an example, some customers have no interest in being recognized by bank personnel when they contact the institution—for these customers low price or speed of service are the dominant properties of the relationship. For other customers, highly personalized interactions are the most important aspect of their relationship with the bank. The critical challenge for Royal Bank is to recognize that it must act in accordance with the wishes of its customers while still trying to achieve its own strategic objectives. If customers do not emphatically make known their expectations of the organization, the bank attempts to predict what the customers’ expectations are based upon prior observed behavior.
WorldCom was a telecommunication company. The name of WorldCom has not changed; it is MCI, Inc. now. The fraud happened due to the inflated assets of the company. Then CEO, Bernie Ebbers didn’t report the line costs by capitalizing and he also inflated the revenues of the company by recording fake entries. As a result, 30,000 people lost their jobs and investors lost around $180 billion.
However Goldman Sachs had been terribly wrong .Honesty is expected by any person or institution. Similarly Goldman is obliged to be honest to its customer, which it failed to do. It was influential in the investor’s decisions to buy the loans, by misstating key facts attached to the subprime mortgages and material data as the United States housing market was beginning to falter. They devoid their customers of transparency which is both ethically and pragmatically required in any
The second factor of fraud triangle is opportunity, there are high chance fraudsters would not be exposed because of their powers and position and there is a direct relationship between fraud opportunity and weak internal control (Dorminey et al., 2010). In the Madoff case, as a leader of the organization, he had sufficient power to plan the internal control system and corporate governance in such a manner that would only be favorable to him. It was found that the segregation of duties in Madoff scheme was not present (Fuerman 2009). The last element of fraud triangle is rationalizations - it is important to note how the individual is justifying the act committed by him. Day (2010) evaluates that Madoff was practicing this scheme firstly for his own benefit and for the benefit of his family by taking advantage of investors.
Did you know that the average wage of a pro athlete in the NFL is 2.1 million dollars per year and also that the average wage for a pro athlete playing in the NBA is 6.2 million dollars (Hourani)? Many athletes around the world are making crazy amounts of money just by having fun. For example, Tom Brady makes an astonishing 20.5 million dollars per year (Greenberg). Many people strongly disagree with pro athletes getting paid 10 times as much as doctors, teachers, and firefighters who risk their lives every single day. On the other hand, many people believe that athletes deserve their salaries they earn.
One defining factor that every bank needs to successfully survive is trust. If an investor cannot trust their bank, then how could the same person trust this institution with their money? To gain the trust of these investors, banks would need to develop tight security measures for assurance, as well as quality service. These measures are for the benefit of the client, but what happens when your most trusted bank thinks otherwise?
They want to limit the number of insiders and improve their ability to monitor any questionable activity. They want to limit the likelihood that anyone will "leak" the information and they want to track the actual trades made by those designated as insiders. The company's senior management are insiders. So are some of the financial analysts. The top sales people usually also are insiders, although a regional sales manager who only sees his or her own region's results may not be one.
Focusing on addressing the employees I believe that an “executive as a moral person is characterized in terms of individual traits such as honesty and integrity”, which I intend to portray to my company (Trevino, Hartman, Brown: 128). This monthly forum is important because it provides me with the opportunity to justify the reasoning behind the firing of a senior executive whom lower level employees respected and considered a mentor . For instance, studies show that employees are looking for a genuine leader and a “key finding was a deceptively simple notion: people will not follow a leader they feel is inauthentic” (Amortegui, 2014: 3).Moreover, it offers the chance to defend and justify the company’s values and expectation from its employees. The article “5 Reasons You Need to Instill Values in Your Organization “explains that, as a CEO, “if your goal is to intentionally shape the actions and interactions of employees, you know the importance of creating a ‘value-based’ culture” (Amortegui, 2014: 2). Lastly, the monthly gathering helps with lecturing any employees’ doubts or concerns about the healthiness or potential growth of the organization.
5. Compliance Management 5.1. Preamble Compliance risk is the risk of legal or regulatory sanctions, material financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with laws, regulations, rules, related self-regulatory organization standards, and codes of conduct applicable to its banking activities. Compliance laws, rules, and standards typically include specific areas such as the prevention of money laundering and terrorist financing and may extend to tax laws that are relevant to the structuring of banking products or customer advice. Bank of Abyssinia S.C (BoA) as a Bank is committed towards best practices for its clients and stakeholders.
Johnny Depp has to to be one of the most sought after and one of the highest paid actors in Hollywood today, that is why everyone were totally shocked with the news that the actor is in a major financial crisis. Depp is known to have earned more than $500 million for almost 10 years in the film industry, including his earnings from the Pirates of the Caribbean franchise, which was one of the biggest projects. So how exactly did Capt. Jack Sparrow got himself into this type of crisis. One of the most common problems with celebrities when it comes to money is poor managing, could this be the major reason why Depp got into this mess, or is it his extremely lavish lifestyle that might lead him to bankruptcy?