Middle Earth Bank

1491 Words6 Pages

Reforms to be implemented on the Middle Earth Bank: A study of preventative measures for collapsing of banks
Introduction
A bank is financial institution approved by governments to make investments, give out loans, help to reduce imperfections in international markets as an intermediary in financial transaction and provide other financial services to its customers (Emily,Hill,Hussain,&Nixon, 2014).
These financial institutions take various forms but these various forms broadly fall under or can be categorized into two being commercial banks: known to be banks within a country and International banks: known to be the World banks. World banks were developed to help other countries to borrow from this bank temporarily until they grow enough …show more content…

Corporate governance being referred to a system by which a company is directed and controlled (Al-Tamimi, 2012). The objective of corporate governance in business is to ensure a company is able to make better decisions. Through better decision making it enables businesses to be successful, the key is to ensure there is flow of information i.e. making sure the right information gets to the right people at the right time. Corporate governance is subdivide into elements known to be (board of directors, disclosure and transparency, executive compensation, governance structure, compliance and polices, relationship with shareholders and stakeholders). Boards and executive officers are held accountable for the role in ensuring that business acts in a responsible and accountable …show more content…

This is the area on which managements has to be aware of the risks the business might encounter and must also be able to identify opportunities with which these risks can be monitored and controlled. It is the role of the board to establish the risk strategy and policy which in most organizations is dealt with during a brainstorming session, it is here that management together with the employees of an organization draft risk strategies, communicate risks, determine risk enthusiasm of the company(Xu, 2015). Organization like banks take risks when it comes to their polices of high-risk, high returns analysis they do this when it comes to raising the percentage of their incomes following the risk criteria mentioned above banks are guaranteed to be

Open Document