Business Management: Banking Sector

Running head: BUSINESS MANAGEMENT
Business Management: Banking Sector
Name of the Student
Name of the University
Author’s Note:

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BUSINESS MANAGEMENT
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Identification and Description of Key Macro Issues in the Business Environment for
Banking Sector.......................................................................................................................2
2.2 Explanation of Potential Impacts at Micro Levels with 2 Identified Issues with
Examples of Businesses from Banking Subsector.................................................................5
2.3 Reflection of 2 Challenges while completing above 2 Tasks with Appropriate Ways to
overcome the Challenges.......................................................................................................7
3. Conclusion..............................................................................................................................8
References..................................................................................................................................9

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BUSINESS MANAGEMENT
1. Introduction
Business management can be defined as the core discipline that is being devoted for
organization, analysis as well as planning of several kinds of business operations. Business
management mainly comprises of interlocking functionalities to create corporate policy,
organizing, planning, controlling or even directing the organizational resources and hence
achieving policy objectives (Scarborough 2016). Proper decisions are easily made for
overseeing the enterprise and the size of management could range from one person within an
organization to several managers in multinational company. The following report outlines a
brief discussion on business management issues and their impacts of banking sector.
2. Discussion
2.1 Identification and Description of Key Macro Issues in the Business Environment for
Banking Sector
The most significant and important key macro issues in the business environment are
required to be analysed on a priority basis (Burns and Dewhurst 2016). The major
uncontrollable and external factors, which have strong influence on the organizational
decision making process and then affect the organizational strategies and performances. All
of such factors involve economic factors, legal, political, demographics and social conditions,
changes in technology and many more. The main examples of this business environment
influences involve government regulations, disastrous weather, change in work culture and
even change in the interest rates (Myers 2013). A banking sector comprises of some of the
major and the most important key macro issues, which could be extremely vulnerable for
both customers and other organizational members.
These key macro issues for the banking sector are as follows:

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BUSINESS MANAGEMENT
i) Macroeconomic Risk: The first and the foremost key macro issue for the banking
sector is macroeconomic risk. It is one of the most significant issue that allow all economies
have eventually returned to the positive growth and development (Jeston 2014). For all the
bankers, these types of uncertainties within the macro environment together with subsequent
persistent as well as high level of debt within consumer, corporate and sovereign sectors for
laying the ground work and hence significant instability is obtained. There are other
significant issues with this macroeconomic risk like slow growth rates within the emerging
economies, unresolved conditions and also lack of clarity for the future of interest rates
(Maylor, Blackmon and Huemann 2016). Macroeconomic risk is termed as the top level
concern for bankers, analysts and risk managers, who are majorly concerns for the current
positive growth and it is the outcome for artificial conditions, which are created by the lower
interest rate or prospects of a deflation or recession are stronger.
ii) Regulation: The second important and significant key macro issue that is
extremely common for the banking sector is regulation. Although, the industry analysts and
risk managers have less concern about regulation, the bankers subsequently cite extremely
tight regulatory needs as the most ineffective, excessive and expensive. While these bankers
identify the requirement of tough controls, major concerns are being raised regarding
complexities and volume of current regulation that are to be stated for influencing overall
industrial margin and management time (Wheelen et al. 2017). Being involved in the banking
sector, the bankers are quite concerned regarding the effect of rising regulatory needs for
diversity as well as innovation and creativity with their core ability of competing efficiently
against the small bankers, who are not being exposed to the similar regulatory issues. There
are increasingly stringent requirements so that regulation continuing to be a major concern
for the banks who would be investing a significant sizable amount of time, money and effort
and hence meeting standard compliance.