Risk Management Case Study of Commonwealth Bank

Risk Management
Case Study of Commonwealth Bank of Australia
Student Details
2020

RISK MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Organisation Background...........................................................................................................2
Organisational Structure of CBA...............................................................................................2
Environmental Factors influencing business decisions..............................................................3
Risks faced by the organisation..................................................................................................4
Business Practices adopted by CBA..........................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................7

RISK MANAGEMENT 2
Introduction
Risk management is an important aspect of international business. The organisations
operating within the international market requires that they focus on analysing the business
environment and identify and analyse the risk so that the impact of the risk on the operations
can be mitigated and the organisation's profitability can be ensured (Hussain & Al‐Ajmi ,
2012). The analysis is focused on analysing the banking sector with the focus on the
Commonwealth Bank of Australia and identifying the risk faced by the organisation and the
steps taken by the organisation to mitigate such risks.
Organisation Background
The Commonwealth Bank of Australia (CBA) is a multinational bank operating its
business over Asia, US, UK and New Zealand. The bank provides the services to the
individuals, small and medium-sized enterprises, along with the corporate and general
banking options and fund management. The bank is among the leading banks within the
Australian banking sector and focuses on customer satisfaction along with the organisational
efficiency within the working. The mission and vision of the bank are to focus on innovation
and to follow the principles of ethical and good banking and maintain a good customer
experience within the industry (CBA, 2020).
Organisational Structure of CBA
The organisation’s efficiency can be maintained effectively through developing an
effective organisational structure comprising of the main elements such as the proper chain of
command, defined span of control, departmentalisation and accountability as well as
responsibilities of activities within the organisation (Ullah, 2016). The organisation is
required to design its organisational structure as per the business nature and requirements
within the industry (Schaltegger, Hansen, & Lüdeke, 2015). The commonwealth bank deals
in various business aspects including retail banking, corporate services, fund management
and insurance segment. Therefore, accordingly, the bank has established and set up
departments that focus on the specific activities related to a particular field of interest and
bases on the functionality and division within the organisation.
The management has also decentralised the power within the heads of the various
departments so that they can focus upon the development of their respective departments and
can take required actions. The bank has effectively established a matrix-based chain of