Detailed Management Audit: Evaluating NAB's Strategies and Governance

This management audit report delves into the National Australian Bank's (NAB) management practices, evaluating its mission, governance, and strategic position within the Australian banking sector. The audit assesses NAB's culture, planning, leading, organizing, and controlling functions, utilizing a SWOT analysis to highlight the bank's strengths and weaknesses. It examines NAB's commitment to ethical conduct, its strategic approach to maintaining a competitive edge, and its environmental and social responsibility initiatives. Furthermore, the report discusses the organization's management strategies, risk assessment processes, and social impact through community modernization and corporate governance, emphasizing NAB's focus on customer wellbeing and sustainable business practices. The report concludes by highlighting NAB's efforts in financial flexibility, community support, and environmental sustainability.

Running head: MANAGEMENT AUDIT
Management Audit:
Name of the Student:
Name of the University:
Author Note:

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Introduction of Management Audit:
This is notable that the management audit can be defined as the evaluation tool of
multiple procedures and strategies of a company’s management in the authority. It can also
assess the utilization of different sources, strategic and premeditated preparation and the
development in terms of the performance of a workforce and the structure of the company
(Cohen et al., 2014). The significant purpose of the management audit is not to evaluate the
performance of every individual but to assess the team as a unit in terms of the efficiency. This
system aims to examine how effectively the team is working in order to meet the welfares of the
stockholders, uphold strong bonding with the workers and to sustain reputational standards.
National Australian Bank’s mission and governance:
Company’s mission:
This is to be mentioned that the National Australian Bank has managed to position
themselves as the leading bank of Australian and to also earn a good reputation globally. The
significant mission of this particular bank is to deliver essential banking. It is aimed to select the
facilities, which helps in enhancing the proficiency. This selection helps in tackling with the
competition of the rivals. Rationality in this approach is assistance towards securing the position
according to the industrial requirements (Nab.com.au, 2018). Catering to the needs of the
customers is the prime mission of the bank because they are the key towards achieving success.
Facilitation of a safe and comfortable workplace environment is the mission towards
strengthening the relationship with the clients.

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Governance:
Culture:
Culture is important in terms of catering to the individual needs and demands of the
clients and the customers. Adherence and compliance to the Ethical Code of Conduct has
enhanced the reputation of NAB across the globe. It can be said that there is no difference in
their workforce (Sharp 2016).This is to be mentioned that they still investing in order to attract
different ability over their native Australian and African Australian service events. The
significant and important data regarding their occupation ways are accessible to the common
people. They always update their customers with the SAP database. This database is actually
helpful to the people working in the similar field in order to exchange their data regarding their
exclusive identities. This identity is comprised of their cultural and traditional identities. In NAB,
Ethical Code of Conduct is followed, which helps the personnel in achieving loyalty, trust and
dependence from the customers (Nab.com.au, 2018).
Planning:
Planning is an essential component within the business activities of the National
Australian Bank. Effective planning helps in systematizing and prioritizing the activities
according to the stipulated time. Mention can be made of $130 million capital investment to
support the provision of microfinance loans across Australia as well as NZ$60 million in the
provinces of New Zealand (Nab.com.au, 2018)
Leading:
NAB’s significant attitude to governance purposes to shape excellent international
leaders. The quality of a leader include:

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• The power to make a comprehensive workplace out of the modern one
• The potentiality to create the correct culture
• The convincing power to inspire people in order to surpass the rival companies
Organizing:
This is significant to mention that there is a set of strict organizing tools to allow the NAB in
leading the league in the banking industry. The significant organizing skills include:
• Occupation planning and training
• Fitness and wellbeing profits
• Economic arrangement facilities
• Re-modeling and exercise admittance
• Dynamic job and offering placements
• Minor professional arrangement and care
Controlling:
This is to be noted that the employee commitment is a principal pointer of administrative
presentation and one of the processes they officially attend the workers of this company as per
the annual employee commitment survey of NAB.
Strengths
 Convenience towards availing the
services
 Track records of assistance from the
Weakness
 Poor quality of the products
 Productivity percentage is below the

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union members
 Efficient supply chain network
 Records of newly launched products
and services
 Maintenance of the loyal dealers
 Skilled and efficient professionals
market average
 Challenges in shifting to the other
segments
 Absence of financial planning
Opportunities
 Financial flexibility
 Decline in conveyance price
 Capability of the personnel towards
achieving additional grounds for
merchandising
Threats
 Threat of substitute products and
services
 Increased payment levels
 Online modifications for customer
trade performance
 Lack of qualified staffs
Table: SWOT analysis of NAB
(source: Nab.com.au, 2018)
Presence of skilled and efficient professionals results in the manufacture of innovative
products. Maintaining records of the newly launched products and their clients helps in averting
unwanted instances. Along with this, these records is also evidence towards enhancing the
awareness of the cash flowing from the internal environment to the external environment.
However, poor quality of the products and services contradicts the skills of the NAB personnel.
Absence of financial planning aggravates the complexities in terms of maintaining the position
within the competitive ambience of the market (Nab.com.au, 2018). Decline in the conveyance
price can be an innovative means for luring the clients. Capability of the personnel towards

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adding to the merchandise can be a cornerstone in terms of luring the foreuign client towards the
services of the bank.
Negligence towards providing training to the staffs regarding the essential business
activities can add vulnerability to the market position of the bank. Online modifications might
prove harmful in terms of regulating the needs, demands and requirements of the customers.
Moreover, it is also a difficulty in terms of tackling with the substitute products and services.
Increased payment levels would compel the bank personnel to encounter instances of customer
turnover, resulting in loss (Nab.com.au, 2018).
Strategic Position of NAB:
This can be said that NAB has managed to make banking reasonable in Australia by fulfilling
the significant pledges to keep charges and payment transparent during inspiring consumers
accomplish their commercial goals. It is to be noted that NAB fair trade helps them to surpass
their rival companies in order to lead the league. NAB is giving enough effort to eliminate client
discomfort points and make the dealing with people easier (Bessis, 2015). This particular bank is
providing easy products in terms of client service with the help of durable security products.
This is notable that National Australia Bank (NAB) has number of different schemes
regarding the Environment. It can be said that schedules are having a natural value. The
significant investment which can be distinct as an environmental advantage and facilities. The
growing burden which would reinforces the scheme of economy and could influence the
advantage in the forthcoming years and the increasing price of commerce can come into
consideration. The growing rivalry for funds that are determinate and has the prospective to
restrict the growth of the budget and business management, influence of modification in

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environment that is growing and strategy associated to environment on the trade, the consumers
and also on the populations functioned (Chohan, 2017).
Organization’s Management:
According to Andrew Thorburn, the contemporary CEO of NAB, the success they are
relishing is actually the outcome of their sustainable relationship with the customers and their
business partners. There are significant management strategies that help this organization to
reach the destination. It is evident that this success if the result of 60 significant years of
hardworking. However, they believe that their responsibility gets increased with this success as
per the CEO. He stated that they accept this success as motivation to contribute further
(Cranston, 2017).
Organization:
This is notable that the number of bankers can recognize their impending substantial ESG
aspects related with the client and the relevant assignment, subdivision and the republic where
the assignment is undertaking. It is aided by broadcasting in contradiction of an interior High
Risk ESG complex segments and subtle zones’ list that needs to be reviewed frequently.
Assessment:
It can be suggested that the recognition risk evaluation and due industry is approved of.
This list is comprised of the evaluation and acknowledgement of substantial risk concerns that
executes the ESG risk evaluation (Jonghe & Öztekin, 2015). It can be mentioned that ESG risk
evaluation can be termed as a qualitative evaluation that can come into consideration in terms of
the materiality of the ESG risks. This can also be mentioned that magnitude, category, theme and
complication of the deal being measured. As the significant outcome of this particular company

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along with a client and their happenings. The researchers may deliberate this as the risk to the
company’s reputation.
Approval:
Advancing agreement is only provided during the risks are being analyzed. This
particular segment of approval is properly moderated and acknowledged in NAB’s risk unite. It
takes place in agreement with NAB’s Delegated Credit Authority outline (Morris, 2018). There
are number of cases in which the communications can be intensified for conversation of ESG
and reputation-associated risk at several organization and risk teams. Before dropping loans to
the parties, trial is carried out for reaching to the final decision. Here, approval from the NAB
staffs is vital for maintaining the ethics.
Clearance on certification:
The clients can acknowledge the legal compulsion fulfill with the fundamentals of
significant Equator Principle. This principle is aim to observe, supervise and manage recognized
ESG risks in contradiction of pre-decided presentation events.
Monitoring:
This particular segment is comprised of systematic reviews of the client’s acquiescence
with the significantly approved circumstances and contracts executed into advancing
certification. It can be mentioned that this certification includes ESG necessities. This is the
client’s disappointment to conform to advancing standings and circumstances that can be resulted
in NAB withdrawing the association (DeAngelo & Stulz, 2015). The primary monitoring ESG
risks evaluates the risk at a client level. Group Credit and Market Risk Committee is entrusted
with the responsibility to update the reports on ESG risks every 6 months. This update enhances

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the awareness of the NAB staffs regarding the reduction of the financial risks.
Training:
This is to be noted that they allow the bankers to access the different skills and tools in
performing significantly beneficial to the company. It can help the company to reduce the ESG
risk.
Social Impact:
Catering to the wellbeing of the clients and customers is the prime responsibility of the
firms like NAB. This is important to take number of social responsibility for a company in order
to maintain the social reputation. It inspires the method in community modernization. This
actually denotes the developing method that the community can investment on. Within the
organizational values of NAB, compassion and corporate social responsibility occupies a major
portion. Adherence to these values enhances the workplace ethics for NAB. (Howes et al., 2015).
The company is experiencing the chief business management by supporting the Corporate
Responsibility approach with the chief commercial processes. This actually generates the skills.
NAB has a purpose to offer the center position to the customers of their priority actions. They
utilize their powers as a bank, a chief company and a significant member of the communal to.
• Financial flexibility is one of the mentionable points of the NAB business. This assistance has
improved their relationship with the associate partners of Australia and New Zealand. They are
helping people to access reasonable and inexpensive economic services. Their objective is to
contribute Australians and New Zealanders in structure financial flexibility by creating it calmer
to jump back from monetary shock (Morris, 2018)
• They motive their partners to assist in building tougher and significantly associated societies by

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acknowledging chief community problems. These comprise gender equity, domestic and family
violence and supportive to native success (De and Öztekin, 2015).
• They can acknowledge the weather change threats and the occasions rising from the short
carbon shift, and limit their environmental influence by accepting a maintainable method to
management of the business and supporting their clients do the similar (DeAngelo and
Stulz2015).
Corporate governance:
Board of Directors in NAB are expected to provide updates on risk mitigation at least twice in a
year. As a matter of specification, updates on ESG risks are crucial in terms of safeguarding the
money of the clients and the customers (Cohen, 2017).
Net promoter system:
According to the reports of 2017, the score of Net Promoter encountered an increase from 2 to
13. Mention can be made of the success in the individual segments, which contributed to the
success of the bank as a whole.
• Stability in the investments made towards small business as compared to the reports of 2016
• Increase in the Medium Business NPS from -8 (2016) to +3 (2017). This is due to the product
and service improvements including Virtual Banker and mobile NAB Connect and banker relief
teams. Provision of service during leaves reflects conscious approach towards the wellbeing of
the clients and the customers.
• Home Owners NPS decreased from -20 (2016) to -23 (2017), impacted by challenges in service
and fulfilment. They are actively re-designing customer journeys. Reference can be cited of the

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access to feedback, which has helped the NAB staffs to gain an insight into the employee
approaches. This can be considered as an initiative towards upgrading the customer service.
Consistency is maintained in reviewing the feedbacks for bringing innovation in the business
(DeAngelo &Stulz, 2015).
The Environment:
Environment relates to the internal and external scenario of NAB in terms of the
business. The aim of the staffs is judicious use of the assets for the achievement of sustainable
development (Chohan et al., 2014).
Environmental Agenda:
The Environmental Agenda prepared by NAB focuses on the issues of climactic change,
scarcity of the resources and natural value. The policies for the climactic change are directed
towards benefitting the customers and the communities around which the operations revolve.
These policies possess flexibility to enrich the stock of resources. Effective utilization of the
natural capital enhances the productivity of the bank. Herein lays the effectiveness of the shared
values identified by the bank.
Crisis Support
Assisting the communities indicates the mentality of the NAB staffs towards the clients
and the customers. Determined approach in the provision of services enhance the reputation of
the bank. Outsourcing the financial resource, as per the norms, makes the bank a popular name
for the customers (Nab.com.au, 2018). Financial support at the time of crisis results in the
achievement of trust, loyalty and dependence from the stakeholders and shareholders. The
sources of support are donations, internet banking, grants and aids among others. Mention can be

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made of $500,000 donations, which acted as a support for the communities recovering from
cyclones, flooding and bushfires across Queensland and New South Wales. Along with this,
Bourke Street Fund was introduced for supporting the bereaved families of those injured in the
Bourke Street incident. Adherence and complaince to the norms assures the customers of
restoring normalcy in their lives (Cranston, 2017). Depending on the nature of the event, our
team will ensure hardship specialists are on the ground to suspend loan repayments and fees
wherever necessary, as well as providing access to support and counselling by making NAB’s
Employee Assistance Program available to customers.
Conclusion:
This is notable that the data expertize require to re-evaluate their own ethical standards in
a period in which the nature of professionalism is being re-assessed. It can be said that the ethical
behavior can minimize the opportunity of neglectful conduct and assist legal compliance, but that
makes ethics another form of regulation. These significantly important codes that should be used
to focus on professional duties and virtues, and as a collective consensus of professional values.
Understanding the corporate culture within the wider social context is long-sighted, not short-
sighted. Knowing how much to accept the givens and where there is maneuverability for
improved ethical standards is a professional goal. Assistance and support of peers through
professional associations and networking are avenues for professional solidarity. Each
professional community needs to create a climate of ethical awareness and a sense of consensus
through debate and discussion. The ethical frameworks requires to be applied to specific issues:
retrospective and prospective to consider the role of a professional in terms of the nature of the
relationship which arises with the client within a web of obligations; each communication or
encounter has an ethical dimension based on this.