Analysing And Comparing Two Financial Institutions...

London South Bank University Course: Financial Markets and Institutions Topic: Analysing and comparing Two Financial Institutions Performances (Lloyds Bank and Triodos Bank) in period between (2008-2014) Student name: Mustafa Mohamad Student Number: 3301147 Name of Lecturer: DR Carolina Valiente Table of contents Page Numbers Abstract 3 Bank Overview 4 Introduction 4 Banks overview 5 Methodology Result and analyses 6 Analyzing Banks activities, In Term of lending, funding and misleading. 12 Conclusions 13 References 14 Abstract In this paper, aims to comparison of two financial institutions performances during the economic crisis. Answering this by analyzing which of them has been effected and unaffected during this period? Moreover did these banks increased their lending or reduced to retailer and customers. In additional have the banks received any help from the government or central bank? .Doing this by focusing on financial ratios and financial measurement ratios such as profitability ratios, liquidity ratio and leverage ratio of both banks. Both banks considered as the largest banks in value of market and social impacts in the United Kingdom. Lloyds bank is a commercial bank and triodos bank is sustainable bank. Moreover, the result of this paper determined that, the financial performance of two banks as regard to differences in their activities, return on equity and the return on assets utilization declined for Lloyds bank during the six year of EconomicShow MoreRelatedBanking Industry And Business Development Of The Uk1380 Words   |  6 Pagesthe following issues. The first section will give an explanation of high street banks and look at the brief history of Bank of England, followed by comparing their differences in several perspectives. 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Collaboration and Communication in Business Free Essays

Increasingly, employees are in jobs where interaction is their primary value-adding activity (Laudon Laudon, p. 90). List and describe collaboration and communication tools that you use regularly. We will write a custom essay sample on Collaboration and Communication in Business or any similar topic only for you Order Now How do they improve your work both in terms of the process and the product? What is the approach that organisations could adopt in relation to these tools to improve organisational performance? Fortunately (or unfortunately), I have been working with the same organization for the last 19 years. As a result, I have been witness to the evolution of my organization globally in terms of being â€Å"tech savvy† towards effective use of communication and collaboration tools. In my opinion, the more the business is facing turbulence in terms of market and/ or competitors, the higher the need emerges for collaboration and communication. In the good old days of 90’s, when we used to do business in countries, with little or insufficient IT infrastructure and capabilities, we used to still manage effectively the customer relationships and profitability of the business through telecommunication links like fax and telephones as well as F2F meetings with the stakeholders involved. Somehow, it appeared to be relatively easier to make business dealings under such circumstances. Although, it is worth mentioning, that the core value proposition of the products and/ or services during those times were considered by our customes, to be due to the high technology and streamlined product development processes of our company. With the advent of internet as a viable channel of communication and information sharing and the diversification of business into different market segments and geographical regions, it became imperative for the organization to look for easier ways of communication and collaboration. Moreover, the decline of experts with know-how or knowledge of the entire value chain of the product/ service, also calls for involvement of experts with specific domain knowledge, who need to communicate and collaborate on a regular basis, within the framework of certain rules. Starting from end nineties, we started using Lotus Notes as one-stop tool for both communication and collaboration. Since this was primarily driven by the operational level, lots of other strategic and operational tools for communication and collaboration were built around this tool. However, due to various reasons like re-organisation, diversification, cquisitions etc, this tool went on to assume a mammoth shape, lost connectivity to more up-to-date state of the art tools and was dragging down the business globally in terms of communication and collaboration. Moreover, the hierarchy of the organization was also responsible for taking a pragmatic approach towards decommissioning of this tool and creating a mo re flexible IT architecture, which can be agile and can integrate with state of the art tools across the various areas of business like marketing, product development, product delivery, logistics and supply chain and after sales services to customers. In the last 2 years our organization has moved to MS based office tool suite including tools for communication and collaboration. The legacy systems of LN are getting decommissioned and huge LN DB’s were converted and transferred to more easily manageable and accessible DB systems. Right now we are using Passport based tool suites where individual applications communicate with each other and augment the ongoing, required collaboration among the various entities of the organization. It is true that most part of the organization is adding value to the communication flow through the effective use of tools, but at the same time, more emphasis is put on sharing and storing key, useful information to be used by anybody in the organization, who may need it, e. g. by creating internal blogs or Wikis with managers motivating and/ or incentivizing information and know-how sharing. Useful collaborative tools like Live Meeting, Telepresence etc can ensure participation from different locations at different time zones, sharing the same level and content of information. Collaboration, the ability to work together especially in business is raising key concerns for organizations taking on new approaches to improve performance and outcomes. Because leaders are looking for positive signs that acquiring collaboration tools will impact the bottom line, an organization may also need to consider its communication and collaboration practices. According to research and best practices, the combination of several factors may help steer collaboration to achieve business results, through empowerment, culture, and technology. Some practical examples of each of these factors that are causing collaboration to work in business are mentioned below: Empowering People through Communication and Collaboration Empowerment is a form of approval for individuals and teams to make decisions. Starting with executive collaboration, key leaders of your organization may need to support shared goals for empowering people if they don’t already, through communication and collaboration. The reality of collaboration for leadership is through empowerment. By embracing a model of operational coordination across teams and departments, collaboration can basically drive motivation and engagement. In Harvard Business Review’s Aligning Strategy with Technology, the chapter â€Å"Empowered† dives into an example of empowered sales teams to develop sales solutions using video at Black Decker. Video as a communication form is extremely popular. Because of the complexity of Black Decker’s many different products, the sales staff is able to document challenges in the field and quickly communicate how power tools are used on job sites. As the authors Josh Bernoff and Ted Schadler pointed out, these useful bits of information also benefit senior management, corporate marketing, and public relations. Bernoff and Schadler use the phrase â€Å"highly empowered and resourceful operatives† – dubbed HEROs as characteristic of empowered teams like this example at Black Decker. In fact, the authors’ research study shows a high proportion of information workers, by industry and job type, especially marketing sales in technical products and services that are empowered to create similar customer solutions. Creating Value in Collaborative Culture The collaborative culture of an organization stems from its’ shared beliefs, values, and business practices. Author and business consultant, Evan Rosen says collaboration is about creating value. In Bloomberg Businessweek, Evan Rosen emphasizes every worker contributes knowledge to the business. Using an example at Dow Chemical, he writes, â€Å"The day’s sales and inventory numbers are shared with everybody in the company, including the people doing the heaving lifting on the front lines. Dow acknowledges that people will do a better job when they know their actions contribute or detract from business results. † Taking a step further, former CEO of Campbell Soup, Doug Conant, is famous for handwritten notes to employees celebrating their contributions. Recognition through these and other high value communication practices further strengthens a collaborative culture. Establishing a Technological Framework for Collaboration Collaboration tools essentially provide a technological framework to enable people and groups to work together. But adding new collaboration tools into the enterprise does not change things overnight. Where does an organization begin to design a technological framework? A gap analysis of workflows is often necessary and can help in redesigning processes. Furthermore, an organization’s specific data, based on activity in the organizational network, including sales, customer services and support, product development, and even external resources, can be collected, analyzed, and better routed to teams. This social intelligence can help everyone be informed. Tony Zingale, CEO, of Jive Software ‘sees change the way work gets done’ – referring to the communication and interactivity of social software like Jive. And reports are showing cost efficiencies, speed to market, and greater pool of ideas and innovation through collaboration, which are passed on to the customer through cost savings and better products. How to cite Collaboration and Communication in Business, Papers

Perverse Audit Culture and Accountability

Question: Discuss about thePerverse Audit Culture and Accountability. Answer: Introduction The modern world with a rising economic infrastructure requires new and modern tools and techniques to overcome the constraints of a growing world. The economic condition of the world is booming at its peak and every organization working in this environment needs to keep an innovative tool to evaluate its own nature and condition of the business. The industries need to look after the financial part of the company, which is one of the core areas involved in the smooth movement of a business. The proper analyzing of the income and expenditure is essential through proper evaluation of the statements and information of facts, which are relevant and verified (Geerts et al.2013). This report deals with the basic auditing practices, which are done by every organizations present in an economy in order to evaluate the process of production and set policies and regulations in order to gain competitive edge in the market. The report also emphasizes on the role of auditors and how the work of auditing is important to every organization throughout the world. Brief overview of the topic as covered in the article including the nature of the auditing issue The topic covers the problems arising in HIH insurance leading to its collapse which is stated to be the biggest tragedy in the Australian Market. This article focuses on the auditors independent issue and other ethical considerations that affected the firm badly along with the other parties related with the firm including the policyholders. The problem related with auditors independence is being analyzed and proper recommendations are suggested which HIH insurance could have done to avoid such an issue. Auditors independence- Audit independence issue played a major part in the collapse of HIH insurance. The auditors should be given enough liberty to provide an impartial prospective in the evaluation of results regarding the presentation of audit and its report (Blay and Geiger 2013). According to the reports of HIH Royal Commission, the royal commissioner revealed that Arthur Andersen was not self-regulating himself in his work and had not proficiently enacted the duties of an auditor. Three former partners of Andersen acted as the HIH Board of Directors who continued to receive fees and that generated the threat of familiarity because of a close personal relationship which restricted Arthur Andersen to work independently. APES 110 Code of Ethics takes into account the liberty matter with Section 290.28 of new policy from July 1, stating auditors of listed and public interest firms should converse with governance people in the firm continuously about stuff related to independence (Tepalagul and Lin 2015). Ethical Issues and their financial and non-financial consequences on stakeholders Ethical issues that generated in the audit profession triggered a collapse of HIH insurance. Ethical behavior in corporate world is the values and principals one works on. It so happens that professional auditors do sometimes get stuck midway that crop up from professional predicament. Auditors need to abide themselves by the ethical standards so that the shareholders get a fair deal. Objectivity, confidentiality, integrity, professional behavior and professional competence are the five principles that bind the work frame of auditors (Knechel et al. 2012). During the period from 1997-2000 HIH insurance paid Arthur Andersen around $5.1 million as audit fees and with $2.8 million going in the non-audit section. Adding to that Andersen earned around $5.097 million from auditing the monetary declaration of HIH insurance and $2.824 million from contribution in non-audit services. The issue that strikes here is that was providing Arthur Andersen with non-audit services ethical on the part of the management keeping in mind the best interests of shareholders. The HIH insurance management was uncertain in escalating the total of audit fees supposed to be paid to Arthur Andersen; Andersen wanted to lessen the quantity of service rendered on the HIH audit. Jeffrey Simpson , an ex-accountant of HIH insurance affirmed that the close association of HIH insurance management and Arthur Andersen facilitated HIH insurance to adopt aggressive accounting policies. As Andersen was also assigned to non-audit services, the real job should have been to take care of third party policies and to present the shareholders with a fair value of opinion with real picture existing in companies audit report. In case of HIH insurance, stakeholders were at plenty and the firms downfall did affect them badly. The collapse of HIH insurance was due to major players like Regulators, auditors and the Government. The shareholders of HIH suffered losses on their investment and certain reports that did the rounds after its collapse is that their insurance contracts were not privileged and claims not rewarded. APES 110 Code of ethics states that there should be credentials and recognizing the threats related to independence (Martinov-Bennie and Mladenovic 2015). When safeguards are essential to reduce a threat to an acceptable level, one need to document the nature of threat and reduce it to a satisfactory level. Analysis of the problem in the context of relevant ethical theories and agency theory Agency theory defines that as a consequence of information asymmetries, principal do not have enough reasons to trust their agents. Principal do seek to determine these anxiety by putting accordingly mechanisms to bring into line the iterests of agents as well as principals and to diminish the scope for information asymmetries and opportunistic actions. Difference in motivation and information asymmetries lead to apprehend the dependability of information causing to impact the trust level that principals will have on their agents. It is the duty of the auditor to verify the exactness and accuracy of the information offered by corporations. He plays the role of a mediator between the management and the client of this monetary information. To lessen the information asymmetry the auditor needs to communicate with those in need of the information he presents. Recommendations The above report analyzes the different roles of auditing which is important for all the organizations to overcome the weak links present in a firm. With respect to the company taken into consideration which is HIH, it can be observed that a good governance can be reachable through proper policies and administrative actions. The implementation of the best practice of ethics and governance is also important for the company to achieve its goals. Good corporate governance will be helpful to create a good working environment to reach success and to analyze the main problems which are the reasons for the failure of the company HIH. A good and sound auditor will demolish the poor management and problems resulting out of lack of skills and attention. The liability for performance and integrity in the internal system of the company can be rectified too. The auditing process provides a good administrative policies and regulations which enables the management to differentiate between the diffe rent operations and should act for the best interests of the company (Craig, Amernic, and Tourish2014). The line of authority and delegations and development of code of conduct to cover up the legal and management guidelines is an important way to monitor and review the strategic operational and projects integrated (Gray and Laughlin 2012). Conclusion The report justifies that the best corporate governance practice is required to allow good financial performance and increase the returns for the shareholders. The lapse in the monitoring model is a factor for the disregard of the principles of good corporate administration. HIH failed in attaining the periodical evaluation of the corporate practices and the policies and regulations of the company. This led to the collapse in all the sectors of the company. Thus new effective methods need to be introduced to achieve the goals of HIH and the need of a auditing and a sound auditor is required to help gain the competitive edge of the organization. Reference Blay, A.D. and Geiger, M.A., 2013. Auditor fees and auditor independence: Evidence from going concern reporting decisions.Contemporary Accounting Research,30(2), pp.579-606. Carnegie, G.D. and OConnell, B.T., 2014. A longitudinal study of the interplay of corporate collapse, accounting failure and governance change in Australia: Early 1890s to early 2000s.Critical Perspectives on Accounting,25(6), pp.446-468. Craig, R., Amernic, J. and Tourish, D., 2014. Perverse audit culture and accountability of the modern public university.Financial Accountability Management,30(1), pp.1-24. Geerts, G.L., Graham, L.E., Mauldin, E.G., McCarthy, W.E. and Richardson, V.J., 2013. Integrating information technology into accounting research and practice.Accounting Horizons,27(4), pp.815-840. Gray, R. and Laughlin, R., 2012. It was 20 years ago today: Sgt Pepper, Accounting, Auditing Accountability Journal, green accounting and the blue meanies.Accounting, Auditing Accountability Journal,25(2), pp.228-255. Knechel, W.R., Krishnan, G.V., Pevzner, M., Shefchik, L.B. and Velury, U.K., 2012. Audit quality: Insights from the academic literature.Auditing: A Journal of Practice Theory,32(sp1), pp.385-421. Martinov-Bennie, N. and Mladenovic, R., 2015. Investigation of the impact of an ethical framework and an integrated ethics education on accounting students ethical sensitivity and judgment.Journal of Business Ethics,127(1), pp.189-203. Tepalagul, N. and Lin, L., 2015. Auditor Independence and Audit Quality A Literature Review.Journal of Accounting, Auditing Finance,30(1), pp.101-121.