Organisation Law Australia Case Study

Document Type:Case Study

Subject Area:Law

Document 1

It had as its members the Chairman of the Banking and Finance Oath, Dr. John Laker AO, Jillian Broadbent AO the company director and a professional from the Monash School of Business Professor Graeme Samuel AC. The work of investigation started in October, releasing a report in on the 1st of February, 2018. The report is a comprehensive one that contains many findings and then recommendations. The report came to a conclusion that the continued CBA’s financial success dulled the institution’s senses, especially on matters to do with non-financial risks and management. • A weak identification of risks, incidents and issues as well as their escalation and no urgency in the way they are managed and resolved. • The process of decision-making was so complex that instead of favoring effective results delivered at the right time, it favored collaboration.

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This slowed the manner in which risks or failures were detected. • The framework for risk management was supported by a compliance function that lacked adequate resources and was immature. • The framework for remuneration that did not take into account the top management when there were poor outcomes on the part of the customers3. The last of the five major levels of these recommendations is a cultural change that is needed to end reactiveness and complacency and embrace power to strive to serve customers to the best of the bank’s ability as well as the identification of risks and their remediation6. The Chairman of APRA, Wayne Byres said that the findings of the committee of inquiry show that the governance, accountability and culture frameworks of CBA are wanting and, therefore, need to be improved a great deal to meet the standards.

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The recommendations are meant to reinforce and set the standards of practice for the operations of both CBA and other banks in Australia. They identify things that CBA needs to do so that the frameworks of culture, accountability and governance are strengthened. These recommendations will lead to an improved environment if they are followed well because they draw from all over the world and have proven to be effective where they have been applied before7. There was little identification systemic issues in the business, including the linking of data sources across the institution and the analysis of complaints by the customer. Based on these, the 16th to 19th recommendations are aimed at persuading the board to make a priority the investment of resources in identifying the issues that arise from the complaints of customers to improve the ability of the committee to identify and solve issues 9.

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Recommendations 9 to 15 are related to the strengthening of capabilities and frameworks in the organization. The 10th recommendation calls upon the Chief Risk Officers in CBA to be independent enough to challenge the business effectively. The 12th recommendation calls on CBA to strengthen the compliance and operational risks through the implementation of specific measures which are also mentioned 10. In my opinion, if these recommendations are effectively put into practice with everything that APRA recommends carefully considered, they will serve to prevent any mishaps in the future. This is because any conduct that leads to this kind of shortcomings in the future will be stemmed through a strict adherence ot the recommendations. Bibliography APRA. "APRA Releases CBA Prudential Inquiry Final Report And Accepts Enforceable Undertaking From CBA | APRA".

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