This case initiates a discussion on the role of the staff. These jobs include management of risk. It questions the meaning of independence while being a partner to business divisions. This case discusses the process of risk control in the banking business. The organization which is subject in this case is the Wellfleet Bank. The case is written from the perspective of two senior officers in the risk department. They face several challenges because of the organization of sales and the function of risk management in big institutions dealing with finance. The discussion revolves around the pressure between the function of risk management and the business division. It raises a question regarding the risk being a preventive measure or a partner in the business.
Economic Loss (EL) ($)
Risk Adjsuted Revenue
1- Given its strategy, what kind of risks does Wellfleet face?
2- Given the Wellfleet’s new focus on large corporate deals and its need to recruit relationship managers from investment banks, what are the challenges for the risks culture of the organization, and its style of the risk management in particular?
3- What is your decision regarding the proposal at hand?
4- Calculate the expected loss, Economic Revenue and Economic Profit for the proposal?
5- Analyze the risk management process at Wellfleet. What suggestions might you make to the CEO about the improving the process?