Case ID: 110011
Abstract:
Case
Solution & Analysis for Risk Management at Wellfleet Bank: All That Glitters Is Not Gold by Anette Mikes
This case motivates a debate on the role of staff functions, such as risk management: what does it mean for them to be independent, and at the same time, to partner the business lines? The case describes the risk assessment process in the corporate banking arm of Wellfleet Bank (cca. 2006-2009) around an illustrative business proposal in the corporate lending business, and illustrates the decision challenges faced by the case protagonists (two senior risk officers of the Group Credit Committee)-who grapple with the tensions common between the sales organization and the risk control function in large financial institutions. The discussion of the proposal particularly evokes the cultural tension between the risk function and the business line: should the risk function play the role of policeman or business partner?
Keywords:
Banks, Credit, Decision making, Emerging markets, Risk assessment, Risk management, Risk Management at Wellfleet Bank All That Glitters Is Not Gold
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