Institutional Asset and Liability Management

Yоu MUST read the bоth dоcuments very carefully called (Assignment Requirements and Initial Guidelines.pdf, and, Orbis-bank). And I will submite оther Wоrds format document which include the most important information that you have to use to help you complete this assignment. BFF5280 Institutional asset and liability management Group Assignment – Requirements and Initial Guidelines Semester 2, 2017 This document should be read in conjunction with BFF5280 Unit Guide. Weighting: 30% (30 marks) Due date: Friday, 6 October by 6pm A penalty of 10% of the total mark allocated to this assessment task will be deducted for each day, or part thereof, it is late. Group formation and registration: Students should form their own groups of no more than two members. Inform the Chief Examiner (CE) of group composition via email at zhongyan.zhu@monash.edu by 5pm, 10 August. Use only Monash student email address and state “BFF5280 Group Registration” as the title. This email should clearly state students’ surnames, other names, Monash IDs, and valid telephone contact numbers in its body. In return email, groups will be informed of their ‘assignment firm’ by the CE. Emails which do not conform to above instructions will not be returned. Assignment task: For the purpose of the assignment, each group represents the most senior risk officers in the firm, and has responsibility for risk assessment and evaluation. In its advisory capacity, your group has been requested by the Board to evaluate the firm’s business and financial risk profile. Students are required to think innovatively and make assumptions where necessary to overcome the hurdles they confront. These hurdles may include; • any deficiencies in data availability about the firm, its industry, and its competitors, and • any problems with managing an overly broad scope of operations in their allocated company. Preparing the report: To prepare the report students will need to complete the following steps: 1. Understand and evaluate the firm’s present products and/or services and markets (research its web site and annual reports). DO NOT CONTACT THE COMPANY DIRECTLY. (Most companies have better things to do than to respond to lots of questions from university students!). 2. Undertake a review of • the firm’s industry, including its major competitors (do not agonise over exact matches for competitors – be practical based on what information is readily available), • the current state of the economy in so far as it affects the firm and its industry, • the rest of the external environment (e.g. a PEST or Porter analysis), • and conduct a SWOT analyses 3. Undertake a financial and strategic analysis of the firm for the past six (since 2011) years: • Download raw data from Orbis Bank Focus to an Excel spreadsheet and analyse them. Do NOT simply rely on pre-calculated ratios, as the definitions used remain a mystery. • Compare the firm’s position/performance against competitors as identified above. • Use the information up to the last financial year available at the start of the semester for the analysis i.e. if half way through the semester the firm issues another annual report, or announces a takeover or is taken over, or announces a major new initiative; ignore it for the purpose of the assignment. 4. Assess business and financial risks faced by the firm • Consider risks such as strategic risk, credit risk, credit concentration risk, deposit concentration risk, liquidity risk, capital risk (regulatory risk), foreign exchange risk, market risk and operational risk. • Include time series and cross-sectional comparative analyses for the firm utilising the competitors selected. 5. Make recommendations to Board based on your analyses: • Ensure your recommendations are in line with the outcome of environmental, business, financial and competitor analyses conducted. • Justify how your recommendation will improve the risk management in the assigned firm. 6. Write the report o The report is sent to the Board, so it should cover only the recommendations and a summary of the supporting arguments and graphs. Use the allocated word limit (4,000 words) for this purpose. o The research itself and mathematical workings should appear as appendices. Not counted as contributing to the allocated word limit. Word limit and report format: The word limit is 4,000 words, excluding the bibliography and all appendices. An assignment report exceeds the word limit may be marked only up to the word limit of 4,000 words. Report should be written in A4 paper, font size 12, Times New Roman, and double-space. Criteria for assessment: Assessment will be based on the following: 1. Depth and quality of research (5 marks) 2. Depth and quality of analysis (10 marks) 3. Application of knowledge (5 marks) 4. Degree of personal creativity (5 marks) 5. Professional report presentation/compliance (5 marks) Overall, answers will be graded in accord with the table showing examples of grades and corresponding achievement levels published in the Q Manual (2012, p. 6). Negative marks are not awarded for wrong answers. Referencing requirements: Work submitted for assessment must be consistent with the guidelines set down in the Q Manual, which is the faculty’s student guide for producing quality work on time. Copies of this manual can be purchased at the bookshop or accessed online at URL: http://www.buseco.monash.edu.au/publications/qmanual/qmanual.pdf. Marks may be deducted where in-text citations and/or the reference list is not consistent with the American Psychological Association (APA) style, which is illustrated in the Q Manual. Plagiarism: In order to ensure the academic integrity of your submission and to deter others from copying your work, your submission will be processed by a plagiarism checker such as Turnitin. The University’s plagiarism policy can be found at URL: http://www.policy.monash.edu/policy-bank/academic/education/conduct/plagiarism- policy.html. The written report submitted should also include a complete softcopy of the final report including appendices saved on either a compact disk or memory stick. Otherwise, assignment reports will not be graded. The softcopy is used for plagiarism checking and will NOT be returned to the students.