BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? Description

The case is set in May 2016 when the Monetary Authority of Singapore withdrew the merchant banking license of the Singapore branch of Swiss private bank BSI Ltd. The reasons cited were violation of anti-money laundering regulations, pervasive non-compliance and gross misconduct by staff. The closure of the bank was precipitated by an ongoing scandal around its biggest client, 1MDB, a Malaysian sovereign wealth fund spearheaded by the Prime Minister Najib Razak. At the same time, the Swiss Financial Market Supervisory Authority announced criminal proceedings against the BSI group for failure to conduct statutory due diligence on transactions involving hundreds of millions of dollars linked to 1MDB and slapped on a fine of CHF 95 million. The case provides an opportunity to analyze the factors that led to the demise of BSI, one of the oldest banks in Switzerland and the sixth largest in the country. Did the lure of lucrative business persuade it to cross the line in terms of ethics and regulatory requirements? BSI appears to have pursued top-line growth at the expense of compliance. To what extent was the senior management responsible? Could BSI have better managed the balance between risk management and its growth strategy? If so, how? Learning objective: To identify the contextual challenges of operating in complex high-growth markets. To understand the role of senior management in maintaining oversight. To recognize the balance between managing risk and compliance in pursuing aggressive targets. To assess the interface between the headquarters and the local subsidiary for functions such as audit, governance and conduct. To understand the global ramifications of a local breach.

Case Description BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Strategic Managment Tools Used in Case Study Analysis of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

STEP 1. Problem Identification in BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

STEP 3. Industry Specific / Porter Five Forces Analysis of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

STEP 4. Evaluating Alternatives / SWOT Analysis of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

STEP 6. Recommendations BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

STEP 7. Basis of Recommendations for BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study

Case Analysis of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Step 1 – Problem Identification of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? - Harvard Business School Case Study

The first step to solve HBR BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Bsi 1mdb is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Bsi 1mdb, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?.

The external environment analysis of BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study. PESTEL analysis of " BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

To do comprehensive PESTEL analysis of case study – BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Government policies have significant impact on the business environment of any country. The firm in “ BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Bsi 1mdb is operating, firms are required to store customer data within the premises of the country. Bsi 1mdb needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Bsi 1mdb in case study BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Bsi 1mdb in case study “ BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Bsi 1mdb in case study “ BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Bsi 1mdb can compete against other competitors.

Government Scheme & Subsidies Impact on BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Bsi 1mdb needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Social Factors that Impact BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Technological Factors that Impact BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Environmental Factors that Impact BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Legal Factors that Impact BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study. PESTEL analysis of " BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: BSI Bank of Switzerland: Victim of Growth or Perpetrator of a Crime? case study solution