risk management at wellfleet bank
Risk Management at Wellfleet Bank: Deciding about “Megadeals”
MSF 2013 Summer Case Study
Group 4
Bar Brieman
Vincent Zann
Carlos Castillo
Kevin Johnson
Kelin Xiang
Min Chen
Professor Dandapani
July 26th 2013
Group 4 Risk Management at Wellfleet Bank: Deciding about “Megadeals”
1
Table of content:
Abstract------------------------------------------------------------------------------------------------3
Part One: Strategy and Risks----------------------------------------------------------------------4-5
Different Types of Risks Regarding Wellfleet Bank-------------------------------------4
How did those risks affect Wellfleet----------------------------------------------------------4-5
Part Two: Risk Metrics-------------------------------------------------------------------------------6
Part Three: Proposals and Decisions---------------------------------------------------------------7-11
Proposal 1----------------------------------------------------------------------------------------7-8
Proposal 2----------------------------------------------------------------------------------------9-10
Final Decision-----------------------------------------------------------------------------------11
Part Four: Risk Management and Process------------------------------------------------------12-14
Appendix--------------------------------------------------------------------------------------------15-21
Group 4 Risk Management at Wellfleet Bank: Deciding about “Megadeals”
2
Abstract
Wellfleet Bank was founded in London in 1847 and used to be the bank that provides its services to Asian and African colony. During the period of 1960 to 1990, the bank made major decisions and decided to go global and focus in North American and Europe. After the European property/credit crisis in 1989-1992, the bank switched its core markets in emerging economies.
Corporate Banking and Consumer Banking were the two main businesses the bank had undertaken. It had 58% and 42% of its Pre-Tax
MSF 2013 Summer Case Study
Group 4
Bar Brieman
Vincent Zann
Carlos Castillo
Kevin Johnson
Kelin Xiang
Min Chen
Professor Dandapani
July 26th 2013
Group 4 Risk Management at Wellfleet Bank: Deciding about “Megadeals”
1
Table of content:
Abstract------------------------------------------------------------------------------------------------3
Part One: Strategy and Risks----------------------------------------------------------------------4-5
Different Types of Risks Regarding Wellfleet Bank-------------------------------------4
How did those risks affect Wellfleet----------------------------------------------------------4-5
Part Two: Risk Metrics-------------------------------------------------------------------------------6
Part Three: Proposals and Decisions---------------------------------------------------------------7-11
Proposal 1----------------------------------------------------------------------------------------7-8
Proposal 2----------------------------------------------------------------------------------------9-10
Final Decision-----------------------------------------------------------------------------------11
Part Four: Risk Management and Process------------------------------------------------------12-14
Appendix--------------------------------------------------------------------------------------------15-21
Group 4 Risk Management at Wellfleet Bank: Deciding about “Megadeals”
2
Abstract
Wellfleet Bank was founded in London in 1847 and used to be the bank that provides its services to Asian and African colony. During the period of 1960 to 1990, the bank made major decisions and decided to go global and focus in North American and Europe. After the European property/credit crisis in 1989-1992, the bank switched its core markets in emerging economies.
Corporate Banking and Consumer Banking were the two main businesses the bank had undertaken. It had 58% and 42% of its Pre-Tax