Assessment of risk exposure of GE Money Bank (A savings bank)

• Main Author: Peñacerrada, Neil T.
• Format: text
• Published: Animo Repository 2009
• Subjects: Savings banks—Risk assessment; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/9109
• Institution: De La Salle University

The researcher chose to prepare a risk assessment on the risk management of GE Money Savings Bank (hereinafter known as "Bank"). The researcher chose the said Bank because it is in its growth stage of its businesses cycle. Based on its previous financial statements there seem to be a substantial improvement in its operations since it started to engage in the banking industry. For this reason, the researcher strongly believes that he could learn more about risk management from this case study. Moreover, the researcher can better apply the theories of risk management by comparing the Bank's practices with the former and by providing recommendations for the improvement of the Bank's risk management process. The researcher used the 2007 annual report of GE Money Savings Bank, as well as other information gathered from GE Money Savings Bank website to prepare Michael Porter's five force. In addition to the use of Porter's five forces, the researcher made an assessment of the Bank's accounting practices, role of management's process, market risk, credit risk and operational risk. Finally, after taking into consideration all the results of the Porter's five forces analysis and risk management assessment, the researcher gave his conclusion and provided for recommendations.