[Financial Risk Management and International Financial Reporting Standards: Analysing Substitutes in Financial Services for Wealth Management Banks]

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

The aim of this dissertation is to apply analytic network process (ANP) and balanced scorecard (BSC) to measure the business performance of wealth management banks (WM), in this dissertation, we have proposed a model in which various dimensions of WM banks have been analyzed. These dimensions have been analyzed through four distinct perspectives i.e. customer, finance, growth & learning and internal business. These four perspectives are the product of BSC. The proposed model made a link between tangible and intangible, financial and non-financial and external factors thus providing a holistic framework for the evaluation of an alternative for WM banks. ANP has the ability to highlight the interdependencies between and among various decision levels; thus forming a decision making tool which is multi-criteria in nature. Thus, a combination of ANP-based approach and BSC- proposed in this paper can provide decision makers with a more balanced, realistic and accurate representation of the challenge of conducting business performance for WM banks.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER I: INTRODUCTION1

Background1

Problem Statement1

Purpose of the Study2

Objectives of the Study3

Outcomes of the Dissertation3

Structure of the Dissertation3

CHAPTER II: LITERATURE REVIEW5

The BSC6

Finance perspective9

Customer perspective9

Internal business process perspective10

Learning and growth perspective10

Financial Risk Management11

International Financial Reporting Standards13

CHAPTER III: METHODOLOGY16

Research Design16

Research Model19

Step 1: Model construction and problem structuring19

Step 2: Pairwise comparison matrices and priority vectors19

Step 3: Supermatrix formation20

Step 4: Selection of the best alternatives23

CHAPTER IV: RESULTS & DISCUSSION24

Results24

(a) Bank A25

(b) Bank B26

(c) Bank C26

(d) Bank D26

Model27

Step 1: Designate the group of experts on the WM banks27

Step 2: Identify the criteria for establishing the evaluation model27

Step 3: Establish the pairwise comparison matrix and determine eigenvectors31

Step 4: Establish pairwise comparison matrices of interdependencies34

REFERENCES39

CHAPTER I: INTRODUCTION

Background

UK's economic and financial markets have experienced dramatic changes in recent years. There are four main banking business sectors in UK, involving the areas of consumer, corporate, wealth management (WM) and investment banking. The WM banking sector is actively promoted for reaping a risk-free premium. Additionally, the organizational structure of the WM service sector has improved as banks have implemented management practices that have helped to increase their competitiveness. In such an intensive environment, evaluating a performance measurement of WM banking has become a priority (Bates et al., 2003, 102; McWhorter, 2003, 45; Cavalluzzo & Ittner, 2004, 85; Robinson & Morley, 2006, 214). During the process of evaluating WM banks, apart from legal issues, policymakers and business groups seldom consider potential factors that could impact banks' competitiveness. For their part, bank managers are realizing that the business performance records of their ...