[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.

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ABSTRACT

The dissertation aims to analyze the substitutes available for wealth management banks for financial services. For this purpose, we will apply analytic network process (ANP) and balanced scorecard (BSC). There are four perspectives through which the dimensions for WM banks in financial services have been taken. These are BSC through customer, finance, growth and learning and internal business. The approach proposed in this dissertation creates a linkage between non-financial and financial, intangible and tangible and a variety of external factors thus resulting in a holistic framework for identifying and analyzing the alternatives available for WM banks. ANP is a multi-criteria decision making model due to its ability to consider the factors existing between the decision levels. Thus, this dissertation will help decision makers to easily conduct business performance analysis for WM banks through a mixture of BSC and ANP.

Table of Contents

ABSTRACT1

CHAPTER I: INTRODUCTION3

Background3

Problem Statement3

Purpose of the Study3

Outcomes of the Dissertation4

Structure of the Dissertation4

CHAPTER II: LITERATURE REVIEW5

Wealth management5

The BSC6

Finance perspective7

Customer perspective8

Internal business process perspective8

Learning and growth perspective8

Financial Risk Management9

International Financial Reporting Standards10

REFERENCES12

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 institutions can be used to gain a competitive advantage (Javalgi et al., 2009 92; Michalska, 2005 58; Hernando & Nieto, 2007, 21).

Problem Statement

The ANP model presented in this paper structures the problem related to evaluating an alternative to the business performance for WM banks in a hierarchical form and links the determinants, dimensions and enablers of business performance with the various alternatives. One of the important issues for any strategic planner would be how the organization should prioritize the determinants and what policy elements or initiatives impact ...