Introduction
ANZ bank is the fourth largest banking sector in Australia. Headquartered in Melbourne, it is one of the most popular banking groups in Australia and New Zealand. This assignment highlights the international business of the ANZ bank and the risks that might occur, while conducting the International business. The possible strategies that would be recommended to assist the manager to manage the potential risks are also highlighted in this report.
International business
The international services provided by the ANZ bank include trading of finance, foreign exchange, international payments along with Vanilla products solutions (Anz.com, 2017). The online foreign trade solutions include the features such as convenience. The trading is done from anywhere and at any time (Anz.com, 2017). The simplicity of operations of the international business also makes the bank popular in international business. Real time updates on the trade transactions and email notifications given to the international clients makes it very popular and user friendly (Anz.com, 2017). The security of the online system is so strong that they use RSA tokens for 2 factors authentication. The various trade instruments such as letter of credit, trade finance loans are also available in the international services of the ANZ bank.
Risks identified
The potential risks in the conduction of the International business include environmental risks, non-compliance with the code of conducts. The non-compliances with the corporate social responsibilities are also a risk that is identified (Sharma 2015). The political and economic changes around the world might bring in changes in the international business of the ANZ bank.
Recommended strategies
In order to mitigate the potential risks, various committees could be set up. These include the governance committee, risk committee, audit committee, human resource committee as well as the technology committee (Anz.com, 2017). The risk culture could be incorporated. This refers to the culture where risk is everybody’s responsibility, and in order to mitigate the risks, each and every employee needs to work diligently. The audit committee might mitigate the risks of auditing in the International business (Anz.com, 2017). In order to mitigate the risks pertained by political changes around the world, the bank might enter into a business contract with the loyal clients, such that the political and economic changes does not hamper the major international business. In order to mitigate the environmental risks, it is recommended that the bank focuses in enhancement of the CSR strategies. The incorporation of the CSR policies such as the environmental awareness, paperless banking could be successful in mitigating the environmental risks.
Conclusion
The international business of ANZ bank is an important aspect. The risks identified in the international business include the environmental risks as well as the dependency on the economic and political scenario of the world. In order to reduce the environmental risks, the CSR policies of the company need to be improved. Moreover, in order to curb the issues of the political and economic disturbances, hampering the international business, business tie ups might be useful. Thus, as strategies to mitigate the potential risks are employed, the international business could be carried out successfully.
References
Anz.com, (2017). [online] Available at: https://www.anz.com/internet-banking/help/pay-transfer/international-services/transfer-overseas/ [Accessed 25 Mar. 2017].
Anz.com. (2017). International services | ANZ. [online] Available at: https://www.anz.com/small-business/products-services/foreign-exchange/international/ [Accessed 25 Mar. 2017].
Anz.com. (2017). Risk management | ANZ. [online] Available at: https://www.anz.com/about-us/corporate-sustainability/governance-risk/risk-management/ [Accessed 25 Mar. 2017].
Sharma, J.D., 2015. Risk Management in Bank. The MA Journal, 50(11), pp.80-86.
