Assessment task title: Individual Assignment
In early December 2017, the Prime Minister Malcolm Turnbull announced a Royal Commission into the misconduct of Australian banks, superannuation funds and financial services industry.
Our large banks in Australia enjoy a large market share and may have misused services industry. Our large banks in Australia enjoy a large market share and may have misused that power. Meanwhile banks spend an enormous amount to manage their reputation risk.
1. Explain the background of what led to a call for a Royal Commission into Australian banks, explaining the main areas of focus.
2. Define 'reputation risk' and explain how banks may try to manage it with at least 3 examples.
3. Why is governance important in the management of a bank, relating your answer specifically to Australian banks?
4. How can the corporate culture within a bank affect how effectively a governance framework is upheld?
5. Contrast the corporate governance mechanisms of two Australian banks with particular reference to the information contained within their annual reports (but other material and critical assessment will add further value).
Please use examples of misconduct within Australian banks to answer each question.
The following references may be of assistance.
? Prime Minister Draft Terms of Reference: Royal Commission into misconduct in the banking, superannuation and financial series industry.
? Royal Commission website
? Letts, S. (2018) APRA to focus on CBA culture and pay in studying its 'fall from grace', 1st February. ABC News.
? APRA Prudential Standard CPS 510 Governance