Learning Objectives:

  • Understand the responsibility to plan for the bank’s long-term resiliency.

  • Create effective tools to discern a long-term vision for the organisation.

  • Develop strategies to build organisational readiness.

8.1 Long-Term Vision and Resilience

The University of Genoa course examines “Economic equilibria in banking: profitability, liquidity, solvency” as a core learning outcome. The University of Milano-Bicocca course covers “The perspectives of the banking industry after Covid19 pandemic” and “Asset quality and the management of NPL”.

Key Elements of Long-Term Resilience:

  • Strategic Planning: Developing a clear vision for the bank’s future.

  • Risk Management: Maintaining robust risk management frameworks.

  • Capital Adequacy: Ensuring sufficient capital to absorb losses.

  • Liquidity Management: Maintaining sufficient liquidity to meet obligations.

  • Asset Quality: Managing credit risk and non-performing loans.

  • Governance: Ensuring effective board oversight and accountability.

8.2 Planning for the Ideal Structure and Governance

The University of Genoa course covers “organisational models” and “internal control systems” as part of its bank management curriculum. Western Sydney University covers “the need for internal controls, governance structures and arising challenges and opportunities for the management of employees and managers”.

Key Considerations:

  • Organisational Structure: Aligning structure with strategy.

  • Governance Framework: Ensuring effective oversight and accountability.

  • Resource Planning: Identifying the human, technology, and physical resources needed.

  • Succession Planning: Ensuring leadership continuity.

  • Culture: Building a strong risk culture and ethical values.

8.3 Developing Leadership Readiness

The Western Sydney University course covers “the need for internal controls, governance structures and arising challenges and opportunities for the management of employees and managers”. The University of Genoa course covers “organisational models” and “internal control systems”.

Key Leadership Development Areas:

  • Strategic Thinking: The ability to see the big picture and align strategies with objectives.

  • Risk Awareness: Understanding and managing risk.

  • Stakeholder Management: Balancing the interests of diverse stakeholders.

  • Change Management: Leading and implementing change.

  • Ethical Leadership: Building trust and integrity.

  • Communication: Effectively communicating with stakeholders.

8.4 Governance, Strategy, and Communication

Glasgow Caledonian University’s module requires students to “critically assess how banks communicate with their customers including a detailed evaluation of ‘The Fair, Clear and Not Misleading Rule'”. This demonstrates the importance of governance and ethical conduct in strategic management.

The University of Leeds module covers “bank governance” and “principles of bank performance evaluation” as core topics. The University of Genoa course covers “Shareholder management (value based management) versus stakeholder management (ESG)” as a key strategic choice.

The University of Firenze’s Banking Management course covers “sustainable finance in Europe; ethical banks; ethical banks vs commercial banks (a comparison of structures, growth and yields); responsible investing; green bonds, social bonds and impact bonds” as part of its curriculum, reflecting the growing importance of ESG in strategic bank management. The University of Genoa course also identifies “ESG” as a “megatrend and driver of change” in banking

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