Abstract
M.Comm.
The International Banking division of Absa has an administrative as well as a sales aspect
forming the basis of services delivered to the banking customer. For the administrative aspect
a risk management system along with audit methodology have been implemented whilst for
the Sales aspect no control procedure have been applied at all.
The purpose of this dissertation therefore was to put forward a risk management system which
could be applied to the International Services Marketing division of a Financial Institution
like Absa. This was achieved by performing a literature study of risk management applied in
the financial industry in order to identify relevant risks and relating it to the International
Banking division and its sales process to design an adequate risk management system.
The system was designed and implemented with relative ease although sceptism contrived to
some teething problems. However, in a joint effort to mitigate risk all obstacles in the
application of the system were removed, resulting in a successful risk and control analysis
being performed along with implementing risk management plans.
The system has been applied in the local as well as several African financial industries with
great success in mitigating risk relevant to the International Banking Sales divisions of the
financial institutions.
The emphasis is now on implementation in more developed (western) financial industries
where Absa has several subsidiaries as well as the design of audit methodology for the
relevant divisions.