The SMP addresses key strategic developments in the finance industry, focusing on three distinct themes:
- Developments in finance which lead to new products and services
- New managerial approaches to producing and delivering these services
- Developments in technology that underpin the implementation of these new approaches
On one hand, the SMP explores the critical finance concepts driving new products and services pitched at a level that is appropriate for non-specialist managers. On the other hand, the SMP addresses managerial responses to the production and delivery of modern financial services.
Core topics in banking
Taking as its basis the strategic upheavals confronting private banking today, this topic deals with financial planning and estate planning, as well as new management challenges arising from regulatory developments.-
- Be familiar with the major emerging trends in Private Banking, be aware of the most important strategic options available, and develop clear insights into the reasoning behind the strategic responses chosen by industry players.
Commercial Banking Services
This module provides a wide-ranging overview of international and national developments in the commercial banking industry and discusses various aspects of lending to institutional, corporate, and private clients. Topics covered include current practices in rating analysis, loan pricing, credit risk management and credit workout, as well as related aspects of corporate governance. Special attention will be given to related trends in Eastern European credit and loan markets, and to the establishment of branch networks and the associated operational requirements.
- Obtain an overview over some key international developments in the commercial banking industry, with a special focus on developments in Eastern Europe.
Strategies in Retail Banking
This module will elaborate on the strategic challenges in financial services, with an emphasis on retail banking.
We will discuss the key strategic challenges in Retail Banking in today's (post) crisis market environment and provide the bases for an effective strategic change management going forward.
- To know the strategic imperative of customer value creation, developing winning value propositions and customer segmentation strategies.
We will discuss the key strategic challenges in Retail Banking in today’s (post)crisis market environment and provide the basis for an effective strategic change management going forward.
Operations / Logistics
This module covers the the operations, sourcing, and technology aspects of banking. With increased emphasis on new business models, costs, and efficiencies, the old idea of "the back office" becomes dated. Senior banking leaders aspiring to general management positions need to consider the "logistics" of banking in their overall thinking. This sub-course provides balanced inputs from both practitioners and academics to this end.
- Know the current trends and be familiar with the major challenges
- Be aware of the organizational and operational choices, and the interaction between front and back offices
- Gain an overview of the appropriate IT strategies to it it all work.
A close look will be taken at modern portfolio management. The course will begin by looking at the issues surrounding strategic asset allocation, and by considering the role that tactical asset allocation can play in multi-asset portfolios. To reinforce the learning, participants will have a chance to pit their wits against a computer model of financial markets as they play the Tactical Asset Allocation game. Then managing a multi-asset class portfolio against liability benchmarks will be considered; this approach is known as Liability Driven Investment. The academic evidence that fund managers can produce alpha, and the exploration of some relatively simple investment strategies that do seem to produce alpha over time are discussed.
- To provide a thorough understanding of the challenges involved in managing multi-asset class portfolios, in integrating client liabilities, and choosing a fund manager.
This part of the course deals with the fundamental aspects of finance and investment management (Corporate Finance) in the context of investment banking. Alongside a focus on the function and structure of capital markets and the development of stock markets, the main points to be dealt with are corporate valuation and in particular the discounted cash-flow method, shareholder value, mergers and acquisitions, IPOs, private equity, and structured products.
- Understand current corporate finance concepts and be familiar with key trends in the investment banking market
Competitive Strategy, Global Financial Markets
Topics here include the basic developments in global financial markets. They form the framework within which every financial institution must define its strategies. Hence, both opportunities and threats of the global environment are to be weighed against the banking system’s strengths and weaknesses. There will be special focus on coordinated strategic planning processes that tie the individual business areas of a bank together.
- Develop a well structured view of financial intermediation from a functional perspective
- Consider the role of disintermediated financial flows and the shadow banking system
- Create a perspective on the recent financial crisis and its consequences
- Assess the new global financial and regulatory architecture from a strategic perspective
- Distinguish between successful and unsuccessful financial firms in terms of performance metrics
An overview of strategic management is given. The process of developing a corporate strategy is explained. The steps of the process are applied to case studies. The process of developing a business strategy is briefly discussed.
- Gain an overview of strategic management. Know how to develop a corporate strategy.
- Get a first idea of how to develop a business strategy.
- Discuss current issues in the banking industry.
The enormous importance of interlinking risk management within banks is now well appreciated. The main issues here will be the diverse risks facing banks in a globalized world, with a focus on current solutions offered by practitioners and academics alike.
- Know the key risk aspects, and understand how selected risk management models are applied to manage these risks in today’s environment
A banking simulation allows participants to apply the knowledge acquired through the program. The focus is on asset & liability management, Basel 3, and long-term value creation.
- Deepen the understanding of asset and liability management, and develop insights into the interdependencies of decisions made in different areas of banking.
The module addresses two related topics. The first concerns providing management with information about what things cost and which bits are profitable. Financial institutions are people and technology intensive; working out where all these resources are going is an important and non-trivial task. The second topic focuses on approaches to performance measurement that combine strategy implementation and operational efficiency.
- Enhance participants’ abilities to understand the limitations of financial information they receive and to ‘clean’ the data before making decisions.
- Stimulate an awareness of desirable characteristics of systems for reporting and performance evaluation that align incentives and motivate behaviors.