Operational Risk Assesement Tools for Quality Management in Banking Services

Among all the different types of risks that can affect financial companies, the operational risk can be the most devastating and the most difficult to anticipate. The management of operational risk is a key component of financial and risk management discipline that drives net income results, 2capital management and customer satisfaction. The present paper contains a statistical analysis in order to determine the number of operational errors as quality based services determinants, depending on the number of transactions performed at the branch unit level. Regression model applied to a sample of 418 branches of a major Romanian bank is used to guide the decision taken by the bank, consistent with its priorities of minimizing the risk and enlarging the customer base ensuring high quality services. The analyisis reveals that the model can predict the quality of the transactions based on the number of operational errors. Under Basel II, this could be a very helpful instrument for banks in order to adjust the capital requirement to the losses due to operational errors, predicted by the model.quality management, operational risk, banking services, binary regression model

Customer relationship management

After 17 years of economical and market development, Romanian companies face a new challenge: the tough competition from the European Union and the battle for the customers. The Romanian enterprises will have to learn not only how to attract customers, but also how to keep them. Marketing programs include now aspects regarding customer orientation, relationship management, loyalty and quality. In this paper, we will follow the main aspects, characteristics, dimensions and processes of Customer Relationship Management, and we will analyze the challenges that the local companies will have to face. Examples from the financial service sector will round the actual situation of the implementation of the CRM rules and principles in Romania.marketing information system, customer relationship management, business asset, customer acquisition, customer retention

Strategies for regional sustainable development in South-West Oltenia

The paper analyses the relationship between sustainable development, regionalism and strategic orientation in one of the least developed Romanian regions, South-West Oltenia. Based on a questionnaire filled in by a sample of managers from the region, the perception on business strengths and weaknesses, as well as the assessment of the external environment were investigated, and paralleled with the main causes of underdevelopment, as identified by the respective managers. The conclusions of the study give a plausible picture of the level of development, interrelated with the quality of business strategies in the region, and ask for a comparative analysis of more Romanian regions, having various development levels.sustainable development, regional planning, strategic management, South-West Oltenia.

Taxonomies of Organizational Knowledge

The paper systematizes organizational knowledge, starting from the classical dichotomy of tacit and explicit, and outlining the importance of these taxonomies, which may seem reductive, in properly understanding the nature of organizational knowledge and operating with it in business.organizational knowledge, classifications, knowledge transfer

The Relationship Between University Research And The Marketability Of Universities

As universities are presently involved in a world-wide competition for students, and, implicitly, for markets in which to sell their services, the issue of the advantages research brings, transformed in market share increase, becomes an issue for university management. The paper examines, comparatively, the profitability of basic and applied research in terms of strengthening the market position of a university actively involved in one type of research or in both at a time. Well developed indicators to measure the relationship between research activity and prestige, on the one hand, social capital, on the other, and we will correlate these two research outcomes with the university market share and competitive advantage. The interest a university has to invest in its research activities has a market feedback, which provides a sense of involvement for practical reasons, and that goes beyond the bare purpose of reporting results .entrepreneurial university, performance ratios, basic and applied research

Changes And New Constraints In The Competition Rules Enforcement Due To Accession: The Perception Of The Romanian Companies

Many times, in the attempt to win or to maintain an advantageous position on the market, the economic agent will use a whole arsenal of practices (inclusively and mostly from the marketing field), most of them anticompetitive, with a negative impact on the business environment, which also affects the well-being of the consumer. The policy in the field of competition is the one that defines these types of behaviour and penalizes them depending on the importance of their negative impact, by creating a complex and coherent legislative and institutional mechanism. The right enforcement of the competition policy at the national level is the key in this process, but this should be coordinated with the regional and international objectives and regulations in this field. Romania is facing a double challenge: on the one side, it had to set up a competition policy, which was almost ignored before the’90s, on the other side, it had to comply, recently, with high standards in the field, as an EU candidate. Now, as a member state, the promotion of a competition culture becomes a must, along with the design of an adequate system of information and knowledge dissemination for all of those involved. The paper is based on a original and qualitative research and aims at emphasising the increased necessity of the promotion of a competition culture for the competitiveness of the Romanian business environment on the European level in the new context of accession. This will help Romanian business to face the competition challenges within a more extended single European market, as an essential issue of the free market economy status recently granted, and accordingly to the most important EU objectives set up at Lisabon to become the most competitive economy in the world up to 2010

Competition Challenges for Romanian Business Environment in the Context of EU Adhesion

For an economic agent, competition represents a mobilizing factor which determines him to adapt to the requests of the business environment and in the same time to make a progress. Being an undisputable factor of progress, the competition must be recognized, understood and mostly, maintained in the limits of fair-play. Ignoring the competitors, the lack of competitive strategy and not knowing the law and the regulations in the field can lead not only to the elimination of the companies from the market (even if they are competitive), but mostly to the damage of the business environment, which, as a last resort, will contribute to the failure at the economic level. The companies must realize that the liberalization of the markets, the deregulation and the privatization process in all the economic fields, and the globalization and regionalization phenomenon may be beneficial at the company and the society level only if their implications are known and realized enough in order to take all the precautions needed.competition, anti-competitive practices, business environment, EU integration.

Indexes of Regional Economic Growth in Post-Accession Romania

The European Cohesion Policy is designed to yield concrete results, furthering economic and social cohesion and reducing gaps between development levels in the various regions. Considering the context of the early post-accession period, posing significant challenges to regional development in Romania, we have investigated, based on three indexes that we advance in the methodological section, the pace of development, comparatively, in the eight development regions of Romania. The results of the study, further presented, can serve as a basis for more detailed empirical investigation of the phenomena theoretically approached in this paper.cohesion, regional development, integration, intellectual capital

Models Of The Intra-Regional Trade Influence On Economic Sustainable Development In Romania

This paper estimates the impact of trade between Romania and EU (export and imports) on sustainable development (defined through the following ratios: GDP growth and employment level) using dynamic forecasting and vector auto-regression (VAR) methods. Logistic regression forecasts the evolution of the GDP based on the evolution of exports and imports in the light of the Lisbon agenda, and the time horizon of 2010. Using data regarding intra-regional trade, the model may predict the GDP evolution, and, consequently, the economic sustainable development in Romania, as a new member of European Union.sustainable development intra-regional trade, economic integration, regression, model

Credit analysis policies in construction project finance

This paper aims to illustrate a revolutionary approach to bank financing of extensive investment projects developed by major corporations. The new approach pertains to corporate banking and is applied to corporate projects developed by special purpose vehicles. The theoretical framework highlights general aspects of project finance and of construction projects management in general, with special focus on residential constructions. The second part adds to the theoretical structure the example of a project finance policy implemented by a Romanian subsidiary of a foreign bank and places the emphasis on the credit analysis in case of residential construction projects. The final objective of the paper is to bridge the corporate banking field with project finance, regarded as a banking field of its own, in line with the vision of the bank subject to this article.credit analysis, project finance, banking institutions.