Please help with an assessment how the article relates to the financial management of a company. By answering the following questions
1. What is the author's focus?
2. What points is the author making?
3. How does the authors points apply to financial management?
4. Explain the process of financial forecasting and is it done?
5. What is the author's conclusion, findings or recommendation?
Bank to investigate its handling of financial crash: Forecasting and liquidity policy to be scrutinised 'Not what is needed,' says select committee chair
Treanor, Jill; Inman, Phillip. The Guardian [London (UK)] 22 May 2012: 23.
The author's focus is on the financial crisis in England at roughly the same time we in the USA were experiencing our own financial issues. They seem to be very similar in nature. It appears that the author is highlighting the fact that there was a crisis with liquidity (not enough cash available), and with forecasting financial trends, such as inflation.
Points the author is making includes:
- Bank of England needs to submit to sweeping reforms in light of the issues surrounding the financial crisis in 2008-2009
- the reforms deal with two main areas --- liquidity (the way it has been provided and the policy surrounding how that process should work in the future) and forecasting, which apparently has failed to predict inflation with some degree of accuracy
- recommending a supervisory or over sight board to determine what internal and external factors need to be considered in order to prevent ...
This is a review of an article dealing with banking in England and how it relates to special reforms which the author is suggesting. It has real similarities to the financial crisis in the USA, and bears special over sight to insure compliance and accuracy in attempting to predict future financial behavior.