Strategic Risk Decisions

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I want to analyse Citi Bank Strategic Risk through below 7 key risk indicator:

1) Prudency of the strategic decisions according to its size and complexity

The correlation between size and complexity of the bank and strategic decisions is not important according to research that has found that the prudency of decision making is not contingent upon the size or complexity of any bank. The view that complexity is associated with the size of the bank doesn't dictate the bank has to operate in accordance to the normal Wall-Street model as large banks have the autonomy to operate in a strategic fashion that is more in accordance to Main Street banks if they are capable of ensuring that their core functions are addressed. Citibank, which has forgone the notion that it can compete with the retail business markets and SME's of larger banks that have much wider networks throughout the geographical regions that the bank competes with these larger competitors, has chosen to leave this market and primarily focus on customers that are middle and top-end corporate clients.

Despite being one of the six largest banks, the bank has chosen to shed $700 Billion in noncore assets while also divesting from over 60 Noncore business lines. This has been in response to the new regulatory regime that exists wherein the organization has to focus on its core constituency, which consists of middle and top-end corporate clients. In essence the fallacy that has been promulgated that the complexity of the organization dictates the operating model is not correct, and Chase actually loans the primary amount to individuals and commercial borrowers who comprise over 52% of the company's assets. Therefore, the Citibank model is predicated upon a simplistic business model that more resembles Main Street than Wall Street despite the fact that the bank is one of the sixth largest banks in the world.

http://www.americanbanker.com/bankthink/complexity-not-size-determines-banks-risk-to-financial-system-1073143-1.html

2) Citi Bank's responsiveness to changes in the environment

The bank has been capable of responding to the rapid changes in the market as well as within the organizational environment by ensuring that it hires leaders, managers, and administrators that are able to possess measurable skills while also being knowledgeable about the banking industry to the extent that these leaders are able to lead their banking institutions by building talents and teams to create a culture that is transparent. By collaborating with the necessary stakeholders, the organization has been able to inspire and empower ...