Balanced Scorecard

Balanced Scorecard is associated with the strategy of the bank, which is a prerequisite for the formation of RIBSC. The strategy defines the objectives, which are identified for each perspective. The philosophy of the objectives is influenced by external and internal changes in the bank's activities, as well as on the basis of balancing the interests of shareholders, customers, employees, etc., which may conflict with each other. For example, the main objective of shareholders is to provide added value, while the priority goal of the entire banking system is to ensure stability and reliability of the banks. In determining the objectives must be based on the fact that they are interpreted both quantitatively and qualitatively, and are formulated according to the characteristics of the bank. For example, to enhance the development bank, whose business is based on several key clients, you must define the objective of enhancing its customer base, reduce the level of client dependency. Another bank receives a steady income in the market for servicing retail customers, but due to increased competition gradually losing share in this market segment, in the long term can lead to a reduction in yield. In this situation, the bank needs to focus its strategy on diversification of activities. The choice of objectives and ranking them by priority depends on the capacity of the bank (the availability of capital, resource base, human resources, information and technological support), as well as their degree of compliance with its balanced development. Objectives are formed at all levels of bank management and in the future dezagreguyutsya down (in terms of implementation, software resources, units, etc.). Thus, long-term goal of introduction of new banking products comply with short-term goals such as technology development to provide a new and separate product, the active conduct of its advertising, pricing, and identify target customers and distribution channels for new product. Topic: Analysis of Controlling | Tags: financial and banking system