Research On Training And Skill Development Prepared By Syeda Fatima Sarah Bukahri Syeda Rabia Imtiaz Furqan Tariq

Mehmood Babar Supervisor MR. Raza H Syed November 26, 2007 Report Submitted To BAHRIA UNIVERSITY MANAGEMENT SCIENCES DEPARTMENT

LETTER OF TRANSMITTAL

November 26,2007 Mr.Raza H Syed Project Supervisor Bahria University, Management Sciences Department.

Dear Sir, We are submitting the final project report on Training and Skill Development. The report includes problem statement and a brief literature survey. The theoretical framework is developed, based on the focus groups discussions. Recommendations.

We are grateful for your guidance and supervision without which this assignment could have not been completed.

Yours Sincerely,

Furqan Tariq Babar. Syeda Fatima Sarah Bukahri. Syeda Rabia Imtiaz.

LETTER OF AUTHORIZATION

November 26,2007 Furqan Tariq Babar. Syeda Fatima Sarah Bukhari. Syeda Rabia Imtiaz.

Please refer to your initial proposal for undertaking the study on Training and Skill Development. In the view of subsequent meetings and discussions, the initial proposal was finalized. Kindly initiate the study on the finalized Terms of Reference. (TOR)

Mr. Raza H Syed Supervisor.

ACKNOWLEDGEMENT

We are gratified to ALLAH, the most beneficial, who gave us the strength and will to overcome the obstacles surfaced during the completion of this project. Making a report of this stature could not be possible without the grace of ALLAH and continuous support of parents and respective teachers. We feel exceptional warmth and gratitude in extending our appreciation for sincere and benevolent guidance and patronage of the report to Mr.Raza H Syed, our project instructor. Last but not the least; we would render great thanks to our families and others who in one way or other co-operated with us over the course of our research.

TABLE OF CONTENTS Title Page................................................................................................1 Letter of Transmittal.................................................................................2 Letter of Authorization..............................................................................3 Acknowledgement....................................................................................4 Table of Contents.....................................................................................5 Abstract and introduction..........................................................................6 Objective of study, Problem Statement, Methodology, Structure ...................7 Training Methodology...............................................................................10 State Bank Of Pakistan.............................................................................12 Training Program ( Environmental and Social Risk).......................................15 Introduction ...........................................................................................16 Occurrence of Environmental And Social Risk...............................................18 Group Environmental and Social Credit Risk Policy........................................21 Conclusion ...............................................................................................22 Training Program (Reputational Risk).. 23 Definition And Introduction .. ...23 Explanation .24 Procedures .. ....26 Why Reputational Risk is Important ...........................................................27 Occurrence of Reputational Risk.................................................................28 Managing Reputation Risk.........................................................................29 Your Role ( what is expected of you as a )...................................................32 Recommendations ...................................................................................35 Conclusion ..............................................................................................35

ABSTRACT

The focus of the study was to ascertain the Training and Skill Development. Based on the literature survey and focus group discussion the predictor variables were identified. These dimensions were how training is important, which organization is doing what, and the improvement after this Training and Skill Development. The variable of primary concern was employees Perception.

INTRODUCTION

In the world of globalization and regionalization, the scope or area of knowledge management, training and skill development is wide and the existing literature gives an endless number of definitions for knowledge management. Therefore, the first barriers that practitioners of knowledge management may have to overcome though is to define what knowledge management is all about and what it means to them and to their business. Therefore, we can assume that knowledge management depends to a large extent on the purpose for which they are intended, with that every organization has different approaches to their knowledge management, training and skill development. As the capability built into business processes that enables the company to apply and add to what it collectively knows and identify what it doesnt know. This will enable faster and better decision making, problem solving, and work operations to increase productivity and innovation. Thus, the success of a business or organization in the 90s was due to the increase in the market competition, training and skill development, which is much related to the quality of knowledge use in the organization. This can be observed through, the development of product that needs knowledge related to the

customers need, new science and technology, research and development, and marketing.
OBJECTIVE OF THE STUDY

The objective of the study was to ascertain the importance of the Training and Skill Development. PROBLEM STATEMENT What is the importance of training and skill development of the employees for the organization, and what the Standard Chartered Bank do for this purpose.

METHODOLOGY The methodology adopted for the subject study is briefly discussed below. POPULATION AND SAMPLE SIZE The employees of the Standard Chartered Bank Karachi main branch.

DATA COLLECTION METHOD Initially Primary and secondary data from different resources of standard chartered bank. An interviews and the questionnaire was given to the HR people the data were collected. STRUCTURE OF THE ORGANIZATION Standard Chartered PLC is listed on both the London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalization.

Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas. As one of the world's most international banks, Standard Chartered employs 60,000 people, representing over 90 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market. With strong organic growth supported by strategic alliances and acquisitions and driven by its strengths in the balance and diversity of its business, products, geography and people, Standard Chartered is well positioned in the emerging trade corridors of Asia, Africa and the Middle East. Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank combines deep local knowledge with global capability to offer a wide range of innovative products and services as well as awardwinning solutions. Trusted across its network for its standard of governance and corporate responsibility, Standard Chartered takes a long term view of the consequences of its actions to ensure that the Bank builds a sustainable business through social inclusion, environmental protection and good governance. Standard Chartered is also committed to all its stakeholders by living its values in its approach towards managing its people, exceeding expectations of its customers, making a difference in communities and working with regulators. Standard Chartered Bank (Pakistan) Limited - A locally embedded international bank

Standard Chartered is the largest international Bank in Pakistan. The Bank has been operating in Pakistan for over 140 years when it first established its operations in 1863 in Karachi. After the acquisition of Union Bank in September 2006, the new entity Standard Chartered Bank (Pakistan) Limited was incorporated in Pakistan on 30 December 2006 as a subsidiary of Standard Chartered PLC. The bank (as of September 5, 2007) has a network of over 127 branches across 22 cities in Pakistan. Standard Chartered employs a workforce of over 9,000 employees in its Pakistan operations. Our success is built on our ability to provide you with superior, differentiated financial solutions. This has propelled us to become market leaders in Pakistan. By continuously assessing your needs, we have been able to introduce innovative new products and channels. What sets us apart from our competitors is the premium we place on service excellence. Our rigorous recruitment and training standards ensure that our staff is able to cater to your most complex financial requirements. Central to this service philosophy is the consultative approach we take with each customer. By getting to know you better, we can identify your needs and match them with tailor-made product and service solutions. To put it simply, we are committed to making today's complex financial world easier for you. Consumer Banking: We provide Mortgages, Credit Cards, Personal Loans, Auto Loans, Islamic Banking, and Wealth Management products. In order to maximize customer convenience, we offer 24-hour Phone Banking, e-Statements, SMS Banking, ATM Cards and VISA Debit Cards, as well as Online Banking and state of the art branches.

Wholesale Banking: Wholesale banking provides Transactional banking, Debt Capital Markets, Corporate Finance, Derivatives & Fx Options, Commodity Finance and deposit products.

Training Methodology The methodology adopted by the NIBAF and Training Department is a mix of instructional and group process of learning. Use of overhead projector/multi media in the lecture/presentations coupled with real life simulations ensures high retention and easy grasp of the training programmes by the participants.

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Modular Programmes Extensive and broad based modular programmes have been designed in the areas of Applied Accounting, Commercial Banking, Economic and monetary management, Foreign Exchange and liability management and Banking Supervision. The programmes are held at NIBAF as well as Karachi to provide maximum opportunity of learning in the core areas of central banking. Design and Development of Training Programmes The Design and Development of training material of standardized nature is the area where the training management team at NIBAF and Islamabad is constantly involved. The contents of training programmes, their coverage and level, sequencing and progression are carefully considered and charted out. At present standardized training programmes for SBOT and Joint Directors have designed and developed with the help of core staff. These are well appreciated by the participants and leading institutions in the country. The NIBAF and Training Department both are aiming to develop their own training material. So far the institute has developed training handbooks on Banking Supervision, Debt Management, Pakistan Economy, Accounting, Commercial Banking, Auditing, Money Market operations, and other areas of Central Banking. Foreign Training Foreign Training in SBP is fairly limited involving occasional participation of SBP staff on overseas training program as and when the invitations come. Recently training in Banking Supervision has been arranged under the aegis of World Bank through Arthur Andersen. SBP is also exploring into possibility of training in financial market operations with IMF, World Bank, training arrangements with Bank Negara Malaysia.

A Foreign Training Selection Committee has been constituted under the chairmanship of DG-I and comprises ED (Training), ED (HRD), Director General NIBAF, ED (concerned of said training course), and subject specialist. The Committee hold its regular meeting for selection of and short list of candidates nominated for the Foreign Training. Training Department at State Bank of Pakistan has now been revived with prime responsibilities as under: The Training Department will formulate and implement the Banks Training policies and undertake costing, budgeting and approval. Implementation of training at the Central Directorate and if needed its design and delivery. Provide the Administrative support to NIBAF at the Central Directorate in the major areas needed by NIBAF. Ensure installation, operation and management of Database at NIBAF.

Interface with NIBAF concerning all matters related to SBP team of trainers.

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The role of Training Department is also envisaged in the Training polices and programmes (TPP) of the State bank of Pakistan duly approved by the Board. The department will act as policy facilitating, monitoring and coordinating department with no operational responsibilities. NIBAF will be the operational arm of SBP for training, responsible for design, delivery, development and evaluation of training. NIBAF will handle and organize the training at Central Directorate also The Banks current training programmes are launched at Central Directorate (CD) Karachi also. Considering the training needs of Banks core departments the training programmes have been designed and offered to CD based officers in the areas of Banking Supervision, Applied Accounting, Commercial Banking and Communication Skills. These courses are offered at regular intervals and provide a good opportunity to officers to upgrade their skills and update themselves with the pace of changes in areas of banking. Location Presently the department is temporarily housed at his old premises situated at Shahrah Kamal Ataturk Karachi, which is almost in the center of the City. However a very attractive refurbishing plan has been approved for shifting of department to a fully air-conditioned building at North Nazimabad office. The new premises will contain modern training rooms, teaching aids, syndicate rooms and well-equipped laboratory of Information technology to conduct IT based courses. State Bank of Pakistan Location National Institute of Banking and Finance is also referred as State Bank Training Institute (SBTI) NIBAF Islamabad .It is situated at Sector H 8 Pittras Bukahri Road near Zero Point. Government offices at Islamabad are situated at a distance of 6/7 kilometers from the institute. The sector H is famous for educational and vocational institutions and offices. The institute provides the residential facilities equivalent to four-star hotel. The Public transport is easily available while other facilities like telephone, postal services; hospitals are located quite close to institute.

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Facilities Available

All major training activities /courses and State Bank s Training Programmes are held at NIBAF. The institute has a modern complex constructed on a plot of land measuring 2.5 acres, having academic and hostel blocks. The Academic block of the institute is well equipped with all latest state of all audio visual aids & a computer laboratory. The spacious training rooms, Auditorium, and Syndicate rooms are suitable for any type of training program /courses. The library of the institute contains a rich collection of books, banking journals and periodicals besides providing a client and congenial atmosphere for all the participants to get benefit of learning. The Publication Wing housed in the Academic Block provides all sort of published material which includes course books, reading material, photocopies, arranging of training material, hand books of training and other publications of NIBAF to the trainees, participants, trainers, training managers and other senior officials from SBP and other institutions as well. It is also equipped with modern, electronic equipment for scanning, typing, word processing of documents, Internet exploring etc. NIBAF is now regarded as an institution of excellence in the area of training of Banking & Finance in Pakistan. The top international institutions like IMF; Bank Negra Malaysia has appreciated NIBAF for its arrangements. Functional and Organizational Set Up

The institute now has it own in house capacity to organize the design, development and review of relevant training programmes for both domestic and foreign institutions in the field of banking and finance. The institute has conducted a number of training programmes, which are State Bank Officers Training (SBOT) (For new inductees at OG II level) Joint Directors Training Program Research Officers Training Program International Courses on Central and Commercial banking

TRAINING:

Strong economic growth has not translated into a recovery in the Training rate. The percent surge has been a response to employers

hitting the wall. DEVELOPMENT: One third of manufacturers have not identified strategies to

improve their businesses and these are predominantly businesses with less

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than 25 employees. This makes them highly vulnerable in a market of dynamic change. 1. 2. To grow manufacturing by building the skills and capabilities of workers employed within the industry. To increase the focus of the training system from entry level to up skilling and re-skilling existing adult workers.

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THE

TRAINING PROGRAMS:-

ENVIRONMENT AND SOCIAL RISKS

OVERVIEW OBJECTIVES:

In this training, the trainees will learn what SEE Risks are, how these risks are related to lending and why the recognition of Environmental and Social risks is important to Standard Chartered. At the completion of this training the trainees should be able to: Explain why knowledge of Environment and Social risks is important to Standard Chartered Bank. Define SEE Risks. Explain where Environmental and Social risks fit into the Risk Map. Describe the external influences and pressures on Standard Chartered Bank with regard to Environmental and Social issues.

BACKGROUND:

In this Training, the trainees get a brief introduction to the relationship between the Banking, Environmental and Social issues. The training entails that whats banking got to do with the Environment? Growing concerns about the Environment and broader sustainability issues have contributed to a major shift in public expectations about the role of Corporations and Financial Institutions in society. Shareholders and investors are increasingly focusing on aspects of Environmental and Social Risks which might have an impact on the bottom line.

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Whereas in the past, Environmental and Social issues have mainly been a focus for industrial companies, increasingly the financial sectors responsibility in funding environmentally socially sensitive business has been called to questions. Reputation Risk may arise for banks even in the absence of lender liability; particularly banks are seen as associated with large scale projects that are viewed as environmentally damaging. The Environmental and Social Risks that confront companies such as violation of the laws, responsibility for cleaning up contamination or laws of franchise and Brand reputation have an impact on the companys Cash Flow. This in return poses risks to the lender. These are risks but therere opportunities for new financing as Environmental issues become more important in business. The need for companies to invest in Environment friendly technology initiates financing opportunities. Environmental and Social issues are becoming important to customers both in terms of managing the risks as well as the costs. ENVIRONMENTAL AND SOCIAL ISSUES

OBJECTIVES: In this training, trainees will be introduced to a broader perspective on Environmental and Social issues. Trainees will also learn about the catalyst for bringing about heightened public awareness and Government action on such issues. At the completion of this training, the trainees are able to: Define what comprises environment. List the drivers for changing public opinion on Environment Corporate responsibility. Identify the main social issues that can impact the bank. State where the pressure for Social accountability comes from.

INTRODUCTION: This training provides the trainees, general information about this course.

ENVIRONMENTAL ISSUES: The environment which is surrounds us, includes air, water and land SOCIAL ISSUES: Clearly Social issues are more difficult to identify, Key social issues commonly cited are Child Labor, Working Hours and Working conditions. It is a risk to both the customers and suppliers especially to Multinational Companies and indirectly to Standard Chartered banking many of the markets in which Standard Chartered operates. Bank needs to be aware of the demands being placed on our customers by their multinational buyers.

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WORKING HOURS: 1. Comply with the applicable law but in any event, not more than 48 hours per week with at least one day off for every seven day period. 2. Voluntary overtime paid at a premium rate and not exceeds 12 hours per week on a regular basis. 3. Overtime may be mandatory if part of a collective bargaining agreement.

CHILD LABOR: 1. No workers under the age of 15, minimum lowered to 14 for countries operating under ILO convention 138 developing country exception.

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REMUNERATION: 1. Wages paid for a standard work week must meet the legal and industry standards and sufficient to meet the basic needs of workers and their families. 2. No disciplinary deductions.

FREEDOM

OF

ASSOCIATION:

1. Respect the right to form and join trade unions and bargain collectively. 2. Where law prohibits these freedoms, facilitate parallel means of association and bargaining. DISCIPLINE: 1. No corporal punishment, mental or physical coercion or verbal abuse. FORCED LABOR: 1. No forced labor including prison or debt bondage labor. 2. No lodging of deposit or identity papers by employers or outside recruiters. DISCRIMINATION: 1. No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation or age. 2. No sexual harassment.

HEALTH AND SAFETY: 1. Provide a safe and healthy work environment. 2. Take step to prevent injuries. 3. Regular health and safety worker training. 4. System to detect threats to health and safety. 5. Access to bathrooms and drinking water.

OCCURRENCE OF ENVIRONMENTAL AND SOCIAL RISKS: OBJECTIVES: In this training, trainer will learn about the types of Environmental and Social risks that banks are exposed to and how reputational risk can arise. Trainers will be also introduced to the Equator principles for project finance. At the completion of training, trainees are able to;

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Define direct and Indirect Risk. Provide examples of Direct and Indirect Risk. Explain the impact of Direct and indirect Risk on the bank.

Explain how Environmental and Social issues give rise to reputational risk. Briefly describe the background to the creation of the Equal Principles and their purpose. DIRECT RISK

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INDIRECT RISK

Indirect risk is the impact on the borrowers ability

to repay loans as a result of:

Environmental or Social cost or liabilities arising from the business operations. Non- compliances with environmental and social standards imposed by legislation or buyers. Subsequent loss of market share or position due to environmental and social issues. Indirect risk is far more likely to arise than direct risk. The most common reason why indirect arises: SUPPLY CHAIN PRESSURE Multinational companies are increasingly imposing their own environment and social standards on their suppliers in the emerging markets.

REPUTATIONAL RISK The Standard Chartered groups reputation is one of its most important assets. Standard Chartered Bank must ensure that they are seen to conduct business activities in a manner that is in line with regulatory requirements and expectations of all the stakeholders. Reputational risk arises as a result of problems occurring in one or more of the Primary Risks areas or from social, ethical or environmental risk issues. If all these are managed effectively, the chance of reputational risk occurring is considerably reduced. Broadly reputational risk from an environmental and social angle can arise from banks:

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1. INVOLVEMENT SENSITIVE:

IN

PROJECTS CONSIDERED ENVIRONMENTALLY

AND

SOCIALLY

Degree

of potential reputational risk in a project generally relates: The scale of the project The extent to which the environment is threatened. The degree of disturbance to nature

The impact on local people, intensity of NGO action and media coverage.
2. INVOLVEMENT
WITH COMPANIES OR COUNTRIES WHOSE ENVIRONMENTAL AND SOCIAL PRACTICES ARE UNACCEPTABLE. AND

GROUP ENVIRONMENTAL

SOCIAL CREDIT RISK POLICY

Many of these risks are indirect and arise from social, ethical or environmental standards imposed on customers by importance of their goods.

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All lending proposals will include consideration of environmental and social issues where appropriate. Risks associated with both environmental and social issues will be properly recognized, evaluated and where appropriate mitigated. All learning proposals will take into account internationally acceptable environmental and social standards or local laws where there are more stringent. The business (both whole sale and consumer bank) will ensure that appropriate procedures are designed to meet the policy requirement.

CONCLUSION At the end of this training program, the trainee is able to answer the following questions the trainee needs to ask or areas trainers needs to investigate when assessing environmental and social risk in lending What are the potential environmental and social sensitivities of the industry and its processors? What are the Raw Materials used? What is the industry sectors risk category?

Does the company follow international standards? Which ones?

What kind of pressure is the company susceptible to? Vendor Compliances? NGOs? Legislation? Where are the factories located? Are there environmentally sensitive areas nearby? What are the working conditions? Will commercial property be taken as security? Is the bank dealing with a major infrastructure project?

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SECOND TRAINING REPUTATIONAL

PROGRAM:-

RISK:-

GROUP REPUTATIONAL RISK POLICY DEFINITION Reputational Risk is the risk of failing to meet the standards of performance or behavior required or expected by stakeholders in commercial activities or the way in which business is conducted.

INTRODUCTION:MANAGEMENT
OF REPUTATIONAL RISK INVOLVES:

a) the identification and reporting of actions or events which could potentially lead to the Bank facing loss of reputation, either locally or internationally. b) the effective management of situations where an event which could lead to reputational risk has occurred. These procedures set out the requirements in relation to the following three elements of Reputational Risk Management. 1. ANTICIPATION: This is the key to managing potential reputational risks. This means considering reputation whenever a business decision is made whether it be new product launches, agreeing the provision of credit facilities or other actions with internal/external impacts. It also includes anticipating reputational risks in each of the support functions, and taking the appropriate steps to mitigate or avoid risks. 2. MONITORING AND REPORTING: This process is essential to ensure that: potential Reputational Risks are identified and they are assessed for impact strategies are in place to minimize potential impact risks are tracked and reported to the appropriate level of the Group 3. FAST TRACK REPORTING: Applies to events which have occurred and which could impact Standard Chartereds reputation, either in-country or at Group level. The process involves alerting the appropriate level of the Group promptly to give as much time as possible for steps to be taken to limit damage to our reputation. POLICY:The Group recognizes the need for proactive anticipation of all incidents that could lead to Reputational Risk, both locally and internationally, to monitor and manage

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such potential incidents once identified and to effectively manage any incidents once they have occurred in order to minimize the impact on the Bank. TO
ACHIEVE THIS WE WILL:

Identify possible sources / areas of reputational risk. consider the potential reputational

risk impact of all bank activities at the

outset.
put in place appropriate policies, procedures and structure to address. the various risk issues as and when they arise. encourage the reporting of all potential incidents at an early stage and provide mechanisms for rapid escalation to the appropriate level within the organization. ensure that all staff receive appropriate training on reputational risks.

THE

OVERRIDING PRINCIPLE IS THAT PROTECTION OF THE BANKS REPUTATION WILL TAKE PRIORITY OVER REVENUE GENERATION ACTIVITIES AT ALL TIMES.

EXPLANATION:The Group's reputation is one of its most important assets. The failure to identify and manage reputational risk issues can produce much larger impacts on the bank than might initially be expected. Such impacts can also occur very quickly. Potential impacts include: loss of customers. censure or fines from bank or other regulators. full or partial loss of a banking licenses. adverse comment in the local or international press. devaluation of the Group brand. inability to retain or attract good quality staff. a run on the bank. an adverse change in our bank credit rating.

In one way or another, all these factors will impact on the bottom line (through lost revenue opportunities or increased costs), affect our ability to meet customer needs or have adverse consequences for customer service. In an extreme situation the banks share price could be severely affected, thereby making the Bank vulnerable to take-over, or the bank could require regulatory support to survive due to a liquidity crisis. Reputational risk is not a primary risk. It will arise from the failure to effectively manage one or more of country, credit, liquidity, and market, and business, legal & regulatory and operational risk. It may also arise from the failure to comply with SEE (Social, Environmental and Ethical) standards. Sources of risk could be internal or external.

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SEE is the generic name given to the manner in which SCB addresses its impact on the community and the environment and the ethical standards we uphold in all aspects of our business. Our ethical standards embrace a wide range of issues from pollution to child labor and from corruption to human rights. It covers not only SCB's own internal policies and the direct impact of operations, but also SCB's indirect impact through external relationships with customers and suppliers. The potential causes of reputational risk are varied and can be either internal or external. More common sources include:

INTERNAL: failure to comply non-compliance with banking regulations or dealing codes with money laundering procedures non-compliance with legal requirements such as employment law and health and safety regulations or other requirements such as dealing codes breach of UK/US sanctions, including specified countries or undesirable people identified by key regulatory authorities non-compliance with banks own internal policies such as market or credit risk policies or limits, code of conduct and policies relating to social/ethical/environmental risks inaccurate press releases or Global Research articles unauthorized media comment by Bank staff

EXTERNAL: adverse legal judgments. launching new products. entering new markets. acquisitions. customer finance of hostile take-over. Complaints. doing business with companies engaged in business deemed to be socially unacceptable such as oppressive regimes, child labor, animal testing, defense equipment (armaments) or environmental damage.

Business proposals that have potential reputational risk should be referred to the appropriate risk committee for discussion and decision (refer to the Reputational Risk Procedures for committee details).

RESPONSIBILITY:All staff are responsible for the day to day identification and management of reputational risk. It is the duty of every SCB employee to consider the reputational impact of his or her actions. This must be considered at the outset of any course of action.

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Specific roles or responsibilities are assigned to: Chairman.

Group Chief Executive.

GEDs. Group Corporate Affairs. Group Legal. Group Compliance and Regulatory Risk. Group Risk. Group Function Heads. Business Risk. Regional Managers. Country CEO (overall responsibility in country). Country Manco members. Country Corporate Affairs. Country Business Heads. Country Function Heads.

All of these roles must have specific Reputational Risk responsibilities included in their job descriptions.

PROCEDURES:LINKAGES:Other policies of particular relevance are: Group Reputational Risk Procedures. Group Compliance Risk Policy. Group Operational Risk Manual. Group Contingency Planning Policy/Procedures. Money Laundering Policy and Standards. Business with Public Officials. Environmental and Social Risk Policy and Procedures. Defense Equipment Policy and Procedures. Code of Conduct.

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Reputation is one of the banks most important intangible assets. Building a good reputation takes a long time but losing that can happen overnight. The bank relies on its employees to guards its reputation. WHY
IS REPUTATION IMPORTANT?

Standard Chartered Reputation is the result of what Standard Chartered bank does, what it says and what its Stakeholders (employees, customers, communities, Government, regulators, media) say about the bank. What the say about the bank has a direct bearing on our Success or Failure.

Standard Chartered projects its brand in culture through advertising and communication with the Stakeholders. For this reason, there should not be any Credibility Gaps between what the bank projects and how it actually behaves.

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Standard Chartered reputation is one of the banks most important assets. Hence, the bank should strive to make plenty of deposits in the reputation bank with a limited number of withdrawals.

At Standard Chartered, Reputation risks learning course, the training will: Improve understanding of how the groups reputation contributes to Standard Chartered banks success.

Develop knowledge of how reputation risk occurs and how to manage it. Familiarize with the groups policy and procedures for managing reputation risks. Assess the knowledge and skills obtained through this training. OCCURANCE OF REPUTATION RISKS

WHAT

SHOULD BE DONE TO PREVENT IT?

Reputation Risks occur as a result of problems in one or more of the primary risk areas and the SEE (Social, environmental, Ethical) risks areas. If all of these risks are managed effectively, the chance of reputation risk is reduced.

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HOW DOES REPUTATION RISK OCCUR? Reputation risk usually occurs as a consequence of what the bank label as Issue, which can be external or internal.

MANAGING

REPUTATION RISKS

MANAGING REPUTATIONAL RISK Reputational Risk is the risk of failing to meet the standards of performance or behavior required or expected by stakeholders in commercial activities or the way in which business is conducted. KEY POINTS
OF

MANAGING REPUTATIONAL RISK

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ISSUES: All Reputational issues will need to be handled differently, but there are a number of actions which can be applied to most if not all situations. ALERT: Always alert the relevant people, including your line manger, as quickly as possible to potential Reputational Risk. This gives the Bank as much time as possible to minimize the potential damage. INVOLVE: Involve Corporate Affairs and other relevant functions such as legal and compliance very early on. They specialize in managing stakeholder relationships and theyre trained in handling Reputational issues. ESTABLISH: Establish the facts about the risk as quickly as possible. This sounds obvious but if youre under pressure, its very easy to jump to conclusions which may later turn out to be wrong and could compound the issue. ASSESS: Always assess potential damage in terms of how customers, employees, government, media, regulators, communities are likely to react. DO NOT: Do not communicate directly with external stakeholders like the media, unless you are an official spokesperson for the Bank on this issue, but channel these communications through Corporate Affairs. REFER: Refer to the Global Reputational Risk Policy for the principles and procedures to follow when managing Reputational Risk. GROUP REPUTATIONAL POLICY AT STANDARD CHARTERED The group has to adopt the following principles to anticipate and avoid or manage Reputational Risk: IDENTIFY possible sources of risk.

BE AWARE of the procedures for dealing with Reputational

Risk when they

arise, and implement them.

CONSIDER the potential Reputational impact when decisions are taken REPORT all potential issues as early as possible to your line manager or the appropriate person to allow maximum time for appropriate actions to be taken. ENSURE all staff receives appropriate training on Reputational Risk. ENSURE protection of the Banks reputation takes priority over revenue generation activities at all times.

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WHO

IS RESPONSIBLE FOR APPLYING THESE PRINCIPLES?

THE THREE THINGS THAT A TRAINEE IS EXPECTED TO DO AFTER TRAINING: You (the trainee) are expected to do 3 things: Anticipate any risk that you think may affect Banks reputation. Report Reputational Risk to your line manager and corporate officer. Fast rack issues that pose an imminent threat to Banks reputation.

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Group head of
Roles:- what is expected of you :-

Corporate Affairs

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Line manger or any other employee: You should read the groups policy and procedures available on SCy Bernet and Group risk data base on lotus notes on Reputational Risk. If there is any thing you are not sure about ask to your line manager, or corporate Affairs. You should always be mindful of the enormous values of the bank reputation has for our business. Bear this in mind when ever you take business decisions. If you think any aspect of your work might have a negative impact on the way we are perceived by our customers, our employees, the government, your community, our shareholders it is vital that you discuss the detail with

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your line manager and corporate Affaires as quickly as possible. You need to give the bank as much time as possible to respond to the issue. You should never speak to the media unless you are a bank spokesperson and even then, you must inform corporate Affairs.

Recommendations SKILLS: o o Skills shortages critical across an increasing number of occupations: The shortages reflect the strength of business activity as well as fundamental changes in composition. They have been made more acute by competition in national and regional labor markets from minerals and non-residential construction sectors. More skills are required at each occupational level as process and production workers now take on more of the maintenance and diagnostic skills once the domain of the tradesperson, and trades people take on higher post-trade skills that encroach on the skill of technicians and Para-professionals. 60% of firms identified skills acquisition as a strategy to remain competitive. Basic metals and transport equipment sectors are the most likely to spend on skills training. Smaller firms have less focus on skills acquisition. Increase spending existing on all forms of education and training. Assistance to develop business skills, including management skills. Up skilling workers (more highly skilled, flexible and adaptable skills base and strong communication and problem solving skills. Recognition of skills for existing workers that relate specifically to needs and requirements of industry sectors.

o o o o o

Conclusion:-Thus training and Skill development is very important for every person as well as the organization to achieve their objective and goals.

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