Organisational (Re)alignment

Bogie Ozdemir

The tough macroeconomic environment combined with demanding regulatory changes are constraining capital and exerting a lot of pressure on ROE. In the previous chapters, we have discussed how banks and insurance companies, in response to these pressures, can re-engineer their capital, business-mix and performance management processes to enhance their ROE. In this chapter, we will discuss the necessary organisational re-alignments to support these processes.

We will first look at the evolving role of the corporate functions. Due to their elevated position, corporate functions need to play a critical role in ensuring consistency across the enterprise while capturing synergies among the different lines of business. In the pursuit of a common goal, corporate functions assume a pivotal role in performing enterprise-wide optimisation exercises that integrate such effects across different businesses and geographic regions of operation. It will be necessary for enterprise functions to set the course for the flotilla and ensure synchronised movement in the stormy seas of the increasingly competitive business environment.

We will examine the new partnership among the risk, finance and