HR, Finance and Legal
- 02:21
HR, Finance and Legal
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Glossary
HR Legal Risk managementTranscript
The importance of human resource management has grown hugely over the past two decades, because of the nature of the banking industry, which is mainly service-based. This means attracting and retaining the right talent to fit the culture of the organization, and it's paramount to its success. The human resource department is responsible for finding such talent, and placing them in the right roles within the bank.
The finance infrastructure is tasked with producing and getting accurate financial information to the people that need it. This information is then used to make critical business decisions, that can have a huge impact on the organization. Examples of the information that is prepared includes, but certainly isn't limited to, financial reports of the performance of the organization for management, for investors, for regulators, and for tax authorities. Along with performance and other reporting information, they help value trading portfolios, which is done independently of the trading departments. They also help manage the firm's liabilities, provide information to investors, prepare presentations for conferences, and operate the investor relations unit.
Legal acts as advisors to the bank on all matters, including changes in legislation, new business types, activities in new jurisdictions, disputes with counterparties, and so on. The department is also responsible for preparation of legal agreements and formal bank documentation, and may also have responsibility for obtaining required customer documentation. Compliance sometimes operates as a joint department with legal. Compliance is responsible for ensuring that the bank operates in accordance with the rules and regulations stipulated by local regulators. This will necessitate regular reporting as required, to regulators, continuous monitoring of business activities, to ensure that no rules are breached, and enforcement of regulatory rules for authorization of personnel, et cetera.