Japan faces a slay of new global conventions like Basel III and further complexities of the Japanese governments violent expansionary cost-effective policies that have absolutely affected the Japanese equity market returns, nevertheless, has also introduced greater ambiguity. Small transformations in pessimism or optimism view with regard to the overall economy have resulted to hasty and often huge risk on, risk off market movements (Hampton. J, 2009). After the global economic crisis in 2008, the Japanese service sector is speedily apprehending that the current era of regulation and improbability necessitates more refined risk management practices. Presented processes may be unable to manage the impending risks associated with momentous tragic market events, meet innovative regulation requirements and the escalating clients demands for better transparency and precision, or integrate developing market best standards and practices.
This topic best fits my educational field of specialization that encompasses Insurance and Enterprise Risk Management that outlays better innovative and regulatory standards to provide guidelines that effectively and appropriately could be significant to assess and support the slacking Botswana industry and government projects.
In Japan, the FSA (Financial Services Agency) conducts the regulatory power of financial institutions. The FSA advocates for the program of better regulation based on the view that enhancing charisma and competitiveness of Japans economic and capital markets and facilitating financial firms to grant high quality monetary services that conform with client requirements are key challenges for Japans economy and society (Hampton. J, 2009). The FSA chains the notion of the optimal combination of rules-based and principles-based supervisory approaches, (Lam, J. 2014), as one of the mainstays of better regulation scheme. Consequently it published the Principles in the Financial Services Industry in 2008.
Some of the principal laws and banking regulations set by the FSA to facilitate Risk Management comprise;
The Antimonopoly Act; that stipulates that no bank or corporation affianced in financial business may well hold not less than 5% of the outstanding stakes of a domestic corporation. That the fair trade business may grant immunity with prior approval when an acquisition of not less than 5% of shares doesnt prejudice fair competition based on the Acts guiding principles. Banks are given unconditional authorization to hold not less than 5% of shares of financial corporations.
The Anti Money Laundering And Counter-Terrorism Financing (AML/CTF) Laws; The Japanese Government has mandated Japanese financial societies, to identify and validate clients under the Act on Prevention of Transfer of Criminal Proceeds and the Foreign Exchange and Foreign Trade Act, as part of counter-techniques against money laundering tricks and the financing of terror campaign (Lam, J. 2014). Under these conditions, banks will classify and verify clients when they perform huge cash transactions and overseas remittances.
The Financial Instruments and Exchange Act; This Act provides a cross-sector scheme for client protection as regards financial mechanisms with strong venture characteristics (Wang.J, 2011). Rules of trade and solicitation for consumer protection have also been established through sectors, thereby the set of laws for shielding customers in transactions of fiscal instruments that are indirectly synchronized by the Act, for instance foreign exchange deposits.
The Deposit Insurance Act; Characterizes that deposits are cosseted in the case of a bank letdown. The other deposits, primarily time deposits, are protected up to an upper limit principal of 10 million yen interest per shareholder per financial organization inclusive, (Approaches to enterprise risk management, 2010).
The findings on this research are based on FIS adaptive that offers enterprise risk management solutions that enables financial institutions to proactively recognize and mitigate risk. With a vast history profoundly ingrained in the financial services segment, FIS attends to more than 14,000 institutions in over 110 nations (Wang.J, 2011). And recently conducted research and analysis on Japanese Sumitomo Mitsui Trust Bank on risk aversion and compliance thus offering appropriate analyses based on the research problem of Risk Management Processes in the Japanese service sector.
The core objective of this study is to keenly apprehend the Japanese economic sector processes and develop professional skills relevant in assessing enterprise risk compliance, aversion and management techniques proactive in analyzing and predicting future market trends and develop conformity with client demands with regard to financial services.
The research plan enable me improve and attaining greater skills in enterprise Risk management in financial service sector. This will facilitate high quality service provision to clients and banks that will see functionality and flexibility to assist in meeting the constantly evolving business and regulatory necessities. Advanced technology acquisition for the benefits of consultation and reporting enterprise-wide risk analyses to all domestic stakeholders in Botswana financial institutions, (Approaches to enterprise risk management, 2010).
In association with the Japanese institution, the acquired knowledge is of importance for purposes of compact advice to Botswana industry and government projects in asset management, hedge fund, insurance and other corporate sectors to facilitate and boost its developing economy and help the financial service sectors better understand the risks related to service management, compliance and aversion processes.
(2010). Approaches to enterprise risk management. London, Bloomsbury Information. https://books.google.com/books?isbn=1849300038
Hampton, J. J. (2009). Fundamentals of enterprise risk management: how top companies assess risk, manage exposures, and seize opportunities. New York, American Management Association. https://books.google.com/books?isbn=0814414931
Lam, J. (2014). Enterprise risk management: from incentives to controls. https://books.google.com/books?isbn=111841361X
Wang, J. (2011). Information systems and new applications in the service sector: models and methods. Hershey, Business Science Reference. https://books.google.com/books?isbn=1609601408 Bottom of Form
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