Viable overall organizational structures that FDIC uses to operate Essay
Any viable organization arranges the positions that comprise its existence in order to accomplish its goals. This arrangement includes all the managerial levels in the hierarchy, as well as groupings of individuals and the systems to ensure effective communication, co-ordination and Integration of effort. It focuses on decision making authority of members made by few people usually at the top of an organization (FDIC, 2005, p 2). The FDIC will face many challenges due to the various changes that occur in the economy, the structure of the financial services industry and the technology that affects the financial institutions.
The lending and funding strategies of Insured depository institutions has continued to change due to the crucial changes that takes place in business cycles of other sectors of the economy (FDIC, 2005, pp. 1-23). Basic Form and Design The Federal Deposit Insurance Corporation (FDIC) is an agency which is independent and was created by the congress which maintains the stability and public confidence in the financial system of the nation by offering insurances to set downs, investigating and administering the finance organizations and also managing the receiverships.
The main vision of FDCI is to lead in developing and implementing the public policies, identifying and
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Competence of the workers will help them maintain their high skills, commitment and miscellaneous workforce. There is also team work which is a very vital value in ensuring that the workers cooperate with one another and also with other regulatory agencies in order for the mission of FDCI to be accomplished (FDIC, 2005, pp 1-23). Quick response and successful identification of risks in insured institutions of finance and the financial system at large is a value of effectiveness which is applicable in FDCI.
The Financial Stewardship value is applicable to FDCI, since the company acts as a responsible fiduciary, operates consistently in an effective and cost effective manner on behalf of the financial institutions and other stakeholders which are insured. The fairness value in FDCI is applied in such a way that all employees are treated, indemnifying of financial institutions, and other stakeholders with independence and reciprocated respect (FDIC, 2005, p 1).
The Cooperate Planning Process used by FDIC, provides guidance, and direction which are given by the senior management and urbanized with the efforts from the curriculum personnel. In the preparation of yearly plans presentations and financial plans, business obligations, commerce formation, human resources, technology and financial statistics are put into consideration. In FDIC there are factors which influence the arrangements and they include changes in the monetary service industry, assessment of programs, organization studies together with the preceding period performance.
The strategic goals and objectives of FDIC are communicated to its member of the staff via the interior communications (staff meetings & information sheets) and internet. FDIC programs of disburse and award/ acknowledgment, are well thought-out in order to reward the employee involvement to the accomplishments of the Corporations objectives of the strategy (FDIC, 2005, pp 1-23). There is an independent office (Office of Inspectorate General) which is within the FDIC which was established under the Inspectorate General Act of 1978.
The OIG promotes the efficiency, economy, effectiveness and integrity of FDIC activities and programs. Due to the formation, OIG developed a strategic plan which is meant to align with the strategic goals of FDIC together with its objectives and also has focus on adding value to FDIC activities and objectives (FDIC, 2005, pp 1-23). The strategic plan of FDIC is implemented through the plans of yearly performances. The aim of the plan is to identify the annual goals of presentation, pointers and the targets of each strategic intention.
The efforts of FDCI towards the accomplishment of its mission, is as a result of putting together the productivity and the targets of the landmark. Therefore, FDIC is committed to the development of meaningful procedures which are slanting. There are various FDCI stakeholders and employees who attended and gave comments on the draft strategic plan for 2005-2010. There was also a post of the strategic plan on the web site which was seeking the public comment for a period of one month which was of no contrary to the expressions of the stakeholders (FDIC, 2005, pp 1-23).
The Enterprise Risk Management office of FDCI is responsible of coordinating and giving reports on the evaluation of the programs of the cooperation. Therefore the role has no link with programs though the assessments of the curriculum are interdivisional, collaborative efforts and they involve the management and staff from the divisions and offices which are affected (FDIC, 2005, pp 1-23). Considerations for Centralization Changing structure of financial services
The structure of consolidating banking, commerce and insurance institutions, have lead to decreasing of the number of insured financial institutions over which FDIC is the primary supervisor. The coming of the new institutions is leading to decrease of the number of financial institutions under FDIC; this poses a challenge to its internal management since decreasing profits might be realized (FDIC, 2005, p 4). Regulatory requirements The company has put in place new regulatory requirements that are helping in the expansion of the supervisory responsibilities, hence increasing the focus on crucial issues.
The institution plans to lessen the supervisory requirements within some areas and add requirements regarding privacy and other issues. In conjunction with the Sarbanes-Oxley Act of 2003 focuses at new reporting, corporate governance, auditor independence including insured depository institutions which may affect the company because of the large financial penalties assessed against financial institutions for any failure to obey consumer compliance laws (FDIC, 2005, p 5) Insurance Program
The Institution should aspire to promote consumer awareness of the deposit insurance. This is done by the management through protection of the depositors at banks and all financial saving associations. This ensures that institution customers have access to their insured deposits and other services in time, incase the insured depository institutions fails. The company also engages in adequate review of the deposit insurance system, there is also the adjustment of the existing coverage levels in order to cope with the inflation rate.
They maintain a toll-free call center that enables effective and efficient contact with the consumers, hence gives a chance to educate them a bout deposit insurance coverage. This will create awareness and ensure that an informed generation is brought up (FDIC, 2005, p. 7). Supervision Program The FDIC performs its role as an insurer and as primary supervisor of all insured institutions. This leads to the maximum protection of the consumers rights hence FDIC can freely invest in different communities.
It has set examination program whereby the management practices and policies, financial condition are assessed to control and measure risks. This is done so as to help disclose the presence if any of the frauds and internal abuses. All the risks identified are discussed by the management board and appropriate action communicated through the publication of financial institutions letters or financial institution outreach programs (FDIC, 2005, p 12). Receivership management program This ensures that any present or future claims against receivership are satisfied in line with the available resources and applicable laws.
Incase of any anticipated failure by any institution FDIC gets accurate valuation of the institution through assessing its assets and liabilities. This will help in marketing the institution to the highest bidders (FDIC, 2005, p17) Management of Strategic resources The operational expenses are paid from the insurance funds while seeking to fulfill its responsibility to the funds. Rigorous planning and budgeting are done to ensure that resources are properly budgeted for, also the analysis of the spending are done on quarterly basis (FDIC, 2005, p.
20). Conclusion The FDIC Company gears towards high economic growth by incorporating the workable structures. It offers to the consumers through its policies fair lending programs, examination and investigation techniques, interpretations of the statute and regulations and case precedents. Its aim is to actually improve the consistency of capital regulations and make it more risk-sensitive and finally enhance management of resource practices. Reference FDIC, (2005). Strategic plan 2005 – 2010. Retrieved November 5th 2008 from http://www. fdic. gov. /