Controlling
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of 'controlling' as a management function in banking?
Controlling ensures that organizational activities conform to planned objectives by measuring actual performance against standards and taking corrective action where deviations occur.
What is the purpose of a control chart in monitoring banking process performance?
To track process variation and detect abnormal deviations over time.
What are the key steps in the controlling process followed in banking institutions?
The controlling process involves setting performance standards, measuring actual performance, comparing performance against standards, and taking corrective action to bridge any gaps.
What is the meaning of 'benchmark control' in performance management of banks?
Comparing actual performance against industry best-practice standards.
What is a Management Information System (MIS) and why is it critical for controlling in banks?
MIS is a structured system that collects, processes, and disseminates information to management for decision-making; in banks it enables timely monitoring of financial performance, risk exposures, and regulatory compliance.
What is 'real-time control' in the context of core banking systems?
Immediate monitoring and correction of transactions as they occur.
What is meant by 'concurrent control' in the context of bank operations?
Concurrent control refers to real-time monitoring of banking activities as they occur, such as intra-day liquidity monitoring or transaction surveillance, to detect and correct deviations immediately.
What is a compliance audit and how does it differ from a financial audit in banks?
Compliance audit checks regulatory adherence; financial audit verifies accounts accuracy.
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