Bank Simulation

The simulation has been designed to create a banking environment that fully tests the strategic management capabilities of the participants. The ‘players’ are split into teams, with each team representing a competing bank.

Each bank will have to respond to changing economic environments. They will be forced to respond to market forces and will have to access their impact. They will face fierce competition and will have to manage their organisation through difficult market conditions.

The objectives can be summarised as follows:

 - Make the participants  “Live” the Management of a Bank

 - Manage Conflicts between Profit, Liquidity, Security and Growth

 - Manage their Objectives through Pricing, Intermediation and Off-Balance Activities

 - Manage Consistency and Balance between  Financial, Marketing and HR Decisions

 - Develop Strategic Planning covering :    Growth, Structure & Cost

The simulation will run through five successive Decision Periods with each comprising the following steps: 

   Decisions        Simulation      Adjustment        Simulation         Analysis

To cover the full banking remit, participants will be engaged and tested in the following areas:

 - Strategy

 - Mission Statement

 - Objectives

 - Performance Analysis

- Risk Management

 - Risk / Return

 - Allocation of Capital

 - Risk Mitigation : - Selection of Risk Profiles

 - Diversification

 - Value at Risk

 - Futures & Swaps

- ALM Techniques

 - Gap Management

 - Duration

 - Net Present Value

- Marketing

 - Customer Care / Prospection

 - Promotion / Publicity /  Seminars

- HR Management

 - Quality of Staff / Training

 - Workload / Stress Management.

 - Salary Management

At the end of the simulation, each ‘bank’ will have to present to their shareholders an assessment of their strategy and a forecast of their performance with a view to gaining a mandate for their continuing management.