Lloyds TSB Compliants

Another risk which must be considered is the credit speculation. This is where the expected cash flows and payments which have been borrowed out by the financial intermediaries have not been paid back. In the trade this is called bad debts, and it accounts for large changes in a companies balance sheets to show a lower profit and hence if they are a publicly limited company a drop in the share prices. An instance of this can be seen by the trading reports of Lloyds TSB in 2001 when they issued their accounts and market players could not tolerate the levels of bad debts, this is a typical example seen at the Lloyds TSB Complaints department typically with missold PPI.
which almost immediately was reflected in its share price. A way that this is avoided and managed is through screening and monitoring loan applications so that this percentage of bad debt is actually reduced.



Another type of risk is technological and operational. A firm definition has been placed on this type of risk by the Bank for International Settlement "The risk of direct or indirect loss following from inadequate or failed internal processes, people, and systems or from external events" (McGraw & Hill, 1997). This can be further broken down by saying that the technological risk is when the financial intermediary administer a new system to reduce costs by saving through economies of scales and when this new technology does not serve this purpose and when red tape or bureaucracy or disorganisation adds to this problem then the risks mount up, typically seen at Lloyds TSB Complaints for insurance missales in the last year.
Hence it is of up most importance that any system being completed in a financial intermediary is actually beneficial to the company.



Functional risks are when the technology mainstay systems may malfunction or breakdown. This means where financial intermediaries were trading using real time technology to manage liabilities and secure assets and investments as well as trading in futures and options will not be able to happen due to this breakdown of services which is a real concern and a huge risk to the financial intermediary. This applies to the Lloyds TSB Complaints department. To manage these risks financial intermediaries outsource their technological sections to allow for minimal disruptions. Also backups of data and emergency overrides are in place to allow for such situation. Also the financial intermediaries keep updating and reconfiguring their software and hardware ability to make sure that they are ahead of the game and up to date.




The second way of controlling risk is by setting individual limits on traders so they do not have access to more money then they should have which may jeopardise the financial stability of the intermediary.


The resource allocation is the third way of managing risk; this is done by analysing the industry and looking at the areas which yield higher returns. After doing this resources can then be allocated into areas where there is a high yield and less risk and some of the resources can be allocated to areas where there is a high risk and high return. But hedging all your resources in one area and squandering it all like was done in Barings without the consent of management.