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This paper, based on case-studies with five universal banks from Europe and North America, aims to investigate which types of comprehensive risk measure (CRM) models are being used in the industry, the challenges being faced in implementation and how they are being currently rectified. Undoubtedly, CRM remains the most challenging and ambiguous measure applied to the correlation trading book. The turmoil surrounding the new regulatory framework boils down to the Basel Committee implementing a range of capital charges for market risk to promote “safer” banking in times of financial crisis. This report discusses current issues faced by global banks when complying with the complex set of financial rules imposed by Basel 2.5.

The current research project is based on in-depth, semi-structured interviews with five universal banks to explore the strides major banks are taking to introduce CRM modelling while complying with the new regulatory requirements.

There are three measures introduced by the Basel Committee to serve as capital charges for market risk: incremental risk charge; stressed value at risk and CRM. All of these regulatory-driven measures have met with strong criticism for their cumbersome nature and extremely high capital charges. Furthermore, with banks facing imminent implementation deadlines, all challenges surrounding CRM must be rectified. This paper provides some practical insights into how banks are finalising the new methodologies to comply with Basel 2.5.

The introduction of CRM and regulatory approval of new internal market risk models under Basel 2.5 has exerted strong pressure on global banks. The issues and computational challenges surrounding the implementation of CRM methodologies are currently fiercely debated among the affected banks. With little guidance from regulators, it remains very unclear how to implement, calculate and validate CRM in practice. To this end, a need for a study that sheds some light on practices with developing and computing CRM emerged. On submitting this paper to the journal, we have received news that JP Morgan is to pay four regulators $920 million as a result of a CRM-related scandal.

The purpose of this paper is to outline how banks are coping with the new regulatory challenges posed by stressed value at risk (SVaR). The Basel Committee has introduced three measures of capital charges for market risk: incremental risk charge (IRC), SVaR and comprehensive risk measure (CRM). This paper is designed to analyse the methodologies for SVaR deployed at different banks to highlight the SVaR-related challenges stemming from complying with Basel 2.5. This revised market risk framework comes into force in Europe in 2012. Among the wide range of changes is the requirement for banks to calculate SVaR at a 99 per cent confidence interval over a period of significant stress.

The current research project is based on in-depth, semi-structured interviews with nine universal banks and one financial services company to explore the strides major banks are taking to implement SVaR methodologies while complying with Basel 2.5.

This paper focuses on strengths and weaknesses of the SVaR approach while reviewing peer practices of implementing SVaR modelling. Interestingly, the surveyed banks have not indicated significant challenges associated with implementation of SVaR, and the reported problems boil down to dealing with the poor quality of market data and, as in cases of IRC and CRM, the lack of regulatory guidance. As far as peer practices of implementing SVaR modelling are concerned, the majority of the surveyed banks utilise historical simulations and apply both the absolute and relative measures of volatility for different risk factors.

The academic studies that explicitly analyse challenges associated with implementing the stressed version of VaR are scarce. Filling in the gap in the existing academic literature, this paper aims to shed some explanatory light on the issues major banks are facing when calculating SVaR. In doing so, this study adequately bridges theory and practice by contributing to the fierce debate on compliance with Basel 2.5.

In April 2012, JPMorgan Chase & Company was struggling with large losses that had the potential to damage the reputation of the company, of its Chairman, Jamie Dimon, and of its Chief Investment Officer, Ina Drew. The losses arose from large credit derivative trades in the London office that Dimon described as “bad strategy … badly executed … poorly monitored”.

This study aims to verify the significance of Andersen (2008) corporate risk management (CRM) framework in Asian emerging markets (AEMs) to control firm risk and improve firm performance.

The cross-sectional analyses are performed on a sample of 4,609 firms across nine Asian emerging countries using 2SLS estimation technique.

The empirical findings show that the adoption of CRM not only enhances firm performance by increasing the firm ability to capitalize on the market opportunity but also plays a significant role in reducing firm risk. The findings of this study assert that by institutionalizing risk management practices into an integrated CRM framework, the firm can reap multiple benefits by maintaining better contractual agreements and strategic partnerships with key stakeholders.

The study shifts the focus of CRM away from Western countries toward AEMs, which has been afflicted by high risks and uncertainties. The effectiveness of CRM against firm risk is established by dividing firm risk into firm-specific risk and systematic risk. Furthermore, this study also establishes that CRM not only leads to high returns but also reduces firm operational and production costs. Overall, the study provides a compelling argument to implement CRM for improving organizational performance and managing risks in a strategic and integrated manner. The findings are also relevant to risk management practitioners, as well as to academicians interested in the broader fields of corporate finance and strategy.

The purpose of this paper is to develop and validate a scale for measuring a customer’s perception of customer relationship management (CRM) initiatives of a bank. Based upon resource-based view, CRM technology capability has been conceptualized as a multidimensional construct comprising of technology, people and business resource (process). This study aims to develop a comprehensive scale for performance measurement of CRM technology capability, customer orientation and co-creation from the customer perspective.

A systematic scale development process was adopted consisting of three phases, a qualitative inquiry which included item generation through literature review, expert opinion and focus group study, scale purification and refinement using item analysis and exploratory factor analysis, and scale validation using confirmatory factor analysis. The study sample consisted of 324 respondents, with a usable response rate of 68 percent.

The findings of the empirical study resulted in a 42-item scale that measures CRM technology capability (technology, people and process), customer orientation, co-creation and relationship quality and outcome (RQO) (satisfaction, trust, commitment and loyalty). The predictive validity assessment model suggested that CRM technology capability has a higher impact on RQO. The empirical findings also suggest that technology is found to be the most important factor compared to people and process for CRM technology capability. The findings are aligned with literature review and expert opinion that the evolving collaborative-technologies-enabled CRM technology capability has changed the customer relationship paradigm.

The study focused on a scale specific to the banking sector to avoid conjoint factors, whereas a more generalized scale would have wider applicability across industries. The current study sought to broaden the coverage by including a large number of banks who have implemented CRM.

This reliable and valid scale can help practitioners in measuring the effectiveness of their CRM implementation from the customer’s perspective, and provide insights that will help them in bridging the gap between their intended objective and actual implementation. They can also use this study to measure pre- and post-CRM implementation to see the effectiveness. This study also provides relevance of customer orientation and offers insight about co-creation which has taken the center stage because of the emergence of collaborative technologies.

This will help in measuring perception of the customer which is an important stakeholder in the engagement. This can help organizations in proactively taking care of customer’s rights and measuring the level of satisfaction proactively, which has become a regulatory requirement in many economies.

This study is possibly one of the first to develop a psychometrically valid scale to measure the customer’s perception of CRM using direct measures. The findings provide insight into the factors that contribute to the effectiveness of CRM practices in the banking sector. This study demonstrates that CRM technology capability, customer orientation and co-creation play a very critical role.

This paper aims to investigate how to improve new product performance in turbulent circumstances of emerging economies.

This paper used regression analysis to examine the performance impact of customer relationship management (CRM) and product development management (PDM) concentration strategy in new product development (NPD). A detailed contingent analysis of the market and institutional environments in emerging economies is also conducted based on a survey of 114 Chinese high-tech manufacturers.

The research findings show that PDM has a stronger positive effect on new product performance than CRM in emerging economies and that the contingent effects of the market and institutional environment vary. More specifically, technological turbulence and enforcement inefficiency can positively moderate the relationship between CRM and new product performance, whereas the moderating effect of market turbulence on CRM is negative. Meanwhile, enforcement inefficiency negatively moderates the effect of PDM on new product performance, while the moderating effect of market turbulence on PDM is positive.

This paper is limited to a survey of high-tech manufacturing enterprises in China. Further research should continues to explore and document the strategic issue about NPD in emerging economies by longitudinal study.

This paper contributed to theoretical and practical initiatives on the strategic issue of NPD and provided firms a further understanding of how to select the right NPD strategy in emerging economies to improve new product performance.

The purpose of this paper is to examine the conundrum between the increasingly importance of investments in new information technologies (IT) on marketing practice and marketing scholars continuing to question the profitability of IT-led marketing initiatives.

Systematic reviews of the relevant literature on the financial and market return of customer relationship management (CRM) investments from both Marketing and Information Systems (IS) literature were conducted.

Findings suggest that, while both IS and Marketing scholars try to determine what generates returns on CRM investment, the IS community has a more complete conceptualisation as to how these returns are realised. A broader epistemological framework, better suited to observing how organisations benefit from IT-led management initiatives, enables a more comprehensive assessment of CRM investment.

Supplementing the methods used by Marketing scholars with those frequently used in IS research would likely improve the assessment of IT-led Marketing investments and the resultant prescriptions for Marketing practitioners.

Failure to assess accurately the return from IT-led Marketing investments hinders managers’ ability to manage them for maximum performance improvements, all the more important now that organisations are preparing for large-scale investments in big data and social media strategies.

This paper is the first to illustrate how a combination of Marketing and IS scholarship can assist Marketing research and practice.

The purpose of this paper is to investigate connections and overlaps between health lean management (HLM) and clinical risk management (CRM) understanding whether and how these two approaches can be combined together to pursue efficiency and patient safety improvements simultaneously.

A systematic literature review has been carried out. Searching in academic databases, papers that focus not only on HLM, but also on clinical errors and risk reduction, were included. The general characteristics of the selected papers were analysed and a content analysis was conducted.

In most of the papers, pursing objectives of HLM and CRM and adopting tools and practices of both approaches, results of quality and, particularly, of safety improvements were obtained. A two-way arrow between HLM and CRM emerged but so far, none of the studies has been focused on the relationship between HLM and CRM.

Results highlight an emerging research stream, with many useful theoretical and practical implications and opportunities for further research.

The purpose of this study is to examine the impact of four organisational cultural traits of adaptability, consistency, involvement and mission on the three components of customer relationship management (CRM), namely, people, process and technology, in the context of the hotel industry.

Required data are collected with a quantitative approach and a questionnaire adapted from the Denison organisational culture survey and the Mendoza CRM model. The questionnaire was distributed among 364 managers of a chain hotel in the UK and gathered data were examined using the structural equation modelling method.

The results of this study reveal that the four traits of organisational culture (adaptability, consistency, involvement and mission) have positive and significant impacts on the three components of CRM (people, process and technology). A set of theoretical contributions and practical implications was also discussed.

The study is conducted with a case study approach; hence, the findings cannot be generalised to a larger population, and the results might be different for other industries. Because of the limitation of access to all employees, only managers were selected as the sample, and future studies with all employees may show different results.

Current study helps hotel managers to understand the role and importance of organisational cultural traits in successful implementation of their CRM strategy components.

The position taken in this study recognises the need to enhance the understanding of organisational culture’s impact on implementing CRM components. Organisational cultural traits have different levels of impact on CRM implementation, and this is the first study to investigate the detailed impacts of the four traits of adaptability, consistency, involvement and mission on the three components of CRM, namely, people, process and technology.