Balancing Risk And Efficiency At A Major Commercial Bank
- Topics:
- Organization
- Tags:
- Banking,
- Recruitment & Selection,
- Litigation,
- Internet,
- Human Resources,
- Financial Services,
- E-business/E-Commerce,
- Commercial Bank,
- Carnegie-Mellon University,
- Business Operations,
- ...
- Source:
- Carnegie Mellon University
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Overview: Check-processing institutions are being forced to downsize their workforce to cut cost and improve the efficiency of their operations as a result of continued growth of electronic payments due to the increasing popularity of debit/credit cards and use of online banking. However, with reduction in headcount, the chances of delayed checks increase and the expected costs associated with fraud and float risks escalate. This paper discusses how a team of executives at a major Commercial Bank (CB) and Carnegie Mellon University students and faculty engaged in conducting a model-based study of the CB check clearing operations. This project culminated in the development of a simulation-optimization model to systematically analyze the nature of the highlighted risk-efficiency tradeoff at CB.
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Format: PDF | Size: 1,208KB | Date: Apr 2007 | Pages: 33
