1. “Risk Management Approach
And It’s Impact on
Performance
of HSBC,Bangladesh”
Sarwar Hossain
Id: B-093020 Sec:A [Fin-1]
Programme:BBA
Session: Autumn 2009 – Spring 2013
Department of Business Administration
Faculty of Business Studies
International Islamic University Chittagong

2. Objectives
 Broad objective: The broad objective of the report is to analyze
“Risk Management Approach and Its Impact on Performance of
HSBC, Bangladesh”.
 Specific objectives:
 To know about the risk management approach of HSBC,
Bangladesh.
 To justify the impact of risk management approach on the
performance of HSBC, Bangladesh.
 Finally, to make recommendations for further improvement of risk
management approach

3. Methodology
 This report is prepared based on both qualitative and quantitative
research methodologies.
 The qualitative data are collected from various journals, book
reviews and related publications of HSBC.
 The quantitative data are collected from financial statements of
HSBC, Bangladesh of five years ranging from 2008 to 2012.

The analysis is conducted by using ratio analysis.
 And these data are analysed to clarify impact of risk management
approach on performance of HSBC, Bangladesh.

4. Risk Management Approach of
HSBC
 Managing Credit Risk
 Managing Market Risk
 Managing operational risk
 Managing Legal Risk

5. Risk Management Approach
on
The Performance of HSBC
 Performance
 Performance Measurement
 Performance Measurement Techniques:
1. Ratio Analysis
2. DuPont Analysis
3. Trend Analysis
In this report performance of HSBC, Bangladesh is
measured on the basis of Ratio Analysis

6. Debt to Equity Ratio

7. Return on Assets (ROA)

8. Return on Equity (ROE)

9. Profitability Ratio

10. Liquidity Ratio

11. Impact of Market Risk Management
on Performance of HSBC,
Bangladesh

12. Impact of Operational Risk
Management on Performance of
HSBC, Bangladesh

13. Findings

Management need to be cautious in setting up a credit policy.
 Management need to know how credit policy affects the operation of
their banks.
 Management should reduce cost and wastage.
 Banks lequidity position is not good.
 HSBC Bangladesh is not listed in Securities & Exchange
Comission.So,price-earning ratio & earnings per share caculation
can’t be possible.

Risk Management Policy should be properly exercised.

14. Recommendations
 If the management setting up a credit policy then that will not
negatively affects profitability.
 To ensure judicious utilization of deposits and maximization of
profit.
 Operational efficiency should be increased by reducing cost and
wastage and improving operating and management performance.
 The standard ratio is 2:1.And banks average lequidity ratio is .69 so
lequidity ratio should be increased.
 HSBC Bangladesh should be listed in Securities & Exchange
Comission.So,price-earning ratio & earnings per share caculation
will be possible to measure the market risk.
 Risk Management Policy should be properly exercised to
prevent fraud and any type of uncertainty.

15. Conclusion
 The study investigated the impact of credit risk on the profitability of
HSBC.
 Performance measurement conducted by ratio analysis.
 The bank has good profitability ratio.
 It is expected that the financial performance of the company will be
better if the suggested recommendations are considered properly.
Thank You