Strategies that HSBC Adopted to Suit the Changing Business Environment Essay - 1

Strategies that HSBC Adopted to Suit the Changing Business Environment - Essay Example The banking sector globally has been undergoing turmoil globally and risk management becomes a critical issue. Banks are financial institutions and risk management is critical to their survival. They have to manage this through pooling of risks and selling their services as risk specialists. The financial performance of the bank depends upon the efficiency with which they manage risks. HSBC is one of the leading banks that have been able to sustain the financial recession and still maintain profits. They change their strategy as the situation demanded and limited the extension of credits to new clients. HSBC realized that the purchasing power of people had reduced and the immediate step that they took was to curb issuing new credit card (Poulter, 2009). This helped them build their financial standing and it also demonstrates that HSBC plays it safe and believes in old-fashioned banking virtues (Duncan, 2009). However, it would be of immense value to the financial sector and particularly to the banks in the emerging economies to investigate the strategies that HSBC adopted to suit the changing business environment. This requires evaluating its risk management strategy. Hence, with the aim to investigate how banks manage risks in the interest of all the stakeholders, the objective of the study would be: The research strategy depends upon the purpose of the research, the size of the sample, the time and the budget in hand. Since this is an exploratory study meant to benefit the banking sector, in particular, a qualitative study has been envisaged. An in-depth analysis of the situation and the strategy is possible through the qualitative approach. As per the research onion, the research strategy could vary from an experiment to a survey to a case study.