Yapı Kredi Controlling Department Desing Report
Yapı Kredi
Controlling Department Design Report
Introduction
Yapi Kredi Bank, Turkey's first privately-owned bank was founded in 1944 by Kazim Tashkent. In 2005, 51% of shares of Çukurova Holding, to which it is affiliated, were sold to Koç Financial Services by the holding due to its debts to the SDIF. In 2006, it merged with Koç bank, a member of Koç Holding and today serves in many countries of the world. In 2001, when the economic crisis experienced in Turkey that the banking sector serious crashes occurred. As in many banks, a control mechanism was established in Yapı Kredi bank. 49.99% of the bank to the Koç Group and 20% to the Italian bank UniCredit S.P.A. are belongs. The remaining 30.03% share is open to the public. The shares of the Bank, which are open to the public, are traded on Borsa Istanbul. I will report on Controlling. My data sources are from a collective meeting I had with Ekin İpek Tuğrul and Batuhan İpek and from some websites (I will mention in the Reference Section). I will show you in this report these topics: Structure, Controlling Department, Culture and Conclusion
Strucure
These managements report directly to the Controlling Department and the Board of Directors (monthly, quarterly and annually), directly affiliated with the Controlling Department within the Board of Directors.
When we look at the hierarchical system, we can divide the Control Department into "Inner Control" and "Risk Management and "Compliance and Internal Control ". Normally not available in the Risk Management Control department, added later. Risk management is a unit that completely examines the liquidity risks and acid ratio risks in the financial statements. Risk management is a control that defines the risk of the event before it occurs. I would also like to say that the control is a structure that operates directly under the board of directors. Control is listed as one of the five techno structures in Mintzberg's article. The underlying task of the techno structure is to report the economic activities within and outside the business and to submit these reports to the decision of the management. Control should be carried out among the main activities of the enterprise, but should not be a core business. in my opinion, it is not what banks do at the underlying subject.
Controlling Department
After the 2001 crisis, it was determined that there was a gap in Yapı Kredi Bank as in many banks. This crisis enabled the establishment of control departments in banks. This department was also established in Yapı Kredi Bank, one of the banks that survived the crisis. In the control department of the Yapı Kredi bank Inspections make audit. I mentioned the risk management in the structure section. When we come to Compliance and Internal Control, there are more topics to talk about. When you start working here, you first start as assistant auditor. After two years If you passed the auditor exam, if you can successfully make the exam and the presentation, you now start to work as an Auditor. If your performance is very good after a minimum of 3 years from now on, they give you the right to make a presentation and if you can make this presentation successfully, now you become a Senior Auditor.
Assistants to auditors work under their own Masters in every subject because they are still at the learning stage. Also, in my opinion, this is more beneficial because you do business with that person and you learning. Unfortunately, there is an incident that I don’t like about. For example, assistant auditors may have teammates, but sometimes they may not. In my opinion, every assistant auditor should have a teammate because it will be a great help in discovering the different job characteristics of the people next to you. In addition, assistant auditors work with the sampling method. There may be differences in the branches where the personnel will be assigned in the control department. For example, if some can work in retail branches, some can work in corporate branches. Since these branches have many differences, there are also differences in inspection times. While working in these branches, certain standards must be followed. LEONARDO, the digitalization policy of the bank, makes matching work very easy. What I mean by matching is who will work in which branch, for how long and with whom this week. But one of the things that assistant auditors are afraid of is that the reason for the decrease in control questions is robotization, which is a necessity of digitization. Even in the age of technology, managers make the latest decisions. I can count robots as extraordinary presences, but it is the human who makes the technological thing called robots. In my opinion, it is more logical that the final decision is made by managers and staff members of the control department. The work usually done by the staff of the control department is to make an audit. They usually examine financial statements, financial analysis and their hardest job is scanning documents. If the document they are looking for cannot be found, a determination must be written. If there is that document and the staff cannot see it, it would be their mistake, but if the branch did not receive that document, it would be the wrong of the Branch. Also, when we look at it, the person who scans that document into the system is a Branch employee. They can sometimes scan documents into the system as additional Document so that the crime is not known from them. As a result, the work of the personnel of the Control departments becomes more difficult and may result in loss of time and information pollution. I could have set up a good system to correct this situation for example; I would only allow additional documents to be scanned in the SYSTEM for a certain period of time in order to prevent incidents such as the branch employee scanning the additional document into the system, and that would make the work of the Control Department staff easier in my opinion. After the reports, these reports go directly to the Board of Directors. The audit essentially provides information to the decisions that the Board of Directors should make about the Bank. You really need to do your job very carefully while checking these reports because the board of directors looks at your report, the board of directors may close that branch or change the personnel of that branch with a decision.
Culture
When we say culture, many things can come to our mind, assuming that Yapı Kredi is an institution, and this topic I will talk about here are about institution culture. Corporate culture is the concept that includes corporate-specific behavior, attitudes, beliefs and habits. As in every institution, Yapı Kredi has a unique culture.
As in all institutions, in Yapı Kredi employees behaviors are stereotyped in corporate culture. There are both abstract and tangible values in corporate culture. In Yapı Kredi employees respect the culture, act accordingly, work for its survival and development. Generally corporate culture is acquired later, revealed by the transfer of managers but in Yapı Kredi there is a kind of orientation process that provides corporate culture training in recruitment processes. As a result, new recruits learn more or less about the corporate culture. Due to the provision of such a training, it has been a very beneficial move for employees to develop the corporate culture and to get used to the corporate environment they are in more easily. For example, sometimes there are decisions between assistant auditors and their masters that they cannot agree on but they both come to a common point by expressing their own thoughts instead of humiliating each other. To give another example, assistant auditors see their teammates as individuals who will help each other, not as competing individuals. If we think otherwise, They may face social exclusion and similar events.
Conclusion
Control is operate in Controlling Department in Yapi Kredi. “Inner Control” and “Risk Management and Compliance and Internal Control” divided in like these. After 2001 Economic crisis there has been a huge collapse in the banking sector It has been noticed that there is a big gap in the banking sector and a Control department has been established under the name of Control Mechanism to prevent such situations from being repeated. In my opinion, In the future, there will be no need for manpower in the control department anymore Since our world and the banking sector are moving towards digitalization very quickly, all controls in the control department will now be able to be easily done through one system.
References:
Ekin Ipek Tugrul 02/04/2021 in Google meeting/Organization Theory and Design
Batuhan Ipek 02/04/2021 in Google meeting/Organization Theory and Design
https://www.yapikredi.com.tr/yapi-kredi-hakkinda/kurumsal-sosyal-sorumluluk/insan-haklari
https://www.yapikredi.com.tr/yapi-kredi-hakkinda/kurumsal-sosyal-sorumluluk/yolsuzlukla-mucadele
https://www.manpower.com.tr/blog/kurum-kulturu-nedir
https://compliancecosmos.org/understanding-and-measuring-ethical-culture
Comments
Post a Comment