Mba560 Week 6 Corporate Compliance Report Citigroup
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Corporate Compliance Report – Citigroup Inc.
Brooke Hall
June 22, 2009
MBA560
University of Phoenix
Citibank N.A. or Citigroup, formerly known as Citicorp, is today’s pre-eminent financial services company, with some 200 million customer accounts in more than 100 countries. Citigroup was actually founded almost 200 years ago on June 16, 1812 under the name City Bank of New York in New York City with $2 million of capital. Throughout the last two centuries, numerous banks have merged with Citibank or been taken over by Citibank. In 1968, First National City Corporation (later renamed Citicorp), a bank holding company, became the parent of Citibank. In 1998, all Citicorp divisions merged with all divisions of Travelers Group to form Citigroup Inc. Through many different leaders and economic environments over the course of its rich history, Citibank continues to grow and prosper and remains a strong brand under the Citigroup umbrella (Citi’s History, 2009). Despite the strength of this financial institution, there remains much to be desired in its risk management practices. In an article by Lynn Turner, former chief accountant at the Securities & Exchange Commission offered his view of Citigroup, “If you’re an entity of this size, if you don’t have controls, if you don’t have the right culture and you don’t have people accountable for the risks that they are taking, you’re Citigroup”. This report is focused on setting up an improved risk mitigation plan for Citibank focusing on integrating ERM and corporate governance.
“Corporate scandals and diminished confidence in financial reporting among investors and creditors have renewed corporate governance as a top priority for boards of directors, management, auditors, and stakeholders. At the same time, the number of companies trying to manage risk across the entire enterprise is rising sharply” (Management Accounting Quarterly, 2004). So, it is important to find the best way to integrate...
Brooke Hall
June 22, 2009
MBA560
University of Phoenix
Citibank N.A. or Citigroup, formerly known as Citicorp, is today’s pre-eminent financial services company, with some 200 million customer accounts in more than 100 countries. Citigroup was actually founded almost 200 years ago on June 16, 1812 under the name City Bank of New York in New York City with $2 million of capital. Throughout the last two centuries, numerous banks have merged with Citibank or been taken over by Citibank. In 1968, First National City Corporation (later renamed Citicorp), a bank holding company, became the parent of Citibank. In 1998, all Citicorp divisions merged with all divisions of Travelers Group to form Citigroup Inc. Through many different leaders and economic environments over the course of its rich history, Citibank continues to grow and prosper and remains a strong brand under the Citigroup umbrella (Citi’s History, 2009). Despite the strength of this financial institution, there remains much to be desired in its risk management practices. In an article by Lynn Turner, former chief accountant at the Securities & Exchange Commission offered his view of Citigroup, “If you’re an entity of this size, if you don’t have controls, if you don’t have the right culture and you don’t have people accountable for the risks that they are taking, you’re Citigroup”. This report is focused on setting up an improved risk mitigation plan for Citibank focusing on integrating ERM and corporate governance.
“Corporate scandals and diminished confidence in financial reporting among investors and creditors have renewed corporate governance as a top priority for boards of directors, management, auditors, and stakeholders. At the same time, the number of companies trying to manage risk across the entire enterprise is rising sharply” (Management Accounting Quarterly, 2004). So, it is important to find the best way to integrate...