1.

In core banking system, discuss the possible risk and their controls around the CASA
(current and saving account) process. (5 Marks)

Answer: In Core Banking Systems (CBS), the possible risks and their controls around the CASA
(Current and Savings Account) Process are as follows:

Risks
Credit Line setup is
unauthorized and not in line
with the banks policy.
Credit Line setup in CBS is
unauthorized and not in line
with the banks policy.
Customer Master defined in
CBS is not in accordance with
the Pre- Disbursement
Certificate.
Inaccurate interest / charge
being calculated in CBS.
Unauthorized personnel
transaction in CBS
Inaccurate s Accounting entries are generated by
generated i
Controls
The credit committee checks that the
Financial Ratios, the Net-worth, the
Risk factors and its corresponding
mitigating factors, the Credit Line
offered and the Credit amount etc. is
in line with Credit Risk Policy and
that the Client can be given the Cre
Line.
Access rights to authoriz
limit in case of account s
should be restricted to au
personnel.
Access righ
customer m e
restrict d t
Intere lities are
a lated in the CBS
a ules.
f Duties to be
tween the initiator and
rizer of the transaction for
ssing transaction in CBS.
CBS basis the facilities requested by
the customer and basis defined
configuration for those facilities in
CBS.

een Internet Banking Channel Server (IBCS) and Internet Banking

ion Server (IBAS) used in Core Banking System (CBS). (4 marks)

An anking Channel Server (IBCS): IBCS (Internet Banking Channel Server) software stores the
name and password of the entire internet banking customers. IBCS server also contains the details about
the branch to which the customer belongs. The Internet Banking customer would first have to log into

Internet Banking Application Server (IBAS): The Internet Banking Software which is stored in the
IBAS (Internet Banking Application Server) authenticates the customer with the login details stored in
the IBCS. Authentication process is the method by which the details provided by the customer are
compared with the data already stored in the data server to make sure that the customer is genuine and
 3.

the statement. (5 Marks)

Answer: The deployment and implementation of Core Banking Systems (CBS) should be controlled at
various stages to ensure that banks automation objectives are achieved:

Planning: Planning for implementing the CBS should be done as per stra ness
objectives of bank.
Approval: The decision to implement CBS requires high investment and r will
impact how banking services are provided by the bank. Hence, the decision d by
the Board of directors.
Selection: Although there are multiple vendors of CBS h ke differentiators.
Hence, bank should select the right solution considering v defined by the bank
to meet their specific requirements and business objectives
Design and develop or procured: CBS solutions used eloped in- house by the
bank. Currently, most of the CBS deployment are p be appropriate controls
covering the design or development or procuremen
Testing: Extensive testing must be done bef he testing is to be done at different
phases at procurement stage to test suitab on to ensure all existing data is
correctly migrated and testing to confir ypes of transactions of all modules
produces the correct results.
Implementation: CBS must be i l er pre defined and agreed plan with specific
project milestones to ensure succe ion.
Maintenance: CBS must quired. E.g. program bugs fixed, version changes
implemented, etc.
Support: CBS must be sup nsure that it is working effectively.
Updation must be updated based on requirements of business processes, technology
updates an ire ents.;
Audit: Au be done internally and externally as required to ensure that controls

a C S, all branches access applications from centralized data-centers.

are routed through core systems, which are available 24x7 and accessible from
me and through multiple devices such as desktops, laptops, ATM, Internet, mobile
c
 4. Discuss the risk and their corresponding controls associated with the treasury process in
Core Banking System (CBS). (4 Marks)

Answer: The risk and their corresponding controls associated with the treasury in Core Banking
system are as follows;

S. No. Risk Key Controls

1. Unauthorized securities setup Appropriate Segregation of duties an
in systems such as Front review controls around securities ma
office/Back office. setup/amendments.
2. Inaccurate trade is processed. Appropriate Segregation of duti
review controls to ensure
and authorization of trade
3. Unauthorized confirmations are Complete and
processed. to be obtained
4. Insufficient Securities Effective cont and
available for Settlement margins.
5. Incomplete and inaccurate Inter-syst erfaces
data flow between systems. ontrols.
6. Insufficient funds are available Corporation of
for settlements. CIL)/ National
nds Transfer (NEFT)/
ss Settlement (RTGS) to
the margin funds availability
imely funds settlements.
7. Incorrect No ntrols at Nostro reconciliation and
processed. yments.
 Section – B: Strategic Management
(25 Marks)
All Questions are compulsory

1. _________ characteristics of resources and capabilities deals with how easy it is to copy the resources
and capabilities for the competitors.
(1 Marks)
a. Inversibility
b. Interoperability
c. Imitability
d. Interchangeability

2. Consider the following steps involved in understanding the Competitive Landscape:

i. Understand the competitors
ii. Determine the weakness of the competitors
iii. Identify the competitor
iv. Determine the strengths of the competitors
v. Put all of the information together
(2 Marks)
Which of the following option represents the correct sequence?
a. (iii)-(ii)-(iv)-(i)-(v)
b. (iii)-(iv)-(ii)-(i)-(v)
c. (iii)-(v)-(iv)-(i)-(ii)
d. (iii)-(i)-(iv)-(ii)-(v)
3. Which of the following is incorrect?
a. Strategy of a firm at a particular point of time is the result of series of small decisions
taken over an extended period of time
b. Always there happens a perfect match between the internal potential of the company and
available market opportunities
c. While conducting determinants analysis, entity should consider its current and past
strategies, strategic problems etc.
d. Internal analysis helps entity to identify its capacities and constraints
(1 Marks)

4. Consider the following steps involved in the Marketing process:

(2Marks)

i. Managing marketing efforts

ii. Analyzing market opportunities

iii. Selecting Target markets

iv. Developing marketing mix

v. Which of the following option represents the correct sequence?

a. (i), (ii), (iii), (iv)

b. (ii), (iii), (iv), (i)

c. (ii), (i), (iv), (iii)

d. (i), (iv), (ii), (iii)

5. Since companies cannot satisfy all consumers in a given market, they must do market _______, then market
_______, and lastly market _______.

(2Marks)

a. Segmentation, Positioning, Targeting

b. Targeting, Positioning, Segmentation

c. Segmentation, Targeting, Positioning

d. Positioning, Segmentation, Targeting

 1. Value for money is leading retail chain, on account if its ability to operate its business at low cost.
The retail chain aim to further strengthen its top position in retail industry. Marshal, the CEO of
retail chain is of the view that to achieve the goals
goals they should focus on lowering the cost of
procurement of products.
Highlight and explain the core competences of the ‘Value for Money’ retail chain. ((5 Marks)

Answer: A core competencies is a unique strength of an orgnisation which may not be shared by others. Core
competencies are those capabilities that are critical to a business achieving competitive
advantages. In order to qualify as a core competence, the competency should differentiate the
business from any other similar businesses. A core competency for a firm is whatever is does is
highly beneficial to the organization.

‘Value for the money’ is the leader on account of its ability to keep costs low. The cost advantages
that ‘Value for money’ has created for itself has allowed to retailer
retail er to price goods lower than
competitors. The core competency in this case is derived from company’s ability to generate large
sales volume, allowing the company to remain profitable with low profit margin.

2. Rohit bharghav is the MD of smooth limited. The company established in 2011, with 35 employees
grew very fast to become an organization with 335 employees in the year 2016. With the increase
in size rohit started facing difficulty in managing things. Many a times he finds that personnel at the
functional level are not in the sync with the strategies with the top. He felt that strategies need to be
segregated into viable plans and policies which are compatible with each other and communicated
down the line.
Why does Rohit hit need to segregate the strategies into functional plans? Discuss. (4 Marks)

Answer: Rohit Bhargava needs to break higher level strategies into functional strategies for implementation.
esource, Production,
These functional strategies, in form of Marketing, Finance, Human Resource,
Research and Development help in achieving the organisational objective. The reasons why
functional strategies are needed can be enumerated as follows:
 Functional strategies lay down clearly what is to be done at the functional level. They provide a
sense of direction to the functional staff.
 They are aimed at facilitating the implementation of corporate strategies and the business
strategies formulation at the business level.
 They act as basis for controlling activities in the different functional areas of business.
 They help in bringing harmony and coordination as they are formulated to achieve major
strategies.
 Similar situations occurring in different functional areas are handled in a consistent manner by the
functional managers.

3. Suresh Singhania is the owner of an agri based private company in Sangrur, Punjab. His
unit is producing puree, ketchups and the sauces. While its product have significant
market share in the northern part of the country, the sales are on decline in last couple of
years. He seeks helps of management expert who advices him to first understand the
competitive landscape.
Explain steps to be followed by suresh singhania to understand competitive landscape.
(5Marks)
Answer: Steps to understand the competitive landscape
(i) Identify the competitor: The first step to understand the competitive landscape is to identify the
competitors in the firm’s industry and have actual data about their respective market share.
(ii) Understand the competitors: Once the competitors have been identified, the strategist can use
 market research report, internet, newspapers, social media, industry reports, and various other
sources to understand the products and services offered by them in different markets.
(iii) Determine the strengths of the competitors: What are the strength of the competitors? What do
they do well? Do they offer great products? Do they utilize marketing in a way that comparatively
reaches out to more consumers. Why do customers give them their business?
(iv) Determine the weaknesses of the competitors: Weaknesses (and strengths) can be identified by
going through consumer reports and reviews appearing in various media. After all, consumers are
often willing to give their opinions, especially when the products or services are either great or
very poor.
(v) Put all of the information together: At this stage, the strategist should put together all
information about competitors and draw inference about what they are not offering and what the
firm can do to fill in the gaps. The strategist can also know the areas which need to be strengthen
by the firm.

4. State the factors of the human resources that have influence on employee’s competence.
(4 Marks)

Answer:
er: Human resource management has been accepted as a strategic partner in the formulation of
organization’s strategies and in the implementation of such strategies through human resource
planning, employment, training, appraisal and reward systems. The following points should be
kept in mind as they can have a strong influence on employee competence:
i. Recruitment and selection: The workforce will be more competent if a firm can successfully
identify, attract, and select highly competent applicants.
ii. Training: The workforce will be more competent if employees are well trained to perform their jobs
properly.

iii Appraisal of performance: The performance appraisal is to identify any performance deficiencies
experienced by employees due to lack of competence. Such deficiencies, once identified, can often
be solved through counseling, coaching or training