Vision and strategy at BANAT-CRISANA Financial Investment

[0
01] Mixtures of
o laws: a new
w method to esstimate the parameters
p
................... 5
Ioana VIA
ASU
Constantiin CHILARESCU
Table off content
[0
02] A multifractal model off asset returnss in the conteext of the new
economy paradigm .............................................................................. 23
Diana DE
EZSI
Emil SCAR
RLAT
[0
03] The impacct of populatioon aging on thhe sustainability of Europeean
social moodel ....................................................................................... 33
Marin DIN
NU, Marius-C
Corneliu MAR
RINAŞ
Cristian SOCOL,
S
Aura-Gabriela SOC
COL
[0
04] Vision andd strategy at BANAT-CRISA
B
ANA Financiall Investment
Company....................
.
......................................................................... 47
Ioan CUZM
MAN, Daniel MANATE, Pa
avel FĂRCAŞ
[0
05] The moneetary policy in post crisis peeriod ............................................. 58
Silviu CER
RNA
[0
06] Modeling elements for correlation thhe enterprise’s capital cosst and
.
..................................................... 79
its financial structure ....................
Dorin COSSMA
Anca-Ram
mona BOTEZA
AT
[0
07] Evolution of shares marrket price durring the comppany’s financial
results annnouncementt. Event study approach ...................................... 96
Marianna
a BOTIKA
[0
08] Old age peensions publicc expenditurees and fertilityy in Europeann
countries .......................................................................................... 119
Cosmin EN
NACHE
[0
09] The impacct of the internnational econnomic and finaancial crisis on
o the
current acccounts’ and foreign directt investmentss’ trends in the new
Member States
S
of the European
E
Uniion .............................................. 127
Camelia MILEA,
M
Alina Georgeta AIILINCĂ, Iulia LUPU
Adina CRIISTE, Floarea
a IORDACHE
3
Timisoara Journal of Economics
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Table off content
[1
10] Forecast intervals for innflation in Romania ......................................... 145
Mihaela BRATU
B
[1
11] The contexxt of modern branding
b
emeergence ....................................... 153
Sergiu BA
ARBU
Ilie CRIST
TESCU
[1
12] The sociall perception of
o actors on thhe new local public
p
manageement
and its refform. A surveyy at Timisoaraa City Hall .................................... 167
Ariana La
avinia MOŞ
Nicolae BIBU
B
[1
13] The productivity paradoox, myth or reaality? .......................................... 180
Liviu-Gab
briel CABĂU
[1
14] Models off the formation of the identtity and the im
mage of corpoorate
brand................................................................................................. 190
Lavinia Diana
D
ŢIPLEA
A
4
Timisoara Journal of Economics
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VISION AND STRATEGYY
A
AT BANA
AT-CRISA
ANA FINA
ANCIAL INVESTM
MENT COMPANYY
Ioan C
CUZMAN 1, Daniel MANATEE 2, Pavel FĂR
RCAŞ 3
The financiial investmen
nt companiess’ portfolio management
m
consists in converting vision
v
into an
n investmentt strategy in
accordance
e with the turb
bulent and co
omplex macro
oeconomical
context. In the particu
ular case of a financial investment
p
in
nformation management becomes
b
an
company, performant
indispensab
ble conditio
on for crea
ating and maintaining
investment intelligence suitable to an
a accessible
e investment
universe and
a
to the investment objectives re
egarded as
responsibiliities taken be
efore the own
ners. The fina
al goal is to
realize the optimal targ
get portfolio according to
o the return
objectives adjusted
a
with the risk. Nevvertheless, it is
i necessary
that a financial investm
ment compan
ny’s strategic investment
objectives refer
r
to, and in
ntegrate the rrisk element as
a well. Risk
manageme
ent incorporattes the “risk” element into
o investment
reports an
nd allows fo
or a better understand
ding of the
investment risk and of some
s
other im
mportant con
ncepts, such
as “risk adjusted return””. Competitive
e intelligence is
i needed to
lead investtment decisio
on, by integrrating the ea
arly warning
system with
h risk manage
ement throug
gh a full set off procedures
and practicces. Given th
he importancce that huma
an resource
intellectual capital – co
onsisting of experience, professional
p
knowledge and uniqu
ue personal abilities – from the
investment industry has upon
n intellectu
ual capital
developmen
nt, alongside adequate reccruitment and
d motivation
techniques,, career pla
anning, repla
acement plan
ns, training
programs, employees flow
fl
control, etc., manage
ement must
also take in
nto account th
he creation off compulsory professional
p
knowledge that can susstain the devvelopment off intellectual
capital.
Keywords:
Competitive intelligence,
i
eaarly warning sysstem, risk manaagement system
m, compulsory professional knnowledge.
JEL Classific
cation: G24,, G32.
1
Professor PhD
D in Economics,, SIF Banat-Crissana, Universita
atea de Vest Va
asile Goldis, Ara
ad, Romania
Associate Pro
ofessor PhD in Economics,
E
SIF Banat-Crisana,
B
Universitatea Aurel
A
Vlaicu, Arrad, Romania
3
Lecturer PhD in Mathematiccs SIF Banat-Criisana, Universittatea de Vest Vasile
Va
Goldis, Ara
ad, Romania
2
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| Year 2012 | Volume 5 | Issue 17 | Pages: 47–5
57
Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
1. Visioon and Strrategy in the
t Portfoolio Manaagement Context
C
The in
nvestment strategy
s
of a financial investmentt company (SIF) entails, in our opinion,
o
ensuring, allocatin
ng, using and controllingg the organiizational ressources overr a larger pe
eriod of
time so
o that the in
nvestment objectives se
et in terms of risk and re
eturn to be achieved
a
as well as
possible, expressing furthermore the SIFss investmen
nt philosophyy. It has to materialize
m
t key
the
parts of
o funds’ vision and misssion (McCre
eary, 2002): how returnss are related
d to the con
ncept of
funds’ success, what
w
the target benchm
mark is, wh
hat investors’ sources of return and
a
the
related
d market tim
ming are, wha
at the level of
o the expeccted growth rate of funds’ assets is etc.
The B
Banat-Crisana Financiall Investmen
nt Companyy (SIF1) is a self-ma
anaged clossed-end
investm
ment company, based on instruments of incorporation, in the category
c
off Other
Underttakings for Collective Investmentss (AOPC) w
with a diverssified invesstment policcy. The
investm
ments, the computation
c
of net asse
et value, the regulations regarding asset
a
valuatiion and
transparency and disclosure requirements comply with
w
the lega
al provisions in force and
a
the
regulattions issued
d by the Ro
omanian Nattional Securrities Comm
mission (CNV
VM), the reggulatory
and su
upervision bo
ody of the Romanian capital markett.
The rissk-return opttimization iss a main con
ncern of the modern porttfolio theoryy, with the pu
urpose,
througgh the conttinuous inve
estment-dive
estment pro
ocess, to build
b
a porrtfolio of financial
instrum
ments seleccted on pre
ecise investtment criteria and policies – fro
om an inve
estment
universse accessible technicallly, legally – or
o limits of analytic
a
cove
erage and understandin
ng point
of view
w. This is usu
ually called „target
„
portffolio”.
Tactica
ally, the porrtfolio mana
agement style shows ho
ow to build and perman
nently impro
ove the
target portfolio tha
at better meets the return and risk1 objectives of
o the investtors.
2. Means and Methods Addequate to
t the Inveestment Strategy
S
In the
e particularr case of a financia
al investme
ent compan
ny, the effficient inforrmation
managgement is a fundamen
ntal conditio
on to creatte and maintain invesstment intelligence
adequa
ate to the accessible
a
in
nvestment universe
u
and
d investment objectivess assumed towards
t
the ow
wners. The concrete ultimate goal is certainly achievingg the best target portffolio in
relation with the risk-adjusted return objectives2.
er to correla
ate positive
ely the strategic intelliggence with the
t
tactical one of a financial
In orde
investm
ment compa
any and to obtain
o
an ap
ppropriate va
alue added for its invesstment strattegy we
1
Preference, aveersion or neutral attitude towarrds risk.
2 See the risk pro
ofile disclosed byy the financial in
nvestment comp
pany.
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
proposse to shape up the axiss: : profit so
ource → acccessible invvestment un
niverse → financial
plan → external su
upport → strategic relattions.
Relations
E
External
supporrt
Financial plan
Accessibble investment universe
Profit sources
Figure
F
1. The equilibrium strategic
s
inte
elligence vs. tactical intelliigence at fina
ancial investm
ment compan
nies
Source: Cuzman & Ma
anate, 2007: 203
2
The profit sourcess in the invesstment indu
ustry are of two
t
types: the ones ressulting from trading
financiial instrume
ents (e.g. capital
c
gain
ns) and the
e ones obtained from holding financial
instrum
ments (e.g. dividends, interests, etc.).
e
The detailed
d
und
derstanding of the sign
nificant
influen
nce items is required bo
oth in terms of expected return (e.g. size, timingg, etc.) as we
ell as of
associated risks (e.g. expossure on isssuers, secto
ors, markets, volatility,, foreign currency
holdinggs, etc.).
The asspects relatted to the investment universe are not exclusively limite
ed to the financial
instrum
ments that can be purcchased tech
hnically/operationally or legally as,, especially, to the
limitation given byy the organizzation capaccity to understand the complexity
c
a risk of some
and
s
of
these instrumentss and to fo
orecast the return and
d risk. Anotther directio
on is the portfolio
p
analysis of the competitors, so as to draw
d
out and compare
e the investtment alternatives
selecte
ed by the competitors. TThere is also
o the special issue if the
e cost of cap
pital of the in
n-house
valuatiions for invvestment purposes
p
we
ere a functtion of the
e investmen
nt or the investor
(Grabo
owski, 2011
1), which, in
n SIF’s case
e would rather be a dominant invvestor or grroup of
shareh
holders that own the con
ntrol claims.
The fin
nancial plan represents a great inte
ernal instrum
ment of fina
ancial managgement but also of
information mana
agement, embodying
e
the
t
budgetts-related aspects (revvenues, exp
penses,
controlling, etc.) and the portffolio optimiza
ation ones (entry/exit, exposures,
e
re
eturn, timingg, etc.).
The ad
dequate extternal supp
port offered by advisorrs, law firms, brokeragge houses, trading
platforrm, etc. can decisively fa
acilitate atta
aining the co
orporate objjectives. SIF
F strategic re
elations
facilita
ate the inve
estment activity in the comparativve and com
mpetitive con
ntext given by the
strateggic movemen
nts of the co
ompetitors, the
t suitable directions and
a ways to lobby etc.
49
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
2.1
2 Strategicc investmentt objectives
The sttrategic inve
estment objectives are correlated with the co
ompany’s re
evenues (e.gg. from
dividen
nds, interestts, sale of financial instruments) an
nd capital increases (portfolio appre
eciation
resulte
ed from the increase in net asset wiithout obtain
ning profit). Also, these are correlated with
the invvestors’ expe
ectations for increase of
o total return for the sha
areholder, especially
e
wh
hen the
managger’s and in
nvestor’s in
nterests cou
uld be brought into line by diffe
erent schem
mes of
compe
ensation pacckages (Bala
as, 2011).
Investo
or’s returns come from the dividen
nds due to shareholder
s
rs and by th
he appreciattions of
the quotas of financial investment compa
anies. If the evolution of
o the quotass is directly biased
by management, being subje
ect to differe
ent external influencess3, obtainingg some stab
ble and
consisttent liquidityy as a basis for distributting dividend
ds can be ad
ddressed mo
ore convenie
ently.
Beside
es the size of
o revenues and capital increases, their predicttability and stability in time
t
as
well a
as the posssibility to preserve/ap
p
ppreciate th
he invested capital arre importan
nt. The
benchm
mark portfolios, if used
d as a style analysis facctor, must similarly be consistent
c
w
with
the
managger’s pronounced style (Brown & Reilly, 2009).
An acttive portfolio
o manageme
ent consistss in a perma
anent analyssis of the in
nvestment universe
correla
ated to SIF portfolio, to the investm
ment horizon
n and unive
erse and to the
t best entry/exit
on the
moment (Manate & Fărcas, 2009). It also
a
means making ad
djustments (entry/exit)
(
portfolio so as to make the most
m
of the results of th
he analysis by the invesstment/dive
estment
processs (Dragotă et
e al., 2008)).
The po
ortfolio is alw
ways rebalan
nced in relattion with the
e evolution of
o different classes
c
of asssets or
the spe
ecific evoluttion of some
e issuers or instruments and it implies (Cazan et al., 2004)::
3
─
the
e analysis off the intrinsic value of securities
s
tha
at compose the portfolio
o, starting frrom the
currrent financia
al performan
nces and the issuers’ perrspective;
─
analysis/simula
ation of the value of seccurities corre
elated with the expected
d economic/industry
olutions;
evo
─
mo
onitoring the return and risks of the classes of alternative
a
fiinancial instruments and
d of the
ind
dividual invesstment altern
natives;
─
obttaining speculative profitts by taking advantage of
o the best investment opportunities
o
s on the
ma
arket (e.g. inccrease of the
e quotas of agricultural
a
g
goods
– corn, wheat, gold
d, silver or oil, listing
of Property Fun
nd – when th
he securitiess purchased previously at
a prices lowe
er than the opening
o
e sold immed
diately after quotation
q
witth average profits betwee
en 20 – 30%
% etc.).
prices could be
See also year 22008, when alth
hough SIFs obtained record histtorical profits, th
he quotas depre
eciated sharply, as a result of th
he global financcial
crisis and the shift
s of investorss towards investtment alternativves of shelter (e.g. gold) or moneetary assets.
50
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ww.tje.uvt.ro | Year 2012 | Volume 5 | Issue 17 | Pages: 47–5
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
The strrategic invesstment objectives of a financial inve
estment com
mpany should also referr to and
embod
dy the risk ittem. In this respect, SIF Banat – Crisana
C
is im
mplementing an integratted risk
managgement syste
em, that hass as main orrganisationa
al benefits th
he following::
─
faccilitates efficient and effe
ective attaining of organizzational obje
ectives;
─ imposes a ma
anagement style changge favouringg a proactivve risk attitude, beneficial for
mpetitivenesss increase;
com
─ integrates the “risk” eleme
ent within invvestment rep
ports and alllows for a be
etter undersstanding
of investment risk
r and othe
er important concepts, su
uch as “risk adjusted
a
retu
urn”;
─
helps selectingg the best invvestment pro
ojects from a “risk adjuste
ed return” pe
erspective;
─ seccure the basse condition for a health
hy and efficient internal control overr the organizzational
riskks, either intternal or exte
ernal.
Next w
we present th
he way a top
p indicator, such as Tottal Shareholder Return (RTA) may be
b used
in casccade derivattion for all in
nternal compartments of
o SIF Banat – Crisana, including branches
staff. It also can be used in
n establishing objective
es and crite
eria whitin the organizzational
structu
ures controle
ed by the co
ompany, succh as managgers and top
p executivess of the com
mpanies
controled by SIF1.
Figure
F
2. The equilibrium strategic
s
inte
elligence vs. tactical intelliigence at fina
ancial investm
ment compan
nies
Source: Research Dep
partment, SIF Banat
B
– Crisana
2.2.
2 Perform
mance versuss risk
The m
managers off an organiisation should not lim
mit themselvves to alwa
ays deal with the
conseq
quences of some events that occcurred. De
ealing with the conseq
quences do
oes not
amelio
orate the ca
auses and, consequenttly, the riskss already materialized
m
will further occur,
51
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
usuallyy with a higgher frequen
ncy and gre
eater impacct over the objectives. Modern ma
anagers
should
d adopt a proactive
p
ma
anagement style, a pro
ospective management
m
t that attem
mpts to
identifyy those risk
ks that may arise due to changes iin strategy or
o environment, relying on the
princip
ple “better prevent than face an acccomplished fact”.
f
It is crucial for a successful
s
o
organisation
to focus itss efforts wha
at is really im
mportant wh
hile not
wasting its resourrces in irrele
evant areas for its goalls. The perio
odical review
w of risks le
eads to
realloccations of re
esources, in line with th
he changes of ranking and, implicitly of prioriities. In
other w
words, risk managemen
m
nt implies co
oncentration
n of resource
es in current areas of in
nterest.
The rissk managem
ment system
m that is currently beingg implemented at SIF Ba
anat-Crişana
a relies
on the
e organizatio
onal premise
e to conductt a profitablle business, consistent with the lon
ng-term
interessts of the company’s sha
areholders.
At the same time, it was also considered
c
t need forr the company to adopt and implement the
the
best p
practices in the field of investmen
nts and porrtfolio mana
agement, aiming to boo
ost the
efficien
ncy on medium and lon
ng term, as well
w as the prudent management of
o associated
d risks.
Obviou
usly, undersstanding the
e threats allows their ranking
r
bassed on the possibility of
o their
occurre
ence, the clash over objjectives and
d the costs incurred by the
t measure
es meant to reduce
the chances of occurrence or to limit und
desired effects. Establisshing a rank
king represe
ents the
basis ffor placing an
a order of priorities in
n the allocattion of reso
ources, in many
m
cased limited,
based on a ”cost-benefit” an
nalysis or, more
m
genera
ally, “effort-e
effect”. Con
ncretely, within the
projectt of impleme
enting a man
nagement risk system at
a SIF Banat – Crisana, the basic co
oncepts
that op
perate in rissk managem
ment have been defined
d and exemp
plified by no
ow: risk, risk
k event,
risk so
ource, impacct, frequenccy, risk ratio
o, types of risk
r
(market, operationa
al, of interesst rate,
interna
al, external, reputational, strategic, etc.), risk matrix,
m
etc.
The co
ontent frame
ework of the documentts to report risks has been
b
define
ed. The risk events
after im
mpact have been classsified and fo
or each activity of the organisation
o
n a list type of risk
eventss with relatted risk sources has been identtified. For some
s
activities, a qua
alitative
assesssment regard
ding the freq
quency and impact has been made..
With a view to ide
entify the rissk events an
nd sources associated to the busin
ness activityy of the
Compa
any’s divisions (SIF1), specific working instrumentts (inquiry forms, ssynoptic
tables//schedules, representattions etc.). Technical
T
so
olutions for the
t measure
ement of im
mpact of
investm
ment risks/e
events of invvestment rissks have bee
en selected, studied and
d adapted:
─
Re
eporting mark
ket risk – Value at risk (V
VaR);
─
Re
eporting the risks
r
that affe
ect SIF1 resu
ults and liquiidities:

Im
mpact of the
e variation of
o interest ra
ate – interesst rate risk,

Im
mpact of the
e variation of
o exchange rate – excha
ange rate rissk,
52
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
─

Im
mpact of the
e variation of
o the volum
me of due divvidends – Risk
R
of not re
ealizing
the expected
d CF,

Im
mpact of the variation of revenuess from the sale
s
of securities in porttfolio –
R
Risk
of not re
ealizing the expected CF
F,

P
Profit
at risk (PaR) and Cash-flow
C
at risk (CFaR);;
Rissks related to
o the industrries and companies in SIF
F1 portfolio

E
Economic
reccession,

V
Variability
of industry turrnover,

V
Volatility
of liisted securitties,

B
Bankruptcy
r
risk,

D
Discount
rate
e,

H
Hostile
takeo
overs.
Applica
ations have
e been deployed, teste
ed and implemented on
o the server, that allow the
periodical calculattion of Value
e at Risk for the sub-porttfolio of liste
ed and liquid
d shares.
Moreovver, solution
ns have bee
en identified, application
ns have bee
en tested an
nd implemen
nted for
the periodical calcculation of Value
V
at Risk
k for the sub-portfolio of
o listed and non-liquid shares,
s
unliste
ed and profittable, unlisted and with positive equities. For the listed and liquid sha
ares, an
applica
ation that calculates
c
th
he volatility of securitie
es (β, σ) an
nd the para
ameter of th
he riskadjuste
ed return (Je
ensen’s α) was
w deployed
d and implemented on the
t server.
Every organisation is characcterized by competenccies that positively diffferentiate it from
compe
economy. F
etitors and that
t
can brin
ng significan
nt added va
alue in the competitive
c
For this
reason
n, in the firsst place the manageme
ent should take these into accountt in the proccess of
recruittment, selection, trainingg or motivattion.
Takingg into consiideration th
he upmost importance it has in the investm
ment industtry, the
intellecctual capita
al associated
d to human resources, made up of
o the profe
essional kno
owledge
and u
unique perssonal abilitiies, becomes one of the main issues in human re
esource
managgement.
In orde
er to develo
op the intelllectual capittal, besides the adequa
ate techniques of recru
uitment
and motivation, ca
areer plan, continuous
c
t
training
proggrams, contrrol of staff fluctuation etc.,
e
the
managgement sho
ould also consider
c
the
e building of a body of compu
ulsory profe
essional
knowle
edge. (Cuzman & Manatte, 2007).
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
3.. Competiitive Intelligence Requireme
R
ents at SIF1
The effficient mana
agement of information and knowle
edge has thrree components (Păun, 2007):
busine
ess intelligen
nce – oriented toward the internal environme
ent, competitive intelliggence –
oriente
ed towards the extern
nal environment and the managgement of the
t
organissational
knowle
edge.
Busine
ess intelligence (Bergerron, 2003) implies the use of the
e “best pracctices” as efficient
e
ways tto achieve the
t
function
nal activitiess or some organisation
o
al processe
es (e.g. inve
estment
processs). They consist of inte
ernal proced
dures and re
egulations continuously
c
y subject to review
and im
mprovement,, disseminatted, known and applied
d by all the staff.
s
Moreo
over, the forrmation
of a g roup of employees who
o, using the
e best practtices, learn and train together,
t
in house,
creatin
ng real “co
ommunities of practicce” is also
o encourage
ed. Knowle
edge managgement
(Berge
eron, 2003
3) comprise
es method
ds and in
nstruments for identiification, storage,
s
dissem
mination and
d use of know
wledge usefful to organissational obje
ectives.
Given the comple
exity and tu
urbulence off the curren
nt micro me
edium organizational success
s
depend
ds more an
nd more on
n their proa
active attitu
ude. A structured and efficient analysis
a
regarding the impact of futture eventss on organiizational ob
bjectives is needed. But
B
the
avalan
nche of data
a and inform
mation is making
m
the process
p
of capture,
c
filter and analysis of
those rreally importtant for the company diffficult.
The orrganization informationally capable
e of realizin
ng this proccess is holding what iss called
Compe
etitive Intelligence – CI. CI existen
nce is favoured by a sp
pecialised staff in inforrmation
gathering and technology, able to use sp
pecial proce
edures, techniques and tools for se
electing
and prrocessing infformation.
WS) is a bassic component of the CI
C concept that
t
can po
ositively
An Earrly Warning System (EW
change
e a common
n organizatio
on into one of specific competencies acquired
d and contin
nuously
develo
oped with the
e purpose to
o separate, isolate and analyze rele
evant data and
a informattion out
of the amount acccumulated in
n time. Next,, it’s processsed and the conclusionss are distributed to
the com
mpartmentss/persons co
ompetent to use them to
o the benefitt of the who
ole.
EWS iss supplying relevant
r
and
d permanently updated information
n to the orga
anization. Accquiring
data and information in real tiime covers different
d
dom
mains, such as: main types and sou
urces of
risk, itts impact and frequency, competitor’s approa
aches and actions, key success factors,
f
importtant aspects for the clien
nts and/or owners
o
etc.
Anothe
er indispenssable comp
ponent of the Compe
etitive Intellligence con
ncept is the Risk
Managgement Systtem (RMS) that analysses data an
nd informattion from th
he companyy’s risk
perspe
ective: marke
et, operation
nal, reputational or strattegic.
54
Tiimisoara Journaal of Economics | eISSN: 184
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ww.tje.uvt.ro | Year 2012 | Volume 5 | Issue 17 | Pages: 47–5
57
Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
Both EWS and RMS
R
are favouring
f
th
he developm
ment of th
he organizational competitive
intelliggence, inter--relating in this aim. RMS
R
takes from
f
EWS relevant
r
datta and inforrmation
regarding organiza
ational riskss and proce
esses it. As one can se
ee in the Figure 3 above, the
commo
on area EW
WS – RMS iss formed byy the risk e
events data base and the
t
procedu
ures for
selecting, processing, registerring and repo
orting risks.
nformation processing in the com
mpetitive inttelligence process
p
favo
ours an ad
dequate
The in
managgement of op
pportunities, especially of investme
ent kind in SIF1’s case. EWS’s
E
comp
ponents
are forrmed by a structure
s
(co
ompartment) with attrib
butions, alloccated resou
urces (materrial and
human
n for acquiring and pro
ocessing inte
ernal and external data
a and inform
mation), too
ols (risk
eventss data base
e, portal with intranett and extra
anet accesss type, informatics pro
ograms,
compu
uter network
ks) and pro
ocedures (e
e.g. medium
m scanning, data colle
ection, orga
anizing,
processsing, dissem
minating), se
ee the Figure
e 3.
Figure
F
3. Com
mpetitive Intelligence and Managemen
nt of SIF Bana
at-Crisana’s Portfolio
P
Source: Research Dep
partment, SIF Banat
B
– Crisana
Synthe
esizing, the main requ
uirements of
o an Early Warning System
S
are: to offer relevant
information for reaching obje
ectives, to comprise risk
k events an
nd sources that
t
can afffect the
compa
any’s targetss, to highligh
ht investmen
nt opportunitties, to supp
ply data and information
n just in
time to
o be useful, to supply fa
air data, to cover competitors and investment industry eve
enly, to
offer current warnings and foccused analyssis.
55
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Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
4. Conclusioons
The management
m
of the Fina
ancial Invesstment Com
mpany Banatt-Crişana is committed to the
compa
any’s mission, respectivvely the medium and lo
ong term maximizing
m
o shares’ va
of
alue by
increassing the valu
ue of the ma
anaged portffolio.
In the current economic conditions, ensuing the morre accentuatted effects of
o the globalization
of the capital markets, for SIF
F1 the investment strate
egy consistss of providing, allocatingg, using
and co
ontrolling the
e organizatio
onal resourcces during a long period
d with the pu
urpose of acchieving
the invvestment ob
bjectives deffined in term
ms of both rreturn and risk. Optimissing the retu
urn/risk
rate iss also part of
o the mode
ern portfolio
o theory, aiming througgh the invesstment/dive
estment
processs to create an optimall financial instruments portfolio, selected
s
outt of the acccessible
investm
ment universse followingg existent critteria and invvestment po
olicies.
Tempo
orarily speaking, the extreme
e
variations of return and
d risks of different financial
instrum
ments, refle
ected by sharp increa
ases in quotas (speculative bub
bbles) or crashes,
accompanied by increases of
o volatility in time or in relation to a rep
presentative index,
genera
ated the furtther reductio
on of the period of holding some se
ecurities. We
e believe tha
at, if we
refer to
o the frame of time thatt a financial instrument is kept in a portfolio, th
he saying ”b
bite and
to the capital marketss as now, th
run” has
h
never been more appropriate
a
he ”buy and
d hold”
strateggy becomingg obviously obsolete.
o
One off the aims set
s by top management
m
t was to cre
eate an inno
ovative orga
anizational culture.
c
The da
ata and information flo
ows correlated with orrganizational structure were permanently
revised
d and adap
pted according to legal specifics. Either
E
in recruiting, sellection, training or
motiva
ation processes manage
ement takess in accountt that a com
mpetitive orgganization acquires
core co
ompetenciess that can positively
p
diffferentiate co
ompared to the competitors and ca
an bring
a significant value
e added. Within the investment indu
ustry, the inttellectual capital, compo
osed by
experie
ence, professsional know
wledge and unique perrsonal abilitties is crucia
al for succe
ess. In
order tto develop in
ntellectual ccapital, besid
des well-kno
own techniques, such ass recruiting, carrier
plan, and contin
nuous training plan and
a
so on,, managem
ment must also suppo
ort the
implem
mentation an
nd use of a compulsory
c
body of proffessional knowledge.
Anothe
er strategic issue of SIF1’s managgement is to
o achieve a performing
g administra
ation of
knowle
edge and in
nformation in all its three compo
onents: bussiness intelligence – oriented
o
toward
ds internal medium
m
–, competitive
c
intelligence
e – oriented
d toward extternal enviro
onment
and orrganizationa
al knowledge
e management. Anothe
er issue is to
o create pre
emises and use at
large sscale “the best
b
practice
es” as efficiient techniq
ques to realize the funcctional activvities or
processses. The third issue wo
ould be to create
c
and implement
i
b
both
an Earrly Warning System
S
and a Risk Management Syste
em as basic componentss of the Com
mpetitive Inte
elligence concept.
56
Tiimisoara Journaal of Economics | eISSN: 184
44 -7139 | ww
ww.tje.uvt.ro | Year 2012 | Volume 5 | Issue 17 | Pages: 47–5
57
Cuzman,
C
I., Manate, D., & Fărrcaş, P. (2012).. Vision and strrategy at BANA
AT-CRISANA Fiinancial
ny
Investtment Compan
R
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