SEC MARY

Topics: U.S. Securities and Exchange Commission, Change management, Bernard Madoff Pages: 6 (1927 words) Published: April 20, 2014
Case2
Remote environment- PESTEL
Industry environment-five forces
Internal environment- strategic driver (industry/market, product/service, customer, channel, competitive advantage), operational driver, (cost, revenue, growth), people and organizational driver (structure, skill, capability), SWOP analysis and GAP analysis Product/market development

Strategic development
Vision: SEC aims to act as an agency that was high functioning, agile and intelligent, and committed to investor protection and market integrity, which is really critical to the success of economy. Mission: Restoring SEC’s vigour and credibility within the financial regulatory community as an agency and assessing what went wrong and to ensure it did not happen again. Value: vigor, credibility, high functioning, agile, intelligent, commitment, integrity. Goal: Financial

Customer
Internal process
Learning and growth
Mary set up three strategic themes to pursue, the operational levers, people and organization levers that assisted in achieving those options. Strategic option (industry/market, product/service, customer, channel, competitive advantage) (a) Assessing what needed to be done within the organization (1) SEC invested funds to restructure SEC’s largest division, get staff trained and qualified, recruit analysts etc. (2) Schapior recruited analysts and people who understood trading, market structure, corporate governance and a whole range of skill sets that would be important for the future. (3)she restructure the SEC’s largest division-“to make this regulator more responsive, more agile and clever and capable of seeing around corner to figure out where the next problems were before they hit us in the face”. (3)Schapiro leveraged the SEC talent by bringing in new constructive leadership. (4) Staffs were sent to qualify as certified fraud examiner; a whole layer of management was removed and was reassigned to the front line. (5) Specialized units was set up to focus on areas of concern such as corrupt foreign practices, insider trading, market manipulations and structured product.(5) New technology was introduced to make the strategy work. (b) Shifting the agency’s focus back to protecting the investor Chairman Schapiro’s vision is to restore SEC’s vigour and credibility within the financial regulatory community. It is critical for the success of economy to have an agency that was high functioning, agile and intelligent, and committed to investor protection and market integrity. Chairman Schapiro also incorporated it into the SEC's operations. (1) She put devices “investor-focused agenda” in place to ensure “a Madoff” could never happen again to the agency. (2) She encouraged everyone to think and come up with an idea of “how does it help investors” (3) Hedge funds were registered for the first time. Rules were also set for over-the-counter derivatives and asset back securities. (4) She addressed the importance of understanding the risk and having transparency that is sufficient to understand the risks. Then build the structure to ensure there is compliance with all of the rules. (5), whistleblower program was set up, which was about coordinating all tips into one central database to be able to track movement and detect securities violation, also, US Congress offer people a monetary reward if they provided information about ongoing securities law violations that led to a successful enforcement action (6) She addressed the importance of leverage, as SEC did not have adequate resources to do the job. (c) Acknowledging its mistakes

Visible crises can be enormously helpful in catching people's attention and pushing up urgency levels. Admissions of significant failures at the SEC extend back over many years and cover multiple areas of SEC operations, the credibility of the SEC as a financial regulator has never been lower. The SEC failed to discover a $50 billion Ponzi scheme at Madoff Investment Securities, despite having received...
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