The Bank of Ghana (BoG) joined the Basel Consultative Group (BCG) of the Basel Committee on Banki... more The Bank of Ghana (BoG) joined the Basel Consultative Group (BCG) of the Basel Committee on Banking Supervision (BCBS) in 2021 and is proceeding with the implementation of the Basel III international regulatory framework for Ghanaian banks. The purpose of this study was to assess the perceived relationship between risk culture and aspects of operational risk management among Ghanaian banks. This study followed a positivist paradigm and made use of a survey among the risk management staff members of Ghanaian banks. The data were analysed using both descriptive and inferential statistics, such as the Mann–Whitney U test and a multiple regression model. This study found significant perceived relationships (at the 5% level of significance) between risk culture and monitoring and reporting procedures, the three lines of defence (3LOD), compliance, internal auditing, disclosure of operational risk information, and guidance from the banking regulator. The respondents reported the following...
This paper addresses the issue of whether the University of South Africa (Unisa) could offer a co... more This paper addresses the issue of whether the University of South Africa (Unisa) could offer a course in Finance for Non-financial Managers by distance education only, or whether such a course would have to use a blended learning approach. The paper compares various Finance for Non-financial Managers courses offered in South Africa and reports on a survey of such courses. Based on the courses on offer, a questionnaire was developed. A web-based questionnaire was set up, and potential respondents were requested by e-mail to participate. The respondents evaluated the relative importance of each of the topics covered by Finance for Non-financial Managers courses. The financing of a business (including the cost of capital) was regarded by respondents as less important than financial goals, working capital management, financial statements, financial analysis and time value of money. The respondents ’ preferred format was face-to-face learning (at two-day workshops) rather than exclusivel...
An incident is the occurrence of a seemingly minor event, which is important enough that, if not ... more An incident is the occurrence of a seemingly minor event, which is important enough that, if not properly managed, can lead to serious consequences. In contrast, a crisis is a stage in a series of events that significantly determines the direction of all future events. Following the much-publicized financial crises around the world, research was conducted amongst banks in East and West Africa to establish whether these banks are actively managing their incidents and crises. The study on which this article is based found that little was being done with regard to managing incidents. It was concluded that banks need assistance to prevent incidents turning into crises. A specific incident management framework is recommended that when implemented could reduce the risk of incidents becoming crises.
The purpose of this paper is to propose an implementation framework for governance in the Ghanaia... more The purpose of this paper is to propose an implementation framework for governance in the Ghanaian securities trading industry.,A qualitative research approach was followed, using participatory action research (PAR) by involving stakeholders from the Ghanaian securities trading industry.,A governance framework for the Ghanaian securities trading industry is proposed, taking into account the regulatory environment of Ghana, the role of ethical leadership, boards of directors, audit committees, the governance of risk, information technology and internal audit.,This study used PAR because it is a recognised research methodology aimed at problem resolution, knowledge creation and improving professional practice, through the involvement of the interest group. This paper provides a starting point – a practical solution for the securities industry of Ghana, but not generalisable results.,Applying the governance framework will create safeguards against corruption and mismanagement, promote ...
The study investigated whether a proposed minimum admission requirement of 60 per cent in the fin... more The study investigated whether a proposed minimum admission requirement of 60 per cent in the final-year module of specialisation at undergraduate level could attribute to the course success rate of students proceeding to the BCom honours degree in Business Management with specialisation in Financial Management at Unisa. Regression analysis and Pearson chi-square tests were conducted. Final-year marks for the Financial Management module, MNF3015, showed a positive correlation with the marks students obtained for the three selected postgraduate level modules at honours level. Significant positive correlations were also found between marks of 60 per cent or more obtained for MNF3015, and marks obtained for the postgraduate modules in Investments (r = 0.464, p = 0.017), Financial Risk Management (r = 0.347, p = 0.188) and Financial Management (r = 0.468, p = 0.002). Tests for the possible statistical association between the marks obtained in the three selected postgraduate-level module...
Orientation: National Treasury acknowledges that 90% of all South African retirees will not have ... more Orientation: National Treasury acknowledges that 90% of all South African retirees will not have adequate financial resources in order to sustain themselves.Research purpose: This study aimed to address the retirement income shortfall by assessing possible changes to prudential retirement fund regulations.Motivation: Asset allocation plays a pivotal role in achieving the required rate of return of any portfolio. However, the restrictions on asset allocation imposed by article 28 of the Pension Funds Act of 1956 limits pension funds’ ability to achieve adequate returns.Research approach: A survey was conducted among chief investment officers (CIO) of the top 25 South African investment management companies.Main findings: The study proposes changes to the Income Tax Act, the Collective Investment Scheme Control Act and Regulation 28 of the Pension Funds Act.Managerial implications: The proposed framework should result in fewer pensioners becoming dependent on the state for their pensi...
The high level of over-indebtedness in Gauteng is cause for concern. The number of consumers appl... more The high level of over-indebtedness in Gauteng is cause for concern. The number of consumers applying for debt counselling as well as the registered debt counsellors is increasing. The study on which this article reports aimed at exploring and describing the role of debt counselling in terms of personal financial well-being of consumers in Gauteng. Fifteen debt counsellors were interviewed and 300 consumers were surveyed. Data was analysed using descriptive statistics. There was no evidence that consumers who received debt counselling improved in their financial standing. It was observed that both debt counsellors and consumers lacked financial management skills. It was concluded that, while debt counselling is important, it does not necessarily improve the financial well-being of consumers. It is recommended that financial management skills should serve as a pre-requisite for debt counselling registration and consumers be introduced to personal financial management education at an ...
Purpose The purpose of this paper is first to determine the competencies required of risk manager... more Purpose The purpose of this paper is first to determine the competencies required of risk managers and second to consider the implications of such competencies in determining modules for inclusion in the curriculum framework of an undergraduate qualification in risk management. Design/methodology/approach A qualitative research approach was followed, involving risk management professionals in a focus group and making use of interactive qualitative analysis (IQA). Findings The competencies identified are managerial and risk management knowledge, attributes such as assertiveness and steadfastness and ethical values, as well as people and technical skills. These are explained in greater detail in this paper. Research limitations/implications The unique contribution of the current research was the innovative use of IQA for data collection, the removal of subjectivity and the rigour in analysing and presenting the results. The results provide a starting point for designing a curriculum t...
Orientation: Banks face three primary risks, namely credit, market and operational risk. The Base... more Orientation: Banks face three primary risks, namely credit, market and operational risk. The Basel Committee on Bank Supervision (BCBS) promotes monetary and financial stability by means of their accords, which provides risk mitigation guidelines to banks under the jurisdiction of central banks that are members of the BCBS.Research purpose: The aim of this study was to develop a framework for participating African banks to enable them to determine their required regulatory capital (RC) and economic capital (EC) because neither the Basel accords nor the central banks involved in this study provided clear guidelines in this regard.Motivation for the study: During 2016, the banking associations from Kenya, Mauritius, Rwanda, Seychelles, South Sudan, Tanzania, Uganda and Ghana requested assistance with the determination of the EC and RC of their member banks.Research design, approach and method: The study used pragmatism as a paradigm and a qualitative methodology by using participatory...
Orientation: Basel III makes provision for banks to assess their internal capital adequacy by mea... more Orientation: Basel III makes provision for banks to assess their internal capital adequacy by means of risk-based approaches, stress tests and a leverage ratio. However, the Basel regulations do not prescribe to banks or to bank supervisors which method should be used or how it should be used.Research purpose: The research problem was whether a framework could be formulated for the implementation of an internal capital adequacy assessment process in accordance with the Basel III accord.Motivation for the study: East and west African banks and bank supervisors (BS) aspire to become fully compliant with Basel regulations and requested research regarding an internal capital adequacy assessment process (ICAAP) framework for the implementation of Basel III.Research approach/design and method: A participatory action research (PAR) approach was used because PAR contributes to both knowledge creation and improving professional practice. The PAR comprised a survey and interest groups attende...
The primary compliance risks faced by private hospitals in South Africa were analysed. Compliance... more The primary compliance risks faced by private hospitals in South Africa were analysed. Compliance for private hospitals fell into three categories: patient care, regulatory compliance and human resources. The results of this study indicated that these hospitals are struggling to ensure compliance as a result of the complexity of and constant changes to applicable legislation. The study confirmed that private hospitals face compliance risk. A compliance framework was developed, which could reduce compliance risk of private hospitals in South Africa. Outsourcing could be considered in order to focus on core business activities and to reduce the cost of compliance.
Money laundering can boost corruption, worsen poverty, and bankrupt vulnerable financial institut... more Money laundering can boost corruption, worsen poverty, and bankrupt vulnerable financial institutions. In view of this, a study was conducted amongst the banks in West Africa, in cash-based economies, with the objective to ascertain the level of their Financial Action Task Force implementation. The study found that the implementation of the Financial Action Task Force recommendations in these countries was at different stages due to these countries being cash-based economies. The majority of these countries have anti-money laundering legislation but lack the capability to monitor and counter money laundering activities. This may be ascribed to a lack of adequate resources, expertise, investigations and prosecution capabilities. Some amendments to the Financial Action Task Force recommendations are proposed to incorporate cash-based economies in order to effectively combat money laundering.
The Bank of Ghana (BoG) joined the Basel Consultative Group (BCG) of the Basel Committee on Banki... more The Bank of Ghana (BoG) joined the Basel Consultative Group (BCG) of the Basel Committee on Banking Supervision (BCBS) in 2021 and is proceeding with the implementation of the Basel III international regulatory framework for Ghanaian banks. The purpose of this study was to assess the perceived relationship between risk culture and aspects of operational risk management among Ghanaian banks. This study followed a positivist paradigm and made use of a survey among the risk management staff members of Ghanaian banks. The data were analysed using both descriptive and inferential statistics, such as the Mann–Whitney U test and a multiple regression model. This study found significant perceived relationships (at the 5% level of significance) between risk culture and monitoring and reporting procedures, the three lines of defence (3LOD), compliance, internal auditing, disclosure of operational risk information, and guidance from the banking regulator. The respondents reported the following...
This paper addresses the issue of whether the University of South Africa (Unisa) could offer a co... more This paper addresses the issue of whether the University of South Africa (Unisa) could offer a course in Finance for Non-financial Managers by distance education only, or whether such a course would have to use a blended learning approach. The paper compares various Finance for Non-financial Managers courses offered in South Africa and reports on a survey of such courses. Based on the courses on offer, a questionnaire was developed. A web-based questionnaire was set up, and potential respondents were requested by e-mail to participate. The respondents evaluated the relative importance of each of the topics covered by Finance for Non-financial Managers courses. The financing of a business (including the cost of capital) was regarded by respondents as less important than financial goals, working capital management, financial statements, financial analysis and time value of money. The respondents ’ preferred format was face-to-face learning (at two-day workshops) rather than exclusivel...
An incident is the occurrence of a seemingly minor event, which is important enough that, if not ... more An incident is the occurrence of a seemingly minor event, which is important enough that, if not properly managed, can lead to serious consequences. In contrast, a crisis is a stage in a series of events that significantly determines the direction of all future events. Following the much-publicized financial crises around the world, research was conducted amongst banks in East and West Africa to establish whether these banks are actively managing their incidents and crises. The study on which this article is based found that little was being done with regard to managing incidents. It was concluded that banks need assistance to prevent incidents turning into crises. A specific incident management framework is recommended that when implemented could reduce the risk of incidents becoming crises.
The purpose of this paper is to propose an implementation framework for governance in the Ghanaia... more The purpose of this paper is to propose an implementation framework for governance in the Ghanaian securities trading industry.,A qualitative research approach was followed, using participatory action research (PAR) by involving stakeholders from the Ghanaian securities trading industry.,A governance framework for the Ghanaian securities trading industry is proposed, taking into account the regulatory environment of Ghana, the role of ethical leadership, boards of directors, audit committees, the governance of risk, information technology and internal audit.,This study used PAR because it is a recognised research methodology aimed at problem resolution, knowledge creation and improving professional practice, through the involvement of the interest group. This paper provides a starting point – a practical solution for the securities industry of Ghana, but not generalisable results.,Applying the governance framework will create safeguards against corruption and mismanagement, promote ...
The study investigated whether a proposed minimum admission requirement of 60 per cent in the fin... more The study investigated whether a proposed minimum admission requirement of 60 per cent in the final-year module of specialisation at undergraduate level could attribute to the course success rate of students proceeding to the BCom honours degree in Business Management with specialisation in Financial Management at Unisa. Regression analysis and Pearson chi-square tests were conducted. Final-year marks for the Financial Management module, MNF3015, showed a positive correlation with the marks students obtained for the three selected postgraduate level modules at honours level. Significant positive correlations were also found between marks of 60 per cent or more obtained for MNF3015, and marks obtained for the postgraduate modules in Investments (r = 0.464, p = 0.017), Financial Risk Management (r = 0.347, p = 0.188) and Financial Management (r = 0.468, p = 0.002). Tests for the possible statistical association between the marks obtained in the three selected postgraduate-level module...
Orientation: National Treasury acknowledges that 90% of all South African retirees will not have ... more Orientation: National Treasury acknowledges that 90% of all South African retirees will not have adequate financial resources in order to sustain themselves.Research purpose: This study aimed to address the retirement income shortfall by assessing possible changes to prudential retirement fund regulations.Motivation: Asset allocation plays a pivotal role in achieving the required rate of return of any portfolio. However, the restrictions on asset allocation imposed by article 28 of the Pension Funds Act of 1956 limits pension funds’ ability to achieve adequate returns.Research approach: A survey was conducted among chief investment officers (CIO) of the top 25 South African investment management companies.Main findings: The study proposes changes to the Income Tax Act, the Collective Investment Scheme Control Act and Regulation 28 of the Pension Funds Act.Managerial implications: The proposed framework should result in fewer pensioners becoming dependent on the state for their pensi...
The high level of over-indebtedness in Gauteng is cause for concern. The number of consumers appl... more The high level of over-indebtedness in Gauteng is cause for concern. The number of consumers applying for debt counselling as well as the registered debt counsellors is increasing. The study on which this article reports aimed at exploring and describing the role of debt counselling in terms of personal financial well-being of consumers in Gauteng. Fifteen debt counsellors were interviewed and 300 consumers were surveyed. Data was analysed using descriptive statistics. There was no evidence that consumers who received debt counselling improved in their financial standing. It was observed that both debt counsellors and consumers lacked financial management skills. It was concluded that, while debt counselling is important, it does not necessarily improve the financial well-being of consumers. It is recommended that financial management skills should serve as a pre-requisite for debt counselling registration and consumers be introduced to personal financial management education at an ...
Purpose The purpose of this paper is first to determine the competencies required of risk manager... more Purpose The purpose of this paper is first to determine the competencies required of risk managers and second to consider the implications of such competencies in determining modules for inclusion in the curriculum framework of an undergraduate qualification in risk management. Design/methodology/approach A qualitative research approach was followed, involving risk management professionals in a focus group and making use of interactive qualitative analysis (IQA). Findings The competencies identified are managerial and risk management knowledge, attributes such as assertiveness and steadfastness and ethical values, as well as people and technical skills. These are explained in greater detail in this paper. Research limitations/implications The unique contribution of the current research was the innovative use of IQA for data collection, the removal of subjectivity and the rigour in analysing and presenting the results. The results provide a starting point for designing a curriculum t...
Orientation: Banks face three primary risks, namely credit, market and operational risk. The Base... more Orientation: Banks face three primary risks, namely credit, market and operational risk. The Basel Committee on Bank Supervision (BCBS) promotes monetary and financial stability by means of their accords, which provides risk mitigation guidelines to banks under the jurisdiction of central banks that are members of the BCBS.Research purpose: The aim of this study was to develop a framework for participating African banks to enable them to determine their required regulatory capital (RC) and economic capital (EC) because neither the Basel accords nor the central banks involved in this study provided clear guidelines in this regard.Motivation for the study: During 2016, the banking associations from Kenya, Mauritius, Rwanda, Seychelles, South Sudan, Tanzania, Uganda and Ghana requested assistance with the determination of the EC and RC of their member banks.Research design, approach and method: The study used pragmatism as a paradigm and a qualitative methodology by using participatory...
Orientation: Basel III makes provision for banks to assess their internal capital adequacy by mea... more Orientation: Basel III makes provision for banks to assess their internal capital adequacy by means of risk-based approaches, stress tests and a leverage ratio. However, the Basel regulations do not prescribe to banks or to bank supervisors which method should be used or how it should be used.Research purpose: The research problem was whether a framework could be formulated for the implementation of an internal capital adequacy assessment process in accordance with the Basel III accord.Motivation for the study: East and west African banks and bank supervisors (BS) aspire to become fully compliant with Basel regulations and requested research regarding an internal capital adequacy assessment process (ICAAP) framework for the implementation of Basel III.Research approach/design and method: A participatory action research (PAR) approach was used because PAR contributes to both knowledge creation and improving professional practice. The PAR comprised a survey and interest groups attende...
The primary compliance risks faced by private hospitals in South Africa were analysed. Compliance... more The primary compliance risks faced by private hospitals in South Africa were analysed. Compliance for private hospitals fell into three categories: patient care, regulatory compliance and human resources. The results of this study indicated that these hospitals are struggling to ensure compliance as a result of the complexity of and constant changes to applicable legislation. The study confirmed that private hospitals face compliance risk. A compliance framework was developed, which could reduce compliance risk of private hospitals in South Africa. Outsourcing could be considered in order to focus on core business activities and to reduce the cost of compliance.
Money laundering can boost corruption, worsen poverty, and bankrupt vulnerable financial institut... more Money laundering can boost corruption, worsen poverty, and bankrupt vulnerable financial institutions. In view of this, a study was conducted amongst the banks in West Africa, in cash-based economies, with the objective to ascertain the level of their Financial Action Task Force implementation. The study found that the implementation of the Financial Action Task Force recommendations in these countries was at different stages due to these countries being cash-based economies. The majority of these countries have anti-money laundering legislation but lack the capability to monitor and counter money laundering activities. This may be ascribed to a lack of adequate resources, expertise, investigations and prosecution capabilities. Some amendments to the Financial Action Task Force recommendations are proposed to incorporate cash-based economies in order to effectively combat money laundering.
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Papers by Johan Marx