Royal Insurance Corporation of Bhutan Limited is the first insurance company in Bhutan. It was established on 7 January 1975 under the Charter of the fourth Druk Gyalpo King Jigme Singye Wangchuk to assist in the economic development of the nation by providing insurance service to the people. It has grown from strength to strength over the last 42 years in keeping with nation's march towards the goal of economic growth, self-reliance and Gross National Happiness. (RICBL, 2010)
The company was initially started with a paid up capital of Nu 1 million against an authorized capital of Nu 2 million. Since RICBL is a public company, it is invested by different share holders during the inception of the company. The governments invested 51% of the …show more content…
So likewise the Finance department in RICBL also helps an organization to take a strategic decision, handling cash flows and controlling of incoming and outgoing cash flows. Since RICB borrow funds from the other financial institutions and competes in the same lending market, the unwillingness from the banks to lend to RICB is affecting the funding sources. RICBL also faces problem in Non-repayment of loans by the loan clients affects the cash flow in terms of further lending and a regulatory restriction in terms of issuing different policies, as RICB is a non-banking financial institution. Therefore Finance Department in RICBL helps to overcome all these challenges.
SWOT Analysis of Finance and Accounts Department (F&A)
SWOT is an acronym, which stands for Strength, Weakness, Opportunities and Threats. SWOT is an analysis technique used by any organizations, firms and business entities to understand the strengths and weakness, identifying both the opportunities open to the company and the threats the company face. It helps to identify and understand key issues affecting the business.
It is important for a department to identify issues to take up any new actions. With the help of strategic tools such as SWOT analysis, the Finance and Accounts Department in RICBL identifies the following …show more content…
The Finance and Accounts department lacks personalized service and professionals in insurance to cater the need of the insurance market.
• Lack of insurance knowledge
Insurance as subject is not included in the current education curriculum of the Bhutanese education system. Therefore, the employees of the department do not possess much of insurance knowledge.
Example: It’s a weakness of the department as the company has to spend huge amount of money in training the employees in insurance.
• Funds borrowed from other financial institutions
Finance and accounts department is the main department who runs the whole RICBL. The weakness of the department is that they face a shortage of funds and they borrow a fund from other financial institutions.
Opportunities
• Adoption of better software for BRS
The Finance and Accounts department has an opportunity to adopt a better software for BRS (Bank Reconciliation System), to minimize a workload of the department.
• Adoption of IFRS
The department is planning to adopt a new system that is IFRS which will help the investors/shareholders to better understand investment opportunities.
Threats
• Hacking of system
• Staff turnover
• Embezzlement or misrepresentation of public
The company was initially started with a paid up capital of Nu 1 million against an authorized capital of Nu 2 million. Since RICBL is a public company, it is invested by different share holders during the inception of the company. The governments invested 51% of the …show more content…
So likewise the Finance department in RICBL also helps an organization to take a strategic decision, handling cash flows and controlling of incoming and outgoing cash flows. Since RICB borrow funds from the other financial institutions and competes in the same lending market, the unwillingness from the banks to lend to RICB is affecting the funding sources. RICBL also faces problem in Non-repayment of loans by the loan clients affects the cash flow in terms of further lending and a regulatory restriction in terms of issuing different policies, as RICB is a non-banking financial institution. Therefore Finance Department in RICBL helps to overcome all these challenges.
SWOT Analysis of Finance and Accounts Department (F&A)
SWOT is an acronym, which stands for Strength, Weakness, Opportunities and Threats. SWOT is an analysis technique used by any organizations, firms and business entities to understand the strengths and weakness, identifying both the opportunities open to the company and the threats the company face. It helps to identify and understand key issues affecting the business.
It is important for a department to identify issues to take up any new actions. With the help of strategic tools such as SWOT analysis, the Finance and Accounts Department in RICBL identifies the following …show more content…
The Finance and Accounts department lacks personalized service and professionals in insurance to cater the need of the insurance market.
• Lack of insurance knowledge
Insurance as subject is not included in the current education curriculum of the Bhutanese education system. Therefore, the employees of the department do not possess much of insurance knowledge.
Example: It’s a weakness of the department as the company has to spend huge amount of money in training the employees in insurance.
• Funds borrowed from other financial institutions
Finance and accounts department is the main department who runs the whole RICBL. The weakness of the department is that they face a shortage of funds and they borrow a fund from other financial institutions.
Opportunities
• Adoption of better software for BRS
The Finance and Accounts department has an opportunity to adopt a better software for BRS (Bank Reconciliation System), to minimize a workload of the department.
• Adoption of IFRS
The department is planning to adopt a new system that is IFRS which will help the investors/shareholders to better understand investment opportunities.
Threats
• Hacking of system
• Staff turnover
• Embezzlement or misrepresentation of public