Hong Kongs Approach to Financial Stability Essay - 1

Hong Kongs Approach to Financial Stability - Essay Example The fact that during a crisis there is a limited amount of time to solve the crises situation makes it even more difficult. Most of the crises oppose as threats to major organization and thus if not properly dealt with results to serious consequences to the organization. It may be the downfall of the certain organization or company facing the crises. Most of the financial organization lack a crises manager whose main work is to foresee the unpredictable circumstances or events that pose as a threat to the organization. This makes it even more difficult to face the problems. Planning in detail for response to as many potential crises is crucial. Due to the financial constrains that most of the organization face it becomes very difficult to set a lot of funds aside to plan in response for a crisis? Establishing monitoring systems to foresee the threats in an organization is also very expensive. Training and the establishment of a crises management team is very crucial which little financial organization take for granted. It becomes very difficult for an untrained team to handle crises and in many cases; they will mismanage the crises (Chan et al, 102). Because of the recognition that financial crises are probably unavoidable; the authorities in Hong Kong have maintained a conservative approach to regulatory and supervisory policies. a number of policies have been carried out in the Hong Kong’s Approach to ensure that there is financial stability in avoidance of crises. If there were better warning signs and indictors, organization could have the ability of avoiding major crises such as the trans-Atlantic financial crises. Many warning indicators have been set in the many departments to alert organizations in case of any crises to result. Market intelligence is also an important strategy employed by the different organizational departments when dealing with crises. Cooperation between essential organizational departments has also