CITIGROUP

I. CASE BACKGROUND
I.A. BRIEF HISTORY
Citigroup is a global financial services corporation with a rich history. It was formed in 1998
through the merger of Citicorp and Travelers Group. Citicorp itself was a result of the merger
of Citibank and First National City Corporation in 1976. Citi operates in various financial
sectors, including banking, investment banking, credit cards, and wealth management. It’s
one of the largest and most diversified financial institutions in the world. Over the years,
Citigroup has faced its share of challenges. The financial crisis of 2008 hit the company hard,
leading to significant losses and a government bailout. Regulatory issues and concerns about
risk management practices have also been part of its history. Despite these challenges,
Citigroup has demonstrated resilience and adaptability. It plays a crucial role in the global
financial system, serving millions of customers and clients worldwide.
I.B. MISSION
Citigroup’s mission was oriented towards being a global bank that aimed to enable growth
and economic progress for individuals, businesses, governments and communities around
the world. The company was dedicated to providing a broad range of financial services and
products to meet the diverse needs of its clients and customers.
VISION
The vision of Citigroup often included being the most respected global financial services
company. It emphasized a commitment to excellence in everything the company does, from
serving clients to managing resources responsibly. The vision typically highlighted the goal of
contributing positively to the communities in which Citigroup operates.
I.C. OBJECTIVE
Citigroup, Inc. has a set of overarching objectives that guide its strategic initiatives and day-
to-day operations. It’s primary objective is to enhance customer satisfaction, which involves
providing excellent customer service, developing innovative financial products, and meeting
the diverse needs of clients.
I.D. CORE VALUES
1. Integrity – Upholding the highest standards of honesty, ethics, and transparency in all
dealings with clients, customers, employees and stakeholders.
2. Respect – Treating all individuals with dignity and respect, fostering a diverse and inclusive
environment, and valuing the contributions of each team member.
3. Teamwork – Collaborating across departments and geographies to achieve common goals.
Emphasizing the importance of a unified and cooperative work culture.
4. Innovation – Encouraging creativity and the pursuit of innovative solutions to meet the
evolving needs of clients and to stay competitive in the dynamic financial services industry.
5. Client Focus – Prioritizing the needs and satisfaction of clients, recognizing that their
success is fundamental to the success of the organization.
6. Client Focus – Prioritizing the needs and satisfaction of clients, recognizing that their
success is fundamental to the success of the organization.
 7. Responsibility - Taking responsibility for the impact of actions on clients, employees,
communities, and the broader global environment. This includes a commitment to
sustainable business practices.
II. ENVIRONMENTAL ANALYSIS
1. Economic Factors
> Global Economic Conditions: Citigroup’s performance is influenced by the overall health of
the global economy.
> Interest Rates: Changes in interest rates can affect borrowing costs and investment returns,
impacting the bank’s profitability.
2. Regulatory and Legal Environment
> Regulatory changes: Shifts in financial regulations can impact Citigroup’s operations and
compliance costs.
> Legal Risks: Ongoing legal and regulatory issues can affect the company’s reputation and
financial health.
3. Technological Trends
> Digital Transformation: Advances in technology and the rise of digital banking can present
opportunities and challenges for Citigroup.
> Cybersecurity: As a financial institution, Citigroup must navigate the evolving landscape of
cybersecurity threats.
4. Social and Cultural Factors
> Demographic Trends: Changing demographic can influence consumer preferences and
demand for financial services.
> Social Responsibility: Increasing emphasis on corporate social responsibility may impact
Citigroup’s image and business practices.
5. Environmental Factors
> Sustainability Practices: Citigroup’s commitment to environmental sustainability may be
influenced by global trends and societal expectations.
> Climate Change Risks: Considering potential risks related to climate change and the bank’s
exposure to environmentally sensitive industries.
6. Political Factors:
> Geopolitical Risks: Political instability and geopolitical events can impact the stability of
financial markets and Citigroup’s international operations.
> Trade Policies: Changes in trade policies can affect the movement of capital and
international banking activities.
7. Competitive Landscape
> Market Competition: Analyzing the competitive landscape in the financial industry and
understanding how it may impact Citigroup’s market share and pricing strategies.
8. Pandemic Impact
> Public health Events: Assessing the ongoing and potential impacts of global health crises
such as Covid 19 pandemic, on the financial sector.
9. Currency Exchange Rates
> Foreign Exchange Risks: Citigroup’s global operations expose it to currency exchange rate
fluctuations, which can impact financial results.
Internal and External Environment Analysis (SWOT Analysis)

Citibank is one of the leading brands in the banking & financial services sector. Citibank SWOT analysis
evaluates the brand by its strengths & weaknesses which are the internal factors along with
opportunities & threats which are the external factors

Strengths

Strengths refer to those factors which help a company to have a slight edge over its competitors.

1. Strong brand name and or brand reputation

2. Automation and systemazation, a well established IT system that help ensure the efficiency in
both internal and external operations.
3. Social Media Presence that builds up strong advertising and brand visibility
4. Low risk due to huge and varying customer base
5. Retail banking operations in more than 100 countries
6. Online services used by over 15 million users
7. Retail banking operations in more than 100
8. Leading issuers of credit cards globally

Weaknesses

Weaknesses are the pain points that can affect the company, in the following ways.

1. Weak consumer finance as compared to other banks

2. Lower employee retentiona rates Citi has been facing higher employee turnover, which means
many employees leave.
3. Over dependence in the US market
4. Cases of fraud by employees
5. Fluctuating market share
6. Centralized decision making
7. Cash flow prolems
Opportunities

In the market, there also exist many opportunities through which a company can grow. Some of them
are listed as.

1. Expansion in other countries

2. Diversifying portfolios for customers
3. Growth in infrastructure sector
4. Increasing disposable income with the consumers
5. Growing population
6. Lowering Interest rates
7. Increase globalization
 8. Technology advancement
Threats

Threats are the factors that usually no one has complete control over. Here we can only try to minimize
them, including

1. Changing govt regulations and financial crisis leads political instability

2. US mortgage market is unstable
3. Fluctuating exchange rates
4. increasing number of promotional messages that are being sent by competitors

III. CENTRAL PROBLEM

RISK MANAGEMENT: Unsafe and Unsound banking practices
(wherein one of its bankers accidentally sent nearly $1 billion to wrong people)
IV. ALTERNATIVE COURSES OF ACTION
1. Customer-Center Risk Management > Integrate customer feedback and insights into the
risk management process. Understand customer expectations and concerns to better
align risk management strategies with customer needs while maintaining a prudent risk
posture.
2. Continuous Regulatory Compliance Monitoring > Establish a dedicated team to monitor
and ensure compliance with evolving regulations. Regularly review internal processes to
align with regulatory requirements and conduct training programs to keep employees
informed about compliance obligations.
3. Collaboration and Information Sharing > Collaborate with industry peers, regulatory
bodies and cybersecurity organizations to share information on emerging risks and best
practices. This collaborative approach can provide valuable insights and enhance the
overall industry’s risk management capabilities.
4. Talent Development and Training > Invest in ongoing training and development programs
for employees to ensure they have the skills and knowledge necessary for effective risk
management. This includes keeping the workforce updated on emerging risks and best
practices in risk mitigation.
V. RECOMMENDATION
The Citigroup Inc. should provide talent development and training in order to avoid the
unsafe and unsound banking practices
VI. ACTION PLANS
1. Assessed The Trainings Needed
 Conduct a comprehensive assessment of the skills and knowledge required for
different roles within Citigroup, with a specific focus on risk management. Identify
any skill gaps that exist within the workforce.
2. Customized Training Programs
  Develop customized training programs tailored to address the specific needs
identified in the assessment. This could include modules on risk assessment,
compliance, cybersecurity, and other relevant areas.
3. Facilitate E-learning Flatforms
 Implement e-learning platforms to facilitate continuous learning and development.
These platforms can provide employees with access to training materials at their
own pace and convenience.
4. Initiate Cross-trainings and Leadership Development Programs
 Encourage cross-training initiatives to ensure that employees have a broad
understanding of various aspects of the business. This can enhance collaboration
and enable employees to contribute more effectively to risk management efforts.
Identify high-potential employees and implement leadership development
programs. This can help in grooming future leaders who understand the
complexities of risk management and can guide teams effectively.
5. In-House Training Experts
 Identify and leverage in-house experts who can contribute to training initiatives. This
can include employees with specialized knowledge in risk management who can
share their insights with colleagues.
6. Metric and Evaluation
 Establish key performance indicators to measure the impact of training on job
performance and risk management outcomes. Regularly evaluate and adjust training
programs based on these metrics.

CONCLUSION:

Implementing these action plans requires a commitment to ongoing learning and development at all
levels of the organization. Citigroup can build a skilled and adaptable workforce capable of effectively
managing risks in a rapidly changing financial landscape.