C.

External Management

Theory

In Chapter 4,Sun Tzu said that A victorious army ensures that it will win before going
into battle. A defeated army engages in battle first and then looks for victory.The proverb is not
only can be use in ancient times for warfare but can apply to our modern business world
today.From the point of view of finance and banking, army is the employee.In ancient times,
army is guided by the commander which is similar to the employees are guided by
employers.Battles refer to the competition.When the company surrounded by different
competitors,the employer will have to look upon about strategies to reduce the declining
condition of the company.One of the ways is by planning which then lead to the execution of
strategies.The strategies have to be guarantee that the company will fully success before they
execute if they are triumphant employees.On the other side,if they are subjugated employees,
they strive in the competition first then only look for success.

The company who strikes first get the advantage.Good employees will consider
themselves beyond the situation of preparation,and then wait for the chance and moment to show
and beat the competitor.Actually the chance to beat the competitor is based on the competitor
and the our security is based on ourselves.For example,Ambank has appointed LIST S.p. A, Italy,
(LIST) as its Operational Risk Management solutions partners for the group on 26 Jun
2008.They are in the preparation for compliance with more advanced approach of Operational
Risk Management under Basel II And Bank Negara Malaysia requirements.To achieve the
goal,they have provided a complete module which contain the Loss Incident Data
Collection,monitoring mechanism etc for senior management.Besides that,their partnership
involves the implementation of the OpRisk Evolution solution and its foreign subsidiaries in
the group.LIST will provide project management services,trainings in all aspects of operational
risk management and Basel II compliance etc.

The current system which majority people adhere might not be the winner.The victory
can be achieve not only depends on the changing of plan but it also can be the changing of the
shareholders or committees position.Once the plan is expected to be fully success,then there is
nothing left behind but just go for it to achieve the honour.For instance, Public Bank Bhd, had
came up with a succession plan,changed with the appointment of a new man at the top
management committee.Datuk Chang Kat Kiam,who has 41 years of experience in the banking
and finance sector has been appointed as CEO and will join Public Bank founder and chairman
and his managing director.Aside from the banks treasury and overseas operations,Chang also
oversees loan product development and branch business review etc.Public Bank does not have a
younger executives at the highest level of management has became a concern.For the
shareholders,Chang had told them that the search for a replacement was still ongoing.For the
public,he said that the group was not in a rush to name younger candidates to its ageing board
instead,they wanted both skill and gender diversity person.Besides that,the bank intended to keep
to markets where it had a presence in and focus on organic expansion to sustain future earnings
growth.

The victory of a management of a company rely on its ways and sequences of the
system.Sun Tzu mentioned that in respect of military method, we have, firstly, Measurement;
secondly, Estimation of quantity; thirdly, Calculation; fourthly, Balancing of chances; fifthly,
Victory. The first is survey and measure of the ground,which enable us to form an estimate of the
enemy's strength,and to make calculations based on the data obtained, we are thus led to a
comparison of the enemy's chances with our own.If the latter turn the scale,then victory
ensues.Risk management in OCBC Bank is one of the example.In order to manage the
risk,OCBC Groups enterprise-wide risk management has set four key elements which are risk
appetite, risk frameworks, holistic risk management,and qualitative and quantitative
evaluations.Those are done by reviewing the risk models regularly to ensure they are appropriate
and effective.Besides that,group management collaborates with GEH and NISP on aligning their
risk management infrastructure to group standards through knowledge transfer and training
assistance,and to ensure the risk practices are appropriate for their businesses.As listed
companies, GEH and NISP publish their own annual reports,which contain information on their
risk management frameworks and practices.Head Office approve authority and limit structures to
ensure effective risk management.
Discussion
From the theory and examples above, we can know that the quotes of Sun Tzu that is
A victorious army ensures that it will win before going into battle. A defeated army engages in
battle first and then looks for victory. is able to be apply to our finance world today,even with
more powerful outcome.

For example,Mayban Management Berhad appointed Mayban Investment

Management Sdn Bhd its external fund manager to further enhance the value to its unitholders
and optimising resources within the Group on Sep 11, 2000.Under the agreement, Mayban
Investment Management Sdn Bhd will manage over RM850 million worth of funds for Mayban
Management Berhad.Besides that, the manager emphasized that they ensure the consistent
performances of the funds under its management while enhancing returns to meet investors'
objectives within a reasonable investment environment.Chairman of Mayban Management
Berhad said that the agreement today marked a significant step to ensure that the funds are even
more professionally managed by experts in the field.He added that those investment managers
have a higher level of expertise and skills to make improved investment decisions. It also allows
them to achieve optimal efficiency through the economies of scale.Mayban Management Berhad
was incorporated in 1990 as Mayban Management Sdn Bhd. It currently offers three types of unit
trusts namely Mayban Unit Trust Fund (MUTF), Mayban Balanced Trust Fund (MBTF) and
Mayban Income Trust Fund (MITF).This can be said that the external management had done
their part in bring the whole company towards success by collaborating another strong
management company to cope with them.After the cooperation,both companies able to become
an excellent institution which is the victory for both of them.This is because they ensure that
their decision is correct before the agreement and is guarantee to success at the end of the
collaboration.

Next,it is about the external management of asset of Maybank. The Bank of New York
Mellon, referred to as BNY Mellon, is an American worldwide banking and financial services
corporation formed on July 1, 2007.It is a result of the merger of The Bank of New York and
Mellon Financial Corporation. BNY Mellon Investment Management Partners with Maybank
Asset Management BNY Mellon Investment Management and Maybank Asset Management
Group Berhad has announced the launch of BNY Mellon Asia Rising Stars Fund. The fund will
combine the expertise of BNY Mellon Japan small cap and the Maybank Asia ex- Japan small
cap teams. The investment team includes BNY Mellons Japan equity team of five, based in
Japan led by Miyuki Kashima, Head of Japanese Equity Investments together with Maybank
AMs Asia (ex Japan) equity team based in Singapore, led by Ajay Sharma and Kedar Wagle,
Co-Heads of Equities.A clever employee is one who not only wins, but excels in winning with
ease.And that can be seen when Maybank take the initiative to partner with strong institution to
upgrade their asset system so that more customers can be attracted due to the trustworthy of the
bank. In process the victorious strategist only seeks competitions. Thus it explains that it is that
in war the victorious strategist only seeks battle after the victory has been won,

For the investment management,Maybank Asset Management Sdn Bhd (MAM) has
appointed Maybank Islamic Asset Management Sdn Bhd (MIAM) as the External Investment
Manager. The roles and responsibilities of MIAM is to manage the investment portfolio in
accordance with MAM fund investment objective and subject to the Capital Markets and
Services Act 2007 (CMSA), the Guidelines and the terms and conditions of the investment
management agreement between MIAM and MAM.MIAM is owned by Maybank through
Maybank Asset Management Group (MAMG), a wholly-owned subsidiary of Maybank.
MAMG is the holding entity for all Maybanks asset management and private equity businesses.
MIAM was incorporated on 15 April 2013 with a paid-up capital of RM3.0 million. MIAM is a
holder of a capital markets services licence to carry out Islamic fund management business
pursuant to Section 61 of the CMSA. MIAM has over three years of experience in managing
funds. As at 30 September 2016, MIAMs total assets under management is approximately
RM13.04 billion.As at 30 September 2016, MIAM has a total staff strength of twelve personnel
comprising of ten executives and two non-executives.Lastly,Maybank has improve their external
asset management which most customers concern.And they did it well by putting more effort in
the investment part in asset.As times passed,MIAM achieve success by having increasing
amount in assets.This proves that he who is destined to defeat first fights and afterwards looks
for victory.