Thread Module 1 Business 499: Financial Perspective

FINANCIAL PERSPECTIVE
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Financial Perspective
Focus on financial perspectives over other business factors is a major weakness for companies as witnessed by international bankers during the mortgage collapse. Northern Rock Bank is one of the institutions that were affected during the year 2007. Many customers choose to withdraw from banking with it as the housing bubble occurred. Failing to address other factors such personnel, production, and marketing results in such a situation where an organization fails to achieve proper forecasting and risk mitigation.
Northern Rock Bank failed to do an in depth research about the customers and stakeholders prior to lending massive funds. The year 2007 was one when the financier offered much money that its loans had to turn to bad debts (Shin, 2009). The major challenge arose when America`s housing finance sector witnessed monumental bad debts. Mortgage customers were not scrutinized well, as such; many of the forecasted profits were not achieved by the bank. Therefore, the individuals who held accounts with Northern Rock Bank thought it wise to close their accounts and recoup the savings before t...