PROBLEM SOLVING STAGES

Problem Background
Commonwealth Bank of Australia (CBA) is a multinational bank located in Australia and
many other countries in the world which are United States of America, Asia, United Kingdom
and others such as New Zealand. This bank was recently rank the top in the Australian securities
exchange since it carried its operations and business coordination appropriately as stock issues
are concerned. The financial institution faced a hard time this year when its staff committed a
fraud of $ 76m from the insurance sector. After the internal audit was done the insurance
division it was found that the sector’s financial system had some problems which might have
attributed to the loose of the money. In line with Four Corners (TV series), It was a serious
matter since the company could not allow payable of terminal illness claims on its customer who
was dying in the hospital recognized with organ failure which is a curable operation. The
company argued that the disease was not to be treated.
Problem Definition
Fraud is a common aspect which is experienced in many organizations and many cases it
is associated with employees since they are always present in the offices, and they are mandated
to be aware of all operations which take places in their organizational divisions. The problem of
fraud committed by the organization’s staff may be rooted in many elements which motivate
them to engage in the unethical and unlawful action. Political, economic, social and
technological elements are sometimes causes of such actions or crimes since they are initiated by
other parties or the working environment. As this problematic issue is concerned there three
techniques which are highly applicable in its identification has its cause is involved and its

PROBLEM SOLVING STAGES 3
analysis. Their methodologies involved include; SWOT, PEST and 5Ws analysis technologies
(Goodson, 2015).

SWOT Analysis

As per the problem experience in Commonwealth Bank of Austrian, there are several
techniques which are applicable in identifying the cause of the fraud and they include SWOT
(Strengths, weaknesses, opportunities, and weaknesses. Those four elements can be the
motivators or stimulators towards the occurrence of fraud in the organization. As per
Commonwealth Bank of Austria, the project to establish an insurance company division was
appropriate since it based the argument on the strengths or opportunities of the initiative which
are: the sector would attract more customers, it would boost their capital which would enable it
to offer loans of high amount than before, it will enable the organization to help the local
communities in securing their property and lives. The weaknesses or threats which were stated
were viewers than the strength, and they involved; unexpected robbery and an advance hacking
technology.
Commonwealth Bank made an appropriate decision to establish the insurance division in
the company since it was more advantageous to its operations as capital generation is concerned
and also has a helping hand in the society. As per SWOT analysis, the fraud experienced in the
organization emanated from the staff since through interference with the financial system. The
organization did not consider internal influence as a threat to its asset (Pahl, Richter & University
of Applied Science Berlin, 2007).

PEST Analysis Technique

According to PEST analysis, the issue faced by Commonwealth Bank of Australia can be
based on four organizational environmental elements which are political, economic, social and

PROBLEM SOLVING STAGES 4
technological (Goodson, 2015). Fraud in large and multinational organizations such as
Commonwealth Bank is rare if it is not politicized or influenced by international or internal
factors such as the existence of ‘moles’ in the enterprise who are meant to achieve targets of
other individuals such as competitors. As per the conclusive results issued by the investigating
team, it was unexpected for a fraud of $76 million to be experienced by such an organization
(Four Corner TV series). Commonwealth Bank as per the analysis was done by the investigation
team; it pays its employees poorly as compared to its competitors who are line with set policies
or workers remuneration. As per the political aspect of the government had set very low salary
basis which generalized all companies (Grieves, 2010).
The banking system in Austria was facing the same political, economic, social and
technological aspects which made them equal in which some organizations such as
Commonwealth Bank should not subject to its workers. Some political issues such as
remuneration laws initiate fraud and other unlawful Acts since workers sometimes face hard
financial constrain which can initiate them engages in such conditions. This analysis method is
supportive to the elements of SWOT since the organization‘s threats are used in both techniques.

5Ws And Cause Analysis

This methodology is commonly used in analyzing organizational problems by using
questions. In this kind of analysis, the problematic issue is based in 5Ws for the solution to be
achievable. The 5w’s in these techniques include what, who, when, where and why. The w
words are useful since they aid in structuring questions which are employed in the generation of
answers which are used in providing the necessary solution alternatives for the problem. The
questions which can be used in providing alternative solutions are; what might have caused the
fraud? Who might be involved in the action? When did the fraud occur? Where why the

PROBLEM SOLVING STAGES 5
supervisors during the occurrence of the fraud? And why did the fraud occur particularly to the
insurance division and no other sectors? By the review given by the Four Corner Press, the
reliable individuals in the organizations are mostly the company’s employees since 97% wherein
the Enterprise premises when the fraud was experienced. As per the investigation team, the staff
is highly reliable for the problematic issue faced in the organization and the necessary
disciplinary measures should be taken to ensure the same occurrence does not occur in future. As
per the 5Ws questions of analysis, the fraud took place in the financial management offices
since the CCTV cameras were interfered with and this created a comfortable crime scene for the
individuals involved. The reason behind why the incident occurred in the insurance division is
because it was not under high security as compared to other sectors (Grieves, 2010).

Findings

Solution Generation
The research conducted by the investigation team reviewed that fraud emanated from
staff after they took advantage of the security situation of the insurance division. As per the
problem identification, there are several issues associated with the organization’s threats. As per
SWOT, PEST and 5Ws analysis techniques, an appropriate solution is necessary to aid solving
the matter as involvement of staff in fraud.
Brainstorming
This is an appropriate decision and investigation tool which will aid in generating the
necessary solution for the problematic issue facing Commonwealth since there must be
established committee of experts to deal with it .The committee of experts will have to share
ideas to ensure the appropriate solution is arrived on. In the committee the topic on staff fraud in
Commonwealth Bank of Australia in which the members will provide their ideas to what should

PROBLEM SOLVING STAGES 6
be done to ensure the best solution is obtained after analysis. The problematic issue should be
written on a flip paper together with the necessary questions to be brainstormed. After the ideas
have been generated the committee will propose on the best ideas to make the list shorter hence
easing the process of arriving at the appropriate solution. Poetization should be observed will
eliminating the ideas since some are more worth than others, and this criterion will enable the
committee to generate the best and appropriate solution for the problem. As per this process
Commonwealth Bank should better its employee’s remuneration.
Brainwriting
A Committee has to be formed to deal with the issue affecting Commonwealth Bank of
Austria since the appropriate solution will be sought since the members will be able to generate
ideas. In such a situation a brain writing sheet will be provided with the problem written on the
top of the paper in which every member will have to contribute his or her ideas by writing them
on the sheet. The brain writing sheet circulates during the committee meeting to enable every
member to write his or her ideas which will be considered in making the final decision about the
problematic issue facing Commonwealth Bank of Australia. The committee will be made of
members from the organization and others from a consultancy firm in which it will be based on
equity for all. Some situations are crucial and they cannot include the organization members a
lone since they may interfere with the process to curb the issue in order to protect their friends.
Experts important in this situation since they give the appropriate steps to be followed to ensure
the right results are obtained at the end of the exercise. As this stage is concerned, the proposed
solution is to terminate employment contracts for workers who were involved in fraud (Hass,
2011).
De Bono’s Six Hats

PROBLEM SOLVING STAGES 7
This methodology is appropriate in dealing with the Commonwealth Bank of Austria’
problem since it is well structure and a proper procedure is always used to deal with the
problematic issue. As per this technique the different hat colors will be used in the identification
of different aspects involved in addressing the problematic issue. As per the issue of staff fraud
there are several parties which will be involved in the process of identifying and defining the
appropriate solution for the problem. Commonwealth staff fraud is based on the six hats which
will be bearing; blue, green, white, yellow, red and black. Each hat will be representing a
specific issue in which it will be handled step by step. The blue hat will represent process in
which ways thinking can be done. There are several questions which are associated with this
section which are; what should be done to curb future frauds? Every member involved in this
process will focus his or her thoughts on what ways Commonwealth Bank of Austria will deal
with the current fraud issue to prevent repetition should. The second hat will be color white, and
its theme will be based on facts. The information on research results will be introduced
portraying the $76 million lost by the staff. In this section members will not be allowed to
generate ideas without any informative or data has evidence. In this section, every member will
have to ask out what he or she knows about the primary issue under review. The third hat will be
red in color representing feelings in which individual members will explain their instincts as the
topic of discussion is concerned. No reasons are will be given to support the instincts felt. The
fourth hat will be black giving an expression of the difficulties and risks associated with fraud to
Commonwealth Bank of Australia. As per the weakness of fraud, the organization may end up
losing more financial assets if the current problem is not dealt with appropriate. The fifth hat will
be yellow in color in which it is based on the benefits of the process. In this section, it is
identifiable that staff who committed the fraud should be sought since if ignored they may end

PROBLEM SOLVING STAGES 8
up engaging in more unlawful issues. The sixth and the last hat is the green one which gives an
expression to why Commonwealth should identify the responsible staff members. As per this hat,
the organization should suspend all the involved individuals; it can also sue them for their
unlawful actions which are against the ethical and professional standards asper the qualifications
as an employee of Commonwealth Bank of Australia (Hass, 2011).

Analysis

Solution Evaluation
The solutions identified in the above section, are evaluated using three techniques which
are appropriate for this scenario. The methodologies to be used to determine the best and
appropriate decisions are; affinity diagram, decision matrix and the Categorization, elimination
and ranking. The decision matrix is the most suitable sine it will reflect the real data on the
individuals supporting the final solution (Charantimath, 2012).
Affinity diagram

Top level

Fraud in Commonwealth Bank of Austrilia

Second level label
Suspend the suspects

Second level label
Ignore the suspects

Third level
label
Sue the
suspects

Third level label
Terminate their
contracts

PROBLEM SOLVING STAGES 9

Decision Matrix
Support
Solution Investigatio
n team

Other
workers

General
public

TOTA
L

Suspend
suspects

5 2345/3456 7 2357

Sue the
suspects

1 0 3 4

Ignore the
suspects

0 6 1 1
TOTAL 2362

Recommendation

Implementation and Action Plan

Force -field analysis

According to the solution evaluation it is clear that only one of the ideals given can be applicable
in the commonwealth Bank (CBA) . The employees associated with fraud should be suspended
and their employment contract terminated. This solution is facing a lot of opposition from the
labor unions, the public and from other employees. Even though the idea is opposed by several
teams, there other individuals who are supporting it and their main thought is on enabling the
success of the company. The investigation team, management, the organization governing board
and some employees has decided that the law breakers should quit their position since they may
enhance more harm to the enterprise in future. The both teams have an appropriate view on what
should be done but the labor laws and Commonwealth Bank standards and professional ethics
should be adhered to as per the objectives of the organization. The only option which the
Commonwealth can take it to suspend the suspects and terminate their employment contracts by
paying them compensation fees.
Single point
Suspend
them only.

Single point
Suspend
them only.

PROBLEM SOLVING STAGES 10

References

Goodson, S. M. (2015). History of central banking and the enslavement of mankind.
Place of publication not identified: Black House Publishing Lt.
Pahl, N., Richter, A., & University of Applied Science Berlin. (2007). SWOT analysis:
Idea, methodology and a practical approach. Munchen: GRIN Verlag.
Grieves, J. (2010). Organizational change: Themes & issues. New York: Oxford
University Press.
Hass, K. B. (2011). Enterprise business analyst: Developing creative solutions to
complex business problems. Place of publication not identified: Management Concepts.
Charantimath, P. M. (2012). Total quality management. Delhi: Pearson.