- Unfortunately, not every negotiation or conflict ends with the parties shaking hands or hugging. For a variety of reasons, negotiations stall or fail. For example: Bob meets with his boss Amy to discuss getting a raise. While Amy acknowledges that Bob is an excellent employee and deserves a raise, she is unable to give him a raise due to budget issues. Bob understands the budget problem; however, he knows that some employees were able to get raises within the last 6 months and feels that Amy did not plan ahead for the budget shortfall. He leaves her office frustrated without a resolution.
Based on the above example, or one from your personal/professional life, can a relationship be repaired after a failed negotiation? Why or Why not? What advice, based on the materials from this week, would you give to the parties of a failed negotiation that want to repair it?
2. Why is it important for bank managers to quantify credit risk? What are some of the difficulties with quantifying credit risk?
Why is commercial credit a major risk for financial institutions? What are some approaches used by financial institutions to mitigate concerns with commercial credit? Explain.