Mcbride Problem Solution

Running head: PROBLEM SOLUTION: MCBRIDE FINANCIAL SERVICES

Problem Solution: McBride Financial Services

AJ Smith

University of Phoenix

Problem Solution: McBride Financial Services

McBride Financial Services Inc. (MFSI) provides low cost mortgage services to a five-state region. These services include credit reports, appraisals, home inspections, and a fixed cost home mortgage. McBride headquarters are in Boise, Idaho (McBride Financial Services, 2011). The company has recently met with an investment company that is very interested in MFSI. This company, Beltway Investments, has told McBride CEO that they expect sound corporate governance on his team’s part. Beltway has also trusted the CEO with the task of designating board members (University of Phoenix, 2011).

MFSI currently operates without a governance committee, or any guidelines for maintaining proper corporate governance. This paper will address the needs for MFSI to maintain a good relationship with their investors by establishing internal controls for corporate governance. It will also provide a solution as well as a plan to implement the solution.

Situation Analysis

Issue and Opportunity Identification

McBride Financial Services lacks any formal committees or regulations for board nominations and corporate governance. This may lead to questionable business ethics on the part of the company. MFSI executives aren’t even sure what internal controls they will need to show at the shareholder meeting with Beltway Investments. In fact, they are completely unprepared to demonstrate any compliance when it comes to corporate governance. The company does not even make an effort to demonstrate ethical leadership.

MFSI is also lacking guidelines for governance within the company. With little corporate governance infrastructure, McBride Financial Services is at risk of being in non-compliance with laws and regulations. They may also be less efficient. Because the...