In general, it is calculated between the confidence level of 1% and 5%. There are various methods for measuring the Value at Risk for a project including the Variance -- Covariance methods, the Risk Metrics Contribution method, Historical Simulation methods, and Monte Carlo simulation methods. While, these methods are simple to use and compute the potential level of risk involved, these are based on a variety of assumptions. Generally, all approaches involved using historical trends and data and probability distributions are defined based on historical trends. A major problem with Value at Risk model is that it does not take into account the changing conditions and trends and it still claims to compute risk in rare conditions. Over a period of time risk managers have been arguing and criticizing Value at Risk...
Since VaR involves defining and assigning probability distributions to individual risks, academic researchers argue that the combined Value at Risk for a wholly project can be much more then the individual Value at Risk of an element of the portfolio (Einhorn, 2008). Academics also accuse that Value at Risk approach tempts the financial institutions to take impractical risks (Nocera, 2009).
Mandatory Sentencing Public policy, crime, and criminal justice Mandatory Sentencing: Case Study Critique The prime grounds of mandatory sentencing laws are utilitarian. The laws come with long prison sentences for recidivists, drug dealers and isolation of violent criminals from the community aiming at preventing them from committing additional crimes outside the prison walls. In addition, the design of mandatory sentencing aim at deterring and portraying a harsh reflection to potential offenders of the
Public Private Comparator Public Sector Comparator (PSC) in the Public-private partnership (PPP) Process Increased global financial pressures have caused many government entities to cut costs in any way possible. One way is to outsource services or projects to private companies. However, when comparing costs, the public sector frequently bases its cost calculations for a project by omitting certain types of factors. These can include employee benefits, utilities, or total administrative costs. As
Still, the concept of guided imagery tends to stray far from traditional methods of pain management. Pharmaceuticals have long been a major method of treatment for pain, but have resulted in major backlashes in regards to patients becoming addicted, especially in long-term and chronic cases of pain. If guided imagery could be a successful method, it may reduce pain or increase pain tolerance, without the threat of chemical dependence. There
The necessity to safeguard intelligence information from parochialism and political pressures will be a strong argument in promoting a centralized and strong capability. This is contrary to leaving decisions that affect critical intelligence related concerns solely to the makers of policy. Centralization of policymaking process faces the politicization risk that stems from the department of DCI. It is only the Congress, the President, and Senior National Security Officials who can
Criminal Law Foundations Evaluation Criminal Law Foundations Paper Constitution signifies different political contexts safeguarding the well-being of the citizens, as well as, the convicts in the state. The constitution gives an integrated model of a republic that dictates the roles, responsibilities of different arms of the legal and criminal justice system that ensure social equity and coercion. It is recognizable that each state has a unique political system characterized by "checks and
Hybrid Organizations In order to understand the structural change and implementation of hybrid organizations in public administration it is necessary to gain a comprehension of what defines hybrid organizations as opposed to public and private organizations. Differences between these three types of organizations exist in managerial approaches to goals and rules, and they also vary in regards to effectiveness with achieving distinct aims and objectives (Lan and Rainey, 1992). The extent
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