Credit Risk Essays (Examples)

isks in Export Market

There is need for companies to develop a professional approach before venturing into the exporting business. The management of the company is supposed to be committed extremely as well as devoting time and money in commencing the campaigns of export. A company is supposed to be ready to face greater competition as well as more stringent rules and regulations concerning products and packaging due to the variance in rules to which or across which the company will be exporting.

In the process of exportation, there are a number of risks that the company will face. These elements of risks are encountered in every commercial transactions as well as the complexity of the environments that exporters operate in. The content of this paper will analyze risks that a company can face while entering the field of exporting as well as discussing the roles of intermediaries in the…

References

Aaby, N. & S. Slater. (1989). Management Influences on Export Performance: A Review of the Empirical Literature1978-88. International Marketing Review, 6: 7-26.

Andrew B. Bernard & J. Bradford Jensen & Stephen J. Redding & Peter K. Schott, (2007). "Firms in International Trade," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 105-130, Summer.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17: 99-120.1997. Gaining and Sustaining Competitive Advantage. Reading, MA: Addison.

Cornelius Bothma (2012). Managing your export risk. EXPORTHELP. Retrieved April 13, 2012 from  http://www.exporthelp.co.za/modules/10_risk/intro.html

Credit Swap, also known in some circles as a Credit Default Swap is one of the most basic credit derivatives. Here in this transaction, one party called the Protection Buyer in return for a payment by the other party called the Protection Seller makes a periodic payment, which is dependent on the happening of some agreed-upon event that is related to an original credit.

To quote a simple example that may have a buyer, who has a public security of Corporation A, that pays a monthly fee to the seller. On the other hand the seller has a commitment to make a prearranged payment to the buyer. However, this commitment comes up only in the event of Corporation A, which is being declared as insolvent. Thus the flexibility is apparent when both the parties recognize that the terms can be negotiated between them and can also associate to further aspects…

Works Cited

ABASA. Credit derivatives for beginners: A new tool. June 2, 2002. www.aba.com

Credit Risk: Measurement, Management and Derivatives. http://www.few.eur.nl

Credit Derivatives. Financial Pipeline.  http://www.finpipe.com 

Credit Derivatives. Shaw Corporate -  http://members.shaw.ca/rkint/html/credit_derivatives.html

isk and Insurance Management

isk is believed to be a newly coined word of assurance (for example, Ewald, 1991: 198). One of the broadly shared suppositions regarding insurance is that it spins around an instrumental concept of risk. Possibility and the amount of influence make up a technical concept of hazard/risk and hazard administration is chiefly worried about reviewing these possibilities and influences (for an overview see Gratt, 1987). For instance, external profits of financial or political occurrences lay down thresholds for the availability of associated risk guesstimates or reckonings (Huber, 2002).

So, the range of the risk groups cannot be clarified by risk judgment single-handedly; peripheral circumstances that could be political, financial or inclusive of image, arts and manners, are also required to be taken into account. Therefore, if risks are not be present, per se, but are deliberately selected, we can go a step ahead and presume them…

References

Douglas, M. And Wildavsky, A. (1982) Risk and Culture. An Essay on the Selection of Technical and Environmental Dangers. Berkeley: University of California Press.

Evers, A. And Nowotny, H. (1987) Uber den Umgang mit Unsicherheit. Die Entdeckung der Gestaltbarkeit von Gesellschaft. Frankfurt / Main: Suhrkamp.

Ewald, F. (1991) 'Insurance and Risk' in Burchell, G., Gordon, C. And Miller, P. (eds.) The Foucault Effect: studies in governmentality . London: Harvester Wheatsheaf.

Gratt, L.B. (1987) 'Risk Analysis or Risk Assessment: a proposal for consistent definitions' in Covello, V. And Lave, L. (eds.) Uncertainty in Risk Assessment, Risk Management and Decision Making, Advances in Risk Analysis (4). New York: Plenum Press.

Risk Management [1]

If you believe a stock will appreciate and want to risk little to speculate that the stock will rise what are your option?

Holding a call option is fairly low risk because it would allow me to buy future stocks at a current price. An increase in stock value would limit my losses and allow me to profit by means of leveraged speculation. As a holder exercising a call option, I would be able to benefit from the same profit in underlying stock by paying only a minimal amount of money. By risking only a small percentage of my capital towards an insurance premium, I am potentially able to benefit from trends and hedge away risks within the call-option deadline.

Potential losses can be offset against either long-or-short stock portfolios by means of trading call strategies. A Fiduciary call would allow for a reduced capital outlay by…

In such case the risk sharing is beneficial. This is one of the benefits of credit default swap. However, under circumstances where there is rising connectivity between institutions because of the dense nature of the webs of CDS, attempts to share risk increase the likelihood that a bank will go under. International banks making loans to banks or corporations are in order to protect themselves from systematic economic turmoil by buying swaps on sovereign debt but there are limits to this because what reduces risks for individual institutions in small quantities spells doom for larger institutions when pushed too far. This can be detrimental considering that the number of CDS contracts outstanding on European sovereign debt doubled in the past three years after the AIG setback. Actions have unanticipated consequences

. The financial deregulation in 2000 led to the mushrooming of unregulated and largely hidden CDS contracts. This had made…

References

Buchanan, M. (2011, Oct. 31). Credit Default Swap Risk Bomb Is Wired to Explode.

Bloomberg.  http://www.bloomberg.com/news/2011-10-30/credit-default-swap-risk-bomb-is-wired-to-explode-mark-buchanan.html 

Gilani, S. (2008, Sept. 18). The Real Reason for the Global Financial Crisis…the Story No One's

Talking About. Money Morning.

risk that one needs to be concerned with when selling a franchise (and this is a general case, not only the case of Germany) is that the franchiser (that is, the person who buys the franchise) may not fulfill all his contractual obligations. These include a certain quality standard and a brand image of the mother company (the franchisor). This obviously may lead to the fact that the customers will associate with the mother company a certain level of quality that is less than that agreed upon and less that the one the company actually has in the country of origin. This can cause serious prejudice to the brand image. If we think of a classical case of franchising, McDonald's, a level of quality may include a certain degree of organization, in order to avoid long lines, a certain quality of the products (for example, the franchise contract foresees that…

Credit atings

The company which is responsible for assigning the issuers of particular kind of debt obligations and debt instruments the credit ratings is known as a credit rating agency (CA). There are a few cases in which the ratings are given to the underlying debt servicers. It is the special purpose entities, non-profit organizations, companies, national governments and the state and local governments who, in majority of the cases get the securities issued. The credit worthiness (i.e., the ability to pay the loan back) as well as the rate of interest which is applied to a specific security being issued is taken into consideration while assigning a credit rating to an issuer. After the financial crisis which took place in 2007/2009 the value of this kind of ratings was questioned to a great extent. A report was submitted by the Securities and Exchange Commission to the congress in 2003…

References

Blochwitz, S., When, C. And Hohl, S. (2003), Reconsidering ratings, Working Paper. Deutsche Bundesbank, Frankfurt.

Bolton, Patrick, Xavier Freixas, and Joel Shapiro, (2008), "The Credit Ratings Game" Mimeo, UPF, Barcelona.

Dittrich, Fabian, (2007), "The Credit Rating Industry: Competition and Regulation," Working Paper, University of Cologne - Department of Economics.

Fitch (2007), Sovereign Rating Transition and Default Study 1995-2006, February 7.

isk, eturn and Their Evaluation

isk & Performance Indicators

Since this is a small business, therefore raising equity capital through public stock issue is less likely than debt or whatever form of paper issued to angel or venture investors. Therefore while a larger, publicly traded firm would consider the return on equity version of the short form DuPont equation, a small, more closely-held concern would focus on return on assets (OA). If OA is net income over sales times sales over total assets, i.e. net income over total assets, then any action that could increase the numerator, total income, or shrink the denominator(s) should increase OA compared to past performance within the firm and the competition outside it. If competitors all use the same (best) plant, then maximizing efficiency of the same assets through process or brand innovation; input cost reductions, and also financial performance like minimizing payables days over…

Reference

Investopedia (2011). How to calculate required rate of return. Forex. 25 Feb. 2011. Retrieved

from  http://www.investopedia.com /articles/fundamental-analysis/11/calculating-required-rate-of-return.asp#axzz1wxIzjR6l

The typical term of a CDS contract is five years, although in the case of an over the counter derivative almost any maturity is possible.

CDS contract typically includes a reference entity, which is the company who has issued some debt in the form of a reference obligation, usually a corporate bond. The period over which default protection extends is defined by the contract effective date and termination date. The contract nominates a calculation agent whose role is to determine when a credit event has occurred and also the amount of the payment that will be made in such an event. Another clause in a CDS contract is the restructuring, which determines what restructuring of the reference entity's debt will trigger a credit event. For example, a company that is experiencing financial trouble may decide to extend the maturity of its bonds and therefore defer its payments. Depending on the…

3. Most of the problems with regard to issues of accuracy and privacy are caused by unauthorized third party disclosure of debtor information.

A. Many times, private debtor information that is revealed to third parties in the chain of transmission from the debtor is unauthorized.

B. Due to outsourcing of various office services overseas, safeguarding of private debtor information is problematic at best.

C. The outsourcing of the handling of private debtor information to overseas parties is not covered and should be made illegal under the Fair Credit Reporting Act of 2004.

4. The amount of information gathered and considered in credit reporting should be increased.

A. Currently, people who should not get loans get them due to not enough information being gathered on their credit worthiness.

B. Increased information gathering would give many debtors who could not acquire credit a chance by giving them a chance to introduce more…

Works Cited

Federal Trade Commission, (2004). fair credit reporting act. Washington, D.C.:

Government Printing Office. Retrieved from www.ftc.gov/os/statutes/031224fcra.pdf.

Mistakes do happen: a look at errors in consumer credit reports . (2004, fJune).

Retrieved from http://web.archive.org/web/20060615092653/http://calpirg.org/CA.asp?i d2=14889&id3=CA&.

Part of the overall calculation of uncertainty according to iskMetrics recommendations, however, should include a calculation of correlative uncertainty (Finger 2007). The rationale for including this specific uncertainty in calculations is that it helps to account for inaccuracies and inadequacies in the model, determining the level of risk associated with incorrectly defined or changing correlations used by the model in other calculations and definitions (Finger 2007). An accurate calculation of uncertainty and risk will necessarily include a calculation of the correlative uncertainties attendant upon the model and the situation to which it is applied, providing not a necessarily more accurate view of direct risk, but a useful evaluation of the risk prediction's efficacy.

iskMetrics Calculations: Exposure and Uncertainty

An accurate and well-developed combined understanding of the exposure and uncertainty of a various investment venture or portfolio contributes a nearly complete understanding and assessment of the risks presented by that investment…

References

Andren, N.; Jankensgard, H. & Oxelheim, L. (2005). "Exposure-Based Cash-Flow-At-Risk under Macroeconomic Uncertainty." Journal of applied corporate finance 17(3), pp. 21-31.

Argentin, P. (2010). "Two-sided counterparty risk." RiskMetrics Group: On the Whiteboard. Accessed 24 September 2010.  http://www.riskmetrics.com/on_the_whiteboard/20100615 

Finger, C. (2007). "We identify two main versions of correlation risk -- parameter uncertainty and new financial products -- and examine the modeling challenges implied by each." RiskMetrics Group: Research Monthly. Accessed 24 September 2010.  http://www.riskmetrics.com/publications/research_monthly/20070400

redit Analysis Smehra

redit Analysis for Neal Harris

Neal Harris recently submitted his credit application for our consideration. Mr. Harris is 45 years old, married and has 2 children. He currently works at Franklin Industries where he has been employed as office manager for 2 years. Prior to that, he was in sales at Providencial Insurance for 3 years. Neal has resided at his current residence in Tennessee for 1 year.

His credit application has been filed in joint with his wife, Helen Harris, 43 years old. Helen has recently returned to the workforce from being a housewife. She is also employed by Franklin Industries where she has been marketing director for 4 months. Both individuals have a checking and savings account with AmSouth. The purpose of their loan is for a 2003 hevrolet Tahoe. Following is a review of the 5 's of redit for Mr. And Mrs. Harris…

Conclusion

After reviewing the joint credit application for Mr. And Mrs. Harris, I have drawn the conclusion that they should be granted the loan under the terms listed. These are for a loan of $24,000, repayable over 48 months at 4%, minimum monthly payment of $540. While Neal Harris has on record a Chapter 7 file in January, 2001, review of their assets and liabilities reveals that they are suitable candidates for this loan. They also demonstrate timely repayments to their current obligations which include a mortgage with Countrywide, an auto payment with Nissan, and 4 credit cards, one of which is currently at a 0 balance.

The couple is also within the 20% average for credit capacity- net income, and have also demonstrated that they will be able to take on the extra expenditure through this loan through their supplementary income listed. I recommend that AmSouth give Mr. And Mrs. Harris their requested loan under the conditions mentioned.

Risks From International Business

What are some risks of international business that may not exist for local business?

There are many risks inherent in competing on a global or internal level compared to being a local business. As the chapter suggests, there is a much greater level of economic and socio-political pressure on governments to work together for the common good of the global economy. Despite these best intentions, global macroeconomic factors often cause nations to restrict or unnecessarily increase the cost of transactions and trade based on fear over the trading partner's economies. Such is the case for American companies attempting to gain sales within China, whose government holds nearly $1.1 trillion in U.S.-based debt. China and the United States are two of the more powerful economic forces in the global economy, and as their economies go, so goes the world. What this means for international businesses is that…

Risk Management Events

In reflection of the Exxon Valdez spill, the National Transportation Safety Board and the Coast Guard would both take a direct interest in improvement regulatory considerations relating to the alertness and suitability of an oil tanker's crew. This would be in 1989 following the massive oil spill off the coast of Alaska. According to the text, "Since 1989, much effort has been made by the Coast Guard and by companies like Exxon to ensure better business process and better risk management. Both the public and private sectors added new procedures and new controls in the transporting of oil around Alaska, reducing the likelihood of a repeat incident in that region." (p. 20)

2.

American's Express's Authorizer's Assistant would be implemented in the 1980s to create an automated way of fielding purchase authorization requests with a credit card. This would help to reduce the necessary labor to provide…

Works Cited:

Dickstein, D.I., & Flast, R.H. (2009). No excuses: A business approach to managing operational risk. Hoboken, NJ: Wiley.

This was because they were seeing one of their primary competitors (Travelers) merging with Citicorp (which created a juggernaut of: insurance, banking and brokerage activities). At which point, executives at AIG felt that in order to: maintain their dominance in the industry and offer new products they should become involved in similar activities. The difference was that they would grow the company by expanding into areas that were considered to be speculative to include: commodities, stocks, options and credit default swaps. The way that this was accomplished is by purchasing a host of businesses that were involved in these activities. This is significant, because it meant that a shift would take place in: how managers were accounting for risks and the kinds of activities that they were becoming involved in. With the newly acquired companies; bringing over executives that did not practice the same kind of strategies for dealing with…

Bibliography

Travelers, Citigroup Unite. (1998). CNN. Retrieved from:  http://money.cnn.com/1998/04/06/deals/travelers/ 

US saw 13 Bank Failures Every Month in 2010. (2011). Economic Times. Retrieved from: http://articles.economictimes.indiatimes.com/2011-01-02/news/28424370_1_medium-banks-bank-failures-problem-banks

Baum, C. (2009). The Impact of Macro Economic Uncertainty. Boston College, Boston, MA.

Byoun, S. (2007). Financial Flexibility. Baylor University, Waco, TX.

They were just so intense, so focused, so transaction-driven, there literally wasn't time for people to put ideas out and discuss and debate them."

These constraints to effective management oversight and innovation were further exacerbated when the company went private in 2001. According to Stopper, "ARAMARK went from a leveraged buyout situation in 1984, with only some 50 people having equity in the company, to an initial public offering (IPO) in 2001 with 97% ownership by employees. It was a huge cultural shift. Many employees incurred debt in order to have ownership in the company. In his view, HR's power and influence came from performance and creating value, not from advancing or acceding to personal agendas."

To their credit, though, Hayes reports that the company finally took action to remedy this situation by creating an action project team to assess the potential threats involved in retaining the status quo and…

Works Cited

About ARAMARK." (2007). ARAMARK Corporation. [Online]. Available:  http://www.aramark.com/MainLanding.aspx?PostingID=336&ChannelID=187 .

Alleyne, Sonia (2007, July). "40 Best Companies for Diversity: In Our Third Annual Survey, We Focus on Supplier Diversity and Senior Management Representation-How Much Companies Spend with Black Suppliers and Who They Let into the Corporate Suite." Black Enterprise 37(12): 106

Caddell, Cathy L. (2004, October). "Taste of Chicago." Corrections Today 66(6): 46

Goldberg, Karen (1996, July 18). "How to Feed 10,800 Athletes." The Washington Times 13.

Small usiness' Need for a CPA

One of the critical investments a small business can make to mitigate loss and risk is hiring a CPA and putting that CPA on the 'management team.' As Wells notes in his groundbreaking research, "Denise, a bookkeeper for a small trucking firm in irmingham, Alabama, wishes she had never heard of Ralph Summerford, CPA. ecause of his thoroughness, Denise is facing several years in prison for embezzling $550,000 from her employer. At least she will look good standing before the sentencing judge: Denise spent a great deal of her illegal loot on head-to-toe cosmetic surgery. She blew the rest on a shiny new Lexus, luxury vacations, clothing and jewelry. And, of course, Denise had to have a big house to store all of her finery." (Wells, 2003)

Surprisingly, it was not at all the fancy standard of living that made her employer suspicious. "The…

Bibliography

Wells, Joseph. 2003. Protect small business: small companies without adequate internal controls need CPAs to help them minimize fraud risk. Journal of Accountancy.

Small Business Administration. 2005. www.sba.gov.

Federal Reserve Bank. 2004. www.federalreserve.gov.

AICPA. 2005. At www.aicpa.org/antifraud/training/homepage/htm.

Phishing Spea Phishing and Phaming

The following is intended to povide a vey bief oveview of examples of some the most dangeous and pevasive secuity isks in the online and netwoked wold. One of the most insidious of identity theft is known as phishing. The tem 'phishing' efes to the pactice of "fishing fo infomation." This tem was oiginally used to descibe "phishing" fo cedit cad numbes and othe sensitive infomation that can be used by the ciminal. Phishing attacks use "…spoofed emails and faudulent websites to deceive ecipients into divulging pesonal financial data, such as cedit cad numbes, account usenames and passwods, social secuity numbes etc." (All about Phishing) . Thompson ( 2006) clealy outlines the basics of a phishing attack.

A typical phishing sends out millions of faudulent e-mail messages that appea to come fom popula Web sites that most uses tust, such as eBay, Citibank, AOL, Micosoft…

references the CISA Review Manual, 2006.

Thompson, S.C. (2006). Phight Phraud: Steps to Protect against Phishing. Journal of Accountancy, 201(2).

This study by Thompson provides some significant aspects that the business owner and customers in online commerce should pay attention to. These include basic but important aspect that should include in e-training; for example, never e-mail personal or financial information or never to respond to requests for personal information in e-mails. This provides useful background to the issue of risk identification and is also related management of this threat.

Wetzel R. ( 2005) Tackling Phishing: It's a Never-Ending Struggle, but the Anti-Fraud Arsenal Continues to Grow. Business Communications Review, 35, 46+.

This study A sheds light on the implications in term of the costs of identity fraud to financial institutions. The study underscores the severity of the vulnerabilities faced by today's organizations in the online world. The author refers to the obvious cost to intuitions like banks and also discusses hidden costs that relate to the erosion of customer confidence as a result of ID theft.

The consumer can learn about the various ways credit reports may -- and may not -- be used by reading credible source data online or in print publications.

One of the ways consumers can empower themselves is to gain access to their own credit reports. Access to one's own credit report is easily obtained online, by paying a fee to one of the credit bureaus or consumer reporting agencies. Gaining access to one's personal data is a proactive step towards the protection of one's privacy. As the Privacy ights Clearinghouse (n.d.) puts it, "Ordering your credit report once a year and knowing your credit reporting rights are among the most important steps you can take to safeguard your privacy." Once a year is only a guideline; some individuals might need to order their credit reports often if they have been conducting numerous transactions. Some consumers rarely use credit cards, let…

References

Electronic Privacy Information Center (n.d.). The Fair Crediting Report Act. Retrieved online:  http://epic.org/privacy/fcra/ 

"Fact Sheet 6: How Private is My Credit Report?" (2011). Privacy Rights Clearinghouse. Retrieved online:  https://www.privacyrights.org/fs/fs6-crdt.htm 

Federal Reserve Bank of Philadelphia (2011). Your credit report: What it says about you. Federal Reserve Bank of San Francisco. Retrieved online: http://www.frbsf.org/publications/consumer/creditreport.html

Obringer, L.A. (n.d.). How credit reports work. Money. Retrieved online:  http://money.howstuffworks.com/personal-finance/debt-management/credit-report.htm

ISK Management - CAPM and APT

Capital Asset Pricing Model and Arbitrage Pricing Theory

The contemporaneous business community is extremely competitive, meaning as such that the organizational leaders strive harder than ever to overcome the competitive forces. Virtually, they have to hire and retain the best skilled staff members; they have to develop and offer the best quality products and services and they must be able to raise the interest of a vast and large customer base. All these constitute competitive advantages.

Yet, another element which has to be granted the adequate attention is that of the management of assets. The specialized literature offers a multitude of definitions of the concept of asset, yet the underlying idea is basically the same. Stickey, Weil and Schipper (2009) for instance argue that an asset is "a probable future economic benefit that a firm controls because of a past event or transaction" (p.108).…

References:

Bailey, R.E., 2006, The Economics of Financial Markets, Cambridge University Press, ISBN 052184827X

Cheng, B., Tong, H., 2008, Asset Pricing: A Structural Theory and Its Applications, World Scientific, ISBN 9812704558

Fabozzi, F.J., Markowitz, H., 2002, The Theory and Practice of Investment Management, John Wiley and Sons, ISBN 0471228990

Fabozzi, F.J., Focardi, S., Kolm, P.N., 2006, Financial Modelling of the Equity Market: From CAPM to Cointegration, John Wiley and Sons, ISBN 0471699004

The major difference between standard deviation and the beta is that the former measures the volatility against the asset's own mean, whereas beta measures the asset's volatility against the market. Standard deviation, therefore, allows the user to understand the asset's specific risk on its own, and can use this information to compare returns against historical average returns. This is valuable because the risk profile of an investment can be significantly different than that of the market, so the returns will be expected to be significantly different as well.

Standard deviation can also be used to measure against other means, for example against historic market returns. However, the beta coefficient is more effective as a measure against the market. Standard deviation and beta are both often used as measures on their own, without any model, because they communication the information clearly. In the capital asset pricing model, for example, the systematic…

Works Cited:

Investopedia. (2013). Definition of beta. Investopedia Retrieved April 10, 2013 from  

. Research Design Rationale

1. Question format: In order to allow the research study to become embedded in the field of economics, the research question will use an applied question format. The purpose of the study is to develop a predictive method regarding player choices in the Prisoner's dilemma. It will explore the association of risk and cooperation or defection in the Prisoner's

Dilemma.

2. Research design: The research will use a deductive approach where the theory will be presented and tested through the methodology. The research will use quantitative research methods, which are suited for research where the information can be reduced to a numerical format. This is the case in the proposed study as both risk tolerance and the decisions made in the Prisoner's Dilemma can be reduced to numerical data and standard statistical methods applied.

III. Data/Information from Previous research

A. Literature Review

The literature review for…

Bibliography (Preliminary)

Agarwal, J. & Feils, D. (2007). Political Risk and the Internationalization of Firms: an Empirical

Study of Canadian-based Export and Fdi Firms. Canadian Journal of Administrative

Sciences. 24 (3): 165+. Questia Database.

Ansell, C. & Gash, a. (2008). Collaborative Governance in Theory and Practice. Journal of Public Administration Research and Theory. 18 (4): 543+. Questia Database.

Capital Requirement and Risk ehavior

Arab African International ank

Midan ElSaray El Koubra, Garden City Caoro

The research will mainly dwell on the capital requirements and risk behavior of banks, more in particular the credit risk. The purpose of this research is to identify and analyze the relationship between capital requirements and the risk behavior of banks in Egypt

more in particular the Arab African International ank, which is the case study for this research. Secondly, the research will seek to investigate the impact of capital regulation on the banking behaviors and particularly on the levels of credit risk of banks operating in Egypt

The findings of the research show that there is negative relationship between capital requirement and banks' risk behavior; the findings also show there is empirical evidence to prove that capital regulations have a negative impact on credit risk of banks levels of credit risk of banks…

Bibliography

Aggarwal, R. And K. Jacques, (1998), a Simultaneous Equation Estimation of the Impact of Prompt Corrective Action on Bank Capital and Risk, New York, 12-23

Avery, R.B. And A.B. Berger, (1991), Risk-based capital and deposit insurance reform, Journal of Banking and Finance pp 847-874

Berger, A.N., Herring R.J. And Szego, G.P. (1995), the Role of Capital in Financial

Institutions, Journal of Banking and Finance pp 19, 393-430.

International Risk Management

No profit was ever made without taking some financial risk. However, economists such as John Eatwell and Lance Taylor have argued in their text Global Finance at Risk: The Case for International Regulation that international financial markets are intrinsically and particularly apt to pose the threat of risk to potential investors on an individual and a corporate level. Investors in finance base their decisions on guesses, not only about how other investors within a nation will behave, but also about national stability, which affects the stability of the currency. As markets have grown more global in scope, industrialized countries often have pursued a more cautious monetary policy regarding other nations. However, too much caution can be risky too, Ultimately hesitancy in investment results not only in lost opportunities, but a climate of fear that can at its extremes generates international deflation, a depression in economic growth, and…

Works Cited

Eatwell, John & Lance Taylor. (2000) Global Finance at Risk: The Case for International Regulation. New York: New Press.

Kelly, Michael P. (June/July 2001.)"Foreign Currency Risk: Minimizing Transaction Exposure." International Law.  http://www.vsb.org/publications/valawyer/june_july01/kelley.pdf 

Schnaue, Frank. (2004). "U.S. trade gap widens as production rises." UPI. http://app.quotemedia.com/data/newsItem.htm?storyId=1533543

Banking Risk AssignmentSummary (300 Words)The assignment requires analyzing five companies with a one million British pound portfolio from the same sector. This analysis is based on market risk based on a paper by Sollis (2009). According to the author, understanding more concerning Value at Risk and applying related techniques will help compute the risks of exposure to a portfolio of real-world financial securities (Acharya). The discussion will be critically on the measurement of market risk using techniques of Value at Risk. Also, the new developments will help the learner display awareness of the limitations and methods by presenting how the results have been derived clearly (Wanat et al. 21). The portfolio in this section will consist of five real-world companies, with the length of the sample period being less than five years ending on November 30, 2021. Interpretations and comparisons should be provided instead of illustration methods to capture the…

Works Cited

Abrunhosa, Sofia Jerónimo. Value-at-Risk: empirical evolution and impact on informativeness. Diss. 2019. https://repositorio.ucp.pt/handle/10400.14/30481

Acharya, Viral V., and Matthew P. Richardson, eds. Restoring financial stability: how to repair a failed system. Vol. 542. John Wiley & Sons, 2009. https://books.google.com/books?hl=en&lr=&id=o-62DwAAQBAJ&oi=fnd&pg=PR11&dq=best+practices+in+governance+by+lawrence+york+in+2009&ots=I4BN2HTVng&sig=2AJ_g6wPf_PZtiKu7s6MGg6hoiA

Ahmadi-Javid, Amir, and Malihe Fallah-Tafti. “Portfolio optimization with entropic value-at-risk.” European Journal of Operational Research 279.1 (2019): 225-241. https://www.sciencedirect.com/science/article/pii/S0377221719301183

Al Janabi, Mazin AM. “Risk Management in Emerging Markets in Post 2007–2009 Financial Crisis: Robust Algorithms and Optimization Techniques Under Extreme Events Market Scenarios.” Innovation, Technology, and Market Ecosystems. Palgrave Macmillan, Cham, 2020. 129-157. https://link.springer.com/chapter/10.1007/978-3-030-23010-4_7

Businesses are always exposed to risks of several kinds, for which risk management becomes mandatory. To keep the corporation safe, an appropriate risk management program is obligatory even in times of uncertainty. Risk management helps in strengthening communication between the higher authorities and low line workers. The reports and analysis would be shared vertically and horizontally so that risk mitigation becomes easier through a smooth communication flow. It is conducive to a healthy organizational culture where trust is boosted and positivity is encouraged. In the absence of this program, the business would be unable to define its objectives or even meet its goals. This paper aims at designing a risk management program in which traditional and financial enterprise risk management would be covered. Further sections of the paper would discuss how those identified risks affect the organizational goals to get a clear picture of the business's existence and prosperity in…

References
Akhtar, S., Xicang, Z. & Iqbal, S. (2017). Impact of brand image on the profitability of the firm, analysis of Nestle Company Pakistan. Review of Public Administration and Management, 5(3). DOI: 10.4172/2315-7844.1000230
Barillon, T. & Robles, A. (2020, July 1). How growing businesses should tackle cybersecurity challenges. Security Intelligence. Retrieved from  https://securityintelligence.com/posts/growing-business-tackle-cybersecurity-challenges/ 
Chen, J. (2020, September 4). Financial risk. Investopedia. Retrieved from  https://www.investopedia.com/terms/f/financialrisk.asp 
Cook, K.D. (2017). Effective cybersecurity strategies for small businesses [Doctoral dissertation, Walden University]. Walden Dissertations and Doctoral Studies Collection.
Drzik, J.P. (2016, January 14). How can businesses survive in a world of unrest? World Economic Forum. Retrieved from  https://www.weforum.org/agenda/2016/01/a-world-of-simmering-unrest/ 
Eccles, R.G., Newquist, S.C. & Schatz, R. (2007, February). Reputation and its risks. Harvard Business Review. Retrieved from  https://hbr.org/2007/02/reputation-and-its-risks 
Eceiza, J., Kristensen, I., Krivin, D., Samandari, H. & White, O. (2020, April 13). The future of operational risk management in financial services. McKinsey. Retrieved from  https://www.mckinsey.com/business-functions/risk/our-insights/the-future-of-operational-risk-management-in-financial-services 
Effiong, D.A. & Enya, E.F. (2020). Liquidity risk management and financial performance: Are consumer goods companies involved? International Journal of Recent Technology and Engineering, 9(1), 580-589. DOI:10.35940/ijrte.A1692.059120

Internet Risk Management in the Banking SectorExecutive SummaryTechnological advancement in the banking industry, like in other economic sectors, has continued to increase. Banking organizations have allowed a wide array of products and services to become accessible and offered to customers via an electronic channel commonly known as e-banking or internet banking. According to Uppal, internet banking can be defined as a system that allows bank customers to access their accounts and available bank products and services information through a personal computer or other intelligent devices (39). E-banking offers numerous benefits to banks, businesses, and customers.For instance, customers can access any service they want without visiting a banks branch office. The technology is also convenient, easy-to-operate, time-efficient, and always available (it is not time restrictive). For banks, it has contributed to increased efficiency and competitiveness and reduced customer service time. The creation of new services for customers and small businesses, such…

Work CitedAlhawari, Samer, et al. Knowledge-based risk management framework for information technology project.International Journal of Information Management32.1 (2012): 50-65.Atkins, Derek, et al.Reputational risk: a question of trust. Global Professional Publishing, 2006.Bodla, B. S., and Richa Verma. Credit risk management framework at banks in India.The IUP Journal of Bank Management8.1 (2009): 47-72.Carlson, John, et al. Internet banking: market developments and regulatory issues.Manuscript, the Society of Government Economists, Washington DC(2001).Dorfman, Mark S.Introduction to risk management and insurance. (9th Edition). Englewood Cliffs, N.J: Prentice-Hall., 1998.Florina, Virlanuta, Moga Liliana, and Ioan Viorica. RISK MANAGEMENT OF E-BANKING ACTIVITIES.Annals of the University of Oradea, Economic Science Series17.3 (2008). Georgescu, Mircea. Some issues about risk management for E-banking, accepted paper series Social Science Research Network. (2006).Hosein, Nasim Z. Internet banking: Understanding consumer adoption rates among community banks.Shantou University, Shantou, China(2010).Kumar, Muneesh, Mamta Sareen, and Eric Barquissau. Relationship between types of trust and level of adoption of Internet banking.Problems and Perspectives in Management10, Iss. 1 (2012): 82-92.Nzevela, Anne K.The effect of internet banking risk management strategies on financial performance of commercial banks in Kenya. Diss. The University of Nairobi, 24 (2015).Ramakrishnan, Ganesh. Risk management for internet banking.Information Systems Control Journal6 (2001): 48-51.Safeena, Rahmath, and Hema Date. Customer perspectives on e-business value: a case study on internet banking. Journal of Internet Banking and commerce15.1 (2010): 1.Sergeant, Carol. E-Banking: Risks and Responses.U.K. Financial Services Authority(2000).Sokolov, Dmitri. E-banking: risk management practices of the Estonian banks.Institute of Economics at Tallinn University of Technology101 (2007).Solanki, Virender Singh. Risks in e-banking and their management.International Journal of Marketing, Financial Services & Management Research1.9 (2012): 164-178.Tarantino, Anthony.Essentials of risk management in finance. Vol. 53. John Wiley & Sons, 2010.Uppal, R. K. Strategies to mitigate risk in internet banking.International Journal of Management(2011).Zarei, Shapoor. Risk management of internet banking.International Conference on Artificial Intelligence, Knowledge Engineering, and Data Bases. Cambridge, UK. 2011.

Real time information needs to be synthesized with traditional balance sheet approaches in order that regulators and industry leaders have a better sense of the systemic risk in the system. Measuring risk is the first step. Beyond that, risk management systems must be implemented. These have not changed much lately -- they still focus on liquidity and portfolio diversification. Derivative instruments in particular run the risk of distorting the finances of banks because of their leverage. On the systemic level, then, finding ways to curtail the enthusiasm for these instruments is the best course of action. hether this means an increase in direct agency intervention or whether it means a reversal of the too big too fail policy that encourages risk-taking behavior is subject for further study and consideration.

orks Cited:

Huang, X; Zhou, H. & Zhu, H. (2009). A framework for assessing the systemic risk of major financial institutions.…

Works Cited:

Huang, X; Zhou, H. & Zhu, H. (2009). A framework for assessing the systemic risk of major financial institutions. Journal of Banking and Finance. Vol. 33, 11, 2036-2049.

Kaufman, G. (1996). Bank failures, systemic risk and bank regulation. Cato Journal. Vol. 16, 1. Retrieved December 4, 2009 from  http://www.cato.org/pubs/journal/cj16n1-2.html 

Hendricks, D., Kambhu, J. & Mosser, P. (2006). Systemic Risk and the Financial System. Federal Reserve Bank of New York. Retrieved December 4, 2009 from https://www.newyorkfed.org/registration/research/risk/background.pdf

Wal-Mart Accounting and Finance

Determine whose rate of return (i.e., local or parent currency returns) Wal-Mart should use when evaluating foreign direct investment opportunities and justify the position.

Foreign Direct Investment (FDI) is an international flow of capital that provides a parent company or multinational organization with control over foreign affiliates. The behavior of exchange rates influences FDI activity. Exchange rates are defined as the domestic currency price of a foreign currency. Exchange rates can influence both the total amount of foreign direct investment that takes place and the allocation of this investment spending across a range of countries (Bogoslaw, 2009).

Wal-Mart is among many multinational companies that have expanded production and distribution networks globally to take advantage of opportunities for higher local rates of return, market share, and accessibility to production inputs (Nathan, 2012). This -- along with foreign government import restrictions, opening of new markets and invitation for…

References

Bogoslaw, D. (2009). Emerging Markets: Time to Invest?. Businessweek Online, 8.

Huang, Q., Nijs, V., Hansen, K., & Anderson, E. (2012). Wal-Mart's Impact on Supplier Profits. Journal Of Marketing Research (JMR), 49(2), 131-143. doi:10.1509/jmr.10.0256.

Marshall, J. (2000). Minor Change, Big Impact. Financial Executive, 16(6), 11.

Nathan, A.J. (2012). Wal-Mart in China. Foreign Affairs, 91(3), 190-191.

Accounts eceivable

Why is the practice of managing Accounts eceivables significant?

Much of the commercial world revolves around credit -- trade credit or accounts receivable and accounts payable. The management of accounts receivables encompasses a variety of substantive activities essential to the fiscal solvency of a company. Firms that offer sales on credit must establish policies, procedures, and practices that guide their transactions and comply with official regulations. Managing accounts receivables includes the establishment of terms and conditions for sales and the granting of credit, including processes for evaluating credit worthiness of potential customers and the associated risk assessment and any resulting receivables collections.

The importance of accounts receivable to the fiscal status of a company is reflected in the inclusion of accounts receivable on a firm's balance sheet as a short-term asset (Cotell, 2010). The value of accounts receivable is the potential for converting the credit accounts into cash…

References

Cottell, P.G. (2010). Shreffler stores accounting issues related to consumer receivables, asset impairment, and discontinued operations: A problem-based learning unfolding problem. Issues in Accounting Education, 25(4), 775-787. DOI:  http://dx.doi.org/10.2308/iace.2010.25.4.775 

Song, Y. (2013). Research on accounts receivable control problem in stages. Advanced Materials Research, 629, 968-971. DOI. 10. 4028/www.scientific.net/AMR.629.968.

Utility and Benefits of Derivative Instruments

A European asset manager believes there is an elevated risk of extreme volatility in the markets during the next 3 months and wish to fully hedge their portfolio against all risks. However, they are mandated to remain fully invested at all times so selling securities is not an option. Their portfolio currently comprises the following positions.

Notional/Amount Security Term

€1,000,000 Schatz 2-year on-the-run [Futures contract 2-year German debt as underlying]

€10,000,000 Euro Interest ate swap 5-year Fixed eceiver [As fixed rate receiver, the buyer of an Euro-Swap Futures contract is obliged to accept the delivery}

$50,000,000 USD LIBO Interest ate deposit 1 year

Current data for pricing and obtaining rates can be found at www.ft.com under data archive.

The asset manager wants to fully hedge the interest rate risk on the bond by using bond futures. Calculate the appropriate number of bond futures that…

References

Balasubramaniam, K. (2015). How does leverage work in the forex market?

Investopedia. Retreived from  http://www.investopedia.com /ask/answers/06/forexleverage.asp#ixzz3hUESB87D

Chance, D.M. (). Analysis of Derivatives for the Chartered Financial Analyst © Program. Actual Insight Market Research (AIMR).

Cavallaro, M. (2015). The Forex market: Who trades currency and why? Investopedia. Retrieved from

80% of the vulnerabilities been discovered nowadays are from websites.

SQL injection occurs when an attacker uses SQL scripts to send information to the server by using the website forms and UL's. If, the website form data is not sanitized before been sent to the database it can lead to this attack. Without sanitization, an attacker can post any data they want directly to the database thus been able to access the information stored and alter the information if so desired. It is easy to make an SQL query, insert it into a form field with whichever parameters one desires and this would compromise the security of the website and its data. Using SQL injection, an attacker can capture sensitive information stored in the database like passwords or credit card details. To prevent this attack, the website developer will need to ensure that the website form fields do not accept…

References

Anandarajan, M. (2002). Profiling Web Usage in the Workplace: A Behavior-Based Artificial Intelligence Approach. Journal of Management Information Systems, 19(1), 243-266.

Cavusoglu, H., Mishra, B., & Raghunathan, S. (2004). The Effect of Internet Security Breach Announcements on Market Value: Capital Market Reactions for Breached Firms and Internet Security Developers. International Journal of Electronic Commerce, 9(1), 69-104.

Doerr, H.M., & Hecht, C.G. (1995). Navigating the Web. The Mathematics Teacher, 88(8), 716-719.

Hansen, L., & Nissenbaum, H. (2009). Digital Disaster, Cyber Security, and the Copenhagen School. International Studies Quarterly, 53(4), 1155-1175.

While it was generally agreed that the increase in prices was due mainly to an insufficient offer as the stock house was limited, opinions have also been forwarded according to which the buy-to-let purchases have contributed to the inflation of the house prices (Property Mark).

The debate concerning the reasons for the massive price increases for residential properties (materialized mostly between 1996 and 2005) is however still ongoing. On the one hand, there are the property bulls, who argue that the increase in the prices of residential builds is the result of natural processes of economic growth and development. In other words, they state that the increase in prices was the natural reaction to higher levels of employment, economic stability and lower interest rates. On the other hand however, sit the property bears, who claim that the increase in property prices is not linked to any economic processes, but is…

References:

Billington, I., 2010, 2011 set to be slow year for U.K. market, the Source,  http://blogs.wsj.com/source/2010/12/23/2011-set-to-be-slow-year-for-uk-housing-market  / last accessed on January 14, 2011

Blackson, S., 2005, the practical guide to total financial freedom, Volume 3, Lulu Press Incorporates, ISBN 1411620569

Blackson, S., 2005, the guide to real estate investing, Lulu Press Incorporated, ISBN 1411623835

Booth, T., 2003, the buy to let guide: how to invest for profit in residential property and manage the letting yourself, 2nd Edition, How't Books, ISBN 1857038649

isk Management

The video game industry forms a significant part of the leading companies worldwide currently. The huge diffusion of the internet and associated information technologies over the recent years has raised the need of increased security. Advancement in technology consequently leads to the advancement of video games as well as associated security risks. Some of the common threats and vulnerabilities involving this industry include: misuse by human, hacking, fraud, virus attacks, among others. Such factors can facilitate adversities such as information loss and alteration, and unauthorized access. This paper identifies and assesses potential threats, malicious attacks, and vulnerabilities expected by the organization. It also gives the control procedures to mitigate the mentioned risks and vulnerabilities.

The Threats and Vulnerabilities

There are a number of dominant security threats involving technology and information that affect the organization. Such threats poise a serious disruption to the business continuity planning (BCP) cycle of…

References

Syed, R and Morh, S. (2011). IT Security Issues within the Video Game Industry. The International Journal of Computer Science and Information Technology. Vol. 3, No. 5.

Risk Plan Outline Anheuser-Busch. Your Course Project assignment prepare a Risk Plan Outline give direction paper.

arly breweries

Survival in a constantly expanding business environment

Investing more finances in the first years of the enterprise

Liquor liability insurance

Having the market interested in the product

The right marketing company

The right retailer

The right attitude

Dealing with financial obligations correctly

Direct finances effectively and on time

Promote products depending on the amounts available

Concentrate on communicating with the market

Legal aspects of the business

Devising selling strategies depending on the states the company is selling its products in

Playing an active role in campaigns meant to promote moderation in drinking

c. Cooperating with the authorities

Worker safety

a. Making sure all workers are well-acquainted with regulations they need to follow

b. Having all machineries inspected on a frequent basis

c. Promoting a clean working environment

X. Devising strict risk tolerance…

Esslinger's book is a thorough account regarding the complete beer-making process and the numerous economic, marketing, and social elements that are involved in it.

Whaley, R.E. "Derivatives: Markets, Valuation, and Risk Management," (John Wiley & Sons, 26 Feb 2007)

This book relates to the relationship between market research and being in charge of a brewery. Risk management is essential in making it work properly and marketing is thus one of the most significant aspects of the whole brewing process.

risk in terms of privacy than our medical records...do you agree? Or, are your financial records more at risk, especially given events in the news lately. Which is greater in your mind (yes, you have to pick one)? Why?

Although keeping your medical records private is important, I believe that it is more important to keep your financial records private. Identity theft is one of the most prolific crimes of the modern era. As soon as someone has your information, they can hack into your bank account and take all your money or apply for credit cards in your name, leaving you broke. It is also very difficult to prove identity theft.

Drug testing in Sports; Drug testing in the construction industry; Drug testing for retail employees; Random drug testing for all employees; what principles can you pull about the pros and cons of drug testing from these different situations?…

Health Care -- Risk Management -- Session Plan

The simple, general definition of "insurance" undergoes numerous variations according to the natures of insureds and of possible claimants. A healthcare organization, by virtue of its complexity, may be faced with a multitude of factors that must be considered for adequate coverage. A review of various insurances shows that types of claims, types of insured individuals/organizations, and types of claimants interact to determine the types of insurance needed.

The Basic Concept Of Insurance

Generally, insurance is a contract in which one party indemnifies or guarantees another party against loss that might be caused by a specific event or danger (Merriam-ebster, Inc., 2013).

The Key Factors To Be Considered In Choosing An Insurance Company And Policies For A Healthcare Organization

A healthcare organization seeking the optimal insurance company and policies must examine a number of factors to obtain required coverage with reasonable rates…

Works Cited

Boone, E. (2000, February). Challenges and solutions in medical professional liability. Retrieved on February 21, 2013 from search.proquest.com Web site:  http://search.proquest.com/pqcentral/docview/200324292/13C55BEFBD15235F1C3/1?accountid=14375 

Investopedia U.S.. (2013). Liability insurance definition. Retrieved on February 21, 2013 from www.investopedia.com Web site:  

Domestic Partners

isk/Implications

The cost and value of offering domestic partner benefits:

A letter to the Board of Directors

The Children's Hospital of Dallas is committed to hiring the most qualified applicants, regardless of their sexual orientation. High-quality care is one of the hallmarks of our institution, and particularly given the shortage of many critical healthcare professionals such as nurses, we cannot afford to exclude any group from consideration. Furthermore, the hospital wishes to be EEOC (Equal Employment Opportunity Commission) compliant. Nondiscrimination is a cornerstone value of all civil rights legislation.

Given this commitment to equality, a nondiscrimination policy regarding the extension of benefits to domestic partners seems logical. How can the Children's Hospital say to staff members that they are welcome to practice medicine here or to serve our community in an administrative capacity but that their partners are not regarded as equally valid as the heterosexual partners of…

References

Benefit basics. (2012). Children's Hospital of Dallas. Retrieved:

http://www.mylifeatchildrens.com/BenefitBasics/BenefitEligibility.aspx

But amid the celebration, crucial opportunities have been lost: In September 2009, the "inspector general for the Troubled Asset Relief Program, a k a, the bank bailout fund, released his report on the 2008 rescue of the American International Group, the insurer. The gist of the report is that government officials made no serious attempt to extract concessions from bankers, even though these bankers received huge benefits from the rescue. And more than money was lost. By making what was in effect a multibillion-dollar gift to all Street, policy makers undermined their own credibility -- and put the broader economy at risk" (Krugman 2009). Many banks have given back their TARP funds, in exchange for the ability to once again engage in risky activities, to pay traders the bonuses they desire, and to pay executives what seems to be overinflated compensation. In June ten of the largest recipients of aid,…

Works Cited

Cohan, William. "A tsunami of greed." The New York Times. March 11, 2009.

December 8, 2009.

 http://www.nytimes.com/2009/03/12/opinion/12cohan.html 

"Credit Crisis." Special feature. The New York Times. Last September 22, 2009.

Introduction

Today, credit rating agencies such as Moody’s, S&P and the Fitch Group wield global influence by assigning credit ratings to bonds and even countries that have an enormous impact on investor confidence. Following the 2008 subprime mortgage meltdown and the Great Recession of 2009 that resulted, there were growing calls for reform of the rating processes used by credit reporting agencies. To determine the facts with credit rating agencies, this paper reviews the literature to provide an overview of these for-profit organizations and a description of the purposes they serve. An examination of the regulatory environment in which credit rating agencies operate is followed by an analysis of current issues with credit rating agencies in the United States and abroad. Finally, a summary of the research and important findings concerning credit ratings agencies and ways to improve them are provided in the conclusion.

Credit Agencies Overview

What are credit…

It was also very interesting to note that many large suppliers may actually step in to help their troubled client. Again, this makes sense, especially if the client is a long-term business partner doing a major amount of business with the company. Saving a company actually makes sound financial sense in these cases, and uniting with a group of company creditors is also a good idea. It seems that for the most part, when a company runs into financial difficulties, if they are a viable and respectable company, there are resources available to help them regain their footing and continue business. This shows how important it is to always have excellent relationships with customers, no matter what business you engage in.

eferences

Brownstein, Howard and Edward Gavin. "When Bad Things Happen to Good Customers." Business Credit, June 2003, retrieved from ProQuest…

References

Brownstein, Howard and Edward Gavin. "When Bad Things Happen to Good Customers." Business Credit, June 2003, retrieved from ProQuest 27 June 2007.

Global Credit Crisis on UK Northern ock Bank

The lingering effects of the Great ecession of 2008 still remain, but most authorities appear to agree that the corner has been turned and global economic recovery is well underway. The cause of the Great ecession of '08 was primarily the sub-prime mortgage meltdown that occurred in the United States, and its effects were already being experienced as early as September 2007, when the United Kingdom experienced a mass market run on Northern ock Bank, the first in the nation's history. The global credit crisis that resulted from these events has been felt in differing degrees by the nations of the world, but few countries in the increasingly globalized international community have been entirely immune from its effects. To gain new insights into this fiasco, this paper provides a corporate profile for Northern ock Bank, followed by a review of the relevant…

References

'Corporate Profile.' (2011). Northern Rock Bank. [online] available: http://companyinfo.

northernrock.co.uk/investorRelations/corporateProfile/.

'Directors' report and financial statements for the period 3 July 2009 to 31 December 2009.'

(2010). Northern Rock Bank. [online] available:  http://companyinfo.northernrock.co.uk  / downloads/2009_NR_plc_Financial_Report_and_Accounts.pdf.

CEMEX:Strategic isk Management

CEMEX: Strategic isk Management

CEMEX is a leading producer of cement products. Headquartered in Monterrey, Mexico, CEMEX serves customers around the globe. Before the 1970s, CEMEX was a sleepy company, limited in scope to the domestic market, engaged in cement, mining, tourism and petrochemicals. ising through the ranks of the company his grandfather founded in 1906, CEO Lorenzo Zambrano focused the company on the world market for cement after divesting the non-core businesses. (Spieth, 2005)

isk Management as an Operational Competence

The single biggest risk to a company with a cement-only strategy is the requirement to commit substantial capital to factory-level plant and equipment, in the face of uncertain and fluctuating demand. This risk is heightened by the commoditization of the products and services which results in prices falling to the level of marginal cost during times when supply exceeds demand. Long-term, the natural ebb and flow…

References

Millman, Joel, December 11, 2008, Hard Times for Cement Man. Retrieved March 7, 2011 from  http://online.wsj.com/article/SB122894691555195919.html 

Lessard, Donald R. & Lucea, Rafel, May 2008, Embracing Risk as a Core Competence: The Case of CEMEX, MIT Sloan School and George Washington University.

Spieth, Scott, December 12, 2005, Cementing the Future: Hedging Foreign Currency Risk at CEMEX. Retrieved March 7, 2011 from  http://people.hbs.edu/mdesai/IFM05/Spieth

Derivatives in Risk Management

One of the uses for derivative products is in risk management. Organizations have recognized that derivatives can be used to manage risk by offering guaranteed outcomes for a set up-front cost. For firms that face risk due to fluctuations in asset prices -- typically commodities or currencies -- beyond their control, derivatives represent a means of achieving cash flow certainty, if not profit certainty. This paper will explore the different forms that derivatives take, and the different ways in which they are used as a risk management tool. Some recommendation will be given with respect to the use of derivatives in risk management in order to optimize results.

Derivatives and Risk Management

In finance, a derivative instrument is one that has a price that is based on the price of a real underlying asset -- agricultural commodities, metals, sources of energy, currencies, stocks and bonds (Chance…

Works Cited:

Bodnar, G., Marston, R. & Hayt, G. (1998). 1998 Survey of financial risk management by U.S. non-financial firms. Wharton School of Business/CIBC World Markets. Retrieved March 12, 2013 from  http://finance.wharton.upenn.edu/~bodnarg/courses/readings/survey98.pdf 

Bouchard, J. & Potters, M. (2003). Theory of financial risk and derivative pricing. Cambridge University Press. Retrieved March 12, 2013 from  http://catdir.loc.gov/catdir/samples/cam041/2003044037.pdf 

Chance, D. & Brooks, R. (2008). An Introduction to Derivatives and Risk Management. Thompson South-Western.

Rivers, M. (2012). Should airlines hedge their bets on fuel? Flight Global Retrieved March 12, 2013 from  http://www.flightglobal.com/news/articles/analysis-should-airlines-hedge-their-bets-on-fuel-374733/

292).

The Depression of 1893

Following hard on the heels of the depression that had taken place just two decades previously, the precise causes for this economic downturn remain unclear. In this regard, Steeples and Whitten (1998) advise, "There is no adequate account of the causes of the depression of 1893 -- 1897 or, by implication, of the crisis itself" (p. 6). These authors, though, cite fundamental shifts in demographics in the U.S., as well as innovations in technology and manufacturing that caused a reevaluation of traditional institutions and the role that the U.S. was going to play in the economic affairs of the world in the 20th century as contributing to this depression (Steeples & Whitten, 1998).

The "Great Depression" of 1929-1939

The stock market crash in 1929 is frequently cited as the precipitating factor for the Great Depression, but othermund (1996) emphasizes that there were other economic forces…

References

Black's law dictionary. (1991). St. Paul, MN: West Publishing Co.

Connolly, B. (2008, Winter). Defining the financial safety net: Two dozen experts weigh in. the

International Economy, 22(1), 24-25.

Dattel, E. (2008, Winter). Defining the financial safety net: Two dozen experts weigh in. the

Closing the loan is also known as firm commitment, and involves the completion of all key paperwork within a designated time. A closing date is set, and the closing costs are established. hen the client pays the costs and completes the paperwork, the loan is closed.

The next step is to service the loan. Servicing refers to the management of the payments. The loan creates an obligation on the part of the borrower to make payments as specified in the agreement. The role of the bank is to ensure that those payments are received. Servicing may be contracted out to a secondary party. In the U.S. that might be Fannie Mae or Freddie Mac, who provide a secondary market for mortgages. In a servicing arrangement, the bank would collect the payments and remit most of this money to the secondary market investor. The bank would keep a portion of the…

Works Cited:

Federal Deposit Insurance Corporation website. Retrieved April 30, 2009 from  http://www.fdic.gov/regulations/laws/rules/6500-1400.html 

Rajan, Raghuram G. (no date). Why Bank Credit Policies Fluctuate: A Theory and Some Evidence. University of Chicago. Retrieved April 30, 2009 from  http://faculty.chicagobooth.edu/raghuram.rajan/research/fluct.pdf 

Penwell, Tracy L. (2009). The Credit Process: A Guide for Small Business Owners. Federal Reserve Bank of New York. Retrieved April 30, 2009 from  http://www.newyorkfed.org/education/addpub/credit.html 

No author. (2009). Closing. Mortgage X. Retrieved April 30, 2009 from  http://mortgage-x.com/library/closing.htm

Corporate

The concept of credit management is the way that money is handled when money is borrowed from banks or credit providers. When managing international credit, there are far more risks involved with purely domestic credit sales. When money is borrowed from banks or credit providers in the international community, there is risk involved with potential changes in economies, government, and currency issues. When transactions are purely domestic, the chances of the economy drastically changing, the government being a volatile entity or the currency become vastly inflated or deflated are slim. When reflecting on past situations in the foreign markets, countries like Venezuela, experienced rash changes in government structure, and endured a coup d'etat in a short time frame that led Venezuela's precious oil commodity to be in jeopardy. In this situation, the risks of the commodity sales were grave but the potential consequence in becoming involved in trading with…

The author of the article, "Achieving the Challenge: Meeting Standards in the Continuation High School" (Stits, 2001) related that "prior to 1983, many continuation high schools existed in districts where expectations were limited to keeping the students in school as much as possible," and also the ideas was to keep those continuation students "away from the traditional high school campus." The implication was clear: there was a stigma that students in continuation school were bad seeds, and the idea was to keep them away from the mainstream lest they have a negative effect on the "good students" in the regular high school.

But eventually, the image of continuations schools in California changed, as communities more and more were trying to prevent school dropouts, and the need for a high school diploma became more important, as well, Stits writes.

HO DO CONTINUATION SCHOOLS OPERATE?

In an article in the journal Thrust…

Works Cited

Arlington Public Schools. (2005). Alternative Education: Purpose, Mission, Beliefs. Retrieved Nov. 10, 2007, at  http://www.apsva.us/hsc .

Community College Week. (2004). R.I. Plan Would Help at-risk Students.

Hardy, Lawrence. (2007). Children at Risk: Graduation Day. American School Board Journal,

No. 37907. Retrieved Nov. 11, 2007, at  http://www.asbj.com .

But even if not much is personally at risk, if the individual has the capacity to repay the loan, the lender may take a chance. Having collateral is even more important than capital, as it enables the lender to get back at least some or the entire loan her or she has made. However, going through the legal process of getting the money through forcing the entrepreneur to cash in on that collateral is more difficult than simply extracting payment -- thus an entrepreneur having a large capacity to repay is even more ideal. Market conditions are somewhat important, as having a high interest rate can make lending more attractive, and a strong economy can enable the business to prosper and thus increase the chance that the lender will be repaid. An entrepreneur with good character is important, so that the individual will make a good faith effort to prosper…

Works Cited

"The Five C's of Credit Analysis." U.S. Department of Commerce: Minority Business

Development Agency: MBDA. 30 Jan 2004. 4 Feb 2008.

 http://www.mbda.gov/?section_id=3&bucket_id=131&content_id=2517&well=entire_page

As a part of my work, I have conducted on-going analysis and monitoring of the risks involved in a variety of investment funds. I remained at the cutting edge of market research, for I must be aware of the subtlest differences amongst different funds. This invaluable work experience has not only steeled my stomach to risk, but has shown me the importance of mathematics and programming in the financial field. Quantitative data, properly studied, remains the most invaluable tool in risk management today.

I have also already begun my initial creative work in the field. Recently, I developed my first quantitative model at work, an original program using Excel to generate risk ratings for different funds, based on statis data. Through my employment as well I have broadened my knowledge base about derivates in the capital markets products, through direct involvement in transactions as well as self-study conducted at in-house…

Kitchen emodeling Project: Mitigating Future isks

Please Betty You initiating assembly risk opportunity plan. The plan finalized reflection impact risks opportunities identified addressed activity 7. Your challenge activity review template basic portions risk opportunity plan omissions errors, oversights.

In order for the kitchen remodeling project to succeeds, there is need to ensure there if effective risk management in order to guarantee an increase in the opportunities available and that risks that arise are mitigated to reduce their effects on the project Beans, 2011.

The type of risk, degree of impact of the risk, likelihood of the risk, prioritization of the risks, tasks that have been effected to date, and mitigation strategies for the risk are important in developing the final risk management plan. This helps to ensure the project manager understands all that is expected and foreseen for the project and also that they develop an effective strategy for any…

References

Alviniussen, A., Jankensgard, H., & forskning, L. u. I. f. e. (2009). Enterprise Risk Budgeting: Bringing Risk Management Into the Financial Planning Process. Lund, Sweden: Lund Institute of Economic Research, Lund University.

Banaitien?, N., Banaitis, A., & Norkus, A. (2011). Risk management in projects: peculiarities of Lithuanian construction companies. International Journal of Strategic Property Management, 15(1), 60-73. doi: 10.3846/1648715X.2011.568675

Beans, K.M. (2011). Operational Risk Management: Sorry, There's No 'Easy Button'. The RMA Journal, 07(01).

Extra-Credit Questions

Questions on Readings

There are different kinds of peril that a person can find himself (in this case) in, and Macready and Macon Detornay find themselves embedded in several of them, in large measure because of their own actions, including their own attitudes about the position that they hold in the world in which they spend their lives. Detornay is more clearly culpable for the problems in which he finds himself because these are dangers into which he places himself. Lacking what he perceives to be an authentic life, he casts off the superficial markers of the community in which he has been raised and to which his life has accommodated him, he pretends that he can live a more authentic life by becoming what he sees as an urban black. Not only does this place him at occasional physical risk but on a consistent basis in moral…

In addition, a series of joint ventures in which West German steel firms joined with East German firms and Krupp, Klockner, and Thyssen of Germany was pursuing other developmental initiatives in eastern Europe as well. Likewise, Arbed of Luxemburg was involved in steelmaking facilities in the former East Germany. According to Mangum et al., "The rising market for improved galvanizing for automobiles, appliances, canning, and other uses is producing a rash of joint ventures throughout the world. Some of these are internal to various countries and others involve international partners" (p. 74).

As a result, nearly 30% of the world's steel supply is now produced by plants belonging to companies that did not exist just 3 decades ago (Ahlberg, Pitkanen & Storsch 1999). As these authors point out, "Such upstarts have entered a global market that since 1980 has grown by less than 1% a year -- an average combining…

References

Ahlberg, J., A. Pitkanen and L.L. Schorsch. 1999. "Forging a New Era for Steel." The McKinsey

Quarterly 83.

Altunisik, M.B. And O. Tur. 2004. Turkey: Challenges of Continuity and Change. New York:

Routledge.

At-Risk Students in Milwaukee

How Do at-Risk Children in Milwaukee Benefit from Alternative Schools?

The City of Milwaukee has a population of about 602,191 (an estimate from the U.S. Census as of 2007) and roughly 15% of Milwaukee's population is between the ages of 10 to 19 years (school age). There are about thirty-six alternative schools in Milwaukee to provide support and scholastic assistance to those students who are not producing in "regular" schools, including high schools in Milwaukee. This paper will review the support provided by two alternative high schools in Milwaukee:

One, Assata Alternative High School (2023 est isconsin Avenue); and two, Grandview High School (Seeds of Health) (1445 South 32nd Street)

Assata Alternative High School was founded in 1992 and operates full-day alternative programs for grades nine through twelve. Assata is a partner with the Division of Diversified Community Schools -- within the Milwaukee Public Schools system,…

Works Cited

Assata Alternative High School. (2009). Assata High School Educational Plan. Retrieved May 11, 2009, from  http://mpsportal.milwaukee.k12.wi.us/portal/server.pt .

Grandview High School (Seeds of Health). (2009). MPS Reviewed Educational Plan.

Retrieved May 11, 2009, from

Financial Management: atios, isk and Diversification

Financial atios elevant to Small Businesses and Large Corporations

In an attempt to determine the performance of his or her business, a small business owner can utilize ratios such as the current ratio and the profit margin ratio. The profit margin in the words of Needles and Powers (2010) "shows the percentage of each sales dollar that results in net income." For a small business owner, this ratio would be an appropriate measure of the profitability of his or her business. The current ratio as Stickney et al. (2009) point out helps in the measurement of a firm's ability to settle its short-term debts/obligations. A small business owner interested in determining the ability of the business to settle its everyday bills and other obligations would find this ratio useful. On the other hand, a manager of a large corporation would be interested in ratios…

References

Graham, J. & Smart, S.B. (2011). Introduction to Corporate Finance (3rd ed.). Mason, OH: Cengage Learning.

Needles, B.E. & Powers, M. (2010). Financial Accounting (11th ed.). Mason, OH: Cengage Learning.

Stickney, C.P., Weil, R.L., Schipper, K. & Francis, J. (2009). Financial Accounting: An Introduction to Concepts, Methods, and Uses (13th ed.). Mason, OH: Cengage Learning.

Shim, J.K. & Siegel, J.G. (2008). Financial Management (3rd ed.). Hauppauge, New York: Barron's Educational Series.

The organizations are usually run by a core group, which divides the different responsibilities of an operation (e.g. spamming, web design, data collection) among the members. The members run their own outer networks to fulfill those responsibilities -- rarely even having contact with each other online. The decentralized structure of the internet, as well as the high levels of anonymity it provides makes it difficult for law enforcement agencies to locate cybercriminal groups. A group could have networks in a myriad of different countries, whilst using servers based in numerous different countries and jurisdictions. Furthermore, many national jurisdictions lack the legislative framework required to properly prosecute online crime." (Collins, 2012)

These insights are illustrating how the lack of self-control is creating a situation where more criminals or organizations are turning to cyber crime. What makes the situation worse; is they can work anonymously and be able to conduct these activities…

References

Casey, E. (2011). Digital Evidence and Computer Crime. London: Academic.

Collins, a. (2012). Contemporary Security Studies. Oxford: Oxford University Press.

Gregg, M. (2010). Hacker Techniques, Tools and Incident Handling. Sudbury, MA: Jones and Bartlett.

Gryzbowski, K. (2012). An Examination of Cyber Crime and Cyber Crime Research. (Unpublished doctoral dissertation). Arizona State University, Scottsdale.

Frustration and Dissonance/Risk

Frustration and Dissonance / Risk

Frustration and Cognitive Dissonance

Cognitive dissonance has been extensively studied in social psychology as the effects of dissonance would cause dramatic changes in one's life. Cognitive dissonance is defined as an uncomfortable feeling caused by holding conflicting ideas simultaneously. The result of dissonance may be anxiety, blaming, and denying. Although, the latter may also occur as the result of frustration, frustration is a conflict which occurs when something happens against one's will. The ways of reducing dissonance and frustration are justifying, blaming, and denying. People's experiences can contradict with expectations. For example, my old car was a manual transmission car, very reliable, fuel efficient; however, I wanted to buy an automatic transmission car with built in GPS and more room. However, my new car is not meeting my expectations. I have given three speed tickets because I was used to drive manual…