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Risk and Insurance Management Risk Is Believed

Words: 3537 Length: 11 Pages Document Type: Research Paper Paper #: 19934087

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…… [Read More]

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.
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Investment and Money Management

Words: 2952 Length: 10 Pages Document Type: Essay Paper #: 44940978

Investments are the assets or items purchased with the anticipation to generate the income in the future. In the economic sense, investments refer to the goods and services purchased and not consumed today for the purpose of generating wealth in the future. Similarly, going to a university or building a factory to produce goods and services are the examples of investments. Within a financial environment, investors purchase assets with the hope that they will appreciate in the future, thus, creating wealth for the investors. Examples of investment in the financial circle include purchasing of stocks, or real estate property with the anticipation that they will appreciate in the future. Despite the benefits that can be derived from the investment purpose, the investment is not something an individual can take lightly. Investors are to implement a careful planning to reap the benefits of an investment. Typically, an investor can lose his…… [Read More]

Reference

Costa, D. (2011). The Portable Private Banker Investing Efficiently through Mutual Funds and ETFs. UK. CreateSpace Independent Publishing Platform.

Morningstar (2014). Exchange Traded Funds, Morningstar website. Avaliable from:

 http://news.morningstar.com/etf/Lists/ETFReturns.html 

Morningstar (2014). ProShares Ultra Nasdaq Biotechnology BIB, Morningstar website. Avaliable from:  http://performance.morningstar.com/funds/etf/total-returns.action?t=BIB&region=usa&culture=en-U.S .
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Investments Including Risks and Investing

Words: 997 Length: 4 Pages Document Type: Research Paper Paper #: 70241991

(Steward, 2008, ¶ 15).

II: BODY (TITLE TO BE DETERMINED)

Introduction

To explore the thesis, introduced at the start of the paper, the writer addresses the question: Do the investment risks that customers of conventional banks and financial houses may experience differ from those customers of sharia compliant financial institutions may encounter? During this segment of the research paper, the writer relates relevant information to Investing (Including Risks)

Investments

Contemporary Considerations

Investing (Including Risks)

Investments

Sukuk depict one type of bonds that meet the sharia requirement that interest cannot be charged or received. Sukuk often work so that those who hold them as investments are entitled to a share of the profits of the company that issued the sukuk.

Contemporary Considerations

III. CONCLUSION

A. Analytical summary

1. Investing (Including Risks)

2. Investments

3. Contemporary Considerations

B. Thesis reworded

C. Concluding statement

REFERENCES

Adam, N.J. & Thomas, A. (2004). Islamic bonds:…… [Read More]

Wecker, M.. (2010). The promise of Islamic banking and finance. The Arab-American News

Retrieved September 28, 2010 from HighBeam Research:

 http://www.highbeam.com/doc/1P3-1961427951.html
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Investment Management in the Financial Sector The

Words: 2651 Length: 10 Pages Document Type: Essay Paper #: 83751308

investment management in the financial sector. The paper highlights the world's present macroeconomic situation. It further details the macro economic situation and the way it affects investment decisions in several investors. In addition, the paper describes a sample investment programme and provides critical decisions to investors as well as investment vehicles used by the investment moguls. The paper summarises practical exercises in compound investment management growth and the use of capital investment.

Investment management is an important part of the global financial sector, which is key in financing vast business empires. Investment management is incorporated under state laws employing several individuals and creating revenue to key players in the financial market. It is the management of several securities and assets to meet specific objectives for the benefit of the investors. The products used known as investment vehicles can be of minimal risks such as government bonds; carry high risks such…… [Read More]

References

Development Policies and Anaysis Division. (2012). World Economic Situation and Prospects. Retrieved May Friday, 2012, from www.un.org:  http://www.un.org/en/development/desa/policy/wesp/index.shtml 

B.P.Eregha. (2010). Interest Rate Variation and Investment Determination in Nigeria. International Business Management Journal, 41-46.

Blume, M. (1978). Inflation and Capital Markets. Cambridge: Ballinger.

Contrarian Investor's Journal. (2008, July 6). Effects of inflation on value of investment. Retrieved May Friday, 2012, from www.cij.com: http://cij.inspiriting.com/?p=482#
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Risk and Return

Words: 1828 Length: 6 Pages Document Type: Research Paper Paper #: 36596162

risk and return for an investment portfolio that includes five asset categories: stocks, bonds, mutual funds, options, and precious metals. The purpose of diversified portfolio investment is to maximize portfolio expected return for a given level of risk, or to minimize risk for a specific level of expected return. This paper reviews mathematical formulae for modeling risk and return which provide a rationale for investment strategies and portfolio management. The paper also discusses risk and return objectives and expectations, along with investment risk profiles.

Risk vs. Return Measurement

In an ideal world, the typical investor would select investments whose attributes include high returns coupled with low risk. In reality, there are few of these kinds of investments available, consequently financial managers have gone to great lengths to develop methods and strategies that allow them to come as close as possible to selecting the ideal investment. One such financial theory for…… [Read More]

Piazza, J. (n.d.). Objectives and risk. Sensible Investment strategies Web site. Retrieved May 26, 2011 from http://www.seninvest.com/objectives.htm

Risk Measures. (2011). Investopedia Web site. Retrieved May 26, 2011 from  http://www.investopedia.com /terms/r/riskmeasures.asp" target="_blank" REL="NOFOLLOW">
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Risk Return and Their Evaluation Risk &

Words: 1454 Length: 4 Pages Document Type: Essay Paper #: 68660864

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…… [Read More]

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
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Risk Sales Forecast Budgeting Sales Forecasts and

Words: 717 Length: 3 Pages Document Type: Essay Paper #: 49170740

Risk Sales Forecast

Budgeting, Sales Forecasts, and Ethical Consideration

Sales forecasts and the budget preparation process in general, serves as a cornerstone for effective operations management. hen this practice is performed with strict adherence to good business ethics it is one of the key components of the entire business planning process. ith reliable estimates the organization can plan appropriates. Financial planning and estimation includes forecasted sales and revenues, expenses, and required cash flow to operate the business.

The budget will then combine all of the different estimates into a comprehensive document that can be used to plan for the future and to make business decision. The first activity in the budgeting process is usually a sales forecast. Once an organization determines what their projected levels of sales will be for any period, they can then estimate the other expenses based on this forecast. Accuracy of the sales forecast therefore is…… [Read More]

Works Cited

Decker, R., & Gnibba-Yukawa, K. (2010). Sales Forecasting in High-Technology Markets: A Utility-Based Approach. The Journal of Product Innovation Management, 115-129.

Todd, S., Crook, T., & Lachowetz, T. (2013). Agency Theory Explanations of Self-Serving Sales Forecast Inaccuracies. Sciedu Press, 13.
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Risks in Export Market There Is Need

Words: 2999 Length: 10 Pages Document Type: Essay Paper #: 15394285

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…… [Read More]

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
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Investment Patterns Among the Sexes

Words: 2421 Length: 8 Pages Document Type: Essay Paper #: 17753029

74). This dearth of information was likely caused by a reluctance to examine investment decisions on the part of investors themselves; nobody likes finding out that their "thought-out" considerations are not any more accurate than gut choices, and in fact, those gut choices likely had more influence than all of their mental work.

In the last decade, however, strides have been made in the study and analysis of investment behavior, revealing surprising details about what goes in to making stock trades. The first important work in the study of individual investment behavior was the realization that human beings do not always act rationally in regards to financial decisions, because according to the previously quoted Brad Barber and his co-author Terrance Odean, "the field of modern financial economics assumes that people behave with extreme rationality, but they do not" (Barber & Odean, 1999, p.41). Although "differences in investor literacy about financial…… [Read More]

Works Cited

Barber, Initials, & Odean, Initials. (1999). The courage of misguided convictions. Financial Analysts Journal, 55(6), 41-55.

Dhar, R, & Zhu, N. (2006). Up close and personal: investor sophistication and the disposition effect. Management Science, 52(5), 726-740.

Grinblatt, M, & Keloharju, M. (2001). What makes investors trade?. The Journal of Finance,

56(2), 589-616.
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Investment Enhancement Modern Portfolio Theory

Words: 1498 Length: 5 Pages Document Type: Research Paper Paper #: 31706290

These types of investments are often illiquid, so the investor needs to view them as long-term investments. However, the lack of liquidity also means that for the most part they have low levels of correlation with the broad market.

Derivatives are another possibility, and their potential impact on the portfolio will be discussed in the next question. They can either increase risk or decrease risk, depending on the type of derivative and how it is used.

Overall, the impact of alternative investments is to reduce the degree to which the portfolio is subject to the equity and fixed income markets. Alternative investments are often used as an ancillary component of the portfolio, to reduce the portfolio's overall volatility but with the hopes that returns will not suffer as a result.

3. Derivatives can be used for a couple of different purposes in a portfolio. The first is to increase leverage…… [Read More]

Works Cited:

De Santis, R. & Sarno, L. (2008). Assessing the benefits of international portfolio diversification in bonds and stocks. European Central Bank working paper. Retrieved May 6, 2010 from  http://www.ecb.int/pub/pdf/scpwps/ecbwp883.pdf 

Driessen, J. & Laeven, L. (no date). International portfolio diversification benefits: Cross-country evidence from a local perspective. International Monetary Fund. Retrieved May 6, 2010 from http://www.luclaeven.com/papers_files/Diversification_JBF_final.pdf

Lhabitant, F. (2000). Derivatives in portfolio management: Why beating the market is easy. EDHEC. Retrieved May 6, 2010 from  http://www.edhec-risk.com/edhec_publications/RISKReview1055927251987929638/attachments/EDHEC_WhyBeatingTheMarketIsEasy.pdf 

Schweizer, D. (2008). Portfolio optimization with alternative investments. European Business School. Retrieved May 6, 2010 from http://www.wbiconpro.com/339-Schweizer, D.pdfYavas, B. (2007). Findings indicate that co-movements among the U.S., Germany and Japan markets are significant. Pepperdine University. Retrieved May 6, 2010 from  http://gbr.pepperdine.edu/072/diversification.html
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Risk Aversion Over the Last

Words: 4225 Length: 14 Pages Document Type: White Paper Paper #: 64968357

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…… [Read More]

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.
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Investments Stock Selection on March 9 2009

Words: 580 Length: 2 Pages Document Type: Essay Paper #: 6409660

nvestments: Stock Selection

On March 9, 2009 the stock market settled on a 12-year closing low with the Dow Jones ndustrial Average (DJA), a barometer of the economy and stock market trajectory, closing at 6,547.05. (Twin, A. March 9, 2009). The precipitous plunge for the DJA from an "all-time high of 14,164.53" (Twin, A. October 9, 2007) reached on October 9, 2007 marked the timeline of the country's worst recession since the Great Depression. From the historic lows however, the market has rebounded dramatically closing at 12,105.78 on February 23, 2011, a gain of over 75% from the March lows (CNBC.com. February 23, 2011). The vicissitudes of the stock market over the past three plus years limn the debate over whether an investor who is risk averse would choose to invest in a stock market in which all stocks rise and fall together, or a market in which individual stocks…… [Read More]

Investors are marked by two extremes, the active investor who tracks, analyzes, and disseminates information on the companies in their investment portfolio, the economy, and global financial news which may influence the direction of their stock investments. At the other extreme is the investor who is socking away their five percent contribution with company match into their 401K. This investor cedes to expert portfolio managers, or trusts in the long run upward trend of equities as defined in index funds: S&P 500, Wilshire, and DJIA. While there are investors at both extremes the vast majority fall at some point on the spectrum, engaged but not able to fully commit the time or resources to portfolio management.

In this context the risk-averse investor will likely fall in with the preponderance of investors who have investment portfolios but are not actively managing them. The investor's portfolio may have individual stocks, mutual funds, or index funds. Which leads to the question, which environment would an investor desire to be in to attain their goal of reduced risk concomitant with acceptable return? The answer ironically comes from the same source, yet at bifurcated ends of an investment philosophy.

Warren Buffett considered the world's most accomplished and successful investor for over fifty years posits that a risk-averse individual could reach their investment objectives in either economic environment. In 2009, Warren Buffett entered into an agreement to purchase the remaining shares of Burlington Northern Railroad which his firm Berkshire Hathaway did not already own. His rationale for the purchase was simple "I basically believe this country will prosper and you'll have more people moving more goods 10 and 20 and 30 years from now, and the rails should benefit; it's a bet on the country, basically" (Crippen, A. November 3, 2009). This statement defines an investment strategy which suggests that over the long-term the stock market will generally move higher, the rising tide lifts all boats metaphor. Yes, stocks will fall, sometimes dramatically, across
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Risk Metrics Calculations Exposure Calculating

Words: 977 Length: 3 Pages Document Type: Research Paper Paper #: 49433447



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…… [Read More]

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
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Risk Management 1 if You Believe a

Words: 1104 Length: 4 Pages Document Type: Term Paper Paper #: 92238021

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…… [Read More]

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Risks to Hedging and Hedging

Words: 1106 Length: 3 Pages Document Type: Essay Paper #: 29994900

This can cloud your judgment, which as a trader or investor it is imperative to think with a clear head. When you are placing the hedge, it is set at a logical point that is determined without emotions. This increases the chances that you have reduced your risks by eliminating the emotionalism that accompanies the markets. (Carr, 2002)

Another reason why hedging is effective, is it allows you to protect your downside using as little working capital as possible. ecause hedging involves using options, means that the overall amounts of upfront costs are low. This means, that going into the hedge you know what your maximum down side will be (the premium). You can also reduce the amounts of risk by purchasing the options with expirations that are coming up, within the next 30 to 60 days. This is important, because the closer the option moves to the expiration date,…… [Read More]

Bibliography

Carr, P. (2002, October 1). Static Hedging of Standard Options. Retrieved February 27, 2010 from Fordham

University website: http://www.bnet.fordham.edu/crif/WorkingPapers/crifwp02010.pdf

Maynard, M (2008, October 1). Southwest Has First Loss in 17 Years. Retrieved February 26, 2010 from New York

Times website:  http://www.nytimes.com/2008/10/17/business/17air.html?_r=1
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Risk Management in Family Owned Businesses

Words: 4161 Length: 12 Pages Document Type: Term Paper Paper #: 78895817

isk Management in Family Owned Businesses

A family business can be simply described as "any business in which a majority of the ownership or control lies within a family, and in which two or more family members are directly involved" (Bowman-Upton, 1991). In other words, it is a multifaceted, twofold structure consisting of the family and the business meaning that the involved members are both the part of a job system and of a family system (Bowman-Upton, 1991).

Most families seek stability, intimacy, a sense of community, and belonging through the family business (Hess, 2006). On the other hand, whenever family and business are mentioned together, a majority of people think of continuous conflict, competition and contention (Crenshaw, 2005). However, "successful family businesses do not let the family destroy the business or the business destroy the family" (Hess, 2006).

The family-owned businesses are the backbone of the world financial system.…… [Read More]

References

Barrese, J., & Scordis, N. (2003). Corporate Risk Management. Review of Business, 24 (3), Retrieved August 17, 2012 from  http://www.questia.com/read/1G1-111508707/corporate-risk-management 

Bodine, S.W., Anthony, P., & Walker, P.L. (2001). A Road Map to Risk Management: CPAs Can Help Companies Manage Risk to Create Value. (Consulting). Journal of Accountancy, 192 (6), Retrieved August 17, 2012 from  http://www.questia.com/read/1G1-80750205/a-road-map-to-risk-management-cpas-can-help-companies 

Bowman-Upton, N. (1991). Transferring Management in the Family-Owned Business. Retrieved August 14, 2012 from http://archive.sba.gov/idc/groups/public/documents/sba_homepage/serv_sbp_exit.pdf

Caspar, C., Dias, A.K., & Elstrodt, H. (2010, January).The Five Attributes of Enduring Family Businesses. Retrieved August 15, 2012 from http://www.businessfamily.ca/cert_register_files/Web Downloads/McKinsey Quarterly - Jan 2010.pdf
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Investment in South Africa in Your Judgment

Words: 1251 Length: 3 Pages Document Type: Essay Paper #: 49795529

Investment in South Africa

In your judgment, were the possible utilitarian benefits of building the Caltex plant in 1977 more important than the possible violations of moral rights and of justice that may be involved? Justify your answer fully by identifying the possible benefits and the possible violations of rights and justice that you believe may be associated with the building of the plant, and explaining which you think are more important.

The possible utilitarian benefits of building the Caltex plant in 1977 were not more important than the possible -- or actual -- violations of moral rights and justice involved. The violations of moral rights and justices should have been prioritized. Looking back on the situation, of course, we have the benefit of knowing history, and the case of the South African apartheid is an exemplary case for the power of socially responsible investment movement.

In 1977, when the…… [Read More]

Resources

1. Jack Magarrell, "U.S. Adopts Stand on Apartheid: Backed on Many Campuses," The Chronicle of Higher Education, 12 March 1979.

2. See Herman Nickel, "The Case for Doing Business in South Africa," Fortune, 19 June 1968, p. 72.

3. Investor Responsibility Research Center, Analysis E-Supplment No. 9, 7 April 1977, p. E 114.

4. Texaco Proxy Statement, 1977, item 3.
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Investment Management Analysis Both the

Words: 3178 Length: 9 Pages Document Type: Research Paper Paper #: 60703660

This would play a role in helping to bring the Czech Republic into the EU in 2004. The effect that this would have on the Prague Stock Exchange is that it would cause it to rise to 1,940. At which point, it would have a severe down trend economy during 2008 and into 2009. The only difference is: that the various reforms and economic policies that the government was using at the time, helped to contribute to mitigating the effects of the slowdown (as the economy would experience a less severe economic contraction of 3.4%). ("Czech Republic")

The price movements of the Slovak equity market in the last 10-15 years

The ratislava Stock Exchange was founded in 1991 and has been in operation since 1993. ("asic Information") Like what occurred in the Czech Republic the Slovak stock market went through two bear markets that would last until 1998 -- 1999.…… [Read More]

Bibliography

"Basic Information." Bratislava Stock Exchange. 2010. Web. 24 Apr. 2010



"Czech Republic." State Department. 2009. Web. 24 Apr. 2010

"History of the Exchange." Prague Stock Exchange. 2009. Web. 24 Apr. 2010
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Risk Resulting From International Business

Words: 543 Length: 2 Pages Document Type: Case Study Paper #: 85104750

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…… [Read More]

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Investment the Main Fundamental Difference

Words: 344 Length: 1 Pages Document Type: Term Paper Paper #: 44016568

So, the financial obligation of futures is potentially very large. Thus, the risk in futures is larger than for options where the premium represents the maximum amount that a purchaser of an option can lose. The gain on an option can be realized by exercising the option when it is in the money (For a call option, when the option's strike price is below the market price of the underlying asset. And for a put option, when the strike price is above the market price of the underlying asset), going to the market and taking the opposite position, or waiting until expiration and collecting the difference between the asset price and the strike price. In contrast, gains are attributed to the futures accounts of the parties at the end of every trading day.

ibliography

Options and futures. http://www.discountcommoditybrokeronline.com/articles/Options-and-Futures.html

What is the difference between options and futures? Investopedia. http://www.investopedia.com/ask/answers/05/060505.asp… [Read More]

Bibliography

Options and futures.  http://www.discountcommoditybrokeronline.com/articles/Options-and-Futures.html 

What is the difference between options and futures? Investopedia.  http://www.investopedia.com /ask/answers/05/060505.asp" target="_blank" REL="NOFOLLOW">
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Risk-Free Government Bonds Are Called Risk-Free Because

Words: 597 Length: 2 Pages Document Type: Term Paper Paper #: 57895281

Risk-Free

Government bonds are called risk-free because they will be paid back. he underlying assumption is that the U.S. reasury can always print more money in order to finance the payback of these bonds. hat does not by any means make the bonds truly risk-free, but they are guaranteed to return face value. here are actually a few different ways in which government bonds are risky.

A recent change to the more orthodox view of government bond risk is that U.S. government bonds were downgraded in 2011, something that had never happened previously. his has not changed the market view of U.S. government paper, but it does imply that, according to one rating agency at least, the bonds of some other governments are less risky than the bonds of the U.S. government. hat said, the risk conditions of U.S. bonds have not changed. hey are still considered risk free because…… [Read More]

The risk of default in U.S. government bonds, aside from political shenanigans like the debt ceiling debacle in the summer of 2011, lies largely with the federal budget. This is known as sovereign risk. The sovereign risk of the United States, and several other developed nations, is very low. With other countries, however, there are genuine budget issues that make default a possibility. In the Eurozone, for example, nations like Greece are struggling to meet their debt payments. With Greece, there is no ability for the government to print more money in order to cover its obligations, and that increases the sovereign risk. Nations that have their own currencies do not have this type of risk, but still have sovereign risk to the extent that they could find themselves one day without enough cash to pay their obligations.

It should be noted that part of the reason that government bonds give a return is not related as much to risk as it is to providing the incentive to invest. Governments issue debt because they need to raise funds. If there was no return given on that debt, nobody would invest. Therefore, there must be some sort of return offered, in order to entice investors. The rate is typically set in regard to the opportunity cost of capital, and the market yield will reflect the market's views about the sovereign risk associated with debt.

Thus, risk free securities are not truly risk free. There is the risk of default, although this risk is very minor. There is the risk as well that the value of the investment will not be much. In the event of hyperinflation, for example, the value of the money might be very low. However, the value will always be paid out because the Treasury can print that money. The interest rate reflects, in addition to an enticement to invest, the combined risk of default and the risk associated with expected future interest rate moves.
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Risk and Firm Valuation Private

Words: 1582 Length: 5 Pages Document Type: Article Review Paper #: 66583764



Conclusion

There are discrepancies encountered in conducting the valuation and risk of a private company. There arises these factors that if investigated can impact the process accordingly. The first research question that I suggest is investigating if the tax risk and equity market value exhibit a concave association, which is consistent with the optimal tax risk level from a valuation of equity standpoint. The second topic that can be researched upon is the changes facing the risk and value valuation service area for businesses and how they impact the practice. Finally, a study on how the Merger and Acquisitions revised standards are impacting business deals.

eferences

Chandra, U., & o, B.T. (2008). The role of revenue in firm valuation. Accounting Horizons,

22(2), 199-222. etrieved from http://search.proquest.com/docview/208923683?accountid=35812

Darrough, M., & Ye, J. (2007). Valuation of loss firms in a knowledge-based economy. eview of Accounting Studies, 12(1), 61-93. doi: http://dx.doi.org/10.1007/s11142-006-9022-z

Bernier, G.,…… [Read More]

References

Chandra, U., & Ro, B.T. (2008). The role of revenue in firm valuation. Accounting Horizons,

22(2), 199-222. Retrieved from  http://search.proquest.com/docview/208923683?accountid=35812 

Darrough, M., & Ye, J. (2007). Valuation of loss firms in a knowledge-based economy. Review of Accounting Studies, 12(1), 61-93. doi:  http://dx.doi.org/10.1007/s11142-006-9022-z 

Bernier, G., & Ridha, M.M. (2010). On the economics of postassessments in insurance guaranty funds: A stakeholders' perspective. Journal of Risk and Insurance, 77(4), 857-892.
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Risk and Insurance Aramark Risk

Words: 2953 Length: 10 Pages Document Type: Term Paper Paper #: 376951

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…… [Read More]

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.
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Risk Management Analysis Essential Tools

Words: 2853 Length: 10 Pages Document Type: Research Paper Paper #: 3095048

Most developed economies, however, allow the market to set exchange rates, only influencing currency values through indirect means such as the increased or reduced sale of bonds to foreign entities and individuals, or through other means of international wealth exchange. Essentially, all manipulations of exchange rates and actions based on predictions of exchange rates are focused on the forward exchange rate, or the predicted rate of exchange between two currencies at a future point in time.

The spot exchange rate, on the other hand, is the rate of exchange at the current moment in time. It is through a comparison of the spot rate and the forward rate of exchange -- inasmuch as it can be predicted with any accuracy -- that companies and businesses make decisions that affect either the exchange rate itself (in the case of some governments, notably China in the modern period), or more often make…… [Read More]

References

Christofferson, Peter F. Elements of Financial Risk Management. San Diego: Elsevier Sciences, 2003.

Comptroller of the Currency Administrator of National Banks. Interest Rate Risks. 1997. Accessed 19 March 2010.  http://www.occ.treas.gov/handbook/irr.pdf 

Cusatis, Patrick and Martin R. Thomas. Hedging Instruments and Risk Management. New York: McGraw Hill, 2005.

Dun & Bradstreet. Financial Risk Management. New Delhi: McGraw Hill, 2008.
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Investment Returns and Risk With Startups

Words: 779 Length: 2 Pages Document Type: Essay Paper #: 19046500

Investment boils down to the very simple concept of risk versus reward. Investors, in aggregate must be compensated for the risks embedded within a particular security. lthough risk is subjective and varies die to differences in valuation technique, reward is universal. Investors are constantly seeking investments that offer the highest returns given the risk. In particular, due to market inefficiencies investors are often looking to achieve "lpha." lpha is simply a return achieved above the required return. In this pursuit of higher returns, investors risk losing large sums of money as unforeseen events occur. Chart 1 provides a visual representation of this concept.

Investors, seeking higher return must unfortunately take higher risk. Risk in this instance is NOT defined as Beta as many academics use. Instead, here risk is defined as the propensity for permanent capital loss. s investors move further left, notice the variance of returns becomes larger. lthough…… [Read More]

A second comment should be made about the dynamics of the startup industry and how it relates to individual investors. In the introduction, I mentioned that all investors are looking for high return investments that offer Alpha. I then went on to define Alpha and its relation to startups. One aspect that was omitted was that of industry dynamics. Although this is partially represented in the required return, changes in industry dynamics can often discourage investment in startups. In particular, unforeseen changes can quickly halt or change progress of a startup. For example, within the technology space, change occurs so rapidly that an industry leader quickly becomes an industry laggard. These changes can cause expected returns to decline to below the cost of capital. Investors realizing this will therefore become discouraged to continue the investment required to maintain the operations of the startup.

Source:

Thorp, Edward (2010). Kelly Capital Growth Investment Criterion. World Scientific. ISBN 9789814293495. Pg 3-56
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Risk Management CAPM and APT

Words: 2664 Length: 8 Pages Document Type: Term Paper Paper #: 2966411

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).…… [Read More]

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
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Risk Minimization and Loss Prevention

Words: 16256 Length: 59 Pages Document Type: Term Paper Paper #: 44399316



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…… [Read More]

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.
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Risk There Are Many Sources

Words: 628 Length: 2 Pages Document Type: Essay Paper #: 41673242

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…… [Read More]

Works Cited:

Investopedia. (2013). Definition of beta. Investopedia Retrieved April 10, 2013 from  http://www.investopedia.com /terms/b/beta.asp" target="_blank" REL="NOFOLLOW">
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Investing in Economies The Risk-Averse Investor a

Words: 629 Length: 2 Pages Document Type: Essay Paper #: 55488223

Investing in Economies: The Risk-Averse Investor

A risk-averse investor is looking for the least amount of volatility coupled with consistent gains. This means that this investor would prefer a very safe investment that returns a couple of percentage points per year over a very risky investment that could potentially return ten or twenty percent. Also, a risk-averse investor is looking to help balance any losses with gains in other sectors. This would help point to a preferred type of economy, out of the two listed that the investor has to choose from.

The second economy, where "stock returns are independent one stock increasing in price has no effect on the prices of other stocks" would be a better investment route for such an investor. This is not to say that the other option could not be lucrative, but in diversification, the portfolio is better balanced to absorb losses in one…… [Read More]

Works Cited

Gollier, C. (2004). The Economics of Risk and Time. MIT Press: Boston, MA. Pp. 307.

Mankiw, N.G. (2007). Essentials of Economics. Thomas Higher Education: Mason, OH. Pp. 417.
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Business at First My Investment

Words: 659 Length: 2 Pages Document Type: Term Paper Paper #: 86233949

Moller ended up becoming the most profitable stock in my portfolio during the first week of investing, with a gain of over 10%. Throughout the month, Moller has continued to outperform any other stock in my portfolio, so my investment risk paid off. So far, my least performing stock was Zoltek, another energy company.

My overall investment strategy, I discovered, was more high-risk than I had initially thought. However, I did need to balance my portfolio with some more stalwart stocks, in order to ensure that I would not lose all of my investment capital. I bought 1000 more shares of Citigroup, 100 shares of Deutche Bank, and 1000 shares of Home Depot. Many of these companies have not been performing well recently, but they are good long-term investments.

Then, because Moller continued to perform well, I purchased 5000 more shares, which increased my immediate profit percentages considerably. If the…… [Read More]

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Swap in Risk Reduction Derivative Markets Have

Words: 642 Length: 2 Pages Document Type: Essay Paper #: 40354792

Swap in isk eduction

Derivative markets have evolved for the last few years and they currently offer contracts on any financial security. They offer contracts to hedge any investment risk. Swap is one such derivative that is used to hedge investment risk. Its use has gained popularity because it is one of the most efficient ways to hedge common and specific financial risks which characterize many portfolios (National Association of Pension Funds, 2005).

The term swap encompasses an extremely wide-ranging variety of instruments namely: interest rate swaps, inflation rate swaps, and portfolio swaps. Perhaps before we delve deep into the different types of swaps it is imperative that we ventilate what swaps really are. Swaps are contractual agreements between two parties to exchange future cash-flows on pre-determined dates over a specified period. Interest rate swaps is the most basic swap contract where party to the contract pays a fixed rate…… [Read More]

References List

National Association of Pension Funds (2005). Swaps Made Simple: What a Trustee Needs to Know. Retrieved from www.actuaries.org.uk/system/files/documents/pdf/swapsmadesimple.pdf

Whittaker, J.G. (1987). Interest Rate Swaps: Risk and Regulation. Retrieved from  http://www.kc.frb.org/PUBLICAT/ECONREV/econrevarchive/1987/1q87whit.pdf
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Alternative Investment

Words: 981 Length: 3 Pages Document Type: Term Paper Paper #: 57788719

Alternative investment is an investment or an asset that falls outside the conventional types of investment such as stocks, bonds, and cash (Athanassiou, 2012). Examples of alternative investments include real estate, derivatives, hedge funds, private equity, venture capital, commodities (e.g. precious metals), peer-to-peer lending, and collectibles (e.g. art). Compared to conventional assets, alternative investments are subject to fewer or less stringent regulations. Additionally, most alternative investments involve higher minimum investments, more complex fee structures, and lower transaction costs (Lee, 2015). Other features that distinguish alternative investments from conventional investments include lesser liquidity, lack of provable performance information, and valuation difficulties. Due to these characteristics, an individual considering alternative investments must carefully consider the available options and their associated conditions before making the final decision. In this paper, I compare different forms of alternative investments and justify the investment I would choose.

Since alternative investments often have little or no correlation…… [Read More]

References

Anson, M., Fabozzi, F., & Jones, F. (2011). The handbook of traditional and alternative investment vehicles: investment characteristics and strategies. Hoboken: Wiley.

Athanassiou, P. (2012). Research handbook on hedge funds, private equity and alternative investments. UK: Edward Elgar Publishing.

Lee, S. (2015). 7 common alternative investments that all investors should know. Retrieved from https://www.thestreet.com/story/13155301/1/7-common-alternative- investments-that-all-investors-should-know.html
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Financial Investment Analysis Securities the

Words: 404 Length: 1 Pages Document Type: Term Paper Paper #: 52079004

"Pension reform in several emerging market countries has been associated with rapid growth in assets under management and a positive impact on the development of local securities markets." (Roldos, 2004) Finally, the stability of many international securities, located in Britain, Switzerland, or Germany, to take only a few examples, means that using the diverse potential of international investment opportunities does not necessarily entail a high risk.

However, many international sources of revenue tend to be more unpredictable in their returns. A pension fund's security, especially for an older man or woman with retirement on the horizon must be of primary importance. Secondly, international developments can be difficult to predict in the long-term. And finally, international securities may be less tightly regulated in terms of their ethical scrutiny by the local governments, leading to "price distortions, bubbles," and hence greater investment risks. (Roldos, 2004)

orks Cited

China's Pension Fund to Invest…… [Read More]

Works Cited

China's Pension Fund to Invest Abroad." (10 October 2006) International Business

Times. Retrieved 25 Nov2006 at  http://www.ibtimes.com/articles/20061010/china-039-s-state-pension-fund.htm 

Roldos, Jorge. (Sept 2004). "Pension Reform, Investment Restrictions, and Capital

Markets." IMF Policy Discussion Paper. Retrieved 25 Nov2006 at  http://www.imf.org/external/pubs/ft/pdp/2004/pdp04.pdf
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Risk Analysis Financial Markets Main Techniques Risk

Words: 1670 Length: 5 Pages Document Type: Essay Paper #: 39156595

isk Analysis Financial Markets Main Techniques isk Analysis

isk analysis in the financial markets

This essay mainly intends to outline and explain the objective of risk analysis in the financial market and the main techniques used in risk analysis. In a bid to answer this question the study will first of all include a summation of the types of risks that are found in the financial markets. The financial market here has been classified into three groups that are; the stock market where company stock and shares are traded, the bond market where the Australian government usually sell its' treasury bills and bonds and lastly the international financial market.

Different risk analysis technique will spelt out in the two markets and then the objectives of risk analysis will then be mentioned before the essay concludes.

Types of risk in the financial markets

In his studies Jensen (2009) noted that there…… [Read More]

References

Bollerslev, T., Engle, R.F. And Wooldbridge, J. 2008, "A Capital Asset Pricing Model with Time-Varying Covariances" Journal of Political Economy, 96, 116-31

Friedman B.M. And Hahn F.H. 2007, "Handbook of Monetary Economics, North Holland pp 45-98

Jensen, M.C. 2009, "Risk, the pricing of capital assets and the evaluation of investments portfolios" Journal of Business, pp, 62, 162-247

Lintner, J. 2005 "The Valuation of Risk Assets and the Selection of Risky Investments in Stock
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Risks of Trading and Investing Involving a

Words: 2591 Length: 9 Pages Document Type: Book Report Paper #: 48831559

isks of Trading and Investing:

Involving a Developing Country with a Developed Country's Business

Description of XYZ Corporation

It will be the assumption within this paper that the multinational corporation depicted resides within the United States, a developed country, while it is trying to generate business with Ecuador, a developing country. A multinational corporation is a corporation that operates by supervising or transports products or services to more than one country. XYZ Corporation is a competitive multinational corporation deeply interested in expanding its business to countries in which they have not already established business in. The company currently focuses on the manufacturing and the wholesale of products in the oil and petroleum industries. Most of XYZ Corporation's foreign entities are located in the Middle East. ecently, a member of the XYZ team has given vital information to corporate executives explaining that Ecuador has enormous oil and petroleum potential that could…… [Read More]

References

Carroll, A.B. (1991). The pyramid of corporate social responsibility: towards the moral management of organizational stakeholders-balancing economic, legal, and social responsibilities. Retrieved January 14, 2011 from  http://findarticles.com/p/articles/mi_m1038/is_n4_v34/ai_11000639/pg_2/ 

Ecuador.us. (2009, December 21). Ecuador economy, Ecuador exports, Ecuador business.

Retrieved January 15, 2010 from http://www.ecuador.us/business.htm

EconomyPoint.org. (2006). Rate of exchange regime. Retrieved January 13, 2011 from http://www.economypoint.org/r/rate-of-exchange-regime.html
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Investment Projects the Success of

Words: 927 Length: 3 Pages Document Type: Research Paper Paper #: 62579315



Determining the ranking of mutually exclusive projects is another step used by firms in the decision making process. Investments are determined on an annual basis by a business's board in agreement with and limited by the company's spending budget for the year. Once the capital budgeting and sensitivity analysis reports are complete on all projects, the projects are then reviewed on additional factors such as overall purpose within the company, and are ranked from best to worst (Bacon, 1977). Those projects that fail to meet certain numerical hurdles are simply eliminated from the list and not considered by an investment board. Some decisions may be close to certain numerical hurdles but also have other overarching reasons for acceptance. Some examples may include investments for improvements in compliance with legislation. These investments must be done regardless of their overall worth, and typically are more beneficial to a company if done sooner…… [Read More]

References

Bacon, Peter (1977). The Evaluation of Mutually Exclusive Investments. Financial Management. Vol 6.2, 55-58.

Barney, Dwayne; Danielson, Morris (2004). Ranking Mutally Exclusive Projects: The Role of Duration. The Engineering Economist. Vol 49.1, 43-61.

Mills, Geofrey (1996). The Impact of Inflation on Capital Budgeting and Working Capital. Journal of Financial and Strategic Decisions. Vol 9.1, 79-87.

Pannell, D.J. (1997). Sensitivity analysis of normative economic models: Theoretical framework and practical strategies. Agricultural Economics. 16, 139-152.
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Investment Banker Is a Person Working for

Words: 566 Length: 2 Pages Document Type: Essay Paper #: 69535516

investment banker is a person working for an investment bank. Investment banks finance both public and private companies. They arrange for debt financing and they can help put together equity deals as well. A startup company will often seek partnerships with investment bankers in order to secure the financing needed to expand or to make acquisitions. Investment bankers do not normally work with companies that only have an idea.

The stock market is a secondary market where equities are traded. A company does not turn to the stock market per se to acquire capital. The company gets its equity financing from an investment banker, who may then place the shares on the stock market. The company only sees money from the issue of the stock -- the price on the stock market does not go to the company. Investors on the stock market, however, have votes on aspects of the…… [Read More]

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Risk Resillience Concepts Operations Process Management Examine

Words: 1192 Length: 4 Pages Document Type: Case Study Paper #: 21925460

isk esillience" concepts Operations Process Management examine statement: Preventive maintenance viewed process maintaining "health" a machine. Using health care analogy, explain differences tradeoffs breakdown maintenance, preventive maintenance total productive maintenance, detailed case study required apply theory model concept.

Operations management

The importance of preventive maintenance

The emergent challenges facing economic agents have created a context in which the machineries and the equipments are no longer perceived as the primary source of income, nor as the operational focus of the economic agents. Today, entrepreneurs strive to attain their organizational goals through the satisfaction of the customer needs, through the motivation of the employees, through the pleasing of the community or through the creation of value for the shareowners.

In such a context, the emphasis placed on the purchase, replacement and functioning of the organizational machineries has decreased. But much like a paradox, despite the decreased investments in machineries, the company and…… [Read More]

References:

Roberts, J., 1997, Total productive maintenance, New Mexico State University,  http://engr.nmsu.edu/~etti/fall97/manufacturing/tpm2.html  last accessed on May 11, 2011

1999, MRC Bearings' TPM journey: from totally painted machines to taking pride in our machines, Maintenance Resources, http://www.maintenanceresources.com/referencelibrary/ezine/tpmcasestudy.htm last accessed on May 11, 2011

Business resilience, Janellis Business Consulting Services,  http://www.janellis.com.au/html/s02_article/article_view.asp?art_id=207&nav_cat_id=204&nav_top_id=77  last accessed on May 11, 2011

Preventive maintenance, Reliability Engineering Resources,  http://www.weibull.com/SystemRelWeb/preventive_maintenance.htm  last accessed on May 11, 2011
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Risk of Accepting the Offer

Words: 1378 Length: 5 Pages Document Type: Case Study Paper #: 21018167



Overall, the risk to DeeBilder is substantial. It does not appear than management has many opportunities to beat Home Depot, since DeeBilder competes as a low cost provider but Home Depot can undercut them on any product. DeeBilder will find it a tough adjustment to switch to a different business model, so they are in all likelihood going to lose this battle. Management in this situation needs to realize that the risk is almost entirely on their side. Home Depot has very little risk, the only issue at hand is how they are going to take over the market. For DeeBilder, the choice is whether to capitulate and go quietly, or whether to go down swinging, the latter choice likely to result in a total erosion of shareholder value.

2. It is unlikely that Home Depot is concerned about bad PR if they crush DeeBilder. Their low prices will win…… [Read More]

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Risk Management Tools Interest Rate Futures Interest

Words: 1113 Length: 3 Pages Document Type: Essay Paper #: 34672707

risk management tools: interest rate futures, interest rate options, forward rate agreement and interest rate swaps.

Interest Rate Futures

An interest rate futures contract is a financial derivative. It allows the buyer of the contract to lock in a future investment rate. Like all derivatives, interest rate futures are based on an underlying security, which is a debt obligation that moves in value as interest rates change (Ord, 2011).

The interest rate future is a contract between the buyer and the seller in which they agree to the future delivery of any interest-bearing asset. The interest rate future allows the buyer and seller to lock in the price of the interest-bearing asset for a future date.

Some examples of underlying instruments of interest rate futures include:

Treasury bills in the case of Treasury bill futures traded on the Chicago Mercantile Exchange (CME)

Treasury bonds in the case of Treasury bond…… [Read More]

Works Cited

Chance, D.M. (2008). Introduction to interest rate options. Louisiana State University. Retrieved December 7, 2011 from: http://www.bus.lsu.edu/academics/finance/faculty/dchance/Instructional/TN01-02.pdf

Farlex Financial Dictionary. (2009). Interest rate option. Retrieved December 7, 2011 from:  http://financial-dictionary.thefreedictionary.com/Interest+Rate+Option 

Holton, G.A. (2007). Forward rate agreement. Retrieved December 7, 2011 from: http://www.riskglossary.com/link/forward_rate_agreement.htm

Holton, G.A. (2007). Interest rate swap. Retrieved December 7, 2011 from: http://www.riskglossary.com/link/interest_rate_swap.htm
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Risk Criteria ID No Chosen Business City

Words: 4155 Length: 11 Pages Document Type: Essay Paper #: 66959596

Risk Citeia

ID NO.

Chosen Business: City estauant

Befoe discussing what the coe activities the company undetakes to achieve its opeational objectives, it is vital to highlight these opeational objectives. The following section gives a bief oveview of these objectives:

OPERATIONAL OBJECTIVES

The stategic objective of Taste Inn is to become the most liked band among its customes, a financially and opeationally stong company in the eyes of its investos, and a competitive paticipant in the food and hospitality industy of Austalia. The majo opeational objectives of the company include:

A stong custome base:

The most impotant opeational objective of the company is to stengthen its custome base by attacting moe and moe customes towads its poduct offeings. It aims to build a stong public image in the eyes of its customes and the society in which it opeates.

Become a financially and opeationally stong copoation:

The second most impotant…… [Read More]

references

Introduce products with innovative taste and new ingredients, use extensive marketing campaigns

Introduce products with innovative taste and new ingredients,

A

Manager Marketing
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Risk Management Issue Over the Last Several

Words: 1526 Length: 5 Pages Document Type: Essay Paper #: 42441406

Risk Management Issue

Over the last several years, the issue of patient safety has been increasingly brought to the forefront. Part of the reason for this, is because a number of high profile accidents have taken place. This has increase the chances that patient will develop complications. Evidence of this can be seen by looking no further than the most commonly reported cases involving malpractices lawsuits to include: incidents involving misdiagnosis, prescription medication errors, Obstetrics and surgery. As, these different events account for a total of: 62% of all medical malpractice cases. ("CRICO Coverage," 2011) This is significant, because it shows how the underlying risks facing many health care organizations have risen exponentially. In the case of the health organization we are studying, they have taken different steps to address these kinds of issues that they are facing. To fully understand the overall scope of their strategy requires: looking at…… [Read More]

Bibliography

CRICO Coverage. (2011). Harvard University. Retrieved from:  http://www.rmf.harvard.edu/ 

Gray, J. (2005). Real Time Patient Safety Audits. Quality Safety Health Care, 14, 284 -- 289.

Rogers, A. (2004). The Working Hours of Hospital Staff. Health Affairs, 23 (4), 202 -- 212.

Watson, R. (2008). Improving Patient Safety. Journal of Critical Care, 23 (2), 207 -- 221.
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Risk Management the Field of

Words: 1197 Length: 4 Pages Document Type: Term Paper Paper #: 31232985

In terms of the management of the risk, this can be completed through either one or more of the following techniques: (1) mitigation of the risks; (2) transfer of the risk from one unit to the other, one project to the other and so on; (3) the acceptance of the risk; (4) the avoidance of the risks; (5) the communication of the risks and the search for risk management strategies, and last, (6) the implementation of the risk management strategies (Elky, 2006).

Once the company has decided to accept and mitigate the risk, it has several solutions to managing the risk. Steve Elky at the SANS Institute points out that there are at least five methods for risk management, namely the NIST methodology (National Institute of Standards and Technology), the OCTAVE methodology, the FAP methodology, the COBA methodology and the isk Watch methodology. The challenge at this level is for…… [Read More]

References:

Collier, P.M., Agyei-Ampomah, S., 2009, CIMA official learning system performance strategy, 6th edition, Elsevier

DuBrin, A.J., 2011, Essentials of management, Cengage Learning

Elky, S., 2006, An introduction to information system risk management, SANS Institute,  http://www.sans.org/reading_room/whitepapers/auditing/introduction-information-system-risk-management_1204  last accessed on July 10, 2012

Cobit 5: a business framework for the governance and management of enterprise IT, ISACA  http://www.isaca.org/COBIT/Pages/default.aspx  last accessed on July 10, 2012
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Risk and Return Portfolio Diversification and the Capital Asset Pricing Model the Cost of Equity

Words: 1359 Length: 5 Pages Document Type: Case Study Paper #: 71721273

Finance

There are three different models that can be used to estimate a company's cost of capital. Basically, each of these three is used to estimate the cost of equity. The cost of debt is usually calculated on the basis of the current weighted average of the yield to maturity on the company's debt. Thus, it is the cost of equity that must be calculated. The cost of equity reflects the return that the shareholders need to be paid in order for them to own the stock. This have given us three major approaches to calculating the cost of equity.

The first of these is the capital asset pricing model. The formula for this is:

Investopedia (2013)

The cost of equity therefore reflects three major components. The first is the risk free rate, which is inherent in all securities. The second is the market risk premium, which is added to…… [Read More]

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Investment and Risk Are the

Words: 1532 Length: 5 Pages Document Type: Research Paper Paper #: 5284092

After the economic Collapse, precious metals like Gold and Silver have become the safe heaven investment for the investors. Investors know that they will get a high return by investing in these precious metals. The performance of the Gold can be judged from the below mentioned Gold graph.

The red line indicated that the Gold has completed almost a 100% ride in just 3 years because of the intentions of the people to get out their money from other investment option and park in the precious metals. There are risk provisions attached with the investment in these precious metals. Actually the price of the precious metals has been overbought now after the factor of safe heaven investment associated with it. Cautious must be taken by the investors while taking a buying position in the precious metal's investment. Tool like performance indicator of the precious metal will be used by the…… [Read More]

References

Chance, D & Brooks, R (2009), Introduction to Financial Institutions, Prentice Hall Publications

Chisholm, A, (2010), Introduction to Financial Instrument, Pearson Group Publications

Donald, J, (2004), Commodity Prices and Precious Metals Analysis, Oxford University Publications
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Risk and Return Portfolio Diversification and the Capital Asset Pricing Model the Cost of Equity

Words: 951 Length: 3 Pages Document Type: Case Study Paper #: 90096729

Finance

Assessing WalMart Cost of Equity

Cost of Equity Using CAPM

To calculate the cost of equity using the capital asset pricing model (CAPM), the equation requires collection of some data regarding the firm and the market. The equation tells us what data is needed, the equation is cost of equity = F + ?(M - F). F is the risk free rate, M is the return on a market portfolio, and ? is the beta.

The equation starts with the requirement to determine the risk free rate (F). The risk free rate is usually the current rate for government bonds. There is some flexibility here, as government bonds are issued over different periods, a common term used is the one year bond rates. The current rate given for 20th December 2013 is 0.13% (U.S. Department of Treasury, 2013).

The next input is the return on the market portfolio. This…… [Read More]

References

Beck, C, H, (2013), Fundamentals of Corporate Finance, Prentice Hall

US Department of the Treasury, (2013), Daily Treasury Yield Curve Rates, accessed 22nd December 2013 at  http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield 

Yahoo Finance, (2013), Sears Holdings, accessed 22nd December 2013 from  http://finance.yahoo.com/q?s=SHLD 

Yahoo Finance, (2013), Target, accessed 22nd December 2013 from  http://finance.yahoo.com/q?s=TGT
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Investment Banker

Words: 609 Length: 2 Pages Document Type: Term Paper Paper #: 29737141

Finance

There are several issues to consider when selecting an investment banker for an IPO. First of all, the respective bank (or the banker himself) needs to have an established track record that can be proven with concrete figures and performance thresholds. It is important to have relevant data to back assumptions that guarantee the bank's relevance in the industry, particularly in terms of previous successful IPOs and connections in the field. Another important issue will be the investment bank's capabilities: does it have sufficient resources to properly handle an IPO?

At the same time, it is important for the investment bank to match the profile of the company undertaking the IPO: it is useful to have an investment bank that understands the particularities of the business, not only of the financial perspective on things. It will thus also be able to build easier connections related to the IPO in…… [Read More]

Bibliography

1. Lainee, Francois, Plantier, Eric. 2006. Selecting (an) Investment Bank(s) for the Initial Public Offering of a Venture Capital-backed Company. An EVCA Venture Capital Committee Paper. On the Internet at tblueprint.pe/docs/IPO_Manual_2006.pdf. Last retrieved on July 24, 2014
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Risk Management and Mitigation Strategies at Rana Plaza

Words: 3177 Length: 10 Pages Document Type: Essay Paper #: 85483251

Audit Management DQ

Consider the governance of the company owning ana Plaza and describe the regional expectations as well as best practice in this area and the benefits that adoption brings. Evaluate the governance of ana Plaza during and after the collapse of the building against these and explain how this helped or hindered ana Plaza.

The management of ana Plaza failed to ensure employee safety. In such a case, workers and suppliers equate the weakest points in relation to conditions of order and input dependency, footloose sourcing practices, and hand-to-mouth contracting. One of the incidents that happened in 2013 at Sadia Garments Ltd. saw new unionized workers facing aggressive campaigns on factory management (Ayres, 2014). Workers faced threats of violence while lead organizers were sent death threats. Later, one factory supervisor attacked the Union General Secretary for Sadia Garments with a pair of scissors while demanding for the resignation…… [Read More]

References

Ahmed S. & Lakhani, L. (2013). Bangladesh Building Collapse: An End to Recovery Efforts, a Promise of a New Start. CNN. Retrieved November 10, 2014 from  http://www.cnn.com/2013/05/14/world/asia/bangladesh-building-collapse-aftermath/index.html?iref=allsearch 

Ayres, A. (2014). A Guide to the Rana Plaza Tragedy, And Its Implications, In Bangladesh. Forbes. Retrieved November 10, 2014 from  http://www.forbes.com/sites/alyssaayres/2014/04/24/a-guide-to-the-rana-plaza-tragedy-and-its-implications-in-bangladesh/ 

BBC Bengali Service (2013). Bangladesh factory collapse toll passes 1,000. BBC Bengali Service. Retrieved November 10, 2014 from  http://www.bbc.com/news/world-asia-22476774 

Benettongroup.com (2014). Benetton Group Backs an Initiative In Support Of the Victims of Rana Plaza and Their Families. Benettongroup.com. Retrieved November 10, 2014 from  http://www.benettongroup.com/archive/press-release/benetton-group-backs-initiative-support-victims-rana-plaza-and-their-families
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Risks and Benefits Social Networking

Words: 356 Length: 3 Pages Document Type: Essay Paper #: 71417097

relevance of LinkedIn as far as the further enhancement of professional connections among people is concerned cannot be overstated. What is often understated is how beneficial, if skillfully utilized, this social media leader can be in the facilitation of connections between professionals and potential employers. To maximize the powers of LinkedIn, an individual should not only keep up with his/her network, but also respond appropriately to invitations to connect. We rarely go through our connections on LinkedIn to identify those who moved from one job to another or brought on board new associates. I have a friend who wrote to a former associate after noticing some change in their job title -- he had been appointed the head of the global investments division of a multinational firm. They soon met over lunch -- with my friend landing a job as a consultant for this former associate. One could also publish…… [Read More]

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Investment Bank Failures in Asia

Words: 873 Length: 3 Pages Document Type: Essay Paper #: 28022705

Peregrine's Strategy

hat were the external and internal factors that led to the collapse?

There are many factors that could explain the rapid failure of Peregrine's failure that seemed to appear in such a short time frame. It seems fairly obvious that management bears the burden of responsibility on many levels, however, there are other explanations that could also be introduced, although the causes are debatable. However, the mainstream press seemed to focus purely on the management capabilities of the company.

"The collapse of Peregrine Investments Holdings Ltd., the biggest business failure in Hong Kong during the Asian economic crisis, was caused by bad management and not the crisis itself, according to a government inspector's report (Manuel, 2001)."

In fact, it was recommended that the courts restrict the top-level management team from operating for fifteen years based on the management team's incompetence in running the investment bank.

Although such a…… [Read More]

Works Cited

Gargan, E. (N.d.). Hong Kong's Peregrine Soared Like a Falcon, Sank Like a Reckless Bank. Retrieved from NY Times:  https://partners.nytimes.com/library/financial/011398asia-hongkong-peregrine.html 

Manuel, G. (2001, March 27). Poor Management Triggered Collapse Of Peregrine Investments, Report Says. Retrieved from The Wall Street Journal:  http://www.wsj.com/articles/SB985626919629217466
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Stock Exchange Investment

Words: 1013 Length: 3 Pages Document Type: Term Paper Paper #: 31208359

Investment Strategy

When the market crashes, turns bearish, or severely corrects, investors not only lose objective things such as money, they also lose the sustaining functions of which the investing process (and/or money, which may psychologically represent self-esteem, independence, power, etc.) has been the source. That means, in addition to objectively not having the money to buy that new house or car, self-esteem drops, and the investors capacity to calm themselves down is diminished, motivation wanes, confidence is shaken, and vitality ebbs. A down market represents an injury to our total sense of self and all the functions that sustain it. In a general way it represents a hope or fantasy lost.

For the young investor, with a large amount of earning power remaining in his life, the ups and downs of the market are small obstacles to the long-term objective of amassing a financial nest egg on which to…… [Read More]

References

Block Sandra. Stable value funds low-cost, reliable investments., USA Today, 11-30-1998, pp 20A.

McEwen David, Best to find out your risk tolerance., The Daily News (Taranaki, New Zealand), 10-08-2001, pp 6.

Luke, Robert. Staff, Step 1: Investors should evaluate tolerance for risk Finance professor's quiz helps determine the asset allocation each individual is most comfortable with.., The Atlanta Journal and Constitution, 04-03-2000, pp S26.
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Importance of a Risk Management Plan

Words: 943 Length: 2 Pages Document Type: Case Study Paper #: 39445974

isk Management on a Satellite Development Project

Enrolling a project requires risk assessment and management at various levels of implanting a project. This is based on the knowledge that quality of risk management determines the performance and outcome of the project. In any case, the Project Management Office (PMO) is mandated to spearhead a risk assessment and management plan. isk management blueprints will later be implanted to each department. This analysis attempts to vindicate the role risk management in explaining the quality of output of this project. The commencing document is structured in two main parts. Firstly, a critical assessment on the fundamentality of risk. Secondly, the document will analyze the role of the team in responding to risk management stipulated by the PMO office (Charrel & Galarreta, 2007).

Issues arising from the lack of a risk plan.

Absence of a risk management plan would have affected this project negatively.…… [Read More]

References

Charrel, P., & Galarreta, D. (2007). Project management and risk management in complex projects studies in organizational semiotics. Dordrecht: Springer.

Dar, M. (2013). Operational Risk Management, Risk Management Approaches, and Risk Mitigation Techniques: Challenges Faced By Islamic Financial Services. IOSR Journal of Business and Management, 11(2), 72-79

Kerzner, H. (2013). Project management a systems approach to planning, scheduling, and controlling (Eleventh ed.). Hoboken, N.J.: Wiley.

Kloppenborg, T.J. (2012). Contemporary project management: organize, plan, perform (2nd ed.). Mason, Ohio: South-Western Cengage Learning.
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Analyzing the Risk Management

Words: 3962 Length: 10 Pages Document Type: Term Paper Paper #: 64888014

isk Management Plan for Exxon Mobil

A risk management process is a systematic application of management policies for the purpose of identifying, analyzing, evaluating and mitigating any possible risks within an organization. The following paper focuses on formulation of risk management plan for Exxon Mobil, one of the world's most renowned oil and gas companies. The risks would be identified and selected applicable to this firm and after their evaluation, a risk treatment plan would be advised.

Establish the isk Context

Identifying the Context for isk Assessment

eviewing current organizational processes

Being in the gas and power marketing department of the company, there are certain risks applicable within my area of operation. In order to clearly determine those risks, first, a comprehensive look at Exxon Mobil's organizational processes along with a SWOT analysis is presented. The firm is dedicated to create and maintain an environmental policy that would protect the…… [Read More]

References

Bastian, B.L. & Tucci, C. (2010). An empirical investigation on the effects of political risk on technology strategies of firms, presented at Summer Conference 2010, London, 2010. London: Imperial College London Business School. Retrieved from http://www2.druid.dk/conferences/viewpaper.php?id=501908&cf=43

Exxon Mobil. (n.d.). About us: How we operate. Retrieved from  http://lubes.ExxonMobil.com/Lubes/about_how.aspx 

Green Peace. (2011). Risks and potential impacts of oil exploration in the Arctic. Retrieved from  http://www.greenpeace.org/international/Global/international/publications/climate/2011  / FinalArcticBriefing2011.pdf

Hirsch, A. (2011, June 17). Exxon Mobil accused of 'fraud' in Jacksonville gas spill trail. The Baltimore Sun. Retrieved from  http://www.baltimoresun.com/news/maryland/baltimore - county/bs-md-co-exxon-trial-closing-20110617-story.html
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An indepth analysis of Risk Management Strategies and Benefits in Cloud Computing

Words: 7745 Length: 25 Pages Document Type: Thesis Paper #: 96684540

isk, isk Management Strategies, and Benefits in Cloud Computing

SITUATIONAL ANALYSIS

PEMISE STATEMENT

KEY DEFINITIONS

SEVICE AND DEPLOYMENT MODELS

BENEFITS OF CLOUD COMPUTING

SECUITY ASPECTS

Storage

eliability

Virtualization

Trust

Physical Security

Legal Compliance

CLOUD COMPUTING ISKS

ISK Management STATEGIES

Vendor Evaluation

Centralized Information Governance

Other Organization-Level Measures

Individual-Level Security Measures

Cloud computing model

Cloud computing service and deployment models

ISO/IEC broad categories

The emergence of cloud computing has tremendously transformed the world of computing. Today, individuals, organizations, and government agencies can access computing resources provided by a vendor on an on-demand basis. This provides convenience, flexibility, and substantial cost savings. It also provides a more efficient way of planning disaster recovery and overcoming fluctuations in the demand for computing resources. In spite of the benefits it offers, cloud computing presents significant security concerns, which users must clearly understand and put strong measures in place to address them. Users are particularly…… [Read More]

REFERENCES

Abiodun, A. (2013). A framework for implementation of risk management system in third party managed cloud. Journal of Information Technology & Economic Development, 4(2), 19-30.

Ahmed, N., & Abraham, A. (2013). Modeling security risk factors in a cloud computing environment. Journal of Information Assurance and Security, 8, 279-289.

Alali, F., & Yeh, C. (2012). Cloud computing: overview and risk analysis. Journal of Information Systems, 26(2), 13-33.

Alijani, G., Fulk, H., Omar, A., & Tulsi, R. (2014). Cloud computing effects on small business. Entrepreneurial Executive, 19, 35-45.
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Commodity Investment Instruments

Words: 870 Length: 3 Pages Document Type: Research Paper Paper #: 68925004

Investment Instruments

An upsurge of The recent increasing interest in commodity investing is has driving en the development of investment instruments that accommodate the needs ofavailable for investors looking for exposure to commodity prices. Historically, direct exposure to the commodity market has been seen as complicated and often too costlyexpensive for the average investor. However, there are now instruments that offer investors a cheap and easy, inexpensive access to directly exposure to commodity price movements.

This section will explore This part will look more into the different instruments available to investors, and discuss commonly held paradigms about their advantages and disadvantages. This discussion is intended e purpose is to providegive the average investor with more complete and detailed better information about of the instruments well available, before they investing in the commodity market. In this paper, Sseven instruments are discussed in this paper, as follows: Futures contracts, stocks, options, exchange…… [Read More]

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Role of Private Investment on

Words: 14411 Length: 40 Pages Document Type: Literature Review Paper #: 672069

This also implies inadequacies in fiscal sustainability, which influences investments in private sectors.

The second channel happens through the level, composition and quality involved within the public investment, which shows the level at which the public investment replaces the private investments (Schmidt- Hebbel, Serven, & Solimano, 1996).

The final channel regards the level of taxation on the corporate earnings and the rules applicable in depreciations.

There have been arguments that fiscal policy and public expenditure reduces the private investments in two different manners. These include increasing the interest rates or lowering the private funds involved in financing the investments.

According to the neoclassical theory, the interest rate is also an imperative variable in finding the level of investment. Consequently, it results into a negative effect because it upsurges the interest payable in investments. Concurrently, McKinnon and Shaw, contends that this is likely to cause a positive relationship between the investment…… [Read More]

References

Shrestha, M.B. (2005), "ARDL Modelling Aproach to Cointegration Test," Proceedings of the 46th Annual Conference of New Zealand Association of Economists, Paper

No. 13, Wellington, July 2005.

Keynes, J.M. (1936). General Theory on Employment, Interest and Money., London,

Macmillan.
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Alternative Investment Vehicles Have Been Using by

Words: 3136 Length: 11 Pages Document Type: Essay Paper #: 92173206

alternative investment vehicles have been using by the investors to reduce the risk and maximize the profit. In this paper, we will discuss alternative investments opportunities and reducing the risk of portfolio by using the stock index future. Buying or selling the stocks is highly risky because of weak economic conditions. Investors should include various types of assets in the portfolio so that portfolio will not suffer the impact of a decline of any one security. For example; if an investor uses stocks and bonds in his/her portfolio, if stock price decline due to market fall then, the bonds would get higher return and it will eliminate the risk of decline. In the portfolio management it says that "not putting all eggs in one basket," it means investor should not invest in only one asset; they should construct the portfolio containing various types of assets. Thus, the portfolio must be…… [Read More]

References:

Sushant, Portfolio management, "Tips for diversifying your portfolio," retrieved through;  http://www.portfoliomanagement.in/tips-for-diversifying-your-portfolio.html 

Hedged your portfolio using stock index future (2002), published by Chicago Mercantile Exchange (pp-1, pp23).

"The Case for Hedge funds," Tremont Advisors Inc. & Tass Research, 3rd edition, Feb 2003 (pp 9)

Absolute Returns: The Risks and Opportunities of Hedge Fund Investing," byAlexander M. Ineichen, published by John Wiley & Sons, 2002,-Page 36.
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Credit Risk in Banking in Agreement With the Basel Accords

Words: 13816 Length: 50 Pages Document Type: Thesis Paper #: 65664414

Credit isk Management

Banks are an important part of the economy of any nation. Traditionally, the banks operate as financial intermediaries serving to satisfy the demand of people in need of various forms of financing. Through this, banks enable people to purchase home and businesses to expand. These financial institutions therefore facilitate investment and spending that are responsible for fueling the growth of the economy. In spite of their vital role in the economy, they are nevertheless prone to failure and just like other types of businesses, they also go bankrupt. Unfortunately, the failure of banks can have many and significant implications than any other type of business. As witnessed during the great depression, and in recent times following the global economic crisis and recession, the stability or lack of it in the banking system could trigger economic epidemics that would impact millions of people. With respect to this, it…… [Read More]

References

Bank for International Settlements (BIS). (2001). Consultative Document -- Overview of The New Basel Capital Accord. Basel Committee on Banking Supervision.

Basel Committee on Banking Supervision (1988) "International Convergence of Capital Measurement and Capital Standards" (www.bis.org/publ/bcbs04A.pdf).

Benston, G.J. (1998) "Regulating Financial Markets: A Critique and Some Proposals." Hobart Paper no. 135. London: Institute of Economic Affairs.

Blundell-Wignall, A., Atkinson, P. And Roulet, C. (2013). Bank Business Models and the Basel System: Complexity and Interconnectedness. OECD Journal: Financial Market Trends, Issue 2.