65 % of the paper needs to be cited with scholarly articles.
There is no doubt that a solid compensation philosophy must address issues of equity and justice, both from an internal perspective and an external perspective. As such one must be very aware of the causes of inequity but also be much attuned to the relationships, internal and external, that promote concerns. A strong compensation program, driven by a philosophy of justice and equity, can define and placate problems before they occur.
Required Reading:
Please refer to the Activity Resources section of each activity for the required readings.
Assignment 4 Equity: Internal and External
As an HR professional, it is important to thoroughly understand the concept of internal and external equity in terms of pay and benefits. For example, you will need to understand how to answer the following questions. How is the concept of internal and external equity similar or different in discussing pay versus benefits? In the struggle to recruit and retain productive and motivated staff members, is it better to design and promote a compensation and benefit program that focuses on external market competitiveness or that is structured to promote internal equity? How does one articulate the concept of just and equitable within a compensation structure? Activity Resources:
HYPERLINK "http://proxy1.ncu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=44900327&site=ehost-live" Earle, J. E. (2009).
Main Task: Analyze Issues of Internal and External Equity Write a paper analyzing the concepts of internal and external equity and apply these concepts to an examination of pay versus benefits in organizations. Include in the analysis, a comparison of the advantages and disadvantages in designing compensation and benefit programs that focus on external market competitiveness or that are structured to promote internal equity. Support your analysis based on current research incorporating three journal articles or publications into your response. Support your paper with minimum of five (5) scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Length: 5-7 pages not including title and reference pages Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Incorporate reference page number within the context of the paper. Use current day examples to substantiate your research. Submit your document in the Course Work area below the Activity screen. Learning Outcomes: 3, 4
Assignment Outcomes
Analyze the importance of balancing internal and external pressures and effects of external competitiveness in designing pay structures. Assess the role of performance measurement in compensation deci.
In spring 2016, PwC investigated the current state and
future direction of stress testing. We surveyed 55 insurers
operating in the US about their stress testing framework and
the specific stresses that they test. We also engaged in more
detailed dialogue with a number of insurers in the US and
globally, as well as with some North American insurance
regulators.
Assessment_2-6_context.pdf
1
Assessment 2 Context
MHA-FP5014 Assessment 2 Context
Regulations, Risk Management, Risk Sharing, and Risk Financing
Leading in today's ever-changing health care industry requires constant adjustment to
emerging laws, regulations, and industry standards. Organizations must quickly and
effectively reposition to meet new, existing, and emerging laws. Two examples of laws that
have driven a multitude of new and sometimes confusing regulations are the Patient
Protection and Affordable Care Act of 2010 and the Healthcare Insurance Portability and
Accountability Act of 1996.
The shift to electronic health records is another example of the need to create new structures,
processes, and policies to meet legal and regulatory requirements. Government surveying
bodies and industry accrediting bodies assess basic compliance as well as best practices.
Effective leadership is not only necessary for the pursuit of excellence, but also for
organizational survival.
Policy changes drive regulatory requirements and, consequently, requirements for provider
organizations that depend upon Medicare and Medicaid as reimbursement sources.
In The New England Journal of Medicine article, Inglehart (2011) creates a context for the
health care environment relating to regulations, risk management, and risk sharing:
One of the hottest issues debated within the administration was whether ACOs should
bear financial risk in their quest to achieve savings. CMS supported awarding a bonus
to an ACO when its stated goals were achieved but imposing no penalty if it failed in
that regard for the first 2 years. This approach (used in Medicare's Physician Group
Practice [PGP] demonstration) is designed for start-up ACOs, while they gain
experience.
After White House intervention, a second, two-sided approach to risk was added to the
rule, aimed at larger medical groups with stronger management structures. Such
groups could choose to bear some of the financial risk, which currently Medicare totally
assumes, in exchange for modestly higher bonuses if they succeed.
CMS is uncertain how many large groups will opt for this at-risk approach. A
companion program offering even greater risk sharing is expected to be tested by
CMS's innovation center, and it may have more appeal to integrated systems that
already accept capitation payments or other larger risk-sharing arrangements.
Risk Management
Risk management has taken an increasingly important role in organizational viability.
Conditions of participation for government-supported programs, standards for provider status
required by insurance companies, and quality metrics requisite for industry accreditation must
all be considered within the context of the organization's directional strategy. It is wise to
revisit the vision, mission, and directional strategy of an organization when considering how
to assess and manage risk, as well as how to become a top-perform.
This document discusses best practices for enterprise risk management (ERM) from the perspective of a board of directors. It addresses five key dimensions of ERM: risk transparency and insight, risk appetite and strategy, risk-related processes and decisions, risk organization and governance, and risk culture. The document provides recommendations for boards to strengthen their company's risk management, including developing a prioritized risk heat map, understanding the company's "big bets," ensuring risk reports deliver clear and insightful information, defining the company's risk appetite, integrating risk insights into strategy, and focusing on building a strong risk culture. The document concludes by outlining 12 specific actions boards should take to lift their company to the highest standards of risk management.
This document discusses approaches that financial institutions can take to better link risk and compensation. It recommends that firms undertake a thorough assessment of compensation structures and their impact on risk. Specifically, it suggests that firms focus on fully capturing all types of risk, cascading risk assessments throughout performance management, using risk-adjusted metrics, segmenting compensation based on job roles and risk profiles, and ensuring incentive plans incorporate risk-based adjustments.
Running head business management research aryan532920
This document is a research report submitted by Allan A Lusenji to Masinde Muliro University in partial fulfillment of the requirements for a Bachelor of Commerce degree. The report examines the relationship between capital structure and financial performance of banks listed on the Nairobi Securities Exchange. It provides background information on capital structure and financial performance. It also reviews various studies that have found both positive and negative relationships between leverage/debt and profitability/performance. The report will analyze the capital structure and financial performance of banks listed in Nairobi and determine the nature of the relationship between the two factors.
One of the fastest growing concerns on insurers’ enterprise risk agenda is model risk
management. From being a phrase that primarily actuaries and other modelers used, “model risk” has become a major focus of regulators and the subject of intense activity and debate at insurers. How model risk management has evolved from ad hoc efforts to its currentproactive stage is an interesting story. But more interesting still is
what we believe could be its next stage – generating measurable business value.
This document provides an overview of economic principles that are relevant to business strategy analysis. It discusses the theory of the firm and why firms exist to lower transaction costs. The main goal of firms is traditionally to maximize profits, though noneconomic goals like corporate social responsibility are also discussed. Key concepts that will be analyzed include demand, revenue, costs, and Dr. Michael Porter's five forces industry analysis framework. The document aims to demonstrate how economics can provide an analytical foundation for understanding strategic decision making.
A deep appreciation for ergonomics is at the core of Humanscale. Ergonomics is the study of how to improve efficiency and comfort in a work place. Correct ergonomic design helps to reduce discomfort at work, which increases job satisfaction, productivity and well-being – and reduces costs to the organization in the long run. All of Humanscale’s work tools were created to be intuitive and adjust effortlessly to the user. We consult with our team of in-house ergonomists on every project to ensure our products are the most comfortable available. Please use the links below to find out more about our Humanscale Consulting Services and read some advice from our experts on how to use ergonomics to create a more comfortable place to work:
In spring 2016, PwC investigated the current state and
future direction of stress testing. We surveyed 55 insurers
operating in the US about their stress testing framework and
the specific stresses that they test. We also engaged in more
detailed dialogue with a number of insurers in the US and
globally, as well as with some North American insurance
regulators.
Assessment_2-6_context.pdf
1
Assessment 2 Context
MHA-FP5014 Assessment 2 Context
Regulations, Risk Management, Risk Sharing, and Risk Financing
Leading in today's ever-changing health care industry requires constant adjustment to
emerging laws, regulations, and industry standards. Organizations must quickly and
effectively reposition to meet new, existing, and emerging laws. Two examples of laws that
have driven a multitude of new and sometimes confusing regulations are the Patient
Protection and Affordable Care Act of 2010 and the Healthcare Insurance Portability and
Accountability Act of 1996.
The shift to electronic health records is another example of the need to create new structures,
processes, and policies to meet legal and regulatory requirements. Government surveying
bodies and industry accrediting bodies assess basic compliance as well as best practices.
Effective leadership is not only necessary for the pursuit of excellence, but also for
organizational survival.
Policy changes drive regulatory requirements and, consequently, requirements for provider
organizations that depend upon Medicare and Medicaid as reimbursement sources.
In The New England Journal of Medicine article, Inglehart (2011) creates a context for the
health care environment relating to regulations, risk management, and risk sharing:
One of the hottest issues debated within the administration was whether ACOs should
bear financial risk in their quest to achieve savings. CMS supported awarding a bonus
to an ACO when its stated goals were achieved but imposing no penalty if it failed in
that regard for the first 2 years. This approach (used in Medicare's Physician Group
Practice [PGP] demonstration) is designed for start-up ACOs, while they gain
experience.
After White House intervention, a second, two-sided approach to risk was added to the
rule, aimed at larger medical groups with stronger management structures. Such
groups could choose to bear some of the financial risk, which currently Medicare totally
assumes, in exchange for modestly higher bonuses if they succeed.
CMS is uncertain how many large groups will opt for this at-risk approach. A
companion program offering even greater risk sharing is expected to be tested by
CMS's innovation center, and it may have more appeal to integrated systems that
already accept capitation payments or other larger risk-sharing arrangements.
Risk Management
Risk management has taken an increasingly important role in organizational viability.
Conditions of participation for government-supported programs, standards for provider status
required by insurance companies, and quality metrics requisite for industry accreditation must
all be considered within the context of the organization's directional strategy. It is wise to
revisit the vision, mission, and directional strategy of an organization when considering how
to assess and manage risk, as well as how to become a top-perform.
This document discusses best practices for enterprise risk management (ERM) from the perspective of a board of directors. It addresses five key dimensions of ERM: risk transparency and insight, risk appetite and strategy, risk-related processes and decisions, risk organization and governance, and risk culture. The document provides recommendations for boards to strengthen their company's risk management, including developing a prioritized risk heat map, understanding the company's "big bets," ensuring risk reports deliver clear and insightful information, defining the company's risk appetite, integrating risk insights into strategy, and focusing on building a strong risk culture. The document concludes by outlining 12 specific actions boards should take to lift their company to the highest standards of risk management.
This document discusses approaches that financial institutions can take to better link risk and compensation. It recommends that firms undertake a thorough assessment of compensation structures and their impact on risk. Specifically, it suggests that firms focus on fully capturing all types of risk, cascading risk assessments throughout performance management, using risk-adjusted metrics, segmenting compensation based on job roles and risk profiles, and ensuring incentive plans incorporate risk-based adjustments.
Running head business management research aryan532920
This document is a research report submitted by Allan A Lusenji to Masinde Muliro University in partial fulfillment of the requirements for a Bachelor of Commerce degree. The report examines the relationship between capital structure and financial performance of banks listed on the Nairobi Securities Exchange. It provides background information on capital structure and financial performance. It also reviews various studies that have found both positive and negative relationships between leverage/debt and profitability/performance. The report will analyze the capital structure and financial performance of banks listed in Nairobi and determine the nature of the relationship between the two factors.
One of the fastest growing concerns on insurers’ enterprise risk agenda is model risk
management. From being a phrase that primarily actuaries and other modelers used, “model risk” has become a major focus of regulators and the subject of intense activity and debate at insurers. How model risk management has evolved from ad hoc efforts to its currentproactive stage is an interesting story. But more interesting still is
what we believe could be its next stage – generating measurable business value.
This document provides an overview of economic principles that are relevant to business strategy analysis. It discusses the theory of the firm and why firms exist to lower transaction costs. The main goal of firms is traditionally to maximize profits, though noneconomic goals like corporate social responsibility are also discussed. Key concepts that will be analyzed include demand, revenue, costs, and Dr. Michael Porter's five forces industry analysis framework. The document aims to demonstrate how economics can provide an analytical foundation for understanding strategic decision making.
A deep appreciation for ergonomics is at the core of Humanscale. Ergonomics is the study of how to improve efficiency and comfort in a work place. Correct ergonomic design helps to reduce discomfort at work, which increases job satisfaction, productivity and well-being – and reduces costs to the organization in the long run. All of Humanscale’s work tools were created to be intuitive and adjust effortlessly to the user. We consult with our team of in-house ergonomists on every project to ensure our products are the most comfortable available. Please use the links below to find out more about our Humanscale Consulting Services and read some advice from our experts on how to use ergonomics to create a more comfortable place to work:
An approach to erm in the insurance industry apria 2002 rama warrier&preetiRama Warrier
This document discusses implementing an Enterprise Risk Management (ERM) approach for an insurance company. It begins by defining ERM as a holistic approach to managing all risks across an organization, rather than managing risks individually. The document then outlines key risks for an insurance company, including marketplace risks, operational risks, international risks, mergers and acquisitions risks, and others. It proposes a four-phase ERM strategy for insurance companies: 1) Identifying risks, 2) Quantifying risks through modeling and analysis, 3) Measuring and evaluating risks, and 4) Managing and monitoring risks on an ongoing basis. The goal is to develop an integrated risk management process to help insurance companies optimize decision-making and meet business objectives
This document provides comments on the IASB's Discussion Paper on accounting for dynamic risk management. The document makes the following key points:
1) MetLife generally supports developing a macro hedging framework but has concerns that the Discussion Paper focuses only on interest rate risk management by banks and not other entities like insurers.
2) The framework should address accounting mismatches for insurers caused by derivatives not qualifying for hedge accounting when used to economically hedge insurance contract risks.
3) Any framework needs to consider interactions between proposed IFRS 4 amendments and IFRS 9 classification and measurement of assets backing insurance liabilities.
4) Application of any new requirements emerging from the project should be optional.
Business Continuity Management-The Case for Return on Investment-white paperGreg Cybulski, CBCP, ARM
The document discusses how business continuity management (BCM) programs can provide both short-term and long-term return on investment (ROI) for organizations. It outlines the key components of a BCM program, including business impact analysis, risk assessment, emergency response planning, and governance processes. Examples are provided of how BCM planning helped organizations reduce risks and increase resilience during events like natural disasters. While some benefits are tangible and easy to quantify, others are intangible, but no less important to the overall ROI of a BCM program. Developing and implementing a full BCM program allows an organization to identify impacts, improve preparedness, and gain competitive advantages through operational resilience.
The document discusses financial health at both the individual and company level. At the individual level, it discusses the importance of financial health and its key components like spending, saving, borrowing and planning. It also lists indicators of strong financial health. For companies, the document examines factors like liquidity, solvency, profitability and operating efficiency as important metrics to evaluate financial health. It also discusses types of financial risks companies face like credit, market, liquidity and operational risk. The document provides details on measuring and assessing these various aspects of personal and corporate financial health.
This document discusses risk management in the corporate sector and the role of corporate governance. It makes three key points:
1) Corporate governance is important for managing and reducing risk in organizations, as good governance can help firms avoid risks that could damage them. Managing risk effectively allows firms to maximize profits and maintain a healthy environment.
2) There are newer and more complex risks emerging for corporate boards to oversee, such as reputational risk from a lack of transparent reporting and cybersecurity risks from increased technology usage. Boards must understand the risks companies face to make strategic decisions.
3) Effective risk management involves identifying, assessing, and prioritizing all potential risks. While eliminating all risk is impossible, corporate boards
This document discusses sustainability reporting and how companies decide which sustainability initiatives to pursue. It provides insight into how companies gather, assess, and disseminate information about their socially responsible activities. Specifically, it outlines the benefits of sustainability reporting, how to embed sustainability in organizations, identifying material sustainability matters, managing these matters, and communicating performance through reporting.
Due to the current instability in the business world, organizations should be able to anticipate changes and have coherent responses at hand to effective manage risks, create value, build good relations, increase profit and improve competitive positioning.
A report titled Exploring Strategic Risk issued in 2013 for Forbes Insights by Deloitte, contains some very important conclusions for the business community. 300 executives from around the world were interviewed for the study, in an attempt to find out their vision of the risk strategy and current changes and analysing how organizations should face these new challenges.
Sometimes it is difficult to link risks to a specific financial impact and not all data are pertinent to the evaluation of emerging risks. That's why companies have to be aware of internal risks and manage them well in order to be able to manage external risks and invest into strategic assets such as human capital, clients and innovation.
This insight explains the case of the financial services as the sector that less trust generates due to its short-sightedness, lack of values and lack of professional education that resulted in corruption and bad practices, which compromised the financial sector.
The report A Crisis of Culture: Valuing Ethics and Knowledge in Financial Services examines the role of integrity and knowledge in restoring culture in the financial services industry. The conclusions appear in the full version of this document.
The financial industry is just one example in the wider panorama. Lack of values is widespread and creates significant risks. Bad practices trigger problems such as loss of profit, loss of reputation and even loss of shareholders, clients and employees.
The crisis, as well as the arrival of new technologies, urges companies to maintain their good practices and emphasize aspects as ethics, leadership, commitment, performance, transparency and sustainability.
The digital revolution and social networks encourage companies to be more transparent: companies meet their promises and obligations, deliver a coherent dialogue and improve the relationship with their stakeholders.
Application of values raises the possibility of good results and profits for companies through improvement of their reputation and business as well as optimization of resources. This certainly creates competitive advantages, establishes a strong cultural connection and improves employees’ motivation.
Before taking any decision, an institution should keep in mind the fact that it needs implicit and explicit public approval. Good business management implies risk management, creating a climate of trust, good will, credibility, social commitment and empathy between stakeholders and the company.
Measure What Matters - New Perspectives on Portfolio SelectionUMT
The document discusses new frameworks for IT portfolio selection that consider both financial and strategic metrics. It summarizes that traditional portfolio selection focused solely on financial metrics, but recent research shows this led to underinvestment in strategic areas. The new framework evaluates investments from four perspectives: demand, supply, governance, and alternatives. This allows executives to consider financial returns, strategic alignment, risk exposure, architectural fit, options, costs, deadlines, and skills. Successful companies now use multiple financial and strategic metrics to optimize resource allocation and maximize investment value and benefits.
Analyzing Financial Projections as Part of the ESOP Fiduciary Process | Appra...Mercer Capital
In recent years there has been increasing concern among ESOP sponsors and professional advisors (trustees, TPAs, business appraisers, legal counsel) regarding the scrutiny of the DOL, the Employee Benefits Security Administration (“EBSA”), and the Internal Revenue Service (“IRS”). These entities (and agencies thereof) are tasked with ensuring that ESOPs comply with the Employee Retirement Income Security Act (“ERISA”) as well as with various provisions of the federal income tax code concerning qualified retirement plans (including ESOPs). Citing concerns for poor quality and inconsistency in business appraisals, the DOL has sought in recent years to expand the meaning of “fiduciary” under ERISA to include business appraisers. In the most recent forums of exchange and deriving from various court actions, there are numerous areas of concern that DOL/EBSA appear to have regarding ESOP valuations.
This paper focuses on the use of financial projections in ESOP valuations. The use (or misuse) of financial projections is often the most direct cause of over- or under-valuation in ESOPs.
AKH Group is planning to grow organically through skill development programs and inorganically through acquisitions. They are evaluating expanding into consumer products for primary health like Acai berry juice and hand sanitizers. This would tap into the large untapped Indian market given rising obesity levels and lack of hand hygiene awareness. Cultural factors like changing diets and routines are contributing to obesity. Introducing these new products could help address health issues while generating revenue. AKH should analyze if India presents opportunities or threats considering its market size, costs, and cultural differences versus developed markets.
STRATEGIC PLANNINGManaging Risks A NewFrameworkby Rob.docxsusanschei
STRATEGIC PLANNING
Managing Risks: A New
Framework
by Robert S. Kaplan and Anette Mikes
FROM THE JUNE 2012 ISSUE
W
Editors’ Note: Since this issue of HBR went to press, JP Morgan, whose risk management practices are
highlighted in this article, revealed significant trading losses at one of its units. The authors provide
their commentary on this turn of events in their contribution to HBR’s Insight Center on Managing
Risky Behavior.
hen Tony Hayward became CEO of BP, in 2007, he vowed to make safety his top
priority. Among the new rules he instituted were the requirements that all
employees use lids on coffee cups while walking and refrain from texting while
driving. Three years later, on Hayward’s watch, the Deepwater Horizon oil rig exploded in the Gulf
of Mexico, causing one of the worst man-made disasters in history. A U.S. investigation commission
attributed the disaster to management failures that crippled “the ability of individuals involved to
identify the risks they faced and to properly evaluate, communicate, and address them.” Hayward’s
story reflects a common problem. Despite all the rhetoric and money invested in it, risk
management is too often treated as a compliance issue that can be solved by drawing up lots of rules
and making sure that all employees follow them. Many such rules, of course, are sensible and do
reduce some risks that could severely damage a company. But rules-based risk management will not
diminish either the likelihood or the impact of a disaster such as Deepwater Horizon, just as it did
not prevent the failure of many financial institutions during the 2007–2008 credit crisis.
Identifying and Managing
Preventable Risks
In this article, we present a new categorization of risk that allows executives to tell which risks can
be managed through a rules-based model and which require alternative approaches. We examine
the individual and organizational challenges inherent in generating open, constructive discussions
about managing the risks related to strategic choices and argue that companies need to anchor these
discussions in their strategy formulation and implementation processes. We conclude by looking at
how organizations can identify and prepare for nonpreventable risks that arise externally to their
strategy and operations.
Managing Risk: Rules or Dialogue?
The first step in creating an effective risk-management system is to understand the qualitative
distinctions among the types of risks that organizations face. Our field research shows that risks fall
into one of three categories. Risk events from any category can be fatal to a company’s strategy and
even to its survival.
Category I: Preventable risks.
These are internal risks, arising from within the organization, that are controllable and ought to be
eliminated or avoided. Examples are the risks from employees’ and managers’ unauthorized, illegal,
unethical, incorrect, or inappropriate actions and the risks from br.
The first chapter introduces us to Corporate finance is essential .docxoreo10
The first chapter introduces us to Corporate finance is essential to all managers as it provides all the skills managers need to; Identify corporate strategies and individual projects that add value to the organization and come up with plans for acquiring the funds. The types of business forms are; sole proprietorship, corporation and partnerships. A sole proprietorship form of business possesses different advantages and disadvantages. A partnership maintains roughly similar pros and cons of a sole proprietorship. A corporation is a legal entity that is separate from its owners and managers. Advantages include a smooth transfer of ownership, limited liability, ease of raising capital. The disadvantages include; double taxation, and a high cost of set-up and report filing. The chapter then deals with Objective of the firm, which is to maximize wealth. The final topic is an in-depth look at Financial Securities, which are markets and institutions.
In the second chapter, we are introduced to financial statements, Cash flow and taxes. Financial statements include; the Income statement and the Balance sheet. An income statement is a financial statement that shows a company’s financial performance regarding revenues and expenses, over a particular period, mostly one year. A balance sheet, on the other hand, is a financial statement that states a company’s assets, liabilities and capital at a particular point in time. Under the cash flow, the chapter covers on the Statement of cash flows, indicates how various changes in balance sheet and income statement accounts affect cash and analyses financing, investing and operating activities. A free cash flow shows the cash that an organization is capable of generating after investment to either maintain or expand its database. Under taxes, Corporate and personal taxes are well explained and the scenarios under which they apply.
Chapter Three analyzes Financial Statements. This analysis is broken down into; Ratio Analysis, DuPont equation. The effects of improving ratios, the limitations of ratio analysis and the Qualitative factors. Ratios help in comparison of; one company over time and one company versus other companies. Ratios are used by; Stockholders to estimate future cash flows and risks, lenders to determine their creditworthiness and managers to identify areas of weaknesses and strengths. Liquidity ratios show whether a company can meet its short-term commitments using the resources it has at that particular time. Asset management ratios exemplify how well an organization utilize its assets. Debt management ratios, leverage ratios as well as profitability ratios are explained.
The DuPont equation focuses on several issues. These are; Debt Utilization, Asset utilization and the Expense Control. Consequently, Ratio analysis has various problems and limitations. These include; Distortion of ratios from seasonal factors, various operating and accounting practices can distort comparisons and also it i ...
FOR DISCLOSURES AND OTHER IMPORTANT INFORMATION, PLEASE RE.docxAKHIL969626
FOR DISCLOSURES AND OTHER IMPORTANT INFORMATION, PLEASE REFER TO THE BACK OF THIS REPORT.
November 1, 2016
GLOBAL FINANCIAL STRATEGIES
www.credit-suisse.com
Measuring the Moat
Assessing the Magnitude and Sustainability of Value Creation
Authors
Michael J. Mauboussin
[email protected]
Dan Callahan, CFA
[email protected]redit-suisse.com
Darius Majd
[email protected]
“The most important thing to me is figuring out how big a moat there is around
the business. What I love, of course, is a big castle and a big moat with piranhas
and crocodiles.”
Warren E. Buffett
Linda Grant, “Striking Out at Wall Street,” U.S. News & World Report, June 12, 1994
Sustainable value creation is of prime interest to investors who seek to
anticipate expectations revisions.
This report develops a systematic framework to determine the size of a
company’s moat.
We cover industry analysis, firm-specific analysis, and firm interaction.
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
November 1, 2016
Measuring the Moat 2
Table of Contents
Executive Summary ................................................................................................................................ 3
Introduction ............................................................................................................................................ 4
Competitive Life Cycle ................................................................................................................. 4
Economic Moats ......................................................................................................................... 7
What Dictates a Company’s Destiny? ........................................................................................... 8
Industry Analysis ................................................................................................................................... 10
The Lay of the Land .................................................................................................................. 11
Industry Map ................................................................................................................. 11
Profit Pool .................................................................................................................... 13
Industry Stability ............................................................................................................ 15
Industry Classification .................................................................................................... 17
Industry Structure – Five Forces Analysis .................................................................................... 18
Entry and Exit ............................................................................................................... 19
Competitive Rivalry .................................. ...
RISK-ACADEMY’s guide on risk appetite in non-financial companies. Free downloadAlexei Sidorenko, CRMP
Risk appetite refers to an individual or organization’s willingness to take on risks in pursuit of potential returns. It is an important consideration for businesses, as it can determine the types of investments and strategic decisions they make. A high risk appetite may lead to a focus on high-growth, speculative investments, while a low risk appetite may result in a preference for more conservative, steady returns. It is important for businesses to carefully assess and manage their risk appetite in order to make informed decisions and achieve their financial goals.
But before beginning the conversation about risk appetite, it is important to remember that most non financial organizations have already documented their appetites for different common decisions or business activities. Segregation of duties, financing and deal limits, vendor selection criteria, credit limits, treasury limits on banks, investment criteria, zero tolerance to fraud or safety risks – are all examples of how organizations set risk appetite.
What is risk appetite:
10% of the time risk appetite is imposed by laws and regulations, not set – Often risk appetite is imposed by government, regulators, markets, not set by management. Examples include zero-tolerances or limits on safety, bribery and corruption, AML, pollution, sanctions, privacy.
10% of the time risk appetite is the gentlemen’s agreement between Board and management – Boards have an important oversight role and help them set the direction and boundaries for management decision making. Those management decision making boundaries is risk appetite. Examples include deal approvals only by Board above a certain limit, limits on holding percentage of cash in certain pre-approved banks, market risk limits, credit risk limits, insurance thresholds, rules on credit limits for certain types of customers, limits on investments in different countries, etc.
80% of the time risk appetite is the risk reward trade-off for a specific decision – The key is making uncertainty around decisions presented to the Board transparent to allow decision makers choose the alternative which offers the most appropriate risk reward balance according to their individual appetites.
Download the full guide to read about documenting risk appetite, reviewing risk appetite, case studies and examples and addition video resources: Guide to risk appetite 2023
Mercer Capital | Valuation Insight | Capital Structure in 30 MinutesMercer Capital
This document provides a guide for directors and shareholders on capital structure decisions. It discusses evaluating the optimal capital structure by identifying the financing mix that minimizes the weighted average cost of capital. While debt has a lower nominal cost than equity, the relevant consideration is the marginal cost of each, which is impacted by leverage levels. The document outlines measuring a company's current capital structure, comparing it to peers, identifying a target structure, and evaluating sources and uses of funds to move towards the target.
An enterprise risk management (EWRM) program takes a holistic approach to identifying and managing risks across an entire organization. It addresses risks in a coordinated manner rather than through siloed functions. EWRM provides benefits like improved risk assessment, increased risk awareness, reduced risk incidents, and a competitive advantage from better preparation to handle challenges. Implementing EWRM involves assessing risks, designing a framework, institutionalizing the framework, and continual improvement. EWRM optimizes risk management and can help align risk programs with strategic objectives.
0 Easy Steps To Implement Enterprise Risk ManagementNat Rice
This document outlines 10 easy steps to implement enterprise risk management (ERM). The steps include: 1) defining the value ERM provides to the organization; 2) researching ERM standards and frameworks; 3) inventorying existing risk management practices; 4) seeking support from executives and stakeholders; 5) keeping the ERM process simple; 6) starting small by focusing on a specific business area; 7) going for quick wins by prioritizing top risks; 8) delegating risk ownership to accountable managers; and 9) reporting on ERM progress. The overall goal is to build risk management capabilities throughout the organization to support strategic objectives.
Assignment 2 Operations DecisionDue Week 6 and worth 300 points.docxrock73
Assignment 2: Operations Decision
Due Week 6 and worth 300 points
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Write a six to eight (6-8) page paper in which you:
1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own “optimal” price
2. .
Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
3.
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.
TC = 160,000,000 + 100Q + 0.0063212Q2VC = 100Q + 0.0063212Q2MC= 100 + 0.0126424Q
4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)
5.
Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.
(Hints:
· In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm’s Total Revenue function, then find your Marginal Revenue (MR) function.
· Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.
·
6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such a ...
The requirement for presentation(need in 4hrs)slide1ERM at M.docxkathleen23456789
The requirement for presentation:(need in 4hrs)
slide1:
ERM at Mars and UC
slide2:ERM in industry and academia
slide3:Measuring and Selecting an ERM Framework
slide 4:Special Rick Management Topic
slide 5 :conclusion
below is the content for doing a presentation
1. ERM at Mars and UC
Two different organizations can approach similar to the ERM due to some common benefit or some common purpose suppose we have following two organization the ERM at Mars incorporated and ERM in practice at the University of California Health The system both the approaches are used to spread and include the process in business units and other units. The developments in these growths of this program caused working with the professionals to address the business units.
Ways the two organization’s approaches to ERM differ
Two different organizations can approach in a different way to ERM because it has different purposes and different advantages which vary from field to field (WARNER, LARRY, 2015). Suppose we have following two different organizations that approach differently the ERM at Mars can be migrated to the non-family management i.e., it can apply to other areas/platforms different from professional organizations, while ERM at UC focuses on the enterprise risk analysis, audits, monitoring and report generation. ERM at Mars uses simple technology in framework building like word, excel and some tools. Whereas ERM at UC focuses on complex technologies for the building of the framework.
One aspect of each ERM implementation from which the other organization would benefit
For any organization implementing Enterprise Risk Management is a key, initially, an organization has to know about the fundamentals i.e. scope and tools that accommodate the ERM implementation plan. To implement ERM getting essentials right up to an organization explicit ERM system that unmistakably and quantifiably characterizes what ERM will mean for the organization and utilizing that structure to build up an ERM execution plan that is explicitly for accomplishment in the organization.
Enterprise Risk Management (ERM) mainly involves six fundamentals.
Identify
Analyze
Control
Transfer
Reduce
Assess
Most Organizations have faith in big business change administration like ERM. In many cases, many have been baffled by execution issues at this point, caused ERM to miss the mark regarding its potential. Before starting ERM they have to do solid back end work to implement.
What advantages can an organization acknowledge through ERM
Organizations that comprehend their dangers have a more noteworthy capacity to anticipate or respond to occasions that can affect objectives and targets. Eventually, this can convert into less unpredictability and an aggressive edge. A decent handle of hazard can likewise open up an organization's viewpoint on circumstances it might need to seek after.
ERM empowers the board and the board to have an increasingly steady perspective of a way .
A major producer of plastic in the U.S. is about to expand its busin.docxssuser774ad41
A major producer of plastic in the U.S. is about to expand its business. As part of this expansion, it will begin to sell its products in Europe and Asia. In addition, it plans to open a plant in Asia.
Jerry, president and CEO is concerned because he has heard many stories of companies that have tried to expand globally, but the operations failed either miserably or did not live up to expectationsdue to the cultural differences between workers and customers in each country.
Assignment:
1. Research a selected multinational corporation or an internatonal non-profit agency to discover barriers that organiation encountered and what its managers dd to try to overcome those barriers.
2. Generate and evaluate reasons why people may not appreciate the cultural point of view of others. VERy IMPORTANT! List 5 Resources or Materials (Citations)!!! Three of the 5 Citations may come from the textbook)!
3. Discuss how appreciating cultural diversity affects peoples' ability to communicate effectively in the content of a multinational corporation or an international non-profit agency.
.
A key theory explored this week is labeling theory. This assignmen.docxssuser774ad41
A key theory explored this week is labeling theory. This assignment examines how this particular theory may assist us in explaining variations in crime rates.
In a 2-3 page paper, critically examine how labeling theory and reward-risks models explain variations in crime by country, region, community, sex, age, race, and social class.
Provide your own critical thoughts on this issue, based on what you have researched.
.
More Related Content
Similar to 65 of the paper needs to be cited with scholarly articles.Ther.docx
An approach to erm in the insurance industry apria 2002 rama warrier&preetiRama Warrier
This document discusses implementing an Enterprise Risk Management (ERM) approach for an insurance company. It begins by defining ERM as a holistic approach to managing all risks across an organization, rather than managing risks individually. The document then outlines key risks for an insurance company, including marketplace risks, operational risks, international risks, mergers and acquisitions risks, and others. It proposes a four-phase ERM strategy for insurance companies: 1) Identifying risks, 2) Quantifying risks through modeling and analysis, 3) Measuring and evaluating risks, and 4) Managing and monitoring risks on an ongoing basis. The goal is to develop an integrated risk management process to help insurance companies optimize decision-making and meet business objectives
This document provides comments on the IASB's Discussion Paper on accounting for dynamic risk management. The document makes the following key points:
1) MetLife generally supports developing a macro hedging framework but has concerns that the Discussion Paper focuses only on interest rate risk management by banks and not other entities like insurers.
2) The framework should address accounting mismatches for insurers caused by derivatives not qualifying for hedge accounting when used to economically hedge insurance contract risks.
3) Any framework needs to consider interactions between proposed IFRS 4 amendments and IFRS 9 classification and measurement of assets backing insurance liabilities.
4) Application of any new requirements emerging from the project should be optional.
Business Continuity Management-The Case for Return on Investment-white paperGreg Cybulski, CBCP, ARM
The document discusses how business continuity management (BCM) programs can provide both short-term and long-term return on investment (ROI) for organizations. It outlines the key components of a BCM program, including business impact analysis, risk assessment, emergency response planning, and governance processes. Examples are provided of how BCM planning helped organizations reduce risks and increase resilience during events like natural disasters. While some benefits are tangible and easy to quantify, others are intangible, but no less important to the overall ROI of a BCM program. Developing and implementing a full BCM program allows an organization to identify impacts, improve preparedness, and gain competitive advantages through operational resilience.
The document discusses financial health at both the individual and company level. At the individual level, it discusses the importance of financial health and its key components like spending, saving, borrowing and planning. It also lists indicators of strong financial health. For companies, the document examines factors like liquidity, solvency, profitability and operating efficiency as important metrics to evaluate financial health. It also discusses types of financial risks companies face like credit, market, liquidity and operational risk. The document provides details on measuring and assessing these various aspects of personal and corporate financial health.
This document discusses risk management in the corporate sector and the role of corporate governance. It makes three key points:
1) Corporate governance is important for managing and reducing risk in organizations, as good governance can help firms avoid risks that could damage them. Managing risk effectively allows firms to maximize profits and maintain a healthy environment.
2) There are newer and more complex risks emerging for corporate boards to oversee, such as reputational risk from a lack of transparent reporting and cybersecurity risks from increased technology usage. Boards must understand the risks companies face to make strategic decisions.
3) Effective risk management involves identifying, assessing, and prioritizing all potential risks. While eliminating all risk is impossible, corporate boards
This document discusses sustainability reporting and how companies decide which sustainability initiatives to pursue. It provides insight into how companies gather, assess, and disseminate information about their socially responsible activities. Specifically, it outlines the benefits of sustainability reporting, how to embed sustainability in organizations, identifying material sustainability matters, managing these matters, and communicating performance through reporting.
Due to the current instability in the business world, organizations should be able to anticipate changes and have coherent responses at hand to effective manage risks, create value, build good relations, increase profit and improve competitive positioning.
A report titled Exploring Strategic Risk issued in 2013 for Forbes Insights by Deloitte, contains some very important conclusions for the business community. 300 executives from around the world were interviewed for the study, in an attempt to find out their vision of the risk strategy and current changes and analysing how organizations should face these new challenges.
Sometimes it is difficult to link risks to a specific financial impact and not all data are pertinent to the evaluation of emerging risks. That's why companies have to be aware of internal risks and manage them well in order to be able to manage external risks and invest into strategic assets such as human capital, clients and innovation.
This insight explains the case of the financial services as the sector that less trust generates due to its short-sightedness, lack of values and lack of professional education that resulted in corruption and bad practices, which compromised the financial sector.
The report A Crisis of Culture: Valuing Ethics and Knowledge in Financial Services examines the role of integrity and knowledge in restoring culture in the financial services industry. The conclusions appear in the full version of this document.
The financial industry is just one example in the wider panorama. Lack of values is widespread and creates significant risks. Bad practices trigger problems such as loss of profit, loss of reputation and even loss of shareholders, clients and employees.
The crisis, as well as the arrival of new technologies, urges companies to maintain their good practices and emphasize aspects as ethics, leadership, commitment, performance, transparency and sustainability.
The digital revolution and social networks encourage companies to be more transparent: companies meet their promises and obligations, deliver a coherent dialogue and improve the relationship with their stakeholders.
Application of values raises the possibility of good results and profits for companies through improvement of their reputation and business as well as optimization of resources. This certainly creates competitive advantages, establishes a strong cultural connection and improves employees’ motivation.
Before taking any decision, an institution should keep in mind the fact that it needs implicit and explicit public approval. Good business management implies risk management, creating a climate of trust, good will, credibility, social commitment and empathy between stakeholders and the company.
Measure What Matters - New Perspectives on Portfolio SelectionUMT
The document discusses new frameworks for IT portfolio selection that consider both financial and strategic metrics. It summarizes that traditional portfolio selection focused solely on financial metrics, but recent research shows this led to underinvestment in strategic areas. The new framework evaluates investments from four perspectives: demand, supply, governance, and alternatives. This allows executives to consider financial returns, strategic alignment, risk exposure, architectural fit, options, costs, deadlines, and skills. Successful companies now use multiple financial and strategic metrics to optimize resource allocation and maximize investment value and benefits.
Analyzing Financial Projections as Part of the ESOP Fiduciary Process | Appra...Mercer Capital
In recent years there has been increasing concern among ESOP sponsors and professional advisors (trustees, TPAs, business appraisers, legal counsel) regarding the scrutiny of the DOL, the Employee Benefits Security Administration (“EBSA”), and the Internal Revenue Service (“IRS”). These entities (and agencies thereof) are tasked with ensuring that ESOPs comply with the Employee Retirement Income Security Act (“ERISA”) as well as with various provisions of the federal income tax code concerning qualified retirement plans (including ESOPs). Citing concerns for poor quality and inconsistency in business appraisals, the DOL has sought in recent years to expand the meaning of “fiduciary” under ERISA to include business appraisers. In the most recent forums of exchange and deriving from various court actions, there are numerous areas of concern that DOL/EBSA appear to have regarding ESOP valuations.
This paper focuses on the use of financial projections in ESOP valuations. The use (or misuse) of financial projections is often the most direct cause of over- or under-valuation in ESOPs.
AKH Group is planning to grow organically through skill development programs and inorganically through acquisitions. They are evaluating expanding into consumer products for primary health like Acai berry juice and hand sanitizers. This would tap into the large untapped Indian market given rising obesity levels and lack of hand hygiene awareness. Cultural factors like changing diets and routines are contributing to obesity. Introducing these new products could help address health issues while generating revenue. AKH should analyze if India presents opportunities or threats considering its market size, costs, and cultural differences versus developed markets.
STRATEGIC PLANNINGManaging Risks A NewFrameworkby Rob.docxsusanschei
STRATEGIC PLANNING
Managing Risks: A New
Framework
by Robert S. Kaplan and Anette Mikes
FROM THE JUNE 2012 ISSUE
W
Editors’ Note: Since this issue of HBR went to press, JP Morgan, whose risk management practices are
highlighted in this article, revealed significant trading losses at one of its units. The authors provide
their commentary on this turn of events in their contribution to HBR’s Insight Center on Managing
Risky Behavior.
hen Tony Hayward became CEO of BP, in 2007, he vowed to make safety his top
priority. Among the new rules he instituted were the requirements that all
employees use lids on coffee cups while walking and refrain from texting while
driving. Three years later, on Hayward’s watch, the Deepwater Horizon oil rig exploded in the Gulf
of Mexico, causing one of the worst man-made disasters in history. A U.S. investigation commission
attributed the disaster to management failures that crippled “the ability of individuals involved to
identify the risks they faced and to properly evaluate, communicate, and address them.” Hayward’s
story reflects a common problem. Despite all the rhetoric and money invested in it, risk
management is too often treated as a compliance issue that can be solved by drawing up lots of rules
and making sure that all employees follow them. Many such rules, of course, are sensible and do
reduce some risks that could severely damage a company. But rules-based risk management will not
diminish either the likelihood or the impact of a disaster such as Deepwater Horizon, just as it did
not prevent the failure of many financial institutions during the 2007–2008 credit crisis.
Identifying and Managing
Preventable Risks
In this article, we present a new categorization of risk that allows executives to tell which risks can
be managed through a rules-based model and which require alternative approaches. We examine
the individual and organizational challenges inherent in generating open, constructive discussions
about managing the risks related to strategic choices and argue that companies need to anchor these
discussions in their strategy formulation and implementation processes. We conclude by looking at
how organizations can identify and prepare for nonpreventable risks that arise externally to their
strategy and operations.
Managing Risk: Rules or Dialogue?
The first step in creating an effective risk-management system is to understand the qualitative
distinctions among the types of risks that organizations face. Our field research shows that risks fall
into one of three categories. Risk events from any category can be fatal to a company’s strategy and
even to its survival.
Category I: Preventable risks.
These are internal risks, arising from within the organization, that are controllable and ought to be
eliminated or avoided. Examples are the risks from employees’ and managers’ unauthorized, illegal,
unethical, incorrect, or inappropriate actions and the risks from br.
The first chapter introduces us to Corporate finance is essential .docxoreo10
The first chapter introduces us to Corporate finance is essential to all managers as it provides all the skills managers need to; Identify corporate strategies and individual projects that add value to the organization and come up with plans for acquiring the funds. The types of business forms are; sole proprietorship, corporation and partnerships. A sole proprietorship form of business possesses different advantages and disadvantages. A partnership maintains roughly similar pros and cons of a sole proprietorship. A corporation is a legal entity that is separate from its owners and managers. Advantages include a smooth transfer of ownership, limited liability, ease of raising capital. The disadvantages include; double taxation, and a high cost of set-up and report filing. The chapter then deals with Objective of the firm, which is to maximize wealth. The final topic is an in-depth look at Financial Securities, which are markets and institutions.
In the second chapter, we are introduced to financial statements, Cash flow and taxes. Financial statements include; the Income statement and the Balance sheet. An income statement is a financial statement that shows a company’s financial performance regarding revenues and expenses, over a particular period, mostly one year. A balance sheet, on the other hand, is a financial statement that states a company’s assets, liabilities and capital at a particular point in time. Under the cash flow, the chapter covers on the Statement of cash flows, indicates how various changes in balance sheet and income statement accounts affect cash and analyses financing, investing and operating activities. A free cash flow shows the cash that an organization is capable of generating after investment to either maintain or expand its database. Under taxes, Corporate and personal taxes are well explained and the scenarios under which they apply.
Chapter Three analyzes Financial Statements. This analysis is broken down into; Ratio Analysis, DuPont equation. The effects of improving ratios, the limitations of ratio analysis and the Qualitative factors. Ratios help in comparison of; one company over time and one company versus other companies. Ratios are used by; Stockholders to estimate future cash flows and risks, lenders to determine their creditworthiness and managers to identify areas of weaknesses and strengths. Liquidity ratios show whether a company can meet its short-term commitments using the resources it has at that particular time. Asset management ratios exemplify how well an organization utilize its assets. Debt management ratios, leverage ratios as well as profitability ratios are explained.
The DuPont equation focuses on several issues. These are; Debt Utilization, Asset utilization and the Expense Control. Consequently, Ratio analysis has various problems and limitations. These include; Distortion of ratios from seasonal factors, various operating and accounting practices can distort comparisons and also it i ...
FOR DISCLOSURES AND OTHER IMPORTANT INFORMATION, PLEASE RE.docxAKHIL969626
FOR DISCLOSURES AND OTHER IMPORTANT INFORMATION, PLEASE REFER TO THE BACK OF THIS REPORT.
November 1, 2016
GLOBAL FINANCIAL STRATEGIES
www.credit-suisse.com
Measuring the Moat
Assessing the Magnitude and Sustainability of Value Creation
Authors
Michael J. Mauboussin
[email protected]
Dan Callahan, CFA
[email protected]redit-suisse.com
Darius Majd
[email protected]
“The most important thing to me is figuring out how big a moat there is around
the business. What I love, of course, is a big castle and a big moat with piranhas
and crocodiles.”
Warren E. Buffett
Linda Grant, “Striking Out at Wall Street,” U.S. News & World Report, June 12, 1994
Sustainable value creation is of prime interest to investors who seek to
anticipate expectations revisions.
This report develops a systematic framework to determine the size of a
company’s moat.
We cover industry analysis, firm-specific analysis, and firm interaction.
mailto:[email protected]
mailto:[email protected]
mailto:[email protected]
November 1, 2016
Measuring the Moat 2
Table of Contents
Executive Summary ................................................................................................................................ 3
Introduction ............................................................................................................................................ 4
Competitive Life Cycle ................................................................................................................. 4
Economic Moats ......................................................................................................................... 7
What Dictates a Company’s Destiny? ........................................................................................... 8
Industry Analysis ................................................................................................................................... 10
The Lay of the Land .................................................................................................................. 11
Industry Map ................................................................................................................. 11
Profit Pool .................................................................................................................... 13
Industry Stability ............................................................................................................ 15
Industry Classification .................................................................................................... 17
Industry Structure – Five Forces Analysis .................................................................................... 18
Entry and Exit ............................................................................................................... 19
Competitive Rivalry .................................. ...
RISK-ACADEMY’s guide on risk appetite in non-financial companies. Free downloadAlexei Sidorenko, CRMP
Risk appetite refers to an individual or organization’s willingness to take on risks in pursuit of potential returns. It is an important consideration for businesses, as it can determine the types of investments and strategic decisions they make. A high risk appetite may lead to a focus on high-growth, speculative investments, while a low risk appetite may result in a preference for more conservative, steady returns. It is important for businesses to carefully assess and manage their risk appetite in order to make informed decisions and achieve their financial goals.
But before beginning the conversation about risk appetite, it is important to remember that most non financial organizations have already documented their appetites for different common decisions or business activities. Segregation of duties, financing and deal limits, vendor selection criteria, credit limits, treasury limits on banks, investment criteria, zero tolerance to fraud or safety risks – are all examples of how organizations set risk appetite.
What is risk appetite:
10% of the time risk appetite is imposed by laws and regulations, not set – Often risk appetite is imposed by government, regulators, markets, not set by management. Examples include zero-tolerances or limits on safety, bribery and corruption, AML, pollution, sanctions, privacy.
10% of the time risk appetite is the gentlemen’s agreement between Board and management – Boards have an important oversight role and help them set the direction and boundaries for management decision making. Those management decision making boundaries is risk appetite. Examples include deal approvals only by Board above a certain limit, limits on holding percentage of cash in certain pre-approved banks, market risk limits, credit risk limits, insurance thresholds, rules on credit limits for certain types of customers, limits on investments in different countries, etc.
80% of the time risk appetite is the risk reward trade-off for a specific decision – The key is making uncertainty around decisions presented to the Board transparent to allow decision makers choose the alternative which offers the most appropriate risk reward balance according to their individual appetites.
Download the full guide to read about documenting risk appetite, reviewing risk appetite, case studies and examples and addition video resources: Guide to risk appetite 2023
Mercer Capital | Valuation Insight | Capital Structure in 30 MinutesMercer Capital
This document provides a guide for directors and shareholders on capital structure decisions. It discusses evaluating the optimal capital structure by identifying the financing mix that minimizes the weighted average cost of capital. While debt has a lower nominal cost than equity, the relevant consideration is the marginal cost of each, which is impacted by leverage levels. The document outlines measuring a company's current capital structure, comparing it to peers, identifying a target structure, and evaluating sources and uses of funds to move towards the target.
An enterprise risk management (EWRM) program takes a holistic approach to identifying and managing risks across an entire organization. It addresses risks in a coordinated manner rather than through siloed functions. EWRM provides benefits like improved risk assessment, increased risk awareness, reduced risk incidents, and a competitive advantage from better preparation to handle challenges. Implementing EWRM involves assessing risks, designing a framework, institutionalizing the framework, and continual improvement. EWRM optimizes risk management and can help align risk programs with strategic objectives.
0 Easy Steps To Implement Enterprise Risk ManagementNat Rice
This document outlines 10 easy steps to implement enterprise risk management (ERM). The steps include: 1) defining the value ERM provides to the organization; 2) researching ERM standards and frameworks; 3) inventorying existing risk management practices; 4) seeking support from executives and stakeholders; 5) keeping the ERM process simple; 6) starting small by focusing on a specific business area; 7) going for quick wins by prioritizing top risks; 8) delegating risk ownership to accountable managers; and 9) reporting on ERM progress. The overall goal is to build risk management capabilities throughout the organization to support strategic objectives.
Assignment 2 Operations DecisionDue Week 6 and worth 300 points.docxrock73
Assignment 2: Operations Decision
Due Week 6 and worth 300 points
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Write a six to eight (6-8) page paper in which you:
1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own “optimal” price
2. .
Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
3.
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.
TC = 160,000,000 + 100Q + 0.0063212Q2VC = 100Q + 0.0063212Q2MC= 100 + 0.0126424Q
4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)
5.
Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.
(Hints:
· In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm’s Total Revenue function, then find your Marginal Revenue (MR) function.
· Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.
·
6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such a ...
The requirement for presentation(need in 4hrs)slide1ERM at M.docxkathleen23456789
The requirement for presentation:(need in 4hrs)
slide1:
ERM at Mars and UC
slide2:ERM in industry and academia
slide3:Measuring and Selecting an ERM Framework
slide 4:Special Rick Management Topic
slide 5 :conclusion
below is the content for doing a presentation
1. ERM at Mars and UC
Two different organizations can approach similar to the ERM due to some common benefit or some common purpose suppose we have following two organization the ERM at Mars incorporated and ERM in practice at the University of California Health The system both the approaches are used to spread and include the process in business units and other units. The developments in these growths of this program caused working with the professionals to address the business units.
Ways the two organization’s approaches to ERM differ
Two different organizations can approach in a different way to ERM because it has different purposes and different advantages which vary from field to field (WARNER, LARRY, 2015). Suppose we have following two different organizations that approach differently the ERM at Mars can be migrated to the non-family management i.e., it can apply to other areas/platforms different from professional organizations, while ERM at UC focuses on the enterprise risk analysis, audits, monitoring and report generation. ERM at Mars uses simple technology in framework building like word, excel and some tools. Whereas ERM at UC focuses on complex technologies for the building of the framework.
One aspect of each ERM implementation from which the other organization would benefit
For any organization implementing Enterprise Risk Management is a key, initially, an organization has to know about the fundamentals i.e. scope and tools that accommodate the ERM implementation plan. To implement ERM getting essentials right up to an organization explicit ERM system that unmistakably and quantifiably characterizes what ERM will mean for the organization and utilizing that structure to build up an ERM execution plan that is explicitly for accomplishment in the organization.
Enterprise Risk Management (ERM) mainly involves six fundamentals.
Identify
Analyze
Control
Transfer
Reduce
Assess
Most Organizations have faith in big business change administration like ERM. In many cases, many have been baffled by execution issues at this point, caused ERM to miss the mark regarding its potential. Before starting ERM they have to do solid back end work to implement.
What advantages can an organization acknowledge through ERM
Organizations that comprehend their dangers have a more noteworthy capacity to anticipate or respond to occasions that can affect objectives and targets. Eventually, this can convert into less unpredictability and an aggressive edge. A decent handle of hazard can likewise open up an organization's viewpoint on circumstances it might need to seek after.
ERM empowers the board and the board to have an increasingly steady perspective of a way .
Similar to 65 of the paper needs to be cited with scholarly articles.Ther.docx (20)
A major producer of plastic in the U.S. is about to expand its busin.docxssuser774ad41
A major producer of plastic in the U.S. is about to expand its business. As part of this expansion, it will begin to sell its products in Europe and Asia. In addition, it plans to open a plant in Asia.
Jerry, president and CEO is concerned because he has heard many stories of companies that have tried to expand globally, but the operations failed either miserably or did not live up to expectationsdue to the cultural differences between workers and customers in each country.
Assignment:
1. Research a selected multinational corporation or an internatonal non-profit agency to discover barriers that organiation encountered and what its managers dd to try to overcome those barriers.
2. Generate and evaluate reasons why people may not appreciate the cultural point of view of others. VERy IMPORTANT! List 5 Resources or Materials (Citations)!!! Three of the 5 Citations may come from the textbook)!
3. Discuss how appreciating cultural diversity affects peoples' ability to communicate effectively in the content of a multinational corporation or an international non-profit agency.
.
A key theory explored this week is labeling theory. This assignmen.docxssuser774ad41
A key theory explored this week is labeling theory. This assignment examines how this particular theory may assist us in explaining variations in crime rates.
In a 2-3 page paper, critically examine how labeling theory and reward-risks models explain variations in crime by country, region, community, sex, age, race, and social class.
Provide your own critical thoughts on this issue, based on what you have researched.
.
A haiku is __________. (Points 3) a rhyming poem with 1.docxssuser774ad41
A haiku is __________. (Points : 3)
a rhyming poem with 14 lines that can either be written in English or Italian forms
a poem with five lines that has a specific rhyme scheme and is often humorous
a non-rhyming, 17-syllable poem generally divided into three lines and dealing with nature
a type of poem that tells a story and often focuses on heroic characters from the past
2. The poem “The Pasture” by Robert Frost depicts nature as __________. (Points : 3)
unrealistic
comical
brutal
frail
3. Christina Rossetti’s choice to give speech to a robin, a rosebush, the moon, and the ocean in “A Wintry Sonnet” is a use of __________. (Points : 3)
irony
imagery
symbolism
personification
4. In “I Wandered Lonely as a Cloud,” the speaker describes __________. (Points : 3)
feeling melancholy when he sees the colors of the autumn leaves
feeling great gladness when he sees a field of daffodils
sowing many daffodils and watching them grow and bloom
floating over the English countryside with the clouds
5. Which is the best statement of the theme of “To Everything There Is a Season”? (Points : 3)
The wind blows where it will, and no one can predict it.
Summer, fall, winter, and spring each have a special beauty.
Pain and suffering are part of life, and one must accept them.
A right time and place exist for each of life’s actions.
6. Which season does Emily Dickinson’s poem “The Morns Are Meeker Than They Were” describe? (Points : 3)
spring
summer
autumn
winter
7. Which line below uses alliteration? (Points : 3)
“But each wild breast stiffened”
“A wild, white welter of winnowing wings”
“I wandered lonely as a cloud”
“Dreaming of honeycombs to share”
8. The function of a short story’s exposition is to __________. (Points : 3)
present the setting and characters
carry the action to the turning point
begin the action of the plot
resolve the plot’s conflict
9. In a story, the point of highest action or the turning point is known as the ________ . (Points : 3)
rising action
falling action
resolution
climax
10. Dialogue that imitates the way real people talk is called __________. (Points : 3)
allusion
characterization
plot
dialect
11. Readers can more readily identify with a story’s narrator if the writer uses __________. (Points : 3)
third-person omniscient point of view
third-person limited point of view
second-person point of view
first-person point of view
12. When the setting of Christina Rossetti’s “A Wintry Sonnet” changes from winter to spring, the poe.
A key element of social-emotional development during infancy and tod.docxssuser774ad41
A key element of social-emotional development during infancy and toddlerhood is the establishment of bonds of attachment. A child’s temperament can influence the nature of attachment with caregivers. For instance, an infant’s difficult temperament might make it more likely that he or she will develop an insecure attachment to the caregiver. If caregivers receive sufficient social support, thereby establishing a “goodness of fit” between temperament and environment (i.e., parenting), they can overcome some of the challenges of raising a difficult child.
The child’s temperament and the caregiver’s parenting style work in tandem to affect his or her social-emotional and cognitive development. Caregivers who exhibit open displays of warmth and affection and who respond to their children’s needs in a timely manner (thereby acknowledging that each child has some influence on other family members) are likely to socialize their children so that they feel positively about themselves, learn to trust, and are secure with their caregivers. As you examine other parenting styles, think about how the level of caregiver responsiveness affects infant attachment.
To prepare for this assignment, select two parenting styles presented in the Learning Resources.
The assignment: (3
–
4 pages)
Briefly describe the two parenting styles you selected.
Explain two types of attachment you might expect, based on each parenting style you selected.
Then, explain why you chose each type of attachment.
Finally, explain how culture may impact the type of attachment.
Be specific, provide examples, and justify your response with citations from the Learning Resources/literature.
Support your Application Assignment with specific references to all resources used in its preparation. You are asked to provide a reference list for all resources, including those in the Learning Resources for this course.
.
A grade 11 class, on a field trip to Montreal, had lunch in a restau.docxssuser774ad41
A grade 11 class, on a field trip to Montreal, had lunch in a restaurant. The bill came to $239.25. Four students had birthdays that day, and it was agreed that these four should not have to pay for lunch. The other students had to pay $1 more than if all the students had paid. How many students had lunch?
.
A joint committee is[removed]set up to resolve differences in legi.docxssuser774ad41
A joint committee is
[removed]set up to resolve differences in legislation passed separately in the House and Senate
[removed] made up of members from both the House and Senate to address a common concern
[removed] a group of members of Congress who meet with the president to prevent vetoed bills
[removed] created by the House when the Senate has taken too long to debate a proposed bill
.
A historical case where stare decisis was followed wasPlanned Pa.docxssuser774ad41
A historical case where stare decisis was followed was
Planned Parenthood of Southeastern Pennsylvania v. Casey. Stare decisis was followed from the Roe v. Wade decision regarding a women’s right to have an abortion, to decide whether certain stipulations from Roe v. Wade were constitutional (Mitchell, 2011). Some judicial discretion should have been used while ruling using the precedent set in Roe v. Wade to make it a unique case where the
.
a health issue and its policy in Saudi ArabiaTerm paper• To beg.docxssuser774ad41
a health issue and its policy in Saudi Arabia
Term paper:
• To begin with you will choose a topic related to Saudi healthcare/Saudi health system and write an outline/draft of 3-4 pages and submit for approval.
• For this you need to review literature pertaining to the topic and collect all the relevant data for your study
• Then align this information in the given format
• The final term paper should have
: - Minimum 10 pages and maximum 20 pages - Minimum 5 references - Double spaced, 12 font size.
The following is an outline of the term paper:
Cover Page-with title of the study, Student Name Abbreviations Index
1. Introduction (Background, Definitions, current scenario, may include history)
2. Objectives (What do you want to understand from the study-objectives may be one or more) a. b.
3. Body/ Literature review
4. Discussion (compare between studies, the pros and cons of the subject, the future etc) 5. Conclusion References
Note: Number of pages will be counted from introduction to conclusion (10-20) Plagiarism will not be tolerated. All the content should be given suitable references
.
A group working at the University of California, Berkeley has develo.docxssuser774ad41
A group working at the University of California, Berkeley has developed “nanothermometers,” little nanoparticles that can be injected into cells to measure the temperature in various places in the cell. So far, they have been used in cells growing in a culture dish. Indicate what you think the group will discover about the temperature in different parts of the cell. Discuss whether you believe it will be the same or different, and explain why.
References:
.
A graph…….a.can be used to show either a positive or neg.docxssuser774ad41
A graph…….
a.
can be used to show either a positive or negative relationship between two variables.
b.
can illustrate both demand and supply.
c.
is used because it is impossible to describe any economic relationship verbally.
d.
all of the above.
e.
both a) and b) are correct.
2.
If less people buy coffee as income declines, then coffee is
a.
a complementary good.
b.
a substitute good.
c.
a normal good.
d.
an inferior good.
3.
Consider that when the price of a good increases, like hamburgers people buy less of that good and less of a complementary good such as ketchup.
Therefore if the price of hamburgers increases,
the quantity demanded of hamburgers will decrease and the demand curve for
ketchup will shift to the left.
the quantity demanded of hamburgers will increase and the demand curve for
ketchup will shift to the left.
the quantity demanded of hamburgers will decrease and the demand curve for
ketchup will shift to the right.
the quantity demanded of hamburgers will increase and the demand curve for ketchup will shift to the right.
4.
If insurance companies are compelled by law to decrease their rates 5% for high-risk drivers, what would be the most likely outcome for high-risk drivers according to supply and demand analysis?
a.
High-risk drivers will be better off since there will be an increase in the supply for insurance.
b.
High-risk drivers will be better off since there will be an increase in the demand for insurance.
c.
Many high-risk drivers may be unable to purchase insurance since the likely outcome of the law may be to cause a shortage of insurance for high-risk drivers.
d.
both b) and c) are correct.
5.
Which of the following forecasts for revenue are correct when the price of x declines?
a.
increased revenue in the price elastic case and decreased revenue in the price inelastic case
b.
decreased revenue in the price elastic case and increased revenue in the price inelastic case
c.
increase in revenue no matter what the elasticity coefficient is
d.
decrease in revenue no matter what the elasticity coefficient is
6.
The demand for food is likely to be more
than the demand for meat.
The relates to the elasticity determinant of
________.
a.
elastic – price relative to income
b.
inelastic – price relative to income
c.
elastic – number of substitutes
d.
inelastic – number of substitutes
7.
If you enjoyed wine so much that the more you had, the better it tasted, then the marginal utility of additional wine would be
a.
positive and declining
b.
negative
c.
zero
d.
increasing
8.
If the demand for corn shifts to the right, it may have been caused by
a.
the price of corn declining.
b.
more people needing corn for recipes.
c.
the price of corn increasing.
d.
both a) and b) are correct.
9.
The paradox of value suggests that one will pay
a. more for water than diamonds.
b. more for a luxury cruise than water.
c. more for .
A fundamental assumption for economic analysis is that economic ag.docxssuser774ad41
A fundamental assumption for economic analysis is that economic agents, be it an individual, a household or a firm/business, tend to make choices and select alternatives rationally. The rational economic choice (decision) implies that
people are driven by the rational pursuit of self-interest, and engaged in economic decisions
to maximize this self-interest.
By
rational economic choice
, economists mean that people try to make the best choice they can, given the available resources at their disposals (money, time, etc.) and information.
Self-interest
is when individuals make economic decisions that are in their own best interest. On the other hand, s
ocial interest
is when choices are made that benefit society as a whole. Economists argue that social interest can be attained by individual decision makers acting in their own self-interest. This process is what Adam Smith called the
invisible hand
, which has been the foundation of the market economy.
Create an example to demonstrate how an individual or firm acting out of self-interest to maximize profits by offering goods or services in economic markets benefit consumers – even if they do not care about them. In other words, how does self-interest help achieve society’s economic goals?
What is the relationship between self-interest and social interest in the economic decision (economic choice) process? Is there a conflict between the two in the economic world
.
a general essay on al capone during the jazz age and the influence h.docxssuser774ad41
a general essay on al capone during the jazz age and the influence he had on the people around him and everyone that lived in that era.
cite any sources used
can give information about al capone and then get into how he rose to becoming such a known person and the influence he had on the community.
.
A friend of yours did something wrong and you covered for himher. T.docxssuser774ad41
A friend of yours did something wrong and you covered for him/her. The act was illegal and eventually you both were in trouble.
Narrate how the incident happened, how you both got in trouble, what you did, what happened, and how you felt throughout the whole thing. Your narrative should have suspense, different clauses, and an accurate use of tenses. Pay attention not to write a summary of the actions.
.
A format suggestion for M&M paperLast 1.docxssuser774ad41
A format suggestion for M&M paper
Last 1
MLA Heading
Specific Title
Introduction (what is this paper about, the who, what, where, why, ground the reader, build a foundation)
A paragraph about M&M Consumer Affairs Office and their color distribution prediction
Figure or table 1
A paragraph about Josh Madison and their color distribution findings
Figure or table 2
A paragraph about Spring 2013 and their color distribution prediction
Figure or table 3
A paragraph about all three data sources
Figure or table 4
Conclusion
Works Cited (Josh Madison and M&M Consumer Affairs Office if you research it)
Follow the istraction
.
A five page single spaced essay on the novel Corregidora.Paper.docxssuser774ad41
A
five page single spaced
essay on the novel Corregidora.
Paper is due Due Monday 4/29, so I WANT it done by 12am on the 29th, Monday morning. But sooner would be greatly appreciated.
The diirections are in the doctument attachted.
Using the following Critics and their theories which can be found anywhere on the internet:
Jacques Derrida
Alain Badiou
Slavoj Zizek
.
A five page single spaced essay on the novel Corregidora.P.docxssuser774ad41
A
five page
single spaced
essay on the novel Corregidora.
Paper is due Due Tuesday 4/30, so I WANT it done by 12am on the 30th, Tuesday morning. But sooner would be greatly appreciated.
The directions
and an essay outline I'd like the paper to include
are in the doctument attachted.
Using the following Critics and their theories which can be found anywhere on the internet:
Jacques Derrida - http://en.wikipedia.org/wiki/Derrida
Slavoj Zizek - http://en.wikipedia.org/wiki/Slavoj_%C5%BDi%C5%BEek
.
A five page single spaced essay on the novel Corregidora.Due o.docxssuser774ad41
A
five page single spaced
essay on the novel Corregidora.
Due on Monday 4/29. But sooner would be greatly appreciated.
The diirections are in the doctument attachted. Using the following Critics and their theories which can be found anywhere on the internet:
Jacques Derrida
Alain Badiou
Slavoj Zizek
.
A family consists of six children all under 12, their parents, and f.docxssuser774ad41
A family of 6 children under 12, their parents, and 4 grandparents had tamales for dinner. The tamales contained undercooked pork, giving adults a 20% chance and children a 30% chance of getting sick. The question asks for the probability that more adults than children get sick from eating the tamales.
A few sentencessingle paragraph for each item should be sufficient,.docxssuser774ad41
This document contains 16 questions about various topics in biology:
1. Deuterostomes and protostomes are concepts that describe whether an embryo's first opening is the mouth or anus, and they are useful for understanding early development.
2. Seeds had advantages like dispersal and dormancy over earlier plant structures.
3. Homologies and analogies reveal information about the evolutionary history of life on Earth based on shared and convergent traits.
4. Plants were necessary for animals to evolve by producing oxygen and providing a food source.
5. Extinctions have been caused by events like asteroid impacts, climate change, and disease. Periods after mass extinctions saw changes like the rise of new dominant
A Drug Deal Gone BadThis assignment aims for you to evaluate the.docxssuser774ad41
A Drug Deal Gone Bad
This assignment aims for you to evaluate the criminal investigations process.
Here’s What Happened . . .
Around 12:00 p.m. on September 13, 2004, Fred Smith walked across the road to Bill Jones's house to ask for a ride. Although it was almost fall, it was still very hot outside and Smith needed to pick up money in a neighboring town. Smith didn't want to walk from Centervale to Roan County, so he offered to pay Jones $20.00 for gas and his time to drive Smith to pick up his money. Jones accepted Smith's offer; however, Jones told Smith that he had to pick up a friend at a car repair shop along the way. Jones and Smith drove to Thrifty Repair Shop and picked up Jones's friend, Roger Fish. Fish was not in a hurry that day, so he agreed to ride with the pair to pick up Smith's money.
The trio arrived at 200 S. Railroad Street, Brysonton, Roan County, AnyState. Smith exited the car and told Jones and Fish to wait in the car. As Smith walked toward the front of the residence, he yelled to the occupants inside, "You got some weed?" "Yeah," Raynard Jenkins replied from inside the residence. Jenkins greeted Smith at the door and asked him, "What you got?" Smith pulled out a Ruger SP101 .357 Magnum and shot Jenkins in the chest at point-blank range.
As Jenkins was falling toward the ground, Bob Marshall, a local drug dealer, jumped up from the corner of the couch, dropped a large bag of cocaine on the floor, and ran into the kitchen and out the back door. Smith chased Marshall, shot at him twice, but missed him. Smith ran back to the car and yelled to Jones, "Punch it! He tried to smoke (kill) me." The group sped away in a brown Ford Taurus, but were pulled over by Deputy R. W. Dunn approximately five miles from the scene. After coming to a complete stop, Jones threw the gun onto the rear floorboard of the car, next to Fish.
Deputy Dunn approached the car, asked the men to exit the car, and detained them to await another officer's arrival. When the officer was brought to the location where the men were being detained, a witness who saw the shooting identified Jones as the shooter. Smith, Jones, and Fish were arrested, transported to the Roan County Sheriff's Office for additional questioning, and booked into jail on first-degree murder charges.
The Investigation . . .
State Bureau of Investigation (SBI) Special Agent (SA) Pete Moss arrived at the scene at 200 S. Railroad Street, Brysonton, Roan County, AnyState, with CSI and SBI SA April Pearson at 1:03 p.m. to assist the Sheriff's Office with investigating the murder of Jenkins and the attempted murder of Marshall. SA Pearson interviewed key witnesses who lived in the immediate area within proximity of the crime scene, while SA Moss began drafting a search warrant. Although the Sheriff's Office had secured the scene around the house, SA Pearson secured an additional larger area that extended into the street. Both the interior and exterior barriers were secured with crime.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...TechSoup
Whether you're new to SEO or looking to refine your existing strategies, this webinar will provide you with actionable insights and practical tips to elevate your nonprofit's online presence.
🔥🔥🔥🔥🔥🔥🔥🔥🔥
إضغ بين إيديكم من أقوى الملازم التي صممتها
ملزمة تشريح الجهاز الهيكلي (نظري 3)
💀💀💀💀💀💀💀💀💀💀
تتميز هذهِ الملزمة بعِدة مُميزات :
1- مُترجمة ترجمة تُناسب جميع المستويات
2- تحتوي على 78 رسم توضيحي لكل كلمة موجودة بالملزمة (لكل كلمة !!!!)
#فهم_ماكو_درخ
3- دقة الكتابة والصور عالية جداً جداً جداً
4- هُنالك بعض المعلومات تم توضيحها بشكل تفصيلي جداً (تُعتبر لدى الطالب أو الطالبة بإنها معلومات مُبهمة ومع ذلك تم توضيح هذهِ المعلومات المُبهمة بشكل تفصيلي جداً
5- الملزمة تشرح نفسها ب نفسها بس تكلك تعال اقراني
6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
كل التوفيق زملائي وزميلاتي ، زميلكم محمد الذهبي 💊💊
🔥🔥🔥🔥🔥🔥🔥🔥🔥
How Barcodes Can Be Leveraged Within Odoo 17Celine George
In this presentation, we will explore how barcodes can be leveraged within Odoo 17 to streamline our manufacturing processes. We will cover the configuration steps, how to utilize barcodes in different manufacturing scenarios, and the overall benefits of implementing this technology.
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
This presentation was provided by Racquel Jemison, Ph.D., Christina MacLaughlin, Ph.D., and Paulomi Majumder. Ph.D., all of the American Chemical Society, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
65 of the paper needs to be cited with scholarly articles.Ther.docx
1. 65 % of the paper needs to be cited with scholarly articles.
There is no doubt that a solid compensation philosophy must
address issues of equity and justice, both from an internal
perspective and an external perspective. As such one must be
very aware of the causes of inequity but also be much attuned to
the relationships, internal and external, that promote concerns.
A strong compensation program, driven by a philosophy of
justice and equity, can define and placate problems before they
occur.
Required Reading:
Please refer to the Activity Resources section of each activity
for the required readings.
Assignment 4 Equity: Internal and External
As an HR professional, it is important to thoroughly understand
the concept of internal and external equity in terms of pay and
benefits. For example, you will need to understand how to
answer the following questions. How is the concept of internal
and external equity similar or different in discussing pay versus
benefits? In the struggle to recruit and retain productive and
motivated staff members, is it better to design and promote a
compensation and benefit program that focuses on external
market competitiveness or that is structured to promote internal
equity? How does one articulate the concept of just and
equitable within a compensation structure? Activity
Resources:
HYPERLINK
"http://proxy1.ncu.edu/login?url=http://search.ebscohost.com/lo
gin.aspx?direct=true&db=bth&AN=44900327&site=ehost-live"
Earle, J. E. (2009).
Main Task: Analyze Issues of Internal and External
Equity Write a paper analyzing the concepts of internal and
external equity and apply these concepts to an examination of
pay versus benefits in organizations. Include in the analysis, a
comparison of the advantages and disadvantages in designing
2. compensation and benefit programs that focus on external
market competitiveness or that are structured to promote
internal equity. Support your analysis based on current research
incorporating three journal articles or publications into your
response. Support your paper with minimum of five (5)
scholarly resources. In addition to these specified resources,
other appropriate scholarly resources, including older articles,
may be included. Length: 5-7 pages not including title and
reference pages Your paper should demonstrate thoughtful
consideration of the ideas and concepts that are presented in the
course and provide new thoughts and insights relating directly
to this topic. Your response should reflect scholarly writing and
current APA standards. Incorporate reference page number
within the context of the paper. Use current day examples to
substantiate your research. Submit your document in the
Course Work area below the Activity screen. Learning
Outcomes: 3, 4
Assignment Outcomes
Analyze the importance of balancing internal and external
pressures and effects of external competitiveness in designing
pay structures. Assess the role of performance measurement in
compensation decisions.
The Evolving Role of Risk Management in the Design and
Governance of Compensation Programs
James E. Earle
Historically, “risk management” and “compensation” were
separate and dis- tinct disciplines within most companies. The
economic meltdown that began inside the financial services
industry, however, has launched a new social dis- cussion that
will cause these two disciplines to become intimately linked
going forward, and as a result will likely forge new ways of
thinking about the design and governance of compensation
programs.
How is it that a compensation plan can pose risks to a
company’s business? What kinds of risks are associated with
3. compensation plans? What steps can be taken to mitigate those
risks? These are the questions that this article explores.
Risk management is normally associated with the process for
identifying, assessing, and prioritizing business risks as part of
a sound business management practice.1 The purpose of the risk
man- agement process is not to eliminate risk from the business
model, but to help the company make sure that it appropriately
takes risk into account in its business strategy. This is
especially true in the financial services industry, which is in the
business of pricing risk with every loan made.
The types of risks that are the focus of a company’s risk
manage- ment routines will vary by industry and company
specifics. In the financial services industry, the Basel II Accord
focuses on three key areas of risk: credit, operational, and
market risk.2 Operational risk, in particular, is a very broad
concept that includes any kind of risk arising from a company’s
business functions, such as failed internal processes, fraud,
legal and compliance risks, etc.3
Risk management attempts to not only identify business risks,
but to assess the degree of risks by attempting to quantify both
the
Mr. Earle is a partner in the Charlotte offices of K&L Gates.
Mr. Earle’s practice involves counseling publicly traded
companies and other complex employers on matters related to
executive compensation. Clients include financial services
companies, hedge funds, large national retailers, manufacturers,
and service-companies with global operations.
BENEFITS LAW JOURNAL 44 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
likelihood of occurrence and the severity of loss. After
identifying and prioritizing risks based on this assessment, the
risk management process considers potential risk management
plans to avoid, mitigate, or otherwise address the key risks.4
But what does all of this have to do with compensation?
4. Although there is room for debate, there has emerged a general
public consensus that compensation practices in the banking
indus- try played a role in the credit market meltdown that has
been at the eye of the current economic storm. Consider some of
the following quotes.
The Financial Stability Forum, comprised of a group of G20
finan- cial industry regulators (including representatives from
the US Federal Reserve), had this to say in their April 2009
report on compensation practices:
Compensation practices at large financial institutions are one
fac- tor among many that contributed to the financial crisis that
began in 2007. High short-term profits led to generous bonus
payments to employees without adequate regard to the longer-
term risks they imposed on their firms. These perverse
incentives amplified the excessive risk-taking that severely
threatened the global finan- cial system and left firms with
fewer resources to absorb losses as risks materialised. The lack
of attention to risk also contributed to the large, in some cases
extreme absolute level of compensation in the industry.5
The U.K.’s Financial Services Authority (FSA) expressed a
similar view in their March 2009 proposal on reforming
compensation prac- tices in the financial services industry:
Although it is hard to prove a direct causal link, there is wide-
spread consensus that remuneration practices may have been a
contributory factor to the market crisis. Practices in common
use during the period leading up to the crisis, mainly but not
exclusively in investment banking, tended to reward short- term
revenue and profit targets. These gave staff incentives to pursue
unduly risky practices, for example by undertaking higher risk
investments or activities which provided higher income in the
short run despite exposing the institution to higher potential
losses in the longer run. In many cases, remuneration practices
were running counter to effective risk management, in effect
undermining systems that had been set up to control risk.6
Finally, here is what Gene Sperling, Counselor to the Secretary
of Treasury, had to say in his opening remarks this past June
5. before the House Financial Services Committee:
BENEFITS LAW JOURNAL 45 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
There is little question that one contributing factor to the exces-
sive risk taking that was central to the crisis was the prevalence
of compensation practices at financial institutions that
encouraged short-term gains to be realized with little regard to
the potential economic damage such behavior could cause not
only to those firms, but to the financial system and economy as
a whole.7
KEY INITIATIVES
This consensus view has resulted in a number of legislative and
regulatory initiatives, both here in the United States and abroad,
that will require banks and other companies to develop better
risk management practices regarding the design and governance
of com- pensation programs. The following highlights some of
these key initiatives.
Emergency Economic Stabilization Act of 2008
The Emergency Economic Stabilization Act of 2008 (EESA)8
required compensation committees, with input from the
company’s senior risk officers, to review compensation
arrangements covering the company’s “senior executive
officers” (SEOs) to ensure that the arrangements do not
encourage “unnecessary and excessive risks that threaten the
value of the financial institution.”
American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009
(ARRA)9 substantially revised the executive compensation
provisions of EESA and expands on themes about risk in
compensation programs. The compensation committee must
meet at least every six months with the senior risk officers to
discuss, evaluate, and review:
• Whether compensation plans for SEOs encourage unneces-
sary and excessive risks;
6. • Whether compensation plans for all other employees pose
unnecessary risks; and
• Whether compensation plans for all employees encourage
manipulation of earnings.
ARRA requires greater disclosures about these review
activities. A narrative discussion must be included in the
Compensation Committee Report in the annual proxy statement.
ARRA also requires an annual certification by the CEO and
CFO that these review activities (as well as compliance with all
other exec- utive compensation requirements under ARRA) have
taken place.
BENEFITS LAW JOURNAL 46 VOL. 22, NO. 4, WINTER
2009
• • •
Properly measure and reward performance; Are structured to
account for the time horizon of risks; and Are aligned with
sound risk management.
Risk Management in the Design and Governance of
Compensation Programs
Securities and Exchange Commission: Proposed Disclosure Rule
Changes (July 2009)
The EESA and ARRA requirements apply only to Troubled
Assets Relief Program (TARP) recipients. The Securities and
Exchange Commission (SEC), however, has proposed new
disclosure rules, potentially to be effective next proxy season,
that focus on risk man- agement issues for all public
companies.10
Like ARRA, the SEC proposal looks beyond executive officer
com- pensation plans.
The proposal would require discussion in the Compensation
Discussion & Analysis section of the annual proxy statement
about how the company’s overall compensation policies for
employees cre- ate incentives that can affect the company’s risk
and management of that risk (to the extent such risks are
material).
Financial Services Authority (U.K.): Update to Its Regulatory
7. Code
In August 2009, the FSA updated11 its regulatory code to
establish a new general requirement for certain larger financial
companies covered by the U.K. code: “Remuneration policies
must be consistent with effective risk management.”
It includes eight “evidentiary principles” to prove whether the
gen- eral requirement has been met. These evidentiary
principles include features related to both the design and
governance of compensation programs.
Corporate and Financial Institution Compensation Fairness Act,
H.R. 3269
The Corporate and Financial Institution Compensation Fairness
Act, H.R. 3269,12 was passed by the House on July 31, 2009.
Section 4 of the Act would require certain “covered financial
institu- tions” to have compensation structures that:
TWO MAIN TYPES OF COMPENSATION RISK
What kinds of risks can compensation programs pose to a
business? We think there are two key risks, which are
thematically reflected in
BENEFITS LAW JOURNAL 47 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
the various legislative and regulatory initiatives described
above. They are: (1) “short-termism” and (2) manipulation.
Short-Termism
“Short-termism” results when a compensation program
encourages too much focus on short-term results to the potential
detriment of long-term value creation.
Examples of the potential for short-termism include:
• A compensation mix focused very heavily on annual cash
bonuses. This has been a prevalent practice in many lines of
business in the financial services industry, and the primary
source of regulatory criticism. The concern is that the perfor-
mance generating the annual cash bonus, such as the closing of
a loan portfolio, the generation of a securitized transac- tion, or
8. the origination of a number of mortgages, does not adequately
consider potential future losses as a result of the transactions.
The individuals are paid for front-end produc- tion without
having to accept risk for back-end losses.
• The use of performance metrics to determine incentive com-
pensation that do not adequately reflect company-wide risk
considerations. This concern is closely related to the con- cern
about overemphasis on annual cash bonuses, and is an
especially tricky topic that we will discuss further below.
• A heavy focus on stock options or other forms of equity
compensation that do not require holding periods or that include
accelerated vesting at termination of employment.
Perhaps New York Attorney General Cuomo captured the
essence of short-termism in the title of his July 30, 2009, report
on bank com- pensation practices: “No Rhyme or Reason: The
‘Heads I Win, Tails You Lose’ Bank Bonus Culture.”13
Manipulation
Manipulation is the risk that a compensation program could
encourage individuals to manipulate data inputs to the
compensa- tion process or information about the company in a
way to increase compensation results.
Examples of the potential for manipulation include:
• Annual bonus programs based on a single financial metric.
• Compensation decision-making processes without meaning-
ful engagement by independent control partners.
BENEFITS LAW JOURNAL 48 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
• Heavy use of equity compensation without holding period
requirements. One recent example of manipulation in this
context is the option back-dating scandal.
TWO KEY RISK MITIGATION STRATEGIES
How can companies mitigate against the risks that their
compensa- tion programs might result in short-termism or
encourage manipu- lation? The mitigation strategies can
9. generally be lumped into two categories: (1) design and (2)
governance.
Design
The design of compensation programs covers a potentially wide
array of considerations. Many companies consider the design of
their compensation programs to be a market differentiator. For
financial services companies operating multiple lines of
business, there can literally be hundreds of different
compensation programs within the company, each tailored to the
needs of a particular business unit. There cannot be a “one size
fits all” approach, which makes the con- sideration of design
issues especially complex.
Some of the key considerations when addressing risk issues in
the design of compensation programs include:
• Mix; • Metrics; • Deferrals or bonus/malus; • Equity
design; and • Clawbacks.
Mix
What is the relative level of fixed versus variable pay? As the
FSA has noted, if salary is too low it may be difficult to operate
a “fully flexible” bonus program—that is, a bonus program
where no bonus is awarded if there are losses.14 If salary is too
low, this can also put undue pressure on the achievement of
annual bonus results, which can encourage manipulation.
For variable pay, what is the relative mix of annual versus long-
term incentives? The historic practice at most large US financial
services companies was to focus on annual incentives, but to
deliver a portion of the annual incentive in a deferred stock
award. Some companies also provided higher level employees
with stock options as part of their total compensation package.
Having a balanced compensation
BENEFITS LAW JOURNAL 49 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
package with elements that focus on longer-term performance
can be one of the best ways to address short-termism.
10. There are a growing number of examples of changing market
practices on mix of compensation. A number of banks,
including Citi and Morgan Stanley, have announced an
increased percentage of salary as part of the total compensation
package.15 Morgan Stanley also announced for 2009 a new
long-term compensation award that becomes earned based on
return on equity and total shareholder return results, against
both internal targets and results relative to peers, over a three-
year performance period.16
The executive compensation restrictions under EESA and ARRA
for banks that received financial assistance include a
prohibition on most bonus payments, other than certain long-
term restricted stock (LTRS) awards worth no more than one-
third of total annual compensation. In response, several
companies have announced a new compensa- tion mix made up
of cash salary, stock salary, and a LTRS award. The LTRS
award vests over two to three years and is subject to transfer
restrictions linked to repayment of TARP funds. Figure 1
illustrates this compensation mix announced by Wells Fargo and
AIG for their respective CEOs.17
Metrics
What metrics are used to determine variable pay? Do the
metrics take into account the quality and sustainability of
earnings? One criti- cism of historic compensation practices,
especially in the investment banking industry, was that annual
bonuses were based primarily on a single metric—typically, a
percentage of revenues. In contrast, the FSA advocates that
bonuses be based on a balanced scorecard of metrics, including
the net income of the company as a whole and the business unit,
but also taking into account more subjective consider- ations
such as a demonstrated commitment to compliance, teamwork,
and other individual factors.18
One of the trickiest topics in this area is whether performance
metrics should be “risk-adjusted.” The concept is simple
enough: All income dollars are not the same. For example, a
dollar of income gen- erated by making loans, requiring the
11. deployment of company assets,
Figure 1.
Pay Element
John G. Stumpf, CEO, Wells Fargo
Robert H. Benmosche, CEO, AIG
Cash Salary
$900,000
$3,000,000
Stock Salary
$4,700,000
$4,000,000
LTRS
$2,800,000
$3,500,000
Total
$8,400,000
$10,500,000
BENEFITS LAW JOURNAL 50 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
which could be subject to future losses, is arguably not as
valuable as a dollar of income generated by a one-time fee for
services. However, the mathematical process for deriving the
risk-adjusted return for a particular activity can get very
complicated and may not work well for all business activities.
The complexity involved in deriving a risk- adjusted return can
make the incentive compensation process more opaque to the
participant and therefore less effective as an incentive. This is
an area where the risk management and finance functions can
help to determine whether a risk-adjusted metric might make
sense.
Deferrals or Bonus/Malus
Given that risk-adjusted returns can be difficult to apply in
prac- tice, what other techniques can be used to mitigate against
current performance that leads to future losses? One approach,
12. already common to the banking industry, is to have a portion of
the annual incentive delivered on a deferred basis, say over
three years. Often the deferral is delivered as restricted stock,
the value of which argu- ably depends on future performance—
that is, stock price (although some naysayers contend that stock
price alone is an insufficient performance indicator because of
the variety of factors, such as macroeconomic changes, that can
impact stock price). The deferred portion of the compensation is
also usually subject to forfeiture in case the employee resigns,
is terminated for cause, or engages in some form of detrimental
conduct.
We will discuss more about equity design below. How much of
the bonus should be deferred? That probably depends on the
employee’s role and compensation level, although the FSA
advocates a deferral of at least two thirds of the bonus.19
Another spin on the deferral design is the so-called
bonus/malus. Under this design, a portion of the annual bonus
each year is deferred. The collective amounts deferred are then
subject to offset in future years if there are losses or other bad
behaviors (the malus). The offsets can be based on objective
measures (such as portfolio losses) or more subjective
determinations about performance, such as misconduct, failure
to observe risk management requirements, etc. One recent
example of this kind of design is the new UBS “cash bal- ance
program.”
Under this program, two thirds of an employee’s annual bonus
is deferred to be paid in later years and subject to reduction for
certain “malus” events, including:
• A large financial loss (firm-wide or business unit); • A
large balance-sheet adjustment; • Misconduct on compliance
issues;
BENEFITS LAW JOURNAL 51 VOL. 22, NO. 4, WINTER
2009
Risk Management in the Design and Governance of
Compensation Programs
• Breach of risk parameters; and
13. • “Non-adherence to other quantitative and qualitative core
objectives as expressed within individual target agreements and
performance measurements.”
Figure 2 illustrates how the UBS program is intended to
work.20
For any deferral or bonus/malus program, careful attention
should be given to potential state wage and hour act issues.
Most states pro- hibit amounts “earned” from being subject to
future loss or forfeiture. Deferral or bonus/malus programs
should be carefully worded and communicated to make clear
that the portion of the annual incentive award that has been
deferred is not earned until all conditions to the award have
been met.
Equity Design
Equity awards often provide the most direct means to align the
interests of key employees with those of long-term
shareholders. However, the effectiveness of this alignment
depends on the details of the equity award design. An award
that may be cashed in at any time or that can become fully
vested upon termination of employment might arguably
encourage a short-term focus on increasing quarterly results for
short-term gains.
To address this concern, most large public companies now
require executives to hold a certain minimum level of stock
ownership (often expressed as a number of shares or a multiple
of base salary). Another related technique growing in popularity
is to require execu- tives or other key employees to retain a
significant percentage of their equity awards after vesting or
exercise (and after covering taxes and the cost of exercise). And
yet another technique requires executives to hold their shares
not only until termination of employment, but for an additional
year or two after.
Rather than fully vest and pay equity awards at termination of
employment (such as termination due to severance without
cause