The document discusses the extent to which businesses' security measures can effectively respond to terrorist attacks. It defines terrorism and security management. It explains that businesses implement risk assessments and security measures like hardware improvements, developing resilience, and political risk insurance to mitigate terrorism risks. Intelligence sharing and technology can also help counterterrorism efforts. While no measure can completely prevent attacks, security planning and cooperation with governments can help businesses respond effectively and ensure continuity after an incident.

1. ISSN 2046-1313
BUSINESS & TECHNICAL MANAGEMENT
The International Journal of the Faculty of Professional Business and
Technical Management
Volume 2 No 2 August 2015
Faculty of Professional Business and Technical Management
Suite 105, The Assembly Rooms
Church Street www.pbtm.org.uk
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Registered in England No: 1697845
Registered Office: Highdown House, 11 Highdown Road, Sydenham, Leamington Spa, Warwickshire, CV31 1XT, England

2. 1
THE JOURNAL OF THE FACULTY OF
PROFESSIONAL BUSINESS AND TECHNICAL MANAGEMENT
VOLUME 2 NUMBER 2 AUGUST 2015
CONTENTS
Page
Message from the President 2
To What Extent Can Businesses’ Security Measures Respond Effectively To
Terrorist Attacks? by Andreas Nickolaos Akratas
3
Failure – The Stepping Stone to Success by David Benjamin 7
FPBTM Reciprocal Membership Organisations 8
Effective Delegation Begins with Knowledge of the Delegation Process
by Kohol Shadrach Iornem
9
The Institute of Management Specialists Specialised Manager Award 12
Pursue Economic Culture: It’s about vision and not money
by Prof. Samuel Lartey
13
Misuse of Hypothecation and Re-hypothecation
by Professor Dr Rabbi Abe Abrahami
15
A Nation Recovering From Currency Substitution
by Dr. Foster Kum-Ankama Sarpong
18

3. 2
Message from the President
Dear Fellow Members
It is with pleasure that I
hereby wish to thank all
our members and office
bearers for their loyal
support the past few
months since the
beginning of the year.
Our institute membership is comprised of many
and diverse areas of expertise in industry and
commerce. Knowledge is power and so it is also
important for our Institute to be recognised as
well as our members to grow in their careers. It is
with pleasure that I wish to congratulate our
Executive Administrator Dr Lynne Sykes who
was awarded a Doctor of Business Management
(Honoris Causa) from Ballsbridge University for
her remarkable work as an administrator serving
our Institute. This distinction and award was
bestowed upon her on 28th
April 2015. We are
justly proud of her achievement and wish her all
the success she deserves in her career. In
recognition of her professional standing, she was
also admitted as a Fellow of the Institute of
Chartered Professionals (FICP) (Level 8) and a
Fellow of the Board of Quality Standards (FBQS)
(BQS is the oversight board of Ballsbridge
University) – they have listed her as an Advisory
Council member on their website (http://www.b-
ac.info/advisory-council.html). We encourage our
members to feel free to write to us about your
achievements, advancements and any other news
items that would be interesting to share amongst
our membership, building up a section we can
refer to as “Member Spotlight”. We invite
members to also send in articles and papers of
academic, technical or intellectual value to ensure
we add value to our professions and therefore
help others to learn and grow as professionals.
As mentioned above, our Institute also needs to
reach out similarly, as a member of the
Confederation of Professional Awarding Bodies
(COPAB), who recently changed its name from
the previous where the word “Consortium” was
changed to “Confederation”. It is the belief of the
Board of Directors that the new name will reflect
better on the professional environment and have
better meaning to uplift the purpose of the
organisation to attract more members. Without
members no professional body would be able to
justify its cause, we therefore encourage our
members likewise to promote our Institute
similarly and help us to grow as well. Based on
similar reasons, a founding member of the
Design, Technology and Management Society
International is also seeking additional
registration either in the UK or where it will
ensure greater and better justification of the
Institute. This is planned to be complete towards
the end of this year.
The importance for us to continually build on our
professions and careers is an integral part of our
lives. Our focus should be to maintain our status
in a professional career environment and strive to
achieve our goals meeting the highest level
achievable serving our communities and fellows
within our Institute.
Never compromise on quality and integrity in the
daily execution of your duties and as
professionals always ensure that you can be
distinguished amongst fellow professionals
amongst the ranks from other professional
institutions as members from our institution.
Yours sincerely
Professor Dr J Potgieter
President FPBTM

4. 3
To What Extent Can Businesses’ Security Measures
Respond Effectively To Terrorist Attacks?
by
Andreas Nickolaos Akratas, B.Sc. (Hons), M.A.
F.I.M.S., F.I.Manf., F.F.P.B.T.M., F.I.P.F.M., F.C.A.M.
The high level of uncertainty
and complexity in today’s
business environment and the
technology involved have
increased the exposure of
organisations to a number of
risks, including the risk of
terrorist attacks. In fact,
terrorism can have a
tremendous impact on international businesses.
The emphasis on the impact – especially the
economic impact – of terrorist actions to
international businesses has followed the events
of 9/11. Consequently, every organisation should
be able to deal effectively with any threat,
including terrorist threats that may cause business
disruption.
An interesting question that can be posed at this
point is whether or not security measures can
effectively anticipate terrorism. This assignment
will provide an answer to this question, by
supporting the idea that the implementation of the
security measures of private companies,
operating in different sectors, are realistically
effective in helping them to deal with the threat
of terrorism.
In particular, the definition of terrorism, the
concept of security management, the procedure
of risk assessment and the case of terrorism
against private companies will be examined. On
account of the strong negative impact of terrorist
attacks on companies, organisations have
designed, adopted and applied security measures
so as to prevent terrorist attacks and to minimise
the losses resulting from potential threats.
Therefore, it will be explained how planning and
implementation of security measures help
companies to prevent and respond to terrorist
attacks, by providing examples and evaluate the
effectiveness of the measures taken by private
companies as a response to terrorism. In addition,
the concept of business continuity will be
analysed, since companies should ensure their
sustainability and profitability after a terrorist
attack has occurred. Finally, this paper will
conclude with the main findings of the study and
make suggestions for further research in ensuring
business continuity and effective response to
terrorism on the part of private organisations.
The term ‘terrorism’ was introduced by the
English writer Edmund Burke, who was a first-
hand witness of the violence during the French
Revolution of 1789 and pointed out that terrorism
“was coined originally to describe State action,
specifically that of the revolutionary regime in
France of 1793–4, designed to consolidate the
new government’s power against all perceived
subversives and dissidents”. Generally, it is rather
difficult to determine the meaning of terrorism
precisely, because of its complexity and its
constantly changing nature. According to the
somewhat broader definition of the U.S.
Department of Defence, terrorism can be
regarded as the intentional use and/or threat of
illegal violence to create fear, either in
governments or societies, for the purpose of
achieving political, ideological or religious goals.
A new definition of terrorism refers to any act of
physical, emotional, material or spiritual violence
imposed by a person or a group of people against
other people and/or groups of people.
Nevertheless, the concept of terrorism has
changed following the events of 9/11. Prior to
9/11, terrorism was used as a means of violence
in order to achieve political goals via fear or
coercion; after 9/11, terrorism was considered to
be a critical issue in the business world because
of its impact on the commercial sector. In the
case of organisations, terrorism constitutes a type
of business risk called ‘terrorism risk’ or
‘security risk’ which has an impact on the
operations of multinational companies and/or

5. 4
their value chain partners, resulting in revenue
losses and missed business opportunities.
In this regard, the term ‘security’ is understood as
a) the non-existence of a threat; b) threats that
exist and are possible; c) threats that actually
occur. Security strategies can be distinguished as
either proactive, which target avoiding events
that may disrupt operations and functions, or
reactive, which look to handle events that may
occur in the future. Security management
includes tasks such as “running a department
with staff; planning future outcomes; budgeting’s
controlling outcomes and monitoring
performance; interacting with other departments
and corporate senior executives; making
department policy; and working with other
people and organisations outside the corporation
such as the police, prosecution services, and other
security officers”. As a matter of fact, security
management places emphasis on the protection of
the organisation’s assets, the health of both
employees and customers, the protection of
information and data, and ensuring a safe
working environment.
Within the framework of the adoption and
implementation of security measures, the process
of risk assessment is essential, as terrorism is a
risk-management issue for organisations. Risk
assessment “is the process by which businesses
and organisations focus on critical areas of
concern and prioritise their use of resources in
order to maximise response and recovery efforts.
In making strategic decisions, business and
government leaders routinely try to predict the
benefits and/or harm that might be caused by
implementing or failing to implement those
decisions”. Initially, it should be mentioned that
the need for security measures against terrorism
is essential because the ‘new terrorism’ after the
events of 9/11 calls for new counter-terrorism
measures, transnational terrorism leads
governments to a restriction of human rights in
favour of improving security, and the impact of
terrorism.
Hardware improvements are the first measures an
organisation can take in improving physical
security in terms of confronting the threat of
terrorist attacks. These improvements include the
establishment of metal detectors in building
entrances, the installation of reinforcement doors
and the installation of closed-circuit surveillance
cameras. Some organisations may choose to hire
additional security personnel to protect both their
property and their employees. Another security
measure that can be implemented is the
development of enterprise resilience. Resilience
is related to the ability of a company to re-invent
its strategies and business model according to
changing circumstances, as in the case of a
terrorist attack. In this context, if companies
intend to be resilient, they should adopt the
philosophy of change management, which means
that they should focus on long-term planning, the
uses of external communication and, above all,
include all their human resources. Moreover,
companies should redefine their strategies and
operations through cost-benefit analysis and
conduct risk-reduction planning.
A potential terrorist threat to international
business may harm its supply chains, which can
have a tremendous economic impact on
corporations. For this reason, some countries, as
the U.S., have imposed some extra restrictions in
their shipping regulations with a view to
increasing security. In considering the examples
of the cruise ship and aviation industries, most
companies are not willing to take measures
promoting safety against a terrorist attack since
these measures are considered unpopular and
unattractive to tourists; as a result, such measures
may lead to reduced satisfaction of customers.
Companies operating in the chemicals industry
use guarded and secured facilities with limited
public access, remote locations, special
deterrents, and global transportation network and
cyber technology. The security of the
Commercial Facilities Sector is more
problematic, since these types of businesses are
open to the public. Access control, cyber
technology, communication centres and CCTV
are among the most prevalent tools used by firms
in this sector. Expansion through direct
investment is a common practice owing to the
theory of internationalisation as a source of
competitive advantage for many firms.

6. 4
Nevertheless, international businesses have
become more sceptical of this practice because of
the threat of terrorism. Within this framework,
corporations consider the geographical area into
which they wish to expand and may choose to
reduce their direct capital investments and
operations in areas which are considered to be
high risk. Many corporations choose a strategy of
avoidance namely not entering into markets
considered to be high-risk areas while others
withdraw from conflict-torn areas and move their
operations elsewhere.
One main measure that can be taken by
corporations to mitigate the threat of terrorist
attack is political risk insurance, whereby
political risk is defined as the loss of someone’s
investment in a foreign asset that may occur as a
result of political or other types of instability in a
host country. Insurance is a strategy used by
many firms to remain financially viable. Finally,
one measure within the scope of the disaster
planning of the companies is the establishment of
convergent IT/Security applications, along with
the storage of paper records and ‘off site’
computer backups.
However, it is supposed that the so-called
‘alliance strategy’ is much more effective, since it
refers to the cooperation of organisations with
governments and/or local violent actors.
Within the context of counterterrorism methods
for business and collaboration with other
agencies – private or state – engaged in fighting
terrorism, the adoption and implementation of
advanced information and privacy protection
technologies may be effective. This is based on
the fact that the detection of a potential terrorist
attack is one of the major challenges in
countering terrorism. Information technology can
play a crucial role in counterterrorism strategy,
since it adds the ability to connect and make
sense of all the available information provided to
and coming from counterterrorism agencies.
The above considerations lead to the introduction
of the term ‘counterintelligence’, which pertains
to the information that the private sector is
attuned to. Within the framework of security,
company resilience and asset protection,
intelligence offer firms the ability to be prepared
for any potential threat that may occur in the
future. Intelligence is important for the decision-
making process, planning, strategic targeting and
the prevention of terrorist attacks. As a matter of
fact, some multinational corporations in the Oil
and Natural Gas sector cooperate with
intelligence agencies in the exchange of
information about counterintelligence issues.
Intelligence is important to counterterrorism,
given the fact that it can reduce the tactical
effects and the strategic importance of terrorism.
Nevertheless, it should be pointed out that
intelligence and ‘surveillance’ – which is
surveillance via cameras or electronic listening
devices at the ‘human level’ – can lead to abuses
on the part of the governments.
It cannot be doubted from the above
considerations, that security measures can be
effective in preventing terrorist attacks and
confronting the risk stemming from a potential
terrorist act, despite the fact that some policies
may not be fruitful as mentioned before. In any
case, from the above analysis it can be concluded
that the security measures that companies
implement can contribute towards their business
continuity or else crisis management.
Business continuity is essential for the
sustainability of businesses following a terrorist
attack. Business continuity aims at avoiding
crises through risk mitigation, at using plans to
effectively manage crises and at making use of
plans to recover quickly and effectively from
crises. What is needed in business continuity is
planning. This can be defined as “the
identification and protection of critical business
processes and resources required to maintain an
acceptable level of business, protecting those
resources and preparing procedures to ensure the
survival of the organisation in times of business
disruption”.
In conclusion, the term ‘terrorism’ can be used to
describe any criminal activity, including the use
of violence, with the intention to stimulate fear
and impose terror, which causes physical injury
to someone, or the treat of such injury, as well as
5

7. 4
the destruction of property. Due to the emergence
of this risk, corporate security has become a core
topic in management rather than just the
peripheral business activity of the past.
Corporations adopt and apply policies and
strategies that help them in mitigating the risk of
potential terrorist threats and which ensure their
business’s continuity, even though this process
can be both time-consuming and costly.
However, it is advanced that the above-
mentioned security measures may not always
come out the desired result. The importance of
securing a business’s infrastructure is vital and
should concentrate on long-term planning. The
cooperation of the private sector with
governments in combating terrorism is one of the
most important aspects of security, along with
intelligence. After integrating the concept of
terrorism in relation to the impact of terrorist
attacks to business, organisations would be able
to implement plans that will effectively prevent,
respond to and address potential terrorist attacks,
thereby ensuring their sustainability, viability and
profitability.
The above is a précis – the full mini-thesis can be read in the Management E-Library of The Institute of
Management Specialists (IMS) website: www.instituteofmanagementspecialists.org.uk
About the Author: Andreas Nickolaos Akratas is a Senior Security Consultant from Athens, Greece. He
holds a B.Sc (Hons) degree in Criminology (Portsmouth) and a MA degree in Restorative Justice (Hull).
He also holds a Postgraduate Certificate in Security Management (Buckinghamshire New University) and
the Edexcel Professional Diplomas in Security Management and Private Investigation. Andreas is a
Lifetime Fellow Member of IMS, I.Manf, FPBTM, IPFM and CAM. E-mail: andreasakratas@gmail.com
CONFEDERATION OF PROFESSIONAL AWARDING BODIES (COPAB)
COPAB is the brainchild of a few internationally distinguished academics and professionals who agreed to set up
an umbrella professional body to set professional standards for professional awarding bodies not only in the
United Kingdom but also internationally.
COPAB is for professional awarding bodies representing educational, vocational, technical and
scientific fields world‐wide. COPAB will work in partnership with colleges, universities, consultancies and all types
of businesses and industries to provide a coherent business and professional education to fulfil identified needs.
For further details and a Membership Pack please contact:
Professor Herbert Blankson, Secretary
Confederation of Professional Awarding Bodies
40 Archdale Road, East Dulwich, London SE22 9HJ, United Kingdom
Tel/Fax: +44 (0)208 693 0555
Email: secretary@copab.net
Website: www.copab.net
6

8. 7
Failure – The Stepping Stone to Success
by
David Benjamin CompIManf, FAEA, FFPBTM, FSSM
How exactly does one define
failure? To the majority there
is only one obvious definition
yet when we consider the
matter carefully there are in
fact two. A generation ago,
failure was literally a sign of
disgrace. To quote an
example, a school friend of
mine who sadly failed his General Certificate of
Education was thrown out of his home because,
in the eyes of his parents (whose behaviour
cannot be excused) he had ‘brought shame upon
the family’. Failure as such could not be tolerated
all those years ago because the majority were
incapable of analysing the true facts of the
situation. Thankfully, society is far more tolerant
nowadays and is ready to accept the fact that
failure is indeed a stepping stone to future
success. My school friend later re-sat his
examinations and went on to achieve a first class
degree with honours, yet his family still refused
to accept him because of the ‘failure he had
heaped upon them’. How narrow-minded people
tended to be in those days! When he later went on
to found his own company and, five years later
achieved millionaire status his estranged family
wanted their slice of the action – and of course
the money – and he quite rightly refused to
acknowledge them.
So from this story we can see that failure can
indeed be a stepping stone to success. If one is
really determined to achieve success, one will
succeed. When we critically analyse fear and
examine its implications on our lives we learn the
very importance of self-belief, for if we do not
believe in ourselves how can we expect others to
believe in us. The secret of self-belief in one’s
abilities is determination. Determination is akin
to success. Take for example the American
gentleman, George W. Bush, who ran for
President three times. The first time he failed
miserably and his so-called friends laughed. The
second time he failed yet again, much to the joy
of his peers. But he was determined to succeed,
and when he ran for the third time he made it. His
so-called friends and peers weren’t laughing
then! From this we learn that belief in our own
abilities will bring success if we are prepared to
persevere and follow our own path through life.
To fail is to achieve an experience from which
we learn, for in this life everything happens for a
reason. To fail is not to fall into disgrace (as
members of previous generations would have you
believe) but to fail to believe in one’s self is fatal.
How many people have you met who have
experienced failure and, as a result of this, lost all
self-confidence and given up the struggle? The
sad fact is that such people become so negative
that they become jealous of those who do
succeed. Those people will find literally any
excuse for their failure; the truth of the matter is
that they are the architects of their own
misfortune. So never ever doubt your own
abilities, and have at least a little faith and
determination, for if I have faith in you and
believe in you it follows that you must have at the
very least a modicum of belief in yourself. Be
proud of yourself and be proud of who you are.
Ignore the naysayers and the doom and gloom
merchants and make them envious of your
determination and eventual success.
About the Author: David Benjamin is a retired industrial security management consultant and contractor
and has acted as a consultant in the field of human resources management over many years. He is an
approved examiner for a professional body and has published several papers on the subject of positivity
and self-belief. Additionally he is a skilled negotiator and has considerable experience of resolving
problems in industry with professionalism and amicability. He has been honoured by the Commonwealth
of Kentucky for services rendered. He is the President of The Institute of Manufacturing.

9. 8
Members, write to us about your achievements, advancements and
career highlights to be featured in a ‘Member Spotlight’ in a future
edition of the FPBTM E-Journal. List your academic and professional
qualifications – what has been of most value in your career to date?
What words of wisdom would you like to share with other members?
Faculty of Professional Business and Technical Management
Reciprocal Membership Organisations
United Kingdom
Society of British Business
Institute of Professional Financial Managers **
Institute of Management Specialists
Academy of Multi‐Skills
Institute of Manufacturing **
Academy of Executives & Administrators
United States of America
Chartered Institute of Corporate Treasurers **
Republic of South Africa
Design, Technology and Management Society International
Nigeria
Association of Business Technologists
Note
** Members will need to demonstrate a minimum of two years’ experience in these areas

10. 8
Effective Delegation Begins with Knowledge of the Delegation Process
by
Kohol Shadrach Iornem, MBA, B.Eng, PgD., MIMC, MBAM, MIMS
1. Introduction
One of the most effective
management tools a leader
can employ in order to fulfil
a responsibility and allow for
the active contribution of
subordinates is delegation.
Delegation is the assignment
of authority to another person to carry out
specific activities while still being responsible for
the ultimate outcomes (McConnel, 1995).
Delegation has several benefits that include
timesaving, helping others develop new skills and
achieving overall task/enterprise objectives.
2. Improvements needed
However, some leaders fail to delegate
effectively. For example, they delegate at the
wrong time, for the wrong tasks or for the wrong
reasons. Included in the list of “mistakes” is
delegating to the wrong person or/and confusing
delegation with chore distribution.
A leader’s guide to delegating offers five steps to
effective delegation (CRM Learning, 2008)
which include:
 Analysing the task by determining the goals,
deadlines, resources and deliverables.
 Selecting a delegate by identifying the
knowledge, skills and attitudes that are
required to carry out the task.
 Assigning the task using the delegate’s
checklist to explain the task in detail.
 The delegate gets to work and executes the
assignment while informing key employees
of the delegate’s tasks and level of authority.
 Conducting regular feedback sessions in
order to resolve any challenges that may
arise.
With the enabling light afforded by hindsight and
growing experience, I recently gave a talk on
delegation at a leadership course in Dubai. The
process adopted the challenging and informative
role-play exercise that I had researched from
trainingcoursematerial.com.
3. Aim
The aim of this article is to illustrate that
knowledge of the delegation process can lead to
effective delegation.
4. Methodology
4.1 Content of Information Shared with
Participants
Congratulations! You finally got the assistant you
always wanted. Imagine that management in your
company realized how hard you are working and
decided to appoint an assistant for you, it’s great
news for you but it means you have to start
delegating some of your work.
Think of the one task you hate the most on your
actual day-to-day job because finally you will get
the chance to delegate this task to your newly
appointed personal assistant (training material
.com, 2014).
4.2 Instrument
Delegation observer worksheet (see Appendix).
4.3 Total Number of Participants and Process
Using a role-play exercise, fifteen participants
attended the session.
Three volunteers formed the role-play group –
one a delegator, another an employee (i.e., the
personal assistant) and the third volunteer became
the observer.
The remaining twelve participants acted as
appointed observers using the delegation
observer worksheet for their assessment.
4.4 Procedure
The exercise commenced with the three
individuals playing their roles and completing the
three rounds.
9

11. 10
For each round, the delegator explained the
situation, then the employee executed the task
while the observer(s) assessed the delegator using
the delegation observer worksheet.
Round 1 – A (Delegator), B (Employee) and C
(Observer)
Round 2 – C (Delegator), A (Employee) and B
(Observer)
Round 3 – B (Delegator), C (Employee) and A
(Observer)
5. Hypothesis
I hypothesised that C was going to be the best
delegator followed by B then A because I had
beforehand planned to give the delegation
observer worksheet to only C (Observer) in
Round 1.
6. Results
At the end of the exercise, I asked the observers
for the results of their assessment for each of the
three delegators (A, B, and C).
All the observers revealed that C was the best
delegator scoring 7 out of 7 in each case,
followed by B with 60 per cent scoring him 6 out
of 7 and 38 per cent scoring him 5 out of 7, and 2
per cent scoring him 4 out of 7. Then A came last
as 95 per cent of the observers scored him 1 out
of 7, thereby confirming my hypothesis.
I then asked why they thought C delegated better
than B and A.
A synopsis of the results indicated:
“C encouraged the employee to ask questions if
the employee did not understand.”
“C was very explicit in explaining the importance
of the task.”
“C presented the expected results in a SMART
goal...”
However, my response was “NO!”! The
observers were shocked because the guide they
had used indicated the scoring process for each
delegator. According to them, C virtually ticked
all the ‘Yes’ boxes in the delegation observer
worksheet.
I then revealed to them that C had only
performed better than B and A, because he had
early access to information on the delegation
observer worksheet. This of course was unknown
to them.
I had given C the delegation observer worksheet.
Being the first observer, he had applied the facts
when it got to his turn to play the role of the
delegator – followed by B.
7. Summary and Conclusion
Many a times, we often think we are delegating
effectively but in reality we do not do it the right
way, like in the case of A – having little or no
knowledge of the delegation process.
As assessors, the observers rated C as the best
delegator and scored A the least. In essence, with
the right information and knowledge of the
delegation process, it will be difficult to go
wrong with delegation.
The results from the delegator observer
worksheet suggested that the next time the
participants engaged in delegating, they put
themselves in the shoes of the observer and see if
they have answered YES to all the questions in
the delegation observer worksheet.
In addition to using the information from the
delegation observer worksheet, participants
should consider the aforementioned five steps to
effective delegation and remember that “effective
delegation begins with TRUST. The acronym
TRUST stands for Training, Respect,
Understanding, Support, and Teamwork”
(Huling, 2002).
When analysing the demands of the workload,
the professional, wisest and best way forward is
to delegate – one individual cannot effectively
accomplish everything.

12. 11
Appendix
References
CRM Learning, L.P. 2008. A Leader’s Guide to
Delegating [Online Video]. 07 July. Available
at: https://www.youtube.com/watch?v=LMTAV6
eZm2M. [Accessed 18 December 2014.]
Huling, E. 2002. Responsible Delegation Benefits
All: Effective communication and adequate
information enable employees to do their
jobs. Available at:
http://www.roughnotes.com/rnmagazine/2002/ma
y02/05p136.htm. [Accessed 18 December 2014.]
McConnell, C.R., 1995. Delegation versus
empowerment: What, how, and is there a
difference? The Health care supervisor, 14(1),
pp. 69.
Trainingcoursematerial.com. 2014. Time Manage
-ment exercise: Delegation Skill practice
exercise. [Online]. Available at:
http://www.trainingcoursematerial.com/free-
games-activities/time-management-
activities/delegation-skill-practice-exercise.
[Accessed 18 December 2014.]
About the Author: Kohol Shadrach Iornem, MBA, B.Eng, PgD., MIMC, MBAM, MIMS, is a
management consultant who specializes in organizational development and learning for professional
people and their organizations. Kohol is the Director of Programmes at London Graduate School. He
provides guidance, advice and facilitation in all aspects of organization development, from strategy
formulation to change management. He focuses on the design and delivery of management and
leadership development programmes. He has many years of experience in helping managers in
professional services organizations get the best from their people. He has trained managers from the
private and public sectors from UK, Oman, Uganda, Ghana, Zimbabwe and Nigeria. Kohol is a Member
of the Institute of Management Consultants USA (IMC-USA), British Academy of Management (BAM)
UK and The Institute of Management Specialists UK.
Contact Email: info@koholiornem.co.uk Website: www.koholiornem.co.uk

13. 12
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14. 12
Pursue Economic Culture: It’s about vision and not money
by
Prof. Samuel Lartey
www.sammylaatey@yahoo.com
Professor Samuel Lartey, a
business philosopher and
the Executive Director of
Bullion Financial Group,
shared how to attain
economic leadership in
turbulent times as part of
The Carayol University
College Leadership Programme. He stated that
nations, businesses and individuals looking to
become the next generation leaders will need to
begin relying on their culture and vision but not
on money or strategic expertise, if they wish to
succeed. He stated that a legacy of empire is that
you are only somebody if you’ve been to school
and you only got a job working for the old rulers
if you had academic qualifications. This needs
consigning to history. It is now so much more
about leadership and leadership doesn’t just mean
academic qualifications. Some of Ghana’s best
businessmen and entrepreneurs have never set a
foot in a university – what are we missing out on?
In his recitals, Professor Lartey used a raft of
examples and stories to emphasise that cultural
stewardship and vision are the contemporary keys
to leadership, rather than formulas, finance,
process and strategy. Far too many people think
improved financial results will get them to the top
– do you remember Enron (2001), Lehman
Brothers (2008), Washington Mutual Bank
(2008), Worlcom (2002) and GM (2009)?
This isn’t the case for a couple of reasons: One is
that our heritage will not be our destiny.
Professor Lartey told the audience that “Nothing
has changed more than the financial management
functions and in turbulent times, becoming an
expert is not good enough, you need to lead.” We
all remember the story of David and Goliath in
biblical history – a story told in Sunday school –
but we don’t remember our national and
corporate visions. What is different? He
expressed that far too many of our leaders have
relied too much on hitting the numbers and
repeated the algorithms and formulas in the past
but less is being done on setting corporate
visions. We need to create the culture to achieve
the vision. Professor Lartey shared his advice
with budding Fund Managers and an odd
selection of business executives on how to rise up
above the waters in economic turbulent times.
Professor Lartey added that the second
cornerstone for economic leadership is to manage
less and lead a little more. “You can train and
measure management, leadership is different.
Unfortunately, this is an attitude we don’t see
enough of in our business and economic
management function,” he said.
Thirdly, culture is more powerful than strategy,
he said. “No one can copy your culture,” he
claimed. “They can copy your strategy.” Despite
this, he pointed out that about 97 per cent of
organisations today do nothing to craft their
culture. “Smart organisations obsess about their
culture,” he said. The new generation of business
and economic leaders pay strict attention to three
disruptive changes: demographic shifts, global
power structures, and disruptive innovation. As a
result of these factors, the pace of change
organisations have to embrace to remain relevant
has rapidly accelerated. While it used to be the
case that businesses could take about five years to
transform and refresh, the new business lifecycle
is currently sitting on the new economic
trilaterals. The successful economies consider
what the leadership must start doing to positively
improve the economy, what the leadership must
stop doing to positively improve the economy
and what it is that they are doing right that must
be culturally embedded.
Economies today are becoming volatile,
uncertain, complex and ambiguous, Professor
Lartey said. “Management won’t cut it, nor will
strategy. You can’t navigate that. You have to get
used to ambiguity, and not going back to simple,
consistent ways,” he said. In addition,
13

15. 14
organisations are facing global overcapacity in
every industry, making it even more imperative
to find a differentiation point. Adding to this is
commodisiation and the fact that products
released today can be copied tomorrow, he said.
It doesn’t help that everything is cheap either, he
said. We need to set our vision and create the
culture to attain the desired results.
Professor Lartey concluded with his very regular
corporate anecdote: picture the scene with me if
you will. The New York Times in 1923 reported
that there was a gathering of financiers held at the
Edgewater Beach Hotel in Chicago, Illinois.
Among the attendees were eight of the world’s
most successful, influential and wealthy men.
These were men who controlled more resources
and assets than the US Treasury. Indeed we must
admit that they were men who had found the
secret of money making.
Those present were:
1. The President of the largest Industrial Steel
Company.
2. The President of the largest Utility Company.
3. The President of the largest Gas Company.
4. The President of the New York Stock
Exchange.
5. A member of the President’s Cabinet.
6. The Greatest Bear on Wall Street.
7. The Head of the world’s greatest monopoly.
8. The President of the Bank for International
Settlements.
25 years later:
The President of the largest industrial steel
company, Charles Schwab died a bankrupt. He
lived on borrowed money for five years before
his death.
The President of the largest utility company,
Samuel Install died a fugitive from instant
justice; he was penniless in a foreign land.
The President of the largest gas company, Powell
Hobson became insane.
The President of the New York Stock Exchange,
Richard Witney served time in Singsing Prison.
A member of President Harding’s Cabinet, Albert
Fall was pardoned from prison so he could die at
home.
The Greatest Bear on Wall Street, Jessie
Livermore committed suicide.
The Head of the world’s greatest monopoly, Ivan
Cougar committed suicide.
The President of the Bank for International
Settlements, Lyon Fraser committed suicide.
The scenario happens many times to us wherever
we find ourselves. Indeed all of these men learnt
well the science of making money.
Unfortunately, none of them learnt how to live.
They did not learn the art of living well with
other people.
About the Author: Prof. Samuel Lartey is a business philosopher. He is an expert in Financial
Information and Computer Management Systems. Samuel is familiar with multi-million country-wide
financial projects. He is a Motivational Speaker and a Teacher. He holds a Doctor of Letters (D.Litt.) in
Financial Information and Computer Management Systems, a PhD in Financial Management, an MBA
in Management Information Systems, and a B.A. in Social Science.
You can contact him on sammylaatey@gmail.com or on samuell@carayoluc.edu.gh for mentoring and
speaking engagements.

16. 15
Misuse of Hypothecation and Re-hypothecation
by
Professor Dr Rabbi Abe Abrahami, DFAMS, CompIMS, Bluewater Academic Institute
Basic Terms
Hypothecation is the practice where (usually
through a letter of hypothecation) a borrower
pledges collateral to secure a debt or a borrower,
as a condition precedent to a loan, or has a third
party (usually an affiliate) that pledges collateral
for the borrower.
The borrower retains ownership of the collateral,
but the creditor has the right to seize possession if
the borrower defaults. A common example
occurs when a consumer enters into a mortgage
agreement, in which the consumer’s house
becomes collateral until the mortgage loan is paid
off.
The detailed practice and rules regulating
hypothecation vary depending on context and on
the jurisdiction where it takes place. In the US,
the legal right for the creditor to take ownership
of the collateral if the debtor defaults is classified
as a lien.
Re-hypothecation is a practice that occurs
principally in the financial markets, where a bank
or other broker-dealer reuses the collateral
pledged by its clients as collateral for its own
borrowing.
Re-hypothecation can be involved in repurchase
agreements, commonly called repos. In a two-
party repurchase agreement, one party sells to the
other a security at a price with a commitment to
buy the security back at a later date for another
price. Overnight repurchase agreements, the
most commonly used form of this arrangement,
comprise a sale which takes place the first day
and a repurchase that reverses the transaction the
next day. Term repurchase agreements, less
commonly used, extend for a fixed period of time
that may be as long as three months. Open-ended
term repurchase agreements are also possible,
and so is a so-called reverse repo.
MF Global Debacle and Human Tragedy
Abuse of Hypothecation and Re-hypothecation
are directly the causes of this financial scandal
and its fallout from MF Global’s liquidation.
By November 22, 2011, the official tally of
missing client funds had nearly doubled, to
roughly $1.2 billion, according to MF Global’s
bankruptcy trustee, as reported that date in the
Financial Times, The Wall Street Journal,
Bloomberg Businessweek and other major news
outlets.
However, an article in the online edition of
Forbes magazine on that same date pegged the
figure even higher, as indicated by its title: “$1.7
Billion Customers’ Money Missing From MF
Global”. Forbes arrived at its figure by simple
math, noting how the bankruptcy filing indicated
that segregated customer accounts were worth
$5.4 billion, but only $3.7 billion had been
reported as being found by the trustee. Under this
analysis, about 31% of client funds at MF Global
had gone missing.
On February 10, 2012, court appointed
liquidation trustee James Giddens announced his
own estimate that $1.6 billion was missing from
client accounts. This $1.6 billion figure remained
unchanged by the time of Giddens’ June 4, 2012
report.
His figure includes about $700 million of client
funds that he presumes is being held somewhere
in the United Kingdom. This is bound to create a
legal and jurisdictional dispute with KPMG,
which is administering the winding down of MF
Global’s operations in London.
In the United States, re-hypothecation of
collateral by broker-dealers is limited to 140%
(1.4 times) of the loan amount to a client, under
Rule 15c3-3 of the SEC.
In the UK there is NO limit!

17. 16
Off-Balance-Sheet Repo Manoeuvres
On the eve of its bankruptcy filing, evidence of
major malfeasance at MF Global began to
surface. Chief among these was that a significant
amount of client funds was missing and
unaccounted for. A last minute deal to sell MF
Global to Interactive Brokers was called off late
in the evening on Sunday October 30, 2011 when
a discrepancy of roughly $900 million was
uncovered between the value of its client
accounts and the actual amount of funds that
could be located. By now the story of MF
Global’s demise is strikingly familiar.
MF ploughed money into an off-balance-sheet
manoeuvre known as a repo, or sale and
repurchase agreement. A repo involves a firm
borrowing money and putting up assets as
collateral, assets it promises to repurchase later.
BUT WHAT IF THE FIRM CANNOT FULFIL
ITS PROMISE TO PURCHASE THESE
ASSETS AND IT RUNS OUT OF LIQUIDITY
OR VIABLE COLLATERAL? The answer is
bankruptcy.
Accounting Loopholes
Repos are a common way for firms to generate
money but are not normally off-balance sheet and
are instead treated as “financing” under
accountancy rules.
MF Global used a version of an off-balance-sheet
repo called a “repo-to-maturity”.
The repo-to-maturity involved borrowing billions
of dollars backed by huge sums of sovereign
debt, all of which was due to expire at the same
time as the loan itself.
With the collateral and the loans becoming due
simultaneously, MF Global was entitled to treat
the transaction as a “sale” under U.S. GAAP
(American tax regime). This allowed the firm to
move $16.5 billion off its balance sheet, most of
it debt from Italy, Spain, Belgium, Portugal and
Ireland.
Backed by the European Financial Stability
Facility (EFSF), it was a clever bet (at least in
theory) that certain Eurozone bonds would
remain default free whilst yields would continue
to grow. Ultimately, however, it proved to be MF
Global’s downfall as margin calls and its high
level of leverage (indebtedness) sucked out
capital from the firm.
Although MF Global did not exercise spread
betting, explained above, its gamble nevertheless
was highly risky, and did not pay off, because it
had no reserves to fall back on in time of shortfall
in liquidity.
Lehman’s Lessons NOT Learnt
In fact this is exactly what Lehman Brothers did
through Lehman Brothers International (Europe)
(LBIE), an English subsidiary to which most U.S.
hedge fund assets were transferred. Once
transferred to the UK based company, assets were
re-hypothecated many times over, meaning that
when the debt carousel stopped, and Lehman
Brothers collapsed, many U.S. funds found that
their assets had simply vanished.
A prime broker need not even require that an
investor (e.g. hedge fund) sign all agreements
with a European subsidiary to take advantage of
the loophole. In fact, in Lehman’s case many
funds signed a prime brokerage agreement with
Lehman Brothers Inc (a U.S. company) but
margin-lending agreements and securities-
lending agreements with LBIE in the UK
(normally conducted under a Global Master
Securities Lending Agreement).
These agreements permitted Lehman to transfer
client assets between various affiliates without
the fund’s express consent, despite the fact that
the main agreement had been under U.S. law. As
a result of these peripheral agreements, all or
most of its clients’ assets found their way down
to LBIE.
Liquidity Crisis
Beginning with Clinton-era liberalisation, rules
were eased that had until 2000 limited the use of
re-hypothecated funds to U.S. Treasury, state and
municipal obligations.

18. 16
These rules were slowly cut away (from 2000–
2005) so that customer money could be used to
enter into repurchase agreements (repos), buy
foreign bonds, money market funds and other
assorted securities.
Hence, when MF Global conceived its Eurozone
repo ruse, client funds were waiting to be
plundered for investment in AA rated European
sovereign debt, despite the fact that many of its
hedge fund clients may have been betting against
the performance of those very same bonds.
According to the Bank for International
Settlements (BIS), until recently, U.S. banks held
$181 billion in the sovereign debt of Greece,
Ireland, Italy, Portugal and Spain.
If we factor in off-balance sheet transactions such
as re-hypothecations and repos, then the picture
becomes frightening, and overall global
indebtedness runs into trillions.
New Rule
As for MF Global’s clients, the recent adoption
of an “MF Global rule” by the Commodity
Futures Trading Commission to ban using client
funds to purchase foreign sovereign debt, would
seem to suggest that it was indeed client money
behind its leveraged repo-to-maturity deal – a
fact that will likely mean that very few if any of
MF Global clients will get their money back.
Summary & Conclusion
Despite thousands of pages of banking, financial
trading and compliance rules and regulations,
manipulation and exploitation of loopholes and
unethical, dishonest and greedy business conduct
continues because of lack of education of the
consequences. There is an urgent need to educate
individuals in banking and finance of their ethical
responsibilities to their clients and the public at
large. Fines alone and even prison are not the
only answer.
Note:
Professor Dr Abrahami delivers accredited-certified training courses in Solvency II, Sarbanes Oxley,
MiFID, IFRS, HIPAA, GLBA, FATCA, Fraud Act, Dodd–Frank Act, Basel III, Bribery Act,
Governance, Risk & Compliance (GRC), Anti-Money Laundering and similar topics. These accredited-
certified professional training courses lead to a recognized qualification and membership of The Institute of
Management Specialists (IMS).
These professional training courses are a MUST, and will help you to avoid multi-million dollar penalties,
avoid prison and losing your job and livelihood.
Professor Dr Abrahami is also the Dean of Bluewater Academic Institute’s Executive MBA programme.
Contact Dr Abrahami on: star@abrahami.co.uk or abebluewater@gmail.com
Websites: www.AbrahamiCompliance.com www.Bluewater-Academy.info
info@instituteofmanagementspecialists.org.uk
Submit your academic
paper on Management for
publication in the IMS
Management E-Library
Authors should write a 1000–
1500 word summary of their
work for the E-Journal
17

19. 18
A Nation Recovering From Currency Substitution
by
Dr. Foster Kum-Ankama Sarpong
According to Dr. Forster
Kum-Ankama Sarpong, a
lecturer in Finance and
Quantitative Models, “We
all spend every living
moment either approaching
crises, in a crisis or
recovering from crisis.
Nobody or country is
immune.” His question rather is how do we live
to handle these crises? He said that the Ghana
cedi has over the years gone through crises and
perhaps is now recovering.
Dr. Sarpong said that the cedi has suffered some
heavy falls in recent times. “We went as low as
exchanging our cedi at GHC4 and GHC4.5 per
dollar,” he said. The currency of West Africa’s
second-biggest economy has depreciated
enormously this year, the most among 24 African
currencies. In the first half of the year 2015, the
slide in the cedi kept spurring. The price of
everything from baby food to coffins and from
toiletries to fuel in the country kept urging.
Dr. Sarpong further explained that the currency
substitution we are experiencing now and the
high demand for dollars for importation has
caused the main pressure on the cedi. “The
government’s own demand for dollars for
projects and to settle debt also rose. The central
bank stepped in to raise interest rates to contain
inflation at a four-year high and made cedi assets
more attractive. The Bank of Ghana applied
many other monetary policies to salvage the cedi,
but that was not enough to ward off the cedi
weakness.”
Foreign currency account holders lost confidence
in the Ghanaian banking system after the Central
Bank announced tight foreign exchange measures
in the year preceding 2015. The decision caused
most non-resident customers to transfer their
dollars abroad. This caused a lot of foreign
currency difficulties.
Finally the government had to borrow from the
International Monetary Fund to bolster its falling
foreign exchange reserves. Perhaps this is one of
the sources of the breather we are experiencing
today.
Dr. Forster Kum-Ankama Sarpong talking with
the Prof. Samuel Lartey’s Carayol College
Network members charged the corporate
executives, public officers, aspiring leaders, 2015
group of new graduates from the Junior High
Schools and the Ghanaian political leadership and
entire populace to help the finance and economic
leadership to redeem and protect the value of our
dear cedi.
Explaining the history of the current currency
difficulties, Dr. Sarpong traced the history of the
Ghana cedi. He said it is the fourth regime of
legal tenders in the Republic of Ghana. “After
Ghana gained independence it separated itself
from the British West African pound, which was
the currency of the British colonies in the region.
The new republic’s first independent currency
was the Ghanaian pound (1958–1965). After
Ghana’s change to a single-party state, a new
currency with an African name, Cedi (1965–
1967), was introduced. After a military coup the
new leaders wanted to remove the face of the old
president, Kwame Nkrumah, from the banknotes.
The New Cedi (1967–2007) was introduced.
After decades of high inflation had devalued the
New Cedi, it was gradually phased out in 2007 in
favour of the Ghana cedi at an exchange rate of
1:10,000. In 2007 the largest of the New Cedi
banknotes, the 20,000 note, had a value of about
two US dollars. By removing four digits, the
Ghana cedi became the highest denominated
currency unit issued in Africa. It has since lost
about 75% of its value.
Dr. Sarpong said, “Countries are substituting the
use of their local currency with foreign ones. This
practice needs to be realligned.” Dr. Sarpong
cited many cases of nations that have suffered
from such a crisis. He described them as nations

20. 19
in currency crises. He said that when this happens
it leads to currency substitutions.
Dr. Sarpong explained a currency crisis to mean a
situation in which there are serious doubts as to
whether a country’s central bank has enough
foreign exchange reserves to maintain the
country’s fixed exchange rate. The crisis is often
accompanied by a speculative attack in the
foreign exchange market. A currency crisis
results from chronic balance of payments deficits,
and thus is also called a balance of payments
crisis. Often such a crisis culminates in a
devaluation of the currency.
According to Dr. Sarpong, governments often
take on the role of fending off such attacks by
satisfying the excess demand for a given currency
using the country’s own currency reserves or its
foreign reserves. Currency crises have large,
measurable costs on an economy, but the ability
to predict the timing and magnitude of crises is
limited by theoretical understanding of the
complex interactions between macroeconomic
fundamentals, investor expectations, and
government policy. He said in general a currency
crisis can be explained as a situation when the
participants in an exchange market come to
recognise that a pegged exchange rate is about to
fail, causing speculation against the peg that
hastens the failure and forces a devaluation.
Dr. Sarpong advised that the national economic
actors need to adopt a strong foreign currency
regime as that legal tender usually reduces the
transaction costs of trade among countries using
the same currency. He said, “There are at least
two ways to infer this impact from data. The first
one is a significantly negative effect of exchange
rate volatility on trade in most cases, and the
second is an association between transaction
costs and the need to operate with multiple
currencies.” He continued to say that effective
currency management leads to economic
integration with the rest of the world and it
becomes easier as a result of lowered transaction
costs and more stable prices.
Dr. Sarpong explained that adopting a strong
foreign currency as legal tender helps to
eliminate the inflation-bias problem of
discretionary monetary policy. The expected
benefit of currency substitution is the elimination
of the risk of exchange rate fluctuations and a
possible reduction in the country’s international
exposure. He however cautioned that currency
substitution cannot eliminate the risk of an
external crisis but provides steadier markets as a
result of eliminating fluctuations in exchange
rates. This therefore calls for a prudent currency
management system.
Dr. Sarpong added that currency substitution
when not well managed leads to the loss of
seigniorage revenue, the loss of monetary policy
autonomy, and the loss of the exchange rate
instruments. He explained seigniorage revenues
as the profits generated when monetary
authorities issue currency. When adopting a
foreign currency as legal tender, a monetary
authority needs to withdraw the domestic
currency and give up future seigniorage revenue.
The country however loses the rights to its
autonomous monetary and exchange rate policies.
According to Dr. Sarpong, the cost of losing an
independent monetary policy exists when
domestic monetary authorities can commit an
effective counter-cyclical monetary policy,
stabilizing the business cycle. This cost depends
adversely on the correlation between the business
cycle of the client country (the economy with
currency substitution) and the business cycle of
the anchor country. In addition, monetary
authorities in economies with currency
substitution diminish the liquidity assurance to
their banking system.
Dr. Sarpong added that financial currency
substitution occurs when the participants and the
economic actors in a financial transaction use a
foreign currency in parallel to, or instead of, the
domestic currency. Currency substitution can be
full or partial. Partial currency substitution occurs
when residents of a country choose to hold a
significant share of their financial assets
denominated in foreign currency. Full currency
substitution has taken place in some countries,
mostly in Latin America, the Caribbean and the
Pacific, that are heavily dependent on the United

21. 19
States. He explained why these distinctions must
be well identified and employed appropriately.
Dr. Sarpong emphasised that in most economies,
it is the high and unanticipated inflation rates that
decreases the demand for domestic money and
raise the demand for alternative assets, including
foreign currency and assets dominated by foreign
currency. This phenomenon he called the “flight
from domestic money”. It results in a rapid and
sizable process of currency substitution. In
countries with high inflation rates, the domestic
currency tends to be gradually displaced by a
stable currency. At the beginning of this process,
the store-of-value function of the domestic
currency is replaced by the foreign currency.
Then, the unit-of-account function of the
domestic currency is displaced when many prices
are quoted in a foreign currency. A prolonged
period of high inflation will induce the domestic
currency to lose its function as medium of
exchange when the public carries out many
transactions in foreign currency.
Dr. Sarpong said, “The flight from domestic
money depends on a country’s institutional
factors.” He explained that the first factor is the
level of development of the domestic financial
market. An economy with a well-developed
financial market can offer a set of alternative
financial instruments dominated in domestic
currency, reducing the role of foreign currency as
an inflation hedge.
Dr. Sarpong concluded by creating a contrast. He
said in contrary, by facilitating the domestic
holding of foreign currency, a country might
mitigate the shift of assets abroad and strengthen
its external reserves in exchange for a currency
substitution process. However, the effect of this
regulation on the pattern of currency substitution
depends on the public’s expectations of
macroeconomic stability and the sustainability of
the foreign exchange regime. As a nation, we
need to define our alignment and communicate it
clearly through our national vision and financial
and economic agenda.
About the Author: Dr. Forster Windforce Akwasi Kum-Ankama Sarpong started managing financial and
realty projects and teams since 2001. He manages multi-million dollar budgets and resources and has rolled
out over 500 real estate projects since that time. He is a proficient investment professional with wide
experience and knowledge in global capital markets, investment banking and real estate’s project
management. He is currently the CEO of Design Resources Estates, All Ghana Microfinance and a lecturer
in Financial Management, Quantitative Models and Business Statistics in Ghana. He holds a PhD in
Financial Management, an MBA in Finance and a BSc in Land Economy.
Certified-Accredited Training in Compliance and Business Ethics
Become a Certified Compliance Officer (CCO)
Contact Professor Dr Abe Abrahami for full details
Bluewater Academic Institute, Highview House,
35 Highview Avenue, Edgware, Middlesex, HA8 9TX England Telephone:
0800 772 3873
Email: abebluewater@gmail.com Website: www.Bluewater-Academy.info
20