Risk Management Task 1A

Risk Management Task 1a
JIT Task 1 Risk Management
Risk Management
From the last decade risk management is the most researched and exciting area in the financial industry as it elaborates how to minimize and avert the
hazard of risk from the portfolios of different assets and from the operations of financial institutions. Regulators and depositors mainly emphasize the
risk management and according to them risk management is an essential ingredient to enhance the value of shareholders and increase their level of
confidence. Risk management is the assessment of risks to mitigate, monitor and control the probability or impact on uncertain events. Risk
management methods vary from industry to industry for instance it cannot be same for project management, ... Show more content on Helpwriting.net ...
Companies and
governments operating in the complex economic environment of the 21st century must contend with a broad range of risks. Some do so in an
adhoc or reactive fashion, responding to risks as they appear, whilst others are proactive, planning in advance the risks that they wish to assume
and how they can best manage them. Since it has become clear over the past few years that risk can be financially damaging when neglected,
anecdotal and empirical evidence suggests that institutions increasingly opt for formalized processes to manage uncertainties that can lead to
losses. Risk can be classified in a number of ways and though we do not intend to present a detailed taxonomy of risk, a brief overview is useful in
order to frame my discussion. To begin, risk can be divided broadly into financial risk and operating risk. Financial risk is the risk of loss arising
from the movement of a market or performance of a counterparty and can be segregated into market risk (the risk of loss due to movement in market
references, such as interest rates, stock prices or currency rates), liquidity risk (the risk of loss due to an inability to obtain unsecured funding or sell
assets in order to make payments) and credit risk (the risk of loss due to non–performance by a counterparty on its contractual obligations). A rise in
funding costs, an inability to sell financial assets at carrying value or the default by a counterparty on a loan are examples of
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Food Safety Net Services ( Fsns )
A.As Merna explains, risk is the likelihood of undesirable occurrences happening in allotted time period (Merna, 2008). Managing risk is a two
stage step that involves first, the identification of the risk and the second, taking care of the risk in a way that is best for the company and it goals
(Investopedia, 2012). Food Safety Net Services (FSNS), is a well–known company in the private sector that started out in 1994. The company started
off, when the owner discovered there was a need for food testing and the importance it posed for the public. This especially posed an interest when
Jack in the Box faced legal trouble with selling undercooked meat to a customer that caused the person to become hospitalized. Not only did the
government... Show more content on Helpwriting.net ...
Quality risks normally occur, when there are problems with staffing needs, which increase workload and don't leave enough time for doing things
necessary to maintain quality standards set by ISO 17025. Quality standards include logs maintaining temperature throughout the lab, such as in
incubators and fridges used for sample testing and supply storage, culture maintenance, and more. Macroeconomic risks happen when there are
economic downturns that occur suddenly, like in areas where the company has a strong market foot hold, affecting sales growth. Client demand risk for
FSNS happens when the client needs the results for a particular result and they do not obtain it in a timely manner causing them to not only lose
precise time their product is sitting waiting to be shipped out to consumers, but also losing money in the process, resulting in possible loss of a
client to competition and revenue loss. Industry consolidation risks cause FSNS to have less bargaining power and price war. Not only that, it could
also lead to inflated mark down on the prices for particular sample tests. The reason for this risk is consolidation of the market and strategic alliance.
Operation risks occur when a facility isn't operated to set standard that fit into ISO 17025 guidelines. This occurs by a lack of communication by
management with techs and lack of organizing the lab in

Value At Risk And Risk Management
Value at Risk Framework or VAR framework is mainly used for financial risk management or financial mathematics in measuring the risk element on a
definite portfolio of financial assets, present in any economic organization. This particular portfolio comprises of time event and probability, which
states the threshold of the risk loss value over the period of time. These risk loss values are assumed to be according to the market to market pricing, no
trading and normal market which contributes in this risk valued portfolio. The risk management of Value at Riskis done by risk managers which are
responsible for measuring and controlling the risk levels that are present in an organization. Considering the modern portfolio theory, the third
constituent of portfolio is amount of investment which then creates a mean–variance framework risk. This framework risk is defined in terms of
possible variation in the expected portfolio which will describe the risk value loss in financial assets of an economic organization.
The Value at Risk framework and management help an organization in analyzing the risk loss in the financial resources, which increase its use in many
businesses, organizations and institutions. (Hassan, 2009) The organization use this VAR framework in analyzing the potential losses in many risk
management ideas which include stress testing, backtesting, expected shortfall, tail conditional expectation and economic capital. These are the few
important ideas that have been

The Development Of Enterprise Risk Management Essay
1.3 The Development of Enterprise Risk Management
This section will briefly discuss the development of ERM especially the emerging factors that influence companies to shift from TRM to ERM. The
researchers will discuss both the academic literature and the role of professional.
(D 'Arcy, 2001) proposed that the origin of risk management was developed by a group of innovative insurance professors Robert I. Mehr and Bob
Hedges in 1950s . The objective of risk management at that time was to maximize the productive efficiency of the enterprise. At that time, risk
management was specifically focused on pure risk and speculative risks.
According to (Skipper & Kwon, 2007) , in the 1970s, when the Organization of Petroleum Exporting Countries decided to reduce production in order to
increase the price, financial risk management became an interesting issue highlighted by firms because the increment in oil price has affected the
stability of exchange rates and the inflation rate .
Later in 1980s, political risks attracted more attention from multinational corporations as a result of different political regimes in different countries.
For example, when the government announced a new policy, investors and corporations must make decisions to reduce political risk (Skipper &
Kwon, 2007). According to (D 'Arcy, 2001) during that era, organizations did not properly apply risk management because they did not apply the risk
management tools and techniques such as options. Therefore, the cost

Role of Financial Statements in Decision Making
TOPIC: ASESSMENT OF CREDIT RISK IN FINANCIAL MANAGEMENT
THE ABSTRACT
This proposal study explores financial credit risk assessment. This is an important issue because there is currently no standardized method used by
financial institutions for the assessment of credit risk. There are needs for a critical evaluation of the most popular credit risk assessment methods such
as the judgmental method, credit–scoring and portfolio models along with limitations used. Survey interview process is needed for confirming that
credit risk assessment methods should be combined for effective credit risk assessment. Accordingly, the study proposes a framework for improving
credit risk assessment, which combines the strengths of these methods and copes ... Show more content on Helpwriting.net ...
Since information derived from self–assessment can be useful in a wide range of activities from strengthening risk management systems to formulating
business strategy large differentials in business management are likely to arise among financial institutions depending on the utilization of this
valuable information. As the Bank of Japan has introduced the Tracing Method of asset assessment and loan losses in order to support financial
institutions to maximize the use of their own assessments as a management tool. The Tracing Method is used to observe changes in the condition of
individual assets in a time series and is one way to utilize financial institutions' self–assessment of assets. The Bank conducted a follow–up analysis in
the recent on–site examination to analyze how many of the loans classified in the previous examination (1993–94) were later "written off and others" in
relation to financial losses from support by renunciation of claims, and losses from sales of nonperforming loans to the Cooperative Credit Purchasing
Company.
The empirical study using the Tracing Method suggests the following points of importance

Corporate Incentives for Hedging and Hedge Accounting
Abstract
The aim of this term paper is to supply an analysis on the rationales for corporations to apply hedging and hedge accounting. In order to do so, P. M.
DeMarzo and D. Duffie's paper "Corporate Incentives for Hedging and Hedge Accounting" published 1995 will be reviewed and analysed.
This term paper will start with a short review of the literature on corporate risk management and hedging policies and then move on to a description of
the model developed by DeMarzo and Duffie and its rationale. Then, their findings and propositions will be presented followed by the conclusion.
Literature Review
"Corporate Incentives for Hedging and Hedge accounting" by P. M. DeMarzo and D. Duffie is a paper published 1995 in The Review of... Show more
content on Helpwriting.net ...
In 2008, Muller and Verschoor, published a study on 471 non–financial European firrms from the UK, Netherlands, Germany and Belgium. In this study
they aim to investigate the informational effect of disclosing derivative positions. It is an interesting matter since European firms did not disclose any
of this information until 1990. The study focuses on the usage of foreign exchange derivatives while also investigating the condition in which a firm
decides to employ these instruments and to which extent. Even though they have found evidence of the firms using derivatives, their study presented
weak results in terms of informative effect of derivative position disclosure.
Model
DeMarzo and Duffie build a model in their paper in order to illustrate the relationship between investors, accounting information and managers'
incentive. It involves other factors such as the choice between accounting and economic risk hedging, derivative position disclosure, firm reputation
and volatility of managers' future wages. To illustrate their interaction consider the following graph:
Description of the Model
DeMarzo and Duffie's model builds upon the one from Holmstrom and Ricart i Costa (1986). The time frame is two periods. Total profits without
hedging after period 1 is denoted as X+ ОёЙ›, where X=a+e+m is a profit component dependent on project quality e and manager's capability a as well
as

Derivative Financial Instruments Employed For Risk Management
Derivative Financial Instruments Employed for Risk Management
Credit Risk
Derivatives may be traded either via an exchange (exchange traded) or alternatively, privately negotiated contracts, which are generally alluded to as
Over The Counter (OTC) derivatives. Exchange traded and OTC–cleared derivative contracts have downgraded Macquarie's credit risk as their
counterparty is a clearing house, accountable for the handling of risk management for their members to guarantee that the clearing house has sufficient
resources to carry out its upcoming obligations. Members are instructed to produce initial margins in agreement with the exchange rules in the form of
cash or securities, and further present daily variation margins in cash to cover adjustments in values of the market. Macquarie has exchange traded
derivatives with positive replacement values as at 31 March 2016 of $1,794 million, whereas as at 31 March 2016 of $4,641 million.
For OTC derivative contracts, Macquarie commonly has master netting agreements (usually ISDA Master Agreements) with specific counterparties to
handle and control the credit risk associated. The credit risk connected with positive replacement value contracts is condensed by master netting
arrangements that in an occurrence of default necessitates that balances with a certain counterparty covered by the agreement (for example derivatives
and cash margins) to be discontinued and settled on a net basis. Macquarie frequently executes a Credit

The Equator Principle, A Risk Management Framework...
The equator principle, a risk management framework designed and adopted for financial institutions that requires those who are bound by this code to
carefully measure, determine, and think through the environmental and social implications of a project and make the proper procedures to ensure that
debtor it is loaning the money to exercise a pretty high standard of care before financing the said project. The equator principle sets a minimum
standard of due diligence to support responsible decision making for these financial institutions before making a loan.
Currently, there are 80 financial institutions who have adopted the equator principle. Among these financial institutions is the third largest bank by
market capitalisation in Australia ... Show more content on Helpwriting.net ...
Phnom Penh Sugar, the sugar plantation behind these dreadful news is a company owned by Cambodian tycoon and ruling party senator Ly Yong
Phat, who with the help from ANZ Bank, has successfully transformed 20,000 hectares of land in the once peaceful Kampong Speu province in
Cambodia, the country's most impoverished region, into the largest sugar operation in Cambodia.
These news leaves the impression to the public eye, especially the analysts, investors, and stakeholders, that the banking giant's desire to portray itself
as an ethical bank, as a bank that is a signatory to various internationally renowned standards that are committed to social and environmental
sustainability is less than serious.
Modern times requires the need for modern managers, and these modern managers are required to have a high sensitivity about issues concerning
ethical behaviour and social responsibility due to increasing pressure from interest groups, legal bodies, government officials, media coverage, and the
public.
A manager's level of thinking about corporate social responsibility ranges from "To make a profit is the only responsibility of a business" to "It is also
within an organisation's responsibilities to assume responsibility for its impact on society"
Proactive responsibility is present when an organisation assumes responsibilities that go above and beyond what its immediate responsibilities are

Why Financial Risk Management Online
How to Find Financial Risk Management Online
Financial Risk Management Ideas
So as to make a genuine estate investment, you should gauge the risk involved. By managing financial risks, an organization can concentrate on its key
activities as well as operations, instead of on forecasting rates of interest, exchange rates, and future commodity costs. In a practical manner, they are
not capable of being a perfect market.
Translation risks describe the changes within the value of the foreign asset because of changes in financial rates, including the foreign exchange rate.
Many traders will opt additionally to cut the position in place of adding to their own account. Investors seek their advantage by considering the lengthy
term.
Life insurance covers risk as a result of premature death together with income after retirement. Over the last three years SUMIT 's strategies have
caused improved loss ratios. There are various methods to manage loss.
The Pain of Financial Risk Management
Besides that, my organization might have to be accountable to our shareholders as well as the media too, since we are a local listed company. Today,
you might use the assistance of various financial manager in addition to financial risk management software before you intend to make an investment.
In case you are seriously regarding a career in financial consulting, you have to know the clients you will be serving.
Service providers make certain you 'll never need to think too much about the

Essay on Case Study Analysis Oultine 2015 Foldrit
Title of Case
Author of Case (the person(s) who wrote the case)
I. CASE PROTAGONIST
Name, position, and title of protagonist – Jose Ramos, VP of Manufacturing
Name of company. Nature of company – FoldRite Furniture Co.
Educational and professional background of protagonist.
II. RELAVANT FACTS (these subheadings are specific to FoldRite)
a. Economic Environment – Although in a deep recession, FoldRite is experiencing a welcomed yet unexpected demand for their products.
b. Company History – FoldRite was founded in 1987 and at that time only offered folding banquet tables. This product was light yet durable and was
the base for their expansion into similar products. Soon after this FoldRite released foldable tables and stackable chairs. ... Show more content on
Helpwriting.net ...
inventory costs less as well ii. implications, non–financial – fatigue which declines quality and yield
1. may not appeal to all employees, decrease in moral, not long term solution iii. risks – if the demand is not accurate the use of overtime is for nothing
b. Solution 2 – Increase staff temporarily
i. implications, financial – hiring skilled workers costs $1500 in recruiting and administrative expenses. ii. implications, non–financial – more risk if
demand not met iii. risks – if demand was not met firing new workers would be demoralizing.
c. Solution 3 – Changing designs
i. implications, financial – 15,000 one–time charge, saves money save worker, increases quantity that you can produce ii. implications, non–financial –
one month to fully implement. iii. Risks – none
d. Solution 4 – Increase inventory
i. implications, financial – Money that is sitting when credit is tight ii. implications, non–financial – Minimal only if demand is accurate, warehouse
capacity, taxing machinery iii. risks – With credit expense carrying a low inventory would cause concern, need to replace machinery
e. Solution 5 – Subcontracting
i. implications, financial – add 20% to cost of labor of products. ii. implications, non–financial – do not have to commit to minimum order iii. risks –
unnecessary use of finances, no control over quality

V. CONCLUSIONS– rank the options 1–5 with 1 being the highest in terms of risks versus benefits, as well as how well it aligns with

Risk Management Within The Hospital And Ensure Compliance...
1.6 Risk Management:
Risk management is considered one of the most important parts in healthcare, as it implements strategies to reduce financial loss and patient safety.
Risk management is defined as ' the assessment and removal or control of hazard to patients, employees or institutions' (Medical Dictionary, n.d.). Risk
management strategies should be introduced throughout the hospital and ensure compliance from all levels of staff. The strategies are designed to
identify, monitor, and manage risks including fraud while ensuring insurance arrangements are adhered to (Audit andRisk Committee Terms of
Reference, 2015). If any hazard is deemed a risk it must be documented and reviewed, with the strategy altered to ensure patient and ... Show more
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Financial risk management frameworks are designed to avoid losses and expenses that could impact the hospital (Moskowitz, n.d.). In Australian the
financial risk management team analyses internal processes to ensure accountability and compliance with the Public Governance Performance and
Accountability Act 2013 (Health.gov.au, 2015). The legislation also takes into account technological risk management including records management,
information security and confidentiality (Health.gov.au, 2015).
1.7 Financial Administration:
Financial administration is defined as 'the job of managing financial tasks for a company or organisation, for example controlling the budget, writing
financial reports and providing money for projects' (Dictionary.cambridge.org, 2015). Finances are the bread and butter of any organisation, they
provide employees and resources for the functioning of the hospital which can only be achieved if money is provided.
Financial administration in public sectors has four main objectives, these include: '1) the collection, preservation and distribution of public funds. 2)
The coordination of public revenue and expenditure. 3) The management of operations on behalf of the state. 4) The general control of financial affairs
of the government' (Jadhav, n.d.). In order to achieve these objectives a financial plan, budget and investment decisions must be created to provide a
framework for the hospital.
Financial planning refers to

The Objectives Of Senior Management
This is a type of risk that the CRO must assess within the goals of business continuity. The objective of senior management is to be continuing
operations as normal and business interruption risks affect the ability of the organization to continue operations normally. The CRO should identify the
activities or accidents that would possibly interrupt business, determine the resources available internally to deal with the loss, and ensure that any
resources identified would be available to assist with this unlikely event (Elliot, 2012). Securing this type of insurance seeks to transfer the risk of
business interruption by providing some mechanism for compensation to the bank and to its employees should a loss occur.
Enterprise Risk Management Using Enterprise Risk Management (ERM) techniques to assess risks for the risk management program involves
managing risks together as an overall risk program. It differs from traditional risk management that looks at risks individually and manages each risk
separately. By integrating the traditional risks that are insurable risks into an ERM program, aids the organization in implementing a strategic risk
management program that encompasses the hazard risks along with financial risks, operational risks, and strategic risks into a comprehensive risk
management program for the bank.
Financial Risks Financial risks are important for the CRO to address through the risk management program. According to Elliott (2012), financial risks

Rob Roy
The virtue in his features coincides with neither that of the revolutionaries nor the bland features of the bank, which are described just before. He is
shown to have a very different honesty and courage that France lacked and that Victorians would not usually have associated with trade. This forms a
sharp contrast to the revolution and strengthens his purity of character. When he must face the dangers of France, he does not compromise his honesty
or loyalty towards either his business or his friends. His choices are described in saying, "His own possessions, safety, life, he would have hazarded for
Lucie and her child, without a moment's demur; but the great trust he held was not his own, and as to that business charge he was a strict man ... Show
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In Rob Roy, we are presented with Andrew Fairservice who is neither honest nor loyal. He is Frank's servant throughout the novel who is commonly
trying to cheat Frank out of money, despite his pretences of faithfulness. At one point, he tries to cheat Frank by selling his own horse for one that's
lame and begs money from Frank when Frank tells him to get the other back again. Frank very nearly falls for this plea, but Jarvie arrives in time and
"instantly cut short all debate, by pronouncing, that if Fairservice did not forthwith return the three–legged palfrey, and produce the more useful
quadruped which he had discarded, he would send him to prison, and amerce him in half his wages" (Scott). Thus, Jarvie uses his knowledge and
understanding of trade to prevent Andrew from taking advantage of Frank. This happens more than once in the novel and there is such a contrast
between Andrew's dishonesty in business and Jarvie's strict honesty, as well as both their sense and practicality that Andrew's way of approaching
exchange is ridiculous rather than

Business Risk
A risky business
Dodie: We are all here now. As you know that Zelal Sulen is our new boss now. After she took up the official post, she found that Hi
–Style is out of
touch with its target consumers and is losing direction. As the member of manager consultants, for this point, today we need to think out at least two
options to advise her to improve the situation. Am I understood? And think a while... Okay, let's make a start. Who want to speak first?
Lily: Well, in my opinion, Hi–Style could allocate ВЈ10m to new investment in the business. For example, it could improve distribution and sales
through an exclusive agreement with a major retailer, which could provide a steady marketing channel. Second, to launch new product ranges with
major ... Show more content on Helpwriting.net ...
So next, we will discuss which one is best and select the second choice. Let's start with Lily's option. We called the option Organic Growth. What do
you think about it ?
Kelly: I think ,Such investment, to some extent, costs too much. And it will also undergo financial risks. Besides, the exclusive agreement is a single
way, it may get press from the major retailer. In the mean time, not allbrand development consultants can make brand image improved.
Lily: yes, it's true. Every coin has two sides.it can't be denied that option 1 will offer a chance to heighten its competitive strength. Such investment is
obvious in Hi–Style's fovor as to optimize its structure. Employing brand development consultants may also accelerate its brand revolution, improving
its former brand or even building a new better one.
Dodie: It sounds reasonably. So, what about the second option, the acquisition of smartwear?
Ann: Unfortunately, the company is in financial crisis. Last month, Smartwear made deliveries worth 2 million to two new customers in the Far East
that have just gone into liquidation and the stock has disappeared. Worse still, there has been bad press about working condition in overseas factories.
The financial risk is also a big problem.
Serena: But it will offer Hi–Style many new opportunities. Firstly, it can help expand business in the field of work clothes. Moreover, Hi–Style can
make full use of its good sale agents and strong

Commerce Is Creating Wealth For Society
The among the many functions of commerce is creating wealth for society. However, it is questionable if the firm in Margin Call follows through
with its role acting in the interests of society in its bleak predicament. Once it is revealed that there is a high probability of the firm being devalued
beyond market capitalization, the employees of an unnamed company attempt to formulate a solution to the imminent crisis. Although there is some
dissent from Sam Rogers, Head of Sales and Trading, CEO Tuld promptly decides to liquidate the firm's toxic assets onto the market. Despite the
unanimous direction the firm moves in, there are various sources of internal tensions between the firm's employees in that they individually represent
differing perspectives within the social context of the firm. Through the various rationales the executives possess as well as the relationships between
the employees and the firm itself, Margin Call illustrates the conviction that although the role of commerce is to engender a certain lifestyle for the
public, the executives in the firm have warped this belief into a justification for the extreme measures they lead the firm to take in the name of their
profit and their survival. In the first scene of Margin Call, the social hierarchy of the firm is staunchly established as Will himself is nonchalant about
the layoff because he holds a relatively senior position in the firm and it's evident that he has survived through other layoffs. In

Risk Management Program For A Financial Institution . As
Risk Management Program for a Financial Institution As time has shown, financial institutions undertake an abundance of uncertainty causing
unpredictable risk consequences. As a result, executives instill risk management programs to assist in managing the organizations risks so they align
with the company's goals. Commonly sought goals include legal and regulatory compliance, tolerable uncertainty, survival, business continuity,
earnings stability, profitability and growth, social responsibility and economy of risk management operations. Through the implementations of goal
oriented programs, an organization can effectively minimize risk uncertainty. All organizations including financial institutions encounter risks from
each risk ... Show more content on Helpwriting.net ...
Furthermore, outdated technology would impact the facilities ability to prevent cyber–attacks, compete with competitors, provide superior customer
service, and maintain workplace efficiency. Additionally, events influencing the economic and political environment could impact financial stability for
the organizations. External environmental hazards include extreme weather conditions that affect customer and employee safety. In addition, factors
within ABC Community Banks internal environment include communications channels, as well as, the facilities culture. Communication channels
impact the institutions policies, procedures and trainings, which when inadequate may cause work place errors. Moreover, assessing the culture will
determine the general attitude and viewpoints of employees (Elliott, 2012). In scanning the environment of ABC Community Bank, the organizations
can identify areas of weakness and adapt, in order to maintain tolerable uncertainty, while increasing business continuity and ultimately survival.
Therefore, ABC Community Banks internal and external analysis will provide the groundwork for creating a risk management program that aligns with
the organizations goals and risk aptitude.
Identifying Risks Through the examination of ABC Community Banks environments, both internal and external risks of the organizations can be
identified. External

Do You Understand All The Risks Your Pay Programmes May...
Do you understand all the risks your pay programmes may create? Have you asked yourself the following questions?
Do you understand all the risks your pay programmes may create?
1.Incentives – are you comfortable that your plans do not encourage 'risky behaviour '? A steep leverage curve can tempt reckless behaviour;
executives overly focused on short–term results can pose risk to long–term value creation. Separately, executives with significant shareholdings can
become risk–averse and miss opportunities.
2.Termination – have you assessed the tail risk? In many cases holding periods and share ownership guidelines cease to apply enabling the executive
to sell shares post–employment. A large sale could impact market sentiment and raise questions. In combination with declining business performance
the company could face accusations of payments for failure.
3.Clawback – do the provisions in place provide enough protection? Depending on the nature of the business, the event requiring clawback may not be
apparent until several years in the future. The event in question may also not even fall within the scope of the clawback provisions and the lack of
ability to act appropriately in such scenarios can pose a reputational risk to the company.
4.Recruitment/retention – have you assessed the talent risk? Failing to retain key talent can pose a significant risk to the company. Retention bonuses
and emergency recruiting can pose both financial risk and reputational risks.

The Difference Of Organizational Structure Between Google...
A structure depends on the organization 's objectives and strategy. In a very centralized structure, the highest layer of management has most of the
choice creating power and has tight management over departments and divisions. In a much suburbanized structure, the choice creating power is
distributed and also the departments and divisions could have totally different degrees of independence. Wal–mart's structure is built upon its risk
management, safety and claims management process. Google Inc. has gained much attention and acclaim for its unusual organizational culture, which
is designed to establish loyalty and creativity. Although both Google and Wal
–mart focuses on risk management and they specialized on two different
factors. Google focus more on creativity, loyalty and keeping its employees happy. Wal
–mart tends to help customers by saving money, claims and
promoting within the company. The Difference of Organizational Structure between Google and Wal
–mart
Since Google Inc. is known for serving its employee's and keeping them happy while demonstration outstanding employee support, it safe to consider its
motivation theory could be based on Maslow's Hierarchy of needs. Physiological needs are considered towards Google employees because of the
benefits they receive including food, gym and bus to get to work. The slide at work is another form of motivation from a social context or perspective.
It gives something for the employees to talk about and discuss, allowing

Importance Of Model Risk
Model risk is one that results from using models which are insufficient in being able to guess the right risk for the system. It is the risk of loss that
props up from the fact when we make an incorrect decision in the direction of approximation of risk. Also it is prevalent in more activities other than
financial securities validation etc. There are various kinds of model risks that can arise from using a model which are: the wrong model which includes
inapplicability of the model, incorrect model specifications. Apart from that model implementation can also sometimes cause an error which is
programming related, or may be technical errors or even using inaccurate numerical approximations. Also the usage of the model can bring about errors
... Show more content on Helpwriting.net ...
Therefore the first thing is to gain knowledge about the system and the functionalities that it is doing. Once we have that then we need to analyse those
areas of the production that might lead to a gap. These gaps can be regarding timelines or also those timelines turning to financial risks.
Also these risks can lead to other risks in areas such as human resources, training and development and accounting and financing also. Therefore any
affected risk can infect other areas of the organization and can cause an upheaval totally.
The very first thing that needs to be done in such a case is to make sure that we have complete knowledge of the areas that are affected and how we
can fix them. It is only when we have a complete knowledge of the model that we shall be able to ascertain and then know the gaps that can later turn
into risks for the system. So the first task is to know the overall knowledge which can be gathered form the research team and the knowledge and
product owners. From this team we can gain a proper knowledge as to how things are planned and the perspective of the things going on in the
organisation. Then comes the environment and release management teams that shall help me know with the exact knowledge of the timelines
(Rebonato, R., 2011).
So the very first course of action will be to sit with the stakeholders and decide the total changes that are

Implementing A New Software Or Equipment Or Launching Your...
You'll also need to research the current competitive landscape in order to understand whether the proposed idea or action is viable. Whether you are
implementing a new software or equipment or launching your own new product, you need to compare the proposed product or service with other
similar items on the market.
This might mean you need to compare the feasibility of your chosen software (for example, accounting platform) with other products on the market.
What are the benefits of your proposed choice and what are the weaknesses? Are the risks associated with your chosen software smaller or bigger than
those of competitive products?
The same analysis applies when launching a new product. Part of your feasibility study must then focus on understanding what the customers are
looking for and whether your proposed idea answers these needs. You should also compare the proposed product with the existing products or services
and focus on the advantages, as well as disadvantages, you might have.
Step 4: Examining the market conditions
You also need to examine the market conditions. There are four specific points of analysis when it comes to the market in terms of feasibility. These are:
Defining the target market.
Studying the buying habits of the target market.
Understanding the sale and market share outlook of the proposal.
Outlining the product awareness that is required for the use of your product or service.
The main goal of this part of the feasibility study is

Case Study: Elon Musla
QUESTION 1 A.Elon Musk Elon Musk is helping create a future to spare us from global warming. A skilled visionary, specialist and industrialist,
likewise an organizer of Paypal, has long dreamed of the crucial advances in solar power, electric cars and space travel. And afterward he went out
and made them real. 1.Characteristics Musk once said "Work like hell. I mean you just have to put in 80 to 100 hour weeks, every week. [This]
improves the odds of success. If other people are putting in 40 hour work weeks and you're putting in 100 hour work weeks, then even if you're doing
the same thing, you know that... you will achieve in 4 months what it takes them a year to achieve."(Brown 2013). This proves that he has the
discipline to get things... Show more content on Helpwriting.net ...
Meaning, Tesla's electric car products is affordable. The decreasing sustainable energy costs make Tesla's items more alluring, considering that the
business enhances as sustainable power source arrangements turns out to be more prominent. (Kissinger 2017) The following technological external
factors are significant in Tesla's automotive business: The high rate of mechanical change presents opportunity for Tesla to improve its products'
technologies. Nonetheless, this external factor also threatens the business in terms of the potential, accelerate obsolescence of technologies used in its
products. (Kissinger 2017) B.ALEX FOURIE In 2007 Alex Fourie started his company, iFix, from his dorm room at Stellenbosch University. The
company helps repair broken and faulty Apple products, and now employs 125 people across the country. Fourie is the founder and CEO of RiCharge,
a manufacturer and distributor of mobile phone charging stations. 1.Characteristics Fourie's business, iFix, started from him learning how to repair his
Apple device when professionals told him it cannot be done. It was his willingness to learn and help himself that he was able to have his own
company. (Omar

Multinational Financial Management by Alan Shapiro:...
CHAPTER 6
Country Risk Analysis
EASY (definitional)
6.1 The degree of political risk faced by a firm operating in a foreign country
a) can be determined by using a political risk index
b) depends on the benefits provided by the firm
c) both a and b
d) depends on how the firm has structured its operations
Ans: d
Section: Measuring political risk
Level: Easy
6.2 One good indicator of political risk is
a)the seriousness of capital flight
b)the level of local interest rates
c)the level of local tax rates
d)a large middle class population
Ans: a
Section: Capital flight
Level: Easy
6.3 Capital flight occurs for several reasons, most of which have to do with
a)government regulations on interest rates

b)high taxes on ... Show more content on Helpwriting.net ...
a) currency controls
b) privatization of public utilities
c) changes in tax or labor laws
d) regulatory restrictions
Ans: b
Level: Difficult
6.17 Which one of the following is NOT a measure of political instability?
a) the number of political parties in one nation
b) frequency of changes of government
c) the level of violence
d) conflicts with neighboring states
Ans: a
Level: Difficult
6.18 Which of the following foreign investments would be least subject to expropriation?
a)an oil well in an LDC that is providing needed foreign exchange
b)a coffee plantation that is producing beans for export
c)an assembly plant for automobiles located in an LDC
d)a tire making plant in an LDC that is substituting for tire imports
Ans: c
Section: Key indicators of country risk
Level: Difficult
6.19 A U.S. company whose foreign property has

Risk Management : Financial Crisis
Risk management changed around the world since the bankruptcy of Enron in 2001 however, it was found by many that it was still not enough since
the mortgage crisis of 2007 and 2008 took place after many risk management safeguards had already been put into place. One company emerged a
leader among all others in what was failing in the mortgage servicing industry. The industry had sustained unprecedented losses and could be not able to
deal with the ensuing financial meltdown that was about to occur. The company is Ocwen Financial. Ocwen Financial grew tenfold during the housing
crisis due to their unique positioning and expertise in the mortgage servicing industry. It became the largest non–bank mortgage servicer at a place that
many banks such as Bank of America and J.P. Morgan Chase would soon be placing their mortgage servicing with.
The company is publicly traded on the New York Stock Exchange and was founded and run by William Erbey until regulators removed him for
committing unthinkable acts with this company forced him out. There was both pure risk and a speculative risk that was taking place. One of the
greatest risk that was taking place within the area of social responsibility, which adversely affected the company stock price, which was traded at a
high of almost $60 per share and now trades at about five dollars per share. Mr. Erbey one from Forbes Top 400 in the world to being taken off the list
("Forbes," 2015). Will now look at how some of the risks that

Evergreen Woods Health And Rehabilitation Center
Risk and Quality Management Assessment Summary
Evergreen Woods health and rehabilitation center is located in Spring Hill Florida. The center has been serving Hernando County for over 25 years.
Services that the center offers are: Post–acute services, Rehabilitative services, skilled nursing, Short and long term care through physical, occupational
and speech therapists. The mission of Evergreen Woods health and rehabilitation center is to provide comprehensive services to meet the care of the
residents and patients. They strive to meet customer satisfaction daily and follow core values to obtain excellence in care. Risk management serves to
protect patients and staff members by reducing medical errors, remaining up to date with state and federal regulations. As wellrisk management
protects staff and patients by eliminating hazards within the organization. Quality management serves the purpose to ensure that patients are receiving
the best care available. In the organization Evergreen Woods risk and quality management plays the same role as it does in any other health care
organization. Being that this center is an in–patient facility serving many different patients with many different health issues there are many different
risks involved in the daily operation of the organization. Key concepts of risk and quality management within Evergreen Woods rehab while are
undefined to the public it is noticeable to any person that is involved in the organization whether it be a

Advantages And Disadvantages Of The Primary And Primary...
Primary and secondary data collection methods The researcher needs different methods to collect the data for their research, so the main method that I
used it is secondary data collection. In this section, I will explain each method, and I will provide some advantages and disadvantages for it. Firstly,
primary method means when the research collect the data directly through communication with participants or observation, and the researcher did it.
There are different types of a primary method such as interview, questionnaire, focus group interview, and Delphi techniques (scarff, 2013). The
advantage of this approach is, it related and focused on the problem to achieve specific goals without wasting the resources. Also, it's more accurate
and original because there is no bias and it collected by the researcher. However, the disadvantages are ... Show more content on Helpwriting.net ...
In 2014, the rate increased dramatically to nearly 90%, and that because of their liability too much. In contrast, the rate in 2015 dropped to 89.4%, and
that means the bank manage their debt and control their credit risk.
Years Liability AssetsLTA ratio
2013AED 290,383,115AED 325,061,6560.893
2014AED 338,135,330AED 376,098,7120.899
2015AED 363,345,154AED 406,356,8070.894
Return on Assets This ratio means how much the company earns before they paid their interest and taxes, this ratio helped to know how the bank
can be more efficient in used their assets to generate profit before paying the obligation. The formula for this ratio is ROA=EBIT/Total assets. The
figure below was calculated by NBAD, so as you can ROA was 1.51 in 2013 and continued increased in 2014 till it reached 1.59 in 2014, but the figure
dramatically decreased till 1.34 in 2015. NBAD was stronger in 2014 as they generate high ROA compare it with the two years that help the bank to
be more profitability and attract a lot of

Chuck E Cheese Mexico
. In accordance with this analyse it seems that the Mexican market is ready to welcome such a service in its food industry. Therefore, by adding these
market knowledges to the benefits of the free trade agreement, such as free market entry cost and reduced taxes, it seems that Mexico is a very friendly
business environment and attractive market for Chuck E Cheese's franchises.
Social and demographic environment
The Mexican society enjoys a very young population. Indeed, 27.59% of its population is under 14 compared to 18.99% in the US (CIA Factbook –
Mexico). In fact, according to the OECD, Mexican household are the second largest in the OECD area with 4.03 persons per household. In addition to
those elements, the CIA Factbook also shows that ... Show more content on Helpwriting.net ...
Again, Coface rated Mexico financial risk as A4 (Coface – Mexico synthesis). This means that even though the risk is not critical, companies can face
difficulties within different transactions.
First, while the inflation percentage was only 2.8% in 2015 it appears to be reaching 4% by the end of 2016. A high percentage of inflation affects the
currency exchange rate by weakening it and therefore decrease the power of consumption of households.
Secondly, the Mexican society appears to be a fairly unequal society with a GINI index of 48.3 in 2008 which make Mexico the 25th less equal
country in the world. Plus, the share of population under the poverty line reaches 52.3% of the population (CIA Factbook – Mexico). For a food and
entertainment company like Chuck E Cheese's this could mean that less Mexican are likely to be able to afford this service even though the service
matches the

Taking a Look at the Giraffe Award
Caring. Risking. Healing. What do all of these of these have in common? These are all criteria of the Giraffe Award. The Giraffe Award is given to
people who have shown a lot of caring, people who placed themselves at risk, people whose actions were healing, not divisive, and people who went
above and beyond the call of duty. Six cases have been evaluated. A decision was made and now only two people will receive the Giraffe Award.
Jerry Foster is a TV helicopter pilot. He gets paid to find news stories, but what he actually does makes him worthy of the Giraffe Award. Jerry loves to
save lives. Saving lives is clearly an act of caring. He is paid to find stories but he goes above and beyond by saving lives. Sometimes when he is saving
people he forgets to capture the story on film, which puts him at financial risk, because he could get fired. When he saves people he heals them. Jerry
Foster meets all the criteria of the Giraffe Award which is why he deserves the award.
Dedication and perseverance. Joseph Nicholas and David Francis Sr. have worked very hard to reinvigorate their language, Maine's Passamaquoddy
Indian Tribe language. However they are an example of two people who are not worthy of the Giraffe Award. The reasons are obvious. They didn't
act out of caring. They just want people to learn their language. That is a selfish reason. Also they didn't have any risk. They were at no social,
physical, or financial risk. Some people might argue that they went above

Risk And Financial Impact And Draft Of Management Strategies
Risk and Financial Impact and Draft of Management Strategies
The automobiles industry, it is a risky business. The automobile industries move trillions of dollars in the United States every year. It is not strange
for us to see one or the other automobile industries asking for a government bailout in order to get out of a hole. Every project depends on a large
volume of money, for instance, a single car project may consume billions of dollars. In addition, the industry works with negative capital, the return on
the investment will be recovered only with the sales of the cars, (Fiat Chrysler Automobiles – Base Prospectus, 2016, p. 18). In this research paper we
will explore: 1. The risks that Fiat Chrysler Automobiles takes; 2. How FCA changed their opportunities managing the main risks; 3. Developing
market strategies to increase sales; 4. Using TQM to delineate the market strategies. In the following paragraphs, we will go over each topic to
explain the main risks of a new car project and how to use the Total Quality Management – TQM principles to develop strategies to overcome the
risks. Like other automobile industries, Fiat Chrysler Automobiles assumes every day risks to maintain the company running. As mentioned above,
the launching of a new car model is a huge risk for the car industry. A project for a new car involves a large volume of employees, contractors and
supplies, a large financial investment, and according to the Chrysler Financial Report, a new car

Role Of The Executive Officer Of The Chief Officer
The role of business in society is multifaceted in that there is an obligation to its shareholders, its clients and its employees. In the instance of Margin
Call by J.C Chandor, a wide range of justifications revealed by the upper management level of an investment firm evinces the core values of the firm.
Once it is revealed that there is a high probability of the firm being the devalued beyond market capitalization, the firm and its division heads attempt to
find a solution to the imminent crisis. Although there is some dissent from Sam Rogers, Head of Sales and Trading, CEO Tuld promptly decides to
liquidate the firm's toxic assets onto the market. However, there is much internal tension between the chief officers in that they individually represent
different predicaments. In the end, Margin Call illustrates conviction that the role of business is to engender a certain type of lifestyle for the society
through the executives' justifications and interactions with others.
In the first scene of Margin Call, there is a massive unannounced layoff for about 80% of the trading floor in the investment firm. Though Eric Dale has
worked in risk management for many years, the firm's decline in profits requires that it downsize in order to survive. Will, Head of Trading, tells the
risk analysts to carry on with their jobs despite having most of their co–workers laid off, but he also jadedly asks if it's the first layoff the analysts have
seen. Will is nonchalant about the layoff as

Financial Aspect Of Climate Risk Management
Financial Aspect of Climate Risk Management
Climate change is a lethal and destructive force. In the recent past major climatic events like floods, tsunamis etc. have led to substantial destruction of
wealth. Such events have highlighted the need of mechanisms for risk sharing of the losses and restoring the lost human and infrastructural capital. The
climate change agreement declared on December 12, 2015 was one of the highlights of the year. It showcased the resolve of various nations in fighting
climate change. It was a welcome change from Copenhagen.
Climate Change and its Effects
The major target for financial sector is to provide jobs, economic welfare to the thriving population, without damaging environmental balance. It is the
role of the financial sector to help in managing climate risk and help society recuperate from it. Any climate risk directly or indirectly affects the
financial sector in a huge manner. Whenever a climatic catastrophe occurs, the number ofinsurance claims rise exponentially. Global Insurance claims
have risen from 5.1 billion US dollars annually in the 1970's to 27 billion US dollars per year in 2014.
Figure 1: Losses due to various climate scenarios Source: World Resources Institute
Climate variability also affects agricultural sector in a major way. It affects food availability and security and may lead to rise of poverty as well. As a
natural calamity affects the agricultural sector, it leads to loss of income of agriculture

Reviews on Financial Risk Management
A Review on Financial Risk Management Tianshu Hou FMRM 0811 Dec. 2011 гЂђOutlineгЂ‘ I. Introduction II. The definition and types of financial
risk III. Risk management and the theoretical foundation IV. The process of financial risk management V. The challenges faced by the modern
financial risk management theories гЂђAbstractгЂ‘ Financial risks are exposures of uncertainties for those participants in financial market. Financial
risks can be divided into four categories: market risk, credit risk, liquidity risk and operational risk. Risk management has become more and more
crucial for a market participant to survive in the highly competitive market. As the development of the global financial market, there are many
phenomena that... Show more content on Helpwriting.net ...
Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade that asset.
Liquidity risk becomes particularly important to parties who are about to hold or currently hold an asset, since it affects their ability to trade. D.
Operational risk. Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
Nowadays, the study and management of operational risk is getting more attention. The organizations are trying to perfect their internal control to
minimize the possibility of risk. At the same time, the mature theory of other subjects, such as operational research methods, are also introduced to the
management of operational risk. Overall, financial risk management is a process to deal with the uncertainty resulting from financial markets. It
involves assessing the financial risks facing an organization and developing management strategies consistent with internal priorities and policies.
Addressing financial risks proactively may provide an organization with a competitive advantage. It also ensures that management, operational staff,
stockholders, and the board of directors are in agreement on key issues. III. Risk Management and the Theoretical Foundation Financial market
participant's attitude towards risk can be basically divided into the following categories. A. Avoid risk. It is irrational for

Pros And Cons Of Exxon Mobil
Financial risk is the possibility that the company's cash flow proves inadequate to meet its financial obligations. It is also the term for many different
types of risks related to the finance industry. There are many types of financial risks. The most common ones include credit risk, liquidityrisk, asset
backed risk, foreign investment risk, equity risk and currency risk.
ExxonMobil's financial and operating results are subject to a variety of risks inherent in the global oil, gas, and petrochemical businesses. ExxonMobil
have the risks within and not within the Company's control which could negatively impact Exxon Mobil Corporation's financial and operating results, or
its financial condition.
Supply and Demand
The oil, gas, and petrochemical ... Show more content on Helpwriting.net ...
It is operating facilities or making products in most of the world's countries and explore for oil and natural gas on six continents. More than 80% of its
earnings are generated from non–U.S. markets. With high performing operations and global integration, ExxonMobil is one of the best positioned
firms to provide against a change in commodity prices. Moreover, the diversity of its operations and a various geographic footprint is a key component
for managing unpredictable political risk and protecting against regional economic

Lehman Brothers : Financial Failure
Lehman Brothers' Bankruptcy
The history of the Lehman Brothers' is prestigious and long. America's wealth owed its beginning from the Lehman Brothers. Many companies from
the US such as the Campbell Soup Company, and American Airlines, among others, obtained a greater level of financing from the Lehman Brothers.
The Lehman Brothers had become one of the biggest investment banks on Wall Street. In 2008, the Lehman Brothers filed the chapter 11 bankruptcy,
after which its attempts to find a buyer seemed unsuccessful.
Assess the factors that contributed to the financial failure of the firm, indicating how management failed to manage the risk related to each factor.
A company can fail due to a number of reasons. However, the Lehman Brothers ... Show more content on Helpwriting.net ...
The warnings of managing directors and talented researchers were not put into consideration by these leaders.
The Board of Directors
As noted in the above context, the board of directors followed instructions from the top. They did what Dick Fuld told them even though it was not
appropriate. The company was failing in its operations even with availability of the Risk Management Department. The board of directors knew the
irrational nature of the markets but was ignored by Dick Fuld. This reflects the lack of corporate governance in reference with the operational risks
that were evident in Lehman. In addition, Dick Fuld was stopped at noting in his efforts to keep the stock price high. The duty of the Lehman's board
was to sign off the decisions that were made by the CEO. The CEO and the chairman were one in the same. Fuld chaired majority of the committees
and his enabled his preferences to be considered.
The Management Team
Joseph Gregory was part of Lehman and the second in command after the CEO. He had worked with this company for 34 years. He was noted to be a
yes– man. This means that he did want the CEO said even if it was not fit for the company. Gregory had passion for minority issues compared with
the corporate issues. He and the CEO never cared about the company even when the company was reporting losses and the fall in stock. It is noted that
Gregory was later removed from the company and

Company Risk Management : Pfizer Chief Financial Officer...
In January 2015, Pfizer Chief Financial Officer Frank D 'Amelio said that foreign exchange rates will hurt 2015 sales by $2.8 billion, or 17 cents a
share, if the dollar remains at its current high levels.
Pfizer operates like most MNCs by most likely utilizing hedging to reduce the volatility spawned by fluctuations in foreign exchange rates. But what
you really need to understand is that there are risks involved in FX hedging itself. Most analysts tend to prefer long–term hedging over short–term
hedging, the long–term variety can lead a MNC to be over–hedged. Understanding FX risk in the context of enterprise risk management enables finance
chiefs to not fall into the trap of over–hedging their FX risk.
One way to avoid over–hedging is to hedge only the minimum known payment involved in the future transaction. By hedging a portion of the
transactions, a company can reduce the sensitivity of its cash flows to exchange rate movements without creating serious mismatches between the
hedge and the risk. In this way, ERM – which consists of managers taking a holistic view of their company's various risks, prioritizing the material
ones, and devising ways to curb them – can help CFOs identify the most volatile foreign exchange rates and reduce some of the guesswork involved in
deciding how much of their foreign exchange risk to hedge.
Companies like Pfizer exposed to the risk of overestimating their future foreign sales, may negotiate currency hedges that end up being far

Risk and Quality Management
Kelly Hennessey
HCS/451
02/18/2012
Lauri Rose
Evergreen Woods health and rehabilitation center is located in Spring Hill Florida. The center has been serving Hernando County for over 25 years.
Services that the center offers are: Post–acute services, Rehabilitative services, skilled nursing, Short and long term care through physical, occupational
and speech therapists. The mission of Evergreen Woods health and rehabilitation center is to provide comprehensive services to meet the care of the
residents and patients. They strive to meet customer satisfaction daily and follow core values to obtain excellence in care.
Risk management serves ... Show more content on Helpwriting.net ...
The last risk would be financial issues due to insurance issues. "Of 10 million Americans nearly 7 million of them being over 65 rely on some level
of assisted care" (Weston 2012). This number does not include the number of people that are under the age of 65. Many people that rely on long
term care live on disability or social security. These people are living on extremely limited income put them and their families in mental distress
trying to figure out how to pay for the needed care. "Medicare provides only 100 days of care following hospitalization" (Weston 2012). After the
100 days it then becomes the responsibility of the patient to either pay out of their pocket or use a supplemental insurance. For many this is an
issue as they do not have any other insurance nor do they have the finances to afford this care on their own. With patients under Medicaid insurance
there is still an issue "Medicaid provides long term care, but only after a patient has deplete his/her finances" (Weston 2012). So how does this
affect the organization itself, now with lack of insurance you run the risk of not being paid for services already rendered. The other risk involved is
that if a patient is unable to pay for the care themselves then they have to resort to other means of care, now the organization has empty beds. Empty
beds mean that there is not a high need for staff members resulting in layoffs. All of these risks can in fact the

Components Of A Risk Management Program
Every healthcare organization, no matter how small or specialized, should be aware of its risk situation and take appropriate measures to protect itself
against clinical, financial and operational exposures. Risk management is the process of minimizing risk to an organization by developing systems to
identify and analyze potential hazards to prevent accidents, injuries, and other adverse occurrences, and by attempting to handle events and incidents
which do occur in such a manner that their effect and cost are minimized. Effective risk management has its greatest benefits in application to insurance
in order to avert or minimize financial liability (Duckers, Faber, Cruijsberg, Grol, Schoonhoven, & Wensing, 2009).
Components of a Risk ... Show more content on Helpwriting.net ...
Communication: To anticipate risk management pitfalls and opportunities, the risk management professional must be an insider who is provided with
information on proposed mergers, acquisitions, and joint ventures early in due diligence process. Equipped with such information, the risk management
professional is in position to advise senior management on the risk management implications of various new business arrangements.
Coordination: Risk management professional needs to establish reporting and communication relationships with key individuals within the organization.
Accountability: Every health care organization's risk management professional, including those in small institutions that have job duties in addition to
risk management, should have a written job description that outlines key risk management responsibilities. Risk management professionals should be
accountable of their performance.
How the Risk Management Process Can Reduce Organizational Risk. Health risk management program protects the organization against risk
associated with accidental losses, regardless of the loss. Some of the risks are patient center–care–related risk, medical staff–related risk,
employee–related risk, property– related risk, financial risk, and others. Risk management process helps the risk management professional set priorities
and assists in ensuring a comprehensive risk management effort. The risk management process consists of five steps:
Identify and

Financial Risk Management
JONATHAN MUROMBA
2012178104
FINANCIAL RISK MANAGEMENT
Management of Financial Institutions and The Banking Crisis
Risk is uncertainty. The more risk one takes, the more he or she stands to lose or gain. One cannot expect high returns without taking substantial risks.
The outcomes are thrown open to uncertainty. In general, when we talk about risk, we focus on financial risk. In financial terms, it is the risk that a
company or individual could lose some or all of the original investment, possibly resulting in inadequate cash flow to meet financial obligations. All
wise investments follow risk consideration. To be successful, every investor must be able to identify and understand the types of risk they face across
their entire portfolio. ... Show more content on Helpwriting.net ...
It had been widely known that problems with the banks in the US were due to the phenomenon of sub–prime lending for housing. Many of the loans
had turned into toxic assets as borrowers failed to meet repayments.
Similar to Northern Rock, the banks continued to give loans in this manner as they too chose to securitize their loans because this method of trading
appeared so profitable. This was a highly successful mechanism to operate until the number of defaulters increased to the point where these assets
began to turn illiquid. Investors started to avoid securities as it was now evident many were flawed. Moreover, Northern Rock in their quest for greater
financial returns found securities that attractive they also invested in them.
With trading slowing in the financial markets, many institutions began to react to the impending crisis by taking a more cautious approach to lending.
In comparison Northern Rock were so focused on returning profits and generating growth that, at a time when monetary policy was tightening faster
than expected, the bank had agreed to issue a tranche of mortgages at interest rates that were lower than those it had to eventually pay in the markets to
finance them (The Economist, 2007, Lessons of the fall, 20/10/2007). In hindsight, this was a disastrous decision, which contributed to the impending
shortfall in cash and ultimately the need to be bailed out.
The managerial failings of Northern

Engro Foods Financial Statement 2013
Pakistan is a country with 182.1 million population at the moment. In the whole world, there are only few countries with huge population. There was
a big opportunity to get into the food market, as to cater a growing population, more resources are needed. Not ignoring the fact that we are an agro
based economy. Besides that, in our country people love to spend money on food. Engro gets raw material locally.
Introduction
Engro Foods (EFOODS) is among one of the top FMCG organizations in Pakistan. It is one the fastest and growing company. Engro Foods comes
under the umbrella of its parent company Engro Corporation in 2005. Engro Foods is a public limited company, and is listed at Karachi Stock
Exchange. It trades in an open market. Mainly the ... Show more content on Helpwriting.net ...
The full Board meets at least four times a year for approval of quarterly accounts and for long term planning.
We will do an analysis on financial statement of 2013, to clarify the position of Engro Foods and to discuss some points related to Engro Foods.
Analysis of financial Statement 2013
Engro Foods got capital injections from the Engro Corporations, its parent company. The share capital increased by 4.2 billion, from 4.3 billion in
2008, to 8.5 billion in 2013. Previously Engro foods incurred heavy losses, however in 2013 the company's overall equity position strengthened. The
dairy and beverages sections reported a topline of Rs. 40 billion recording a 14% growth over previous year. Segment backed Rs. 1711 million
company's profitability this year recording an increase of 9%.
Long–term Finances
The company continued to fulfill the capital needs by raising long term loans. Therefore, the long–term loans have significantly increased over the
years. Comparatively, from 2008 till now the long term loans to equity ratio has decreased. From 51:49 in 2008 to 40:60 in 2013. The Company has
been able to reduce this ratio due to its higher cash generation

Financial Risk Management
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Financial Risk Management using Derivatives; A case of selected financial institutions in Uganda
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Abstract
The RAP examines the management of financial risks using derivative instruments in the selected financial institutions in Uganda. Three key research
objectives were examined. These included; an examination of the institutions' objectives for financial risk management, an ... Show more content on
Helpwriting.net ...
The primary source of interest rate risk stems from timing differences in the repricing of bank assets, liabilities, and off–balance–sheet instruments.
These repricing mismatches are fundamental to the business of banking and generally occur from either borrowing short term to fund long–term assets
or borrowing long term to fund short–term assets.
Financial derivatives provide banks with an effective way to manage interest rate risk without incurring additional capital charges. Derivatives can be
used to hedge asset and liability positions by allowing banks to take a position in the derivatives market that is equal and opposite to a current or
planned future position in the spot or cash market. Therefore, regardless of the movement in prices, losses in one market will be offset by gains in the
other. Banks can also take a derivative position uncovered by potential earnings or losses. In this case they are speculating on interest rate changes that
the market doesn't anticipate. 1.3 The financial services industry in Uganda

Uganda's financial services industry which mainly comprises the Banking, Insurance, Microfinance and investments sectors remains dominated by the
banking sector. The banking Sector has been described as generally sound and well capitalized. The sector has experienced tighter BOU supervision,
more stringent requirements and higher capital requirements with the

Risk Management Task 1A

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