Financial Risk Management - 1763 Words

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†¦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 NorthernShow MoreRelatedRisk Management : Financial Crisis1350 Words   |  6 PagesRisk 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 occurRead MoreWhy Financial Risk Management Online917 Words   |  4 PagesHow 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 assetRead MoreRisk Management Program For A Financial Institution . As1220 Words   |  5 PagesRisk 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 responsibilityRead MoreFinancial Aspect Of Climate Risk Management1040 Words   |  5 PagesFinancial 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 fightingRead MoreApplication Essay to The Financial Risk Management Program977 Words   |  4 Pagesgoal is to help a firm manage its financial risk by developing and applying effective risk management strategies. My long term goal is to lead an enterprise wide risk management program for a multi-national company. My experiences in IT Risk Services, Accounting Audit and Structured Finance Advisory Services at the Big Four firms helped shape my career goal and created a strong fascination for Financial Risk Management. These experiences taught me how risks affect organizations. I learnt howRead MoreFinancial Scandals Of Enron, Worldcom, And Tyco Occurred Risk Management1671 Words   |  7 PagesRisk Management After the major financial scandals of Enron, WorldCom, and Tyco occurred risk management became a high priority for companies. According to Brown, Steen, and Foreman (2009) risk management can be defined as the culture, processes, and structures that are directed towards taking advantage of potential opportunities while managing potential adverse effects† (p.547). To assist companies in the risk management process, companies are incorporating a risk management system, this helpsRead MoreCompany Risk Management : Pfizer Chief Financial Officer Frank D Amelio Said That Foreign Exchange Rates1105 Words   |  5 PagesIn 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-termRead MoreFinancial Risk Management8063 Words   |  33 Pages------------------------------------------------- Financial Risk Management using Derivatives; A case of selected financial institutions in Uganda ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Abstract The RAP examines the management of financial risks using derivative instruments in the selected financial institutions in Uganda. Three key researchRead MoreReviews on Financial Risk Management3553 Words   |  15 PagesReview on Financial Risk Management Tianshu Hou FMRM 0811 Dec. 2011 〠Outline】 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 〠Abstract】 Financial risks are exposures of uncertainties for those participants in financial market. Financial risks can be divided into four categories: market risk, creditRead MoreDerivative Financial Instruments Employed For Risk Management948 Words   |  4 PagesDerivative 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

Graduation Speech My Heart Swelled With Delight Essay

Upon recognizing that a primary course requirement of Orientation to Education 206 would ensue an opportunity to conduct field experience — my heart swelled with delight. I am genuinely appreciative of the opportunity to have gained veritable experience of teacher-student interaction and teaching in an actual classroom. Expressly, I primarily conducted my research and experience at the newly opened Michael R. Hollis Innovation Academy in Ms. Brewer and paraprofessional, Ms. Byrd’s pre-kindergarten class. I attended the school with an open, yet full heart willing and ready to take on the issues of the world. With this in mind, my initial impression of the school was comprised of a layered but greatly optimistic analysis. To illustrate, the environmental climate of the school appeared to be refined, clean, spacious, caring and warm. Due to the fact that the mission and visions for the school were visibly shown with great emphasis — them being: â€Å"Collabora tion, Communication, Creativity, Empathy, Self-discipline, Perseverance† — indeed, I felt that I was in the right place. Furthermore, the overall culture of the educators can be characterized as inviting and friendly. Likewise, the students were open to communication, well behaved, and operated as if they had frequent visitors. I realize that in order to gain an holistic and accurate depiction of the school’s environment, it is important that I understand its foundational background. Accordingly, HollisShow MoreRelatedStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesDiversity Management Strategies 56 Attracting, Selecting, Developing, and Retaining Diverse Employees 56 †¢ Diversity in Groups 58 †¢ Effective Diversity Programs 58 Summary and Implications for Managers 60 S A L Self-Assessment Library What’s My Attitude Toward Older People? 40 Myth or Science? â€Å"Dual-Career Couples Divorce Less† 47 An Ethical Choice Religious Tattoos 51 glOBalization! Images of Diversity from Around the Globe 54 Point/Counterpoint Men Have More Mathematical Ability Than Women

Learning Styles, Motivation and on the Job Training Free Essays

The first learning style is sensing vs. intuitive learning style. Sensing learners like learning facts and solving problems by well established methods. We will write a custom essay sample on Learning Styles, Motivation and on the Job Training or any similar topic only for you Order Now Unlike intuitive learners, sensor learners resent testing on material that has not been explicitly covered in training. (p 169) Intuitive learners often prefer discovering new relationships and can be innovative in their approach to problem solving. They dislike repetition and are better at grasping concepts than sensor learners. Unlike sensors, intuitive learners don’t like courses that involve a lot of memorization and routine calculations. In order to get the most out of training, sensor learners need to be intuitive learners at times and at times intuitive learners need to be sensor learners. The trainer can help the sensor learner by organizing the training by using a problem first method. Intuitors can be more difficult to train especially if the training involves a lot of memorization. The trainer can help these people by creating incentives such as a game with a reward for memorizing certain key points of the training. Next there is the visual vs. erbal learner. Visual learners remember best what they see, pictures, diagrams, flowcharts and demonstrations. 169 Verbal learners get more out of words; both written and spoken. Visual learners are among the easiest to train. There are a wide variety of materials available to supplement lectures for the trainer to use to engage the visual learner. The trainer can help the verbal learner by having handouts of the presentation available or providing paper in which the trainee can summarize the presentation in his/her own words. Sequential learners vs. global learners. Sequential learners gain understanding when things are presented step by step. The global learner is one who needs to see the whole picture before being able to absorb the details. The sequential learner can be helped by providing a copy of the lecture material with blank spaces for the sequential learner to fill in key terms and definitions. The global learner can be helped by explaining how each new module fits in with the overall purpose of the training. Active learners vs reflective learners. Active learners need to do something. They can be helped by applying the information, discussing it, or explaining it to others. Reflective learners prefer to think about the new information before applying it. â€Å" Let’s try it out and see how it works† is how the active learner might respond. The reflective learner on the other hand might say, â€Å" Let’s think it through first†. The active learner can be helped by the trainer by being placed in group settings. They have a particularly hard time sitting in a lecture and taking notes. The reflective learner, however, prefers working alone so it might be beneficial to give this type of learner questions to answer at the end of each training module. One of the most frequently used training methods is on the job training (OJT). Compare and contrast the characteristics of an informal OJT program with that of a formal one. Before the advent of training classrooms, on the job training was the most predominant form of training.. This was commonly referred to as apprenticeship. Master craftsmen passed on their skills to novices who worked alongside of them Today, on the job training is used primarily for teaching new technology or increasing skills in the use of current technology. Informal OJT consists of using more skilled co-workers or supervisors to train the less skilled or less experienced employee. The informal OJT has not been thought out or prepared (p 236). The workers generally learn on a trial and error basis with some feedback from supervisors or coworkers. It is also done on an ad hoc basis with no predetermined content or process. With informal OJT there aren’t any objectives or goals and trainers are often chosen on the basis of their technical expertise not their training ability because they haven’t had any formal training on how to train. This creates more room for error because the trainers are often inconsistent and may even be introducing methods that are not approved by the organization. Formal OJT programs are just the opposite. They have a carefully thought out sequence of events. Like informal OJT the trainee gets to observe the trainer performing the job related tasks. Unlike informal OJT, the procedures involved in the tasks are discussed, before, during and after the training. In formal OJT, the trainee does not begin performing the tasks until the trainer feels that they are ready to do so. The trainee is given more and more of the job to perform as he/she masters the each skill necessary to perform the task. Because a trainer is used who is not only experienced with the task but trained as a trainer, the company can be assured that the new employees are learning the tasks more quickly and systematically than in an informal training. Another advantage is consistency of training. The company can be sure that all of the workers performing the same tasks in any of the company departments or locations will be performing in the same manner. With formal OJT, inputs and outputs can be assessed to determine if any modifications need to be made to the training. Describe four factors that should be considered when developing an effective computer based training (CBT) program. One of the biggest factors to consider is the cost of the program. Developing a CBT can be a costly endeavor. Costs of the program include the wages of the course developer as well as the wages of the trainees while they are taking the program (p 276). Then the organization must also consider the costs of the hardware and software needed to conduct the training. The company must then weigh these costs against the number of trainees that will be using the program and how often the program will be needed as well as the frequency of updating the material. The second factor to consider is the control of material and the training process. Because the content is built directly into the program, the company has complete control over the content of the learning material that all trainees are getting. This is advantageous for companies with multiple locations because it allows for consistency in the training. Also, the trainees are moved through the training process based on their understanding of each training module. The trainees can also start and stop the training rocess which allows for minimal disruption in production. CBTs can help employees enhance their knowledge. The CBT can present the facts in several different formats and presentation styles. It also can provide a variety of modules to show the employees how to apply the knowledge to their actual job. Analyze the three things an organization should do to motivate a trainee before the trainee attends training. An organization can have one of the best training programs available, but if the trainees are not motivated they will not learn. When conducting a training program, it is important to remember that the trainees all have different learning styles. Each of the trainees will have a different learning style than the others. Most likely they will have a combination of the sensing/intuitive, active/reflective, visual/verbal and sequential/global learning styles. Because of this it is important to remember that a variety of training methods be incorporated into the training and it is also important to remember that there will be modules of the training that will be more effective for some trainees than others. How to cite Learning Styles, Motivation and on the Job Training, Essay examples

Something Simple Great free essay sample

Greeting cards. They sound simple, right? For most kids, this idea consists of a 99-cent Hallmark birthday card, an awkward school photo tucked inside their annual family Christmas letter, or maybe the obligatory thank-you note to their Great Aunt Marge for their â€Å"Ill be sure to put it to great use†  ­dollar-store birthday present. For me, greeting cards mean a considerable amount more. Since I was old enough to hold a crayon and a pair of scissors, I have crafted hundreds of specialty cards for almost everyone in my life. Whether for a birthday, anniversary, Christmas, or the deliberate-excuse-to-make-people-feel-lonely-day every February 14th, I was sure to create a masterpiece. In addition, my perfectionist qualities would ensure that my work would be incredibly articulate. I spent hours locked in my room, scrambling through my cluttered drawers of colored pencils, markers, glue, string, and multi-colored packs of construction paper in order to find the absolute right tools to generate a card that was nothing short of perfection. We will write a custom essay sample on Something Simple Great or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The reason? My creations put smiles on the faces of loved ones. They brightened the day for many friends and family when they were clearly able to see, for a moment, that someone cared. While my grandmother bravely fought Alzheimers and her memory was quickly slipping away, I knew my cards brought her back to the days when she remembered my name. When my mother was suffering through countless rounds of chemotherapy and radiation battling Stage 4 breast cancer, my little masterpieces made her lips curl into a loving smile. And when my mother passed away, my family was also the recipient of hundreds of thoughtful cards, helping me to learn first-hand the power a simple handwritten note can have. Constructing and formulating these cards has been my niche for over a decade. Even as a teenager, it allows me to get my creative juices flowing, which can sometimes be hampered by my crazy schedule of classes and SAT preparation. I am known for and praised for this in my circle of loved ones. Once combined with other parts of my life, including being a three-sport athlete, class president, a theater lover, a member of chemistry club, and a die-hard Syracuse basketball fan, it is one of the many pieces that make up the puzzle of my life. Now, as I look into my kitchen drawer filled with dozens of my cards from over the years, it is apparent how much I have changed. One card, a creation for my older brothers eleventh birthday, uses the mature  ­elements of Crayola crayons and pink glitter, while a recent one with a striking design was placed under my  ­family Christmas tree this year. It contains three-dimensional aspects including faux poinsettias, gold embellished rope, and seasonal holly. The drastic difference between the two makes me realize how much I have grown in the years separating the two creations. I have developed in my academic prowess, traveled to many parts of the world, led my peers in the classroom and on the playing field, and lost some of the most significant people in my life. So much has changed, yet here I am, still doing something that I love for those I care about most. Now, Im not going to lie and say that making greeting cards has been a paramount learning experience in my life or that it has educated me about a deep psychological connection with the world. However, it has taught me not to sacrifice something I love just because I have grown older. It has  ­always been an ideal example of sticking to who I am. As I look ahead to the next four years of my life and beyond, I am incredibly eager to find something new to add to my repertoire that I am not only known for, but that I also love.