Review On Risk Management Of An Organization Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1762 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The credit risk management is analyzed by the authentic documents/legal documentation of the banks or any organization as it deals with the sensitive issues of any bank or organization The legal documentation of the bank includes the term papers for different purpose utilized by the bank for the instance, the bank provide different products or we can say financial products. These legal documents include Financial statements Profit loss statements Quarterly Reports Equability share Reports Investment Reports. Dividends Reports The data analysis factors are very much important in understanding the credit risk and credit management of any organization in short/long term planning. Don’t waste time! Our writers will create an original "Review On Risk Management Of An Organization Finance Essay" essay for you Create order The credit risk management is done by the different things. Is is done by the customer satisfaction which is don by the review of different factors created by the credit risk. The utility of the credit risk management is usually the settlement of the causes of failures that can be caused by the credit risks. The credit risk management has a very vast area under its cover. It involve the factors which are created by the customers needs and can be overcome by doing the customer satisfaction management. The credit receiving is often taken to grant which help to put in plain words the needs of diplomacy. The first point of the credit control which should be kept in mind is to recognize the cost of credit and its various effects on the profit loss of the organization. By analyzing the credit risk we can conclude the banking risk that can be faced by the organization at various level of credit control process. Credit risk management is also very useful analyzing lacks that c an occur during the credit control policy of any origination The Objective of Study The key purpose of getting through this issue is to understand and analyze that how a bank or an organization can get itself out of the credit risks issue by applying the credit risk management inside and outside the organization A bank or an organization can overcome the credit risks that can cause serious credit damages to its credit policy by having a proper look at the following analyzing and understanding the present situation of the surrounding that can cause the credit risks to the organization adopting the favorable method to overcome the credit risks that are analyzed by the organization in the present situation Building a strong relationship between the different conceptual methods adopted to overcome the credit risks of the organization. creating an environment and a effective method to overcome the credit risks at the earliest Analyzing the range of damage that a credit risk can cause to the organization and then setting the priorities in this regards to wash out the credit risk of the organization. The Research Methodology The methodology is all about the techniques and explaining the various kind of tools that can be utilized to overcome or lessen the effects of the credit risks that causes the credit damage to the organization during its implementation of the credit risk management policy. In short we can say it is the way that describes the way-out from the credit risks of the organization or a banking sector. It can be done by taking in account the following: The risk management methodology is all about differentiating the function or system. The basic is tackle hazards faced by the organizations work or business function overcome by providing the valid and handing techniques This is inevitable for clearing the organizations task understanding and system operations and it works out with the limitations of IT assets and information concerned to it which contain the business / techniques useful for the system the complete and valid Information infrastructure the understanding of s ystem or application data compassion the actual picture of the Data Flow(s) Interfaces to exterior systems The useful System hardware software for the banking business The Processes done by the system to achieve the aims and goals of the organization to overcome the credit risks The practical Users of the system Valid system policies to run the system Authentic system security and the information necessities of the system The Content deals with the following: h approach to the overall risks in front of the organization. big risks and uncertainties various projects of an organization may have organization may have some physical assets greater depth than high level assessment by senior company executives Indispensable Requirements A commercial risk strategy Signed off by the Managing director or Chief Executive On paper policy of an organization Consistent high level support MODULES OF RISK Variability The effects of various unforeseen events that included in estimated project costs Uncertainty Be clear in acknowledging the banking models variations in projected project costs Constraints might involve The overall Organizational culture human factors The method adopted by the organization related to the Communications The Information involves in the process might be partial or non existent Assessment may not be conceptualized Information might be approximated in the short and long term The different Surprises faced at different times Areas of Uncertainty In launching of the fresh projects Validating Operating plants/facilities Defining Uncertainty in short and long terms If project uncertainty has not be defined then on a project basis we can use: Project novelty approach Design status approach Can use for both capital and operational uncertainty Quantitative evaluation Define level of aggregation desegregation Will be at a higher level than for a detailed project uncertainty analysis Use Monte Carlo calculation Here we can discuss some points that are the subject to the project management which are useful for overcoming into the context of the business organization in short and long run having all the possibilities taken under the considerations If we go along planning something we must look in doing something, searching something and creating steps to sort out our planning by having proper planning which we called the proper management if done for credit risk management the banking organizatio ns must be evaluated properly. The following questions should be taken under consideration What we are planning to do in managing the risk management? What is our approach in doing it? When is the right time to do the start? What are the prerequisites of doing? What time period will it require? What will be the cost require to complete it? These questions are usually asked at initiating of each project and answers are the structures on which the whole project stands clarifying what we need to do and what we want to achieve in short term planning and long term planning. Structured project management means to handle the project in logical well defined and applicable method adopted These questions are actually the prerequisite for almost every project to initiate and directed towards the right direction supported by the right equipments and methods adopted in such a way that the project goes the right direction towards goal achieving. Hypothesis Testing. Research Design: The risk management is done by the bank for achieving the following main objectives. To increase the income or profit of the bank To reduce the losses of the banks The above mentioned objectives are basic and vital for every bank in the world and we can say that almost every bank is created to do the above mentioned things. For achieving these the following hypothesis are done mainly stuffy the following Hypothesis: Mostly the banks have high range of profit and lower percentage of losses as far as the loans are concerned that are issued by the banks The banks which have higher percentage of income will obviously have the lower bad loans The following equation represents what we said in the above two points P (ROA, ROE) = ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²NPL/TL+ µ Where as NPL= non performing Loans TL= the total laon P= profitability ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± = intercept ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² = parameter explaining ROA ROE  µ = disturbance Data description The data is utilized that is provided by the concern banks in this regard. The time series analysis of the five year financial plan is very effective to figure out the exact picture of the present state of the risks that are faced and that can be faced by the organization or a bank The credit risk is taken under the consideration for each and every documentation of the banks/organization. Financial Reports. There are many ways to understand the banking ability and position. The financial reports are of main corkin which are made after analysis of the financial reports by the banks. Types of Financial Reports. There are many types of financial reports two of which are of mains converse 1. Yearly Financial Reports. The yearly financial reports include. The complete profit/loss of the organization financial statements are also included in the report The complete profit/Loss report is created at the end of the fiscal year which covers in the yearly financial report. 2. Quarterly Financial Reports The quarterly financial reports are done to have a quick view on the performance of the organizations or the bank. 3. Half Quarterly Reports The half quarterly report is created to have a quick and focused view on some certain products and products appreciation of the bank or any organizations. The Bank offers loans and launches different products which involves in the credit risk. The loans are the major concern which are very much involved in the credit risk. The recovery of the loans must be ensured by getting the proper security to avoid any risks caused by the loss due to loan non-recovery. The credit risk in the market is very much open. Launching more and more new products the possibility of the more and more credit risk can be faced by the organization or the bank. To avoid such risk the proper risk management should done to avoid the risks in these circumstances. CONCLUSION AND SUGGESTIONS Conclusion: In the last we can say that the banks make into use the various tools and techniques to overcome the credit risk and almost all the banks in the world occupy the common objective of having greater profit and lesser losses in the financing. They do usually long term planning in this regard SUGGESTIONS: However the banks are very well organized and proper functioning organizations but the following suggestions must taken in account to figure out the risk and are the elements of the risk management Applying the proper portfolio of planning and managing the organization in the long term policies. Developing the foundation for credit sanction policy Making the up-to-date payment informations available to the clients and banking authorities by adopting the effective software and tools

Death of a Salesman by Arthur Miller - 1270 Words

Traditional families structure themselves such that the husband is the powerhouse of the family, but this is not always the case. The play, Death of a Salesman by Arthur Miller, and the poem, â€Å"Eating Together† by Li-Young Lee, illustrate how some women possess the ability to be the greatest support for their families. Linda and the wife in the poem both have the potential to be the cornerstone of their families because they both endure relationships with husbands who choose to end their lives instead of staying strong when faced with difficulties in life. Linda is capable of being the head of her family because Willy’s delusions made the realist inside of her come out, strengthening her character as a whole. Arthur Miller characterizes Willy as a man who did not have his values in order, weakening his credibility as an effective role model and father. One of these values, brawn over brains, is shown when Willy says, â€Å"†¦ I thank Almighty God you†™re both built like Adonises† (21). This type of illogical thinking is what Linda deals with every day, but she is able to keep her family in order. When Willy complains that there is no one in the house now that they have paid it all off, Linda says, â€Å"†¦life is a casting off. It’s always that way† (5). Linda’s statement of the truth not only brings Willy to reality, but it also foreshadows the cast off of Willy. That night, Linda suggests that Willy eat some of the American cheese on the middle shelf. Arthur Miller uses theShow MoreRelatedDeath Of A Salesman By Arthur Miller1387 Words   |  6 PagesAmerican play-write Arthur Miller, is undoubtedly Death of a Salesman. Arthur Miller wrote Death of a Salesman in 1949 at the time when America was evolving into an economic powerhouse. Arthur Miller critiques the system of capitalism and he also tells of the reality of the American Dream. Not only does he do these things, but he brings to l ight the idea of the dysfunctional family. Death of a Salesman is one of America’s saddest tragedies. In Arthur Miller’s, Death of a Salesman, three major eventsRead MoreDeath Of A Salesman By Arthur Miller888 Words   |  4 PagesDeath of a Salesman† is a play written by Arthur Miller in the year 1949. The play revolves around a desperate salesman, Willy Loman. Loman is delusioned and most of the things he does make him to appear as a man who is living in his own world away from other people. He is disturbed by the fact that he cannot let go his former self. His wife Linda is sad and lonely; his youngest son Biff is presented as a swinger/player while his eldest son Happy appears anti-business and confused by the behaviorRead MoreDeath of Salesman by Arthur Miller972 Words   |  4 PagesIn the play Death of a Salesman by the playwright Arthur Miller, the use of names is significant to the characters themselves. 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The play involves four main characters, Biff, Happy, Linda, and Willy Loman, an ordinary family trying to live the American Dream. Throughout the play however, the family begins to show that through their endeavors to live the American Dream, they are only hurting their selves. The play begins by hinting at Willy’s suicidal attempts as the play begins with Linda askingRead MoreDeath Of A Salesman By Arthur Miller1628 Words   |  7 PagesArthur Miller wrote the Pulitzer Prize winning play Death of a Salesman in 1949. The play inflated the myth of the American Dream of prosperity and recognition, that hard work and integrity brings, but the play compels the world to see the ugly truth that capitalism and the materialistic world distort honesty and moral ethics. The play is a guide toward contemporary themes foreseen of the twentieth century, which are veiled with greed, power, and betrayal. Miller’s influence with the play spreadRead MoreDeath Of A Salesman By Arthur Miller Essay2538 Words   |  11 PagesSurname 1 McCain Student’s Name: Instructor’s Name: Course: Date: Death of a Salesman Death of a salesman is a literature play written by American author Arthur Miller. The play was first published in the year 1949 and premiered on Broadway in the same year. Since then, it has had several performances. It has also received a lot of accordances and won numerous awards for its literature merit including the coveted Pulitzer for drama. The play is regarded by many critics as the perfectRead MoreDeath Of Salesman By Arthur Miller1475 Words   |  6 Pagesto death to achieve their so- called American dream. They live alone and there is no love of parents and siblings. They may have not noticed the America dream costs them so much, which will cause a bigger regret later. In the play Death of Salesman, Arthur Miller brings a great story of a man who is at very older age and still works hard to achieve his desire, which is the American dream. Later, he notices that his youth is gone and there is less energy in his body. Willy Loman is a salesman, whoRead MoreDeath Of A Sales man By Arthur Miller2081 Words   |  9 Pages#1 â€Å"Death of a Salesman† by Arthur Miller is a tragedy, this play has only two acts and does not include scenes in the acts. Instead of cutting from scene to scene, there is a description of how the lighting focuses on a different place or time-period, which from there, they continue on in a different setting. The play doesn’t go in chronological order. A lot of the play is present in Willy’s flashbacks or memories of events. This provides an explanation of why the characters are acting a certain

Mr.Rodgers Essay Example For Students

Mr.Rodgers Essay He basically saved public television. In 1969 the government wanted to cut public television funds. Mister Rogers then went to Washington where he gave an amazing merely six minute speech. By the end of the speech not only did he charm the hostile Senators, he got them to double the budget they would have initially cut down. The whole thing can be found on youtube, a video called ?Mister Rogers defending PBS to the US Senate.Certain fundamentalist preachers hated him because, apparently not getting the ?kindest man who ever lived? memo, they would ask him to denounce homosexuals. Mr. Rogers?s response? He?d pat the target on the shoulder and say, ?God loves you just as you are.? Rogers even belonged to a ?More Light? congregation in Pittsburgh, a part of the Presbyterian Church dedicated to welcoming LGBT persons to full participation in the church.?According to a TV Guide piece on him, Fred Rogers drove a plain old Impala for years. One day, however, the car was stolen from the stre et near the TV station. When Rogers filed a police report, the story was picked up by every newspaper, radio and media outlet around town. Amazingly, within 48 hours the car was left in the exact spot where it was taken from, with an apology on the dashboard. It read, ?If we?d known it was yours, we never would have taken it.?Once, on a fancy trip up to a PBS exec?s house, he heard the limo driver was going to wait outside for 2 hours, so he insisted the driver come in and join them (which flustered the host). On the way back, Rogers sat up front, and when he learned that they were passing the driver?s home on the way, he asked if they could stop in to meet his family. According to the driver, it was one of the best nights of his life?the house supposedly lit up when Rogers arrived, and he played jazz piano and bantered with them late into the night. Further, like with the reporters, Rogers sent him notes and kept in touch with the driver for the rest of his life.

Virgin Group free essay sample

Introduction This report closely examines the Virgin Group’s corporate strategy / rationale and identifies the relationships namely of strategic nature within the Virgin Empire. Virgin’s value adding qualities shall be discussed and the main issues faced by Virgin shall be identified and categorically solutions recommended respectively. Corporate Rationale The Virgin Group comprises of an assorted mix of businesses. It has its â€Å"finger in every pie†, so to speak. The Virgin has group diversified into 200 businesses. Please see Figure 1 below: {draw:frame} Figure 1 The Virgin Group Sir Richard Branson, founder of Virgin in 1970 is in the author’s opinion the single most important ingredient to all the success that has been reaped up-to-date. As the saying goes ‘you reap what you sow’ thus, corporate rationale is merely a projection of Sir Richard Branson’s own personal philosophy, which he has sown into the fabric of corporate rational. A personal philosophy and a personal persona that is revered and respected by the British public and beyond. Sir Richard Branson’s high profile already won over the general public and almost anything he would pursue or was associated with would be given the benefit of the doubt. Thus the word Virgin and Sir Richard Branson are almost interchangeable. The Virgin brand name is by far the most important asset to the company. Being known as the â€Å"customers’ champion† inevitably has done wonders for public relations. This fact was capitalized on; in British advertisements for Apple Computers. Sir Richard Branson was associated with great names such as Einstein and Ghandi, and featured as a ‘shaper of the 20th century’. Sir Richard Branson, tired of the public listings obligations and corporate bureaucracy sought to take the business back into private ownership. His understandings lead him to believe that sacrificing short-term profits for long-term growth was the way the business should be geared. As for corporate bureaucracy its significance in the Virgin Group, was reduced profoundly. No real sense of management hierarchy can be found in the group except for when it comes to marketing and promotion issues, Sir Richard Branson would take a more involved role. Therefore Sir Richard Branson adopted a ‘hands-off’ policy with his managers and by doing so, encouraged their own initiatives. By proving such freedom, managers would inevitably feel more of a sense of responsibility, ownership and would try their up most to make a success of it. Sir Richard Branson knew this fact. He was providing an enriching atmosphere in which managers would flourish just as he had done. It’s not surprising then, that management recruited carefully selected individuals to be innovative people, pioneers in their field, and to have the competitive streak in their personalities. It was also of importance for candidates to be able to share values and to work effectively as team players. It is the author’s opinion that Sir Richard Branson employed managers who were made up of his image; in terms of personal characteristics and persona. The key emphasis was in innovation and differentiation. The aim was to offer more for less and that each company was truly a Virgin in its own field. Although to some this notion may seem a bit too good to be true, no one can deny that â€Å"the Virgin Group is one of the UK’s largest private companies† (with reference to the case study) with an annual turnover (estimated) at ? 3bn by the year 2000. The Virgin Group’s rationale is to diversify into as many markets feasible, and extend the Virgin brand name further at a low cost; where stature could be relied upon to reduce barriers to entry into static markets. The Virgin Group sought a challenge in ever venture. They would aim to provide better quality products than any competitor in a complacent market. The key point is that the market to be entered must be still in its growing phase. The alluring factor to Virgin’s Greenfield start-ups is the â€Å"reward-to-risk† ratio, which could be acted upon by the experienced and capable Virgin management team. To establish the virginity of a venture, so to speak in an institutionalised market extensive research was conducted into the static market to derive whether some sort of niche can be achieved and thus satisfied. Sir Richard Branson and his team deployed their 5 point criteria, to which 4 out of the 5 must be met by a new venture before giving the final go ahead. Strategic Relationships All the business in the Virgin Group is strategically targeted towards a â€Å"five pillar† empire system that Sir Richard Branson is eager to create. At â€Å"the heart of Virgin’s core strategy to develop the five pillars of the business empire: travel, leisure, mobile phones, entertainment retailing and personal finance†. (Press Releases 30/01/02, http://www. virginmoney. com/newscentre/news2002_3. html) As you can see displayed in Figure 1 (on page 1) all the ventures have inherited the Virgin name. What’s in a one might ask? There answer to that question is an exceptionally well marketed, promoted and trusted brand name. Brand was the single most important asset of the company† (Case Study Page 4, Paragraph 1) By giving a venture the prefix of Virgin; is to send out a message to the consumer to say out loud this new business is a â€Å"virgin† in its market place, â€Å"fun†, â€Å"innovative†, â€Å"daring†. It also has the effect of transferring all the marketing and promotional endeavors up to the present for that specific venture respectively. As the author has previou sly mentioned the name Virgin has become synonymous with Sir Richard Branson’s name. The British public can immediately identify the roots to any Virgin advance as Sir Richard Branson’s very own. This is Sir Richard Branson’s key psychological strategy; and as you are acquainted by now, Sir Richard Branson plays a more interactive role into affairs of marketing and promotion; because aside from his indubitable genius marketing and promotion of the Virgin brand name is the Holy Grail to the expansion of the Virgin Empire. Thus many businesses outside the Virgin Group have shown their interest through joint ventures. Examples of the power of the Virgin brand name can be concluded from the various joint ventures that have been formed. For example Virgin’s pledge in the Virgin Direct affair, was a mere ? 15m for the initial investment. But AMP Limited the leading international financial services initial investment was an extensive ? 450m; and yet it is a 50-50 joint venture! All business within the Virgin Empire as mentioned in the Corporate Rationale section sacrificed short-term profits to gain long term growth and used an autonomous business level decision making method. Managers are free to make decisions independently for growth and feel the same degree of ownership and values that any other manager in the Virgin group would feel. Businesses were ‘ring-fenced’ so that assets could not be switched between companies in the Virgin Group and if a company became too large another company would be spun off, in its place. Value Adding The Virgin Group, as a corporate parent does value to its business. It is achieved by the following points: Understanding of institutionalized Markets Virgin’s management team has done well in identifying complacency in the market. It is this expertise/experience coupled with the strategy to offer more for less that has help the Group plough through complacent business industries. Virgin brand name to overcome barriers to entry The Virgin brand name is a consumer’s champion and as mentioned previously is a much respected brand with the British public. Limiting Risk in joint Ventures Any company, corporation or organization in a joint venture with the Virgin Group has the benefit of limiting its risk in the market place. This reiterates the point made in the last paragraph. Management is not restricted A flat management structure helps encourage innovation; provides flexibility and promotes the values of shared ownership and responsibility. InnovationVirgin’s senior staff consists of individuals with successful careers. The Group acquires like-minded partners in ventures who match their ability to innovate and differentiate. These collective innovative thoughts and ideas are applied directly into business; which most often bear fruit. For example Virgin Mobile formulated partnerships with existing telecommunications operators to retail in mobile services. The Virgin management team successfully identified that the complacency was in the handling of network management. Their innovation led them to promote unique services that shock-up the market. These included â€Å"no line rentals†, â€Å"no monthly fees† and â€Å"cheaper prepaid† offers. Irrespective of the fact that Virgin Mobile did not actually operate it own network it had won the best wireless in the UK. The Main Issues Facing the Virgin Group Virgin Atlantic The airline industry like many industries is cyclic. This proved to be dangerous by 2001, as Virgin seemed to rely entirely on the profits of Virgin Atlantic. Deregulation increased the competition in the market place. All in all most compositors were experiencing losses. Virgin Rail The biggest problem faced by the Virgin Group was the Strategic Rail Authority’s Review in 2000 because it was the most public. Virgin Rail was voted the most â€Å"unpopular† rail operator; and if that wasn’t enough the statistics: Virgin ranked 23rd and 24th out of 25 operators, was ample reason for Sir Richard Branson to feel a stake go through his reputation. Slowly but surely Virgin’s prized brand name was being slowly chipped away by the press. The Virgin Group being such a large empire of 200 businesses was wonderful publicity when things were going right but all it took is for a hand full of businesses in the empire to either experience unavoidable consequences, which is the case of Virgin Atlantic and bad service and publicity as was the case with Virgin Rail for it to have quite disastrous effects on other areas of the group. Public confidence is such a delicate matter. Recommendations Become Less Diverse Virgin should become less diverse. Its name has become diluted and its brand a purely endorsement brand. Lessons for the analysis of the environment must be learned. For example brand name alone isn’t enough. The pubic are sensitive and are attuned corporate strategies given time. Virgin as a corporate parent can add workable value to its businesses by investing and developing real expertise. Trying to limit risk is a knife that is sharp on both sides. On the one side it inevitably â€Å"limits risk†. On the other hand it sends out a contradictory signal to consumers. How can Virgin be â€Å"daring† when Sir Richard Branson’s value adding process is to limit risk? That is a question we should work towards eradicating. Change in Strategy The Virgin Group should change its policy to accommodate both independent and joint ventures to rely upon short-term profits on a few of its businesses for the sake of raises capital and release the ‘ring-fenced’ policy so that important revenue making Virgin Atlantic can be bailed out during the low times. Monies can be returned to the short-term ventures when the busy season arrives. The idea is to not restrict you to a policy of philosophy. Philosophies and policies should be such that can strategically change with time and environment. Accounting Year End Every effort should be made to bring in line the accounting year end date for all businesses in the Virgin Group to be on the same date. This shall aid towards providing a better picture of the health and wealth of the empire.