Assignment 1 Case Study Example | Topics and Well Written Essays - 500 words

Assignment 1 - Case Study Example 1). Using positioning strategy, retailers are making consumers aware of an expected increase in the prices of chicken products. They are also making consumers aware of the reason behind the increase in order to satisfy them. In the article, it is evident that Australian meat producers have researched the market to know the reason behind the expected increase in the chicken price. The research shows that chicken meat is one of the most favorite proteins of Australians who like to eat loads of chicken per year. Through research about prices, the meat producers have concluded that a significant increase in the international grain prices over the last three months is going to increase the chicken price in the Australian markets. Moreover, they have also researched about other products, such as, wheat the prices of which have increased by $100 a ton recently which is nearly a thirty percent increase in wheat prices. However, they say that chicken prices are not going to increase by more than five percent. Again, the producers are trying to make a good use of positioning to make consumers aware of the overall expected increase in prices. Another concept of marketing evident from the article is market equilibrium. According to Ali (2011), the difference between demand and supply has always a huge impact on overall market. The producers know that increased white meat prices will force consumers to eat red meat that will cause a decrease in the demand of white meat. The producers are trying to use this concept by saying that a decrease in the demand of white meat because of increased chicken prices will force suppliers to reduce feed prices which will consequently decrease the price of chicken in the Australian

Sport success in qatar Essay Example | Topics and Well Written Essays - 1000 words

Sport success in qatar - Essay Example s success in sports improve as it started by building sports city, creating a national day for sports in its calendar, apart from hosting the world cup football and the Doha athletic world championship. The Federation for International Football Association (FIFA), is the international governing body of football, with headquarters based in Zurich (Simon, 2013). The foundation was founded in 1904 under the Swiss law. It has a total of 209 member association, of which, Qatar is one among the number. One of its goals is to constantly improve football through sponsorship, promotion, and organization. The body employs over 305 people from more than 35 nations, and it is composed of the Congress, Executive Committee, General Secretariat, and the committees in charge of assisting the executive body. Through its executive committee, FIFA carries out world cup hosting biddings in accordance with the FIFA Provisions and Statutes. Four years ago, FIFAs Executive Committee announced Qatar the winner of the 2022 world cup hosting, a competition that was highly contended. The Executive Committee, however, confirmed that the exact date for this hosting will be discussed in their meeting in March 2015. While awaiting that decision, the task force responsible for the international match calendar of 2018-2022 and the 2022 FIFA World Cup Qatars team, chaired by the President of the AFC Shk. Salman bin Ebrahim al-Khalifa will hold a prior meeting in Doha, in February of 2015 (FIFA.com, 2014). The FIFA Executive Committee confirmed to strongly support the creating of an independent body that will oversee the process of implementation of the reform program in Qatar regarding the issues of labor rights. This will take place in support of the recommendation put across by the DLA Piper report. This report also gave mandate to the FIFA President Blatter, with Dr. Theo Swanziger to go ahead with and discuss this issue with the political authorities of Qatar and be sure that the

Smile Now, Cry Later Essay Example for Free

Smile Now, Cry Later Essay Gangs are becoming a growing problem within American society. â€Å"In 2002 more than 877,700 young people between the age of 10 to 24 were injured from violent acts, and 79% of homicide victims ages 10 to 24 were killed with firearms† (Youth Violence: Fact Sheet 3). Young people are turning to gangs as a way to solve problems in their lives, problems such as: poverty, home violence, peer pressure, forced them to seek for power, money, respect, protection or simply love on the streets. the majority of gang members have been exposed or have suffered violence in their homes. When youths join gangs, social activities with friends, and school. Gang members tend to fall behind their classmates in school and do not try to stick around. They lost their motivation, interests and see school like a part of the problem and not like a solution. The majority of gang members are illiterate because they drop out of school at a very young age. Most of them have or are related with drugs, which destroy their lives and their chances for a good education and better life. Teenagers are joining gangs every day, becoming a problem in ghettos, urban areas and neighborhoods. They can be found in about every city in the United States. One thing that all the gangs have in common is that According to Luis J. Rodriguez’s book, Always Running ‘’La Vida Loca or The Crazy Life†, â€Å"the barrio gang experience, originated with the Mexican Pachuco gangs of the 1930s and 1940s and was later recreated with the cholos† (5). The cholos, one of the most prominent and violent gangs in southern California region, still attract more and more teenagers. Teens usually join gangs in an attempt to correct both the social and emotional problems in their lives. There are many complex reasons kids join gangs: the majority grew up in broken families without a father or a mother to look up to when everything went chaotic and family conflicts present. These kids have a very low-self esteem due to the poor family function. They join in order to find love and acceptance. They see gangs as a surrogate, or substitute family, and they find in the streets what they don’t have at home. They also join gangs to gain power, money and respect eventually by getting into fights and killing each other. They often join gangs because they want to feel that they fit in somewhere, feeling rejected in more common situations due to their cultural heritage, religious believes, sex, or race. They join gangs as a way to protect themselves from discrimination, racism, prejudice, and to find acceptance among other members of the gang. Gangs are one of the results of urban deterioration that’s why we see some communities more affected than others. Gangs are a violent reality that people have to deal with today because gangs are a direct result of human beings personal wants and peer pressure. These issues can be identify by looking at the way humans are influenced in society, because I truly believe there is good evidence to point the blame at several institutions including the power that the media has in our society, the government, drugs and our economic system.

Credit Risk Management in the UK Banking Sector

Credit Risk Management in the UK Banking Sector Background 3 Literature Review 7 Ascertaining why and how banking credit risk exposure is evolving recently 8 Seeing how banks use credit risk evaluation and assessment tools to mitigate their credit risk exposure 11 The steps and methodologies used by banks to identify, plan, map out, define a framework, develop an analysis and mitigate credit risk 13 Determine the relationship between the theories, concepts and models of credit risk management and what goes on practically in the banking world 17 Ascertain the scope to which resourceful credit risk management can perk up bank performance 19 To evaluate how regulators and government are assisting the banks to identify, mitigate credit risk, and helping to adopt the risk-based strategies to increase their profitability, and offering assistance on continuous basis 20 Research Methodology 21 Analysis 23 Ascertaining why and how banking credit risk exposure is evolving recently 23 Seeing how banks use credit risk evaluation and assessment tools to mitigate their credit risk exposure 25 The steps and methodologies used by banks to identify, plan, map out, define a framework, develop an analysis and mitigate credit risk 31 Determine the relationship between the theories, concepts and models of credit risk management and what goes on practically in the banking world 35 Ascertain the scope to which resourceful credit risk management can perk up bank performance 38 To evaluate how regulators and government are assisting the banks to identify, mitigate credit risk, and helping to adopt the risk-based strategies to increase their profitability, and offering assistance on continuous basis 40 Primary Survey 45 Conclusions 46 Recommendations 50 Bibliography 56 Background The sub-prime mortgage meltdown that hit the global banking sector in 2007, was a result of circumstances, actions and repercussions that began years earlier (Long, 2007). It, the sub-prime mortgage crisis, was based on unsound ground from its inception. Sub-prime mortgages represent loans made to borrowers that have lower ratings in their credit than the norm (investopedia, 2007). Due to the lower borrower credit rating, they do not qualify for what is termed as a conventional mortgage due to default risk (investopedia, 2007). Sub-prime mortgages thus carry a higher interest rate to off set the risk increase, which helped to fuel the United States economy through increased home ownership, and the attendant spending that accompanies it (Bajaj and Nixon, 2006). Implemented by the Bush administration in the United States to get the economy rolling after the recession fuelled by the September 11th air attacks, the entire plan began to backfire as early as 2004 as a result of the continu ed building of new housing without the demand (Norris, 2008). The new construction glutted the market bringing down house prices. This, coupled with a slowing economy in the United States resulted in layoffs, as well as many subprime mortgage holders defaulting on their loans, and the crisis ballooned. Some attribute the over lending of subprime mortgages to predatory lending (Squires, 2004, pp. 81-87) along with the underlying faults of using it as an economic stimulus package that did not control the limits on new housing (Cocheo, 2007). That set of circumstances represented the cause of the subprime mortgage crisis that spread globally as a result of the tightening of credit due to defaulted loan sell offs and restricted banking lending ceilings caused by the Basel II Accords (Peterson, 2005). The complexity of the foregoing shall be further explained in the Literature Review section of this study. The preceding summary journey through the subprime mortgage crisis was conducted to reveal the manner in which banking credit crunches can and do occur. The significance of the foregoing to this study represents an example to awaken us to the external factors that can and do cause banking credit crisis situations, thus revealing that despite good management practices such events can m anifest themselves. It is also true that poor or lax banking practices can have the same effects. Credit risk management represents the assessing of the risk in pursuing a certain course, and or courses of action (Powell, 2004). In addition to the foregoing U.S. created subprime mortgage crisis, the appearance of new forms of financial instruments has and is causing a problem in credit risk management with regard to the banking sector. As the worlds second largest financial centre, the United Kingdom is subject to transaction volumes that increase the risks the banking sector takes as so many new forms of financial instruments land there first. McClave (1996, p. 15) provides us with an understanding of bank risk that opens the realm to give us an overview of the problem by telling us: Banks must manage risk more objectively, using quantitative skills to understand portfolio data and to predict portfolio performance. As a result, risk management will become more process-oriented and less dependent on individuals. Angelopoulos and Mourdoukoutas (2001, p. 11) amplify the preceding in stating that Banking risk management is both a philosophical and an operational issue. They add: As a philosophical issue, banking risk management is about attitudes towards risk and the payoff associated with it, and strategies in dealing with them. As an operational issue, risk management is about the identification and classification of banking risks, and methods and procedures to measure, monitor, and control them. (Angelopoulos and Mourdoukoutas, 2001, p. 11) In concluding, Angelopoulos and Mourdoukoutas (2001, p. 11) tell us that the two approaches are in reality not divorced, and or independent form each other, and that attitudes concerning risk contribute to determining the guidelines for the measurement of risk as well as its control and monitoring. The research that has been conducted has been gathered to address credit risk management in the United Kingdom banking sector. In order to equate such, data has been gathered from all salient sources, regardless of their locale as basic banking procedures remain constant worldwide. References specific to the European Union and the United Kingdom were employed in those instances when the nuances of legislation, laws, policies and related factors dictated and evidenced a deviance that was specific. In terms of importance, credit risk is one of the most important functions in banking as it represents the foundation of how banks earn money from deposited funds they are entrusted with. This being the case, the manner in which banks manage their credit risk is a critical component of their performance over the near term as well as long term. The implications are that todays decisions impact the future, thus banks cannot approach current profitability without taking measures to ensure that decisions made in the present do not impact them negatively in the future (Comptroller of the Currency, 2001). A well designed, functioning and managed credit risk rating system promotes the safety of a bank as well as soundness in terms of making informed decisions (Comptroller of the Currency, 2001). The system works by measuring the different types of credit risk through dividing them into groups that differentiate risk by the risk posed. This enables management as well as bank examiners to mon itor trends and changes to risk exposure, and this minimise risk through diversifying the types of risk taken on through separation (Comptroller of the Currency, 2001). The types of credit risks a bank faces represents a broad array of standard, meaning old and establishes sources, as well as new fields that are developing, gaining favour, and or impacting banks as a result of the tightness of international banking that creates a ripple effect. The aforementioned subprime crisis had such an effect in that the closeness of the international banking community accelerated developments. The deregulation of banking has increased the risk stakes for banks as they now are able to engage in a broad array of lending and investment practices (Dorfman, 1997, pp. 67-73). Banking credit risk has been impacted by technology, which was one of the contributing factors in the subprime crisis (Sraeel, 2008). Technology impacts banks on both sides of the coin in that computing power and new software permits banks to devise and utilise historical risk calculations in equating present risk forms. However, as it is with all formulas, they are only as effective as the par ameters entered (Willis, 2003). The interconnected nature of the global banking system means that bank risk has increased as a result of the quick manner in which financial instruments, credit risk transfer, and other systems, and or forms of risk are handled. The Bank for International Settlements led a committee that looked into Payment and Settlement Systems, which impacts all forms of banking credit risk, both new forms as well as long standing established ones in loans, investments and other fields (TransactionDirectory.com, 2008). The report indicates that while technology and communication systems are and have increased the efficiency of banking through internal management as well as banking systems, these same areas, technology and communications systems also have and are contributing to risk. The complexity of the issues that arise in a discussion of credit risk management means that there are many terms that are applicable to the foregoing that are banking industry specific to this area. In presenting this material, it was deemed that these special terms would have more impact if they were explained, in terms of their context, as they occur to ease the task of digesting the information. This study will examine credit risk management in the UK banking sector, and the foregoing thus will take into account banking regulations, legislation, external and internal factors that impact upon this. Literature Review The areas to be covered by this study in relationship to the topic area Credit Risk Management in the UK Banking Sector entails looking at as well as examining it using a number of assessment and analysis points, as represented by the following: Ascertaining why and how banking credit risk exposure is evolving recently. Seeing how banks use credit risk evaluation and assessment tools to mitigate their credit risk exposure. The steps and methodologies used by banks to identify, plan, map out, define a framework, develop an analysis and mitigate credit risk. Determine the relationship between the theories, concepts and models of credit risk management and what goes on practically in the banking world. Ascertain the scope to which resourceful credit risk management can perk up bank performance. To evaluate how regulators and government are assisting the banks to identify, mitigate credit risk, and helping to adopt the risk-based strategies to increase their profitability, and offering assistance on continuous basis. The foregoing also represents the research methodology, which shall be further examined in section 3.0. These aspects have been included here as they represented the focus of the Literature Review, thus dictating the approach. The following review of literature contains segments of the information found on the aforementioned five areas, with the remainder referred to in the Analysis section of this study. Ascertaining why and how banking credit risk exposure is evolving recently. In a report generated by the Bank for International Settlements stated that while transactional costs have been reduced as a result of advanced communication systems, the other side of this development has seen an increase with regard to the potential for disruptions to spread quickly and widely across multiple systems (TransactionDirectory.com, 2008). The Report goes onto add that concerns regarding the speed in which transactions occur is not reflected adequately in risk controls, stress tests, crisis management procedures as well as contingency funding plans (TransactionDirectory.com, 2008). The speed at which transactions happen means that varied forms of risk can move through the banking system in such a manner so as to spread broadly before the impact of these transactions is known, as was the case with the subprime mortgage crisis debt layoff. One of the critical problems in the subprime crisis was that it represented a classic recent example of the ripple effect caused by rapid interbanking communications, and credit risk transfer. When the U.S. housing bubble burst, refinance terms could not cover the dropping house prices thus leading to defaults. The revaluation of housing prices as a result of overbuilding forced a correction in the U.S. housing market that drove prices in many cases below the assessed mortgage value (Amadeo, 2007). The subprime mortgage problem was further exacerbated by mortgage packages such as fixed rate, balloon, adjustable rate, cash-out and other forms that the failure of the U.S. housing market impacted (Demyanyk and Van Hemert, 2007). As defaults increased banks sold off their positions in bad as well as good loans they deemed as risks as collateralised debt obligations and sold them to differing investor groups (Eckman, 2008). Some of these collateralised debt obligations, containing subprim e and other mortgages, were re-bundled and sold again on margin to still another set of investors looking for high returns, sometimes putting down $1 million on a $100 million package and borrowing the rest (Eckman, 2008). When default set in, margins calls began, and the house of cards started caving in. Derivatives represent another risk form that has increased banking exposure. The preceding statement is made because new forms of derivatives are being created all of the time (Culp. 2001, p. 215). Derivatives are not new, they have existed since the 1600s in a rudimentary form as predetermined prices for the future delivery of farming products (Ivkovic, 2008). Ironically, derivatives are utilised in todays financial sector to reduce risk via changing the financial exposure, along with reducing transaction costs (Minehan and Simons, 1995). In summary, some of the uses of derivatives entail taking basic financial instruments as represented by bonds, loans and stocks, as a few examples, and then isolating basic facets such as their agreement to pay, agreements to receive or exchange cash as well as other considerations (financial) and packaging them is financial instruments (Molvar, et al, 1995). While derivatives, in theory, help to spread risk, spreading risk is exactly what caused t he subprime meltdown as the risk from U.S. mortgage were bundled and sold, repackaged, margined, and thus created a raft of exposure that suffered from the domino effect when the original house of cards came crashing down. Other derivative forms include currency swaps as well as interest rate derivatives that are termed as over the counter (Cocheo, 1993). The complexity of derivatives has increased to the point where: auditors will need to have special knowledge to be able to evaluate the derivatives measurement and disclosure so they conform with GAAP. For example, features embedded in contracts or agreements may require separate accounting as a derivative, while complex pricing structures may make assumptions used in estimating the derivative s fair value more complex, too. (Coppinger and Fitzsimons, 2002) The preceding brings attention to the issues in evaluating the risks of derivatives, and banks having the proper staffing, financial programs and criteria to rate derivative risks on old as well as the consistently new forms being developed. Andrew Crockett, the former manager for the Bank of International Settlements, in commenting on derivatives presented the double-edged sword that these financial instruments present, and thus the inherent dangers (Whalen, 2004) When properly used, (derivatives) can be a powerful means of controlling risk that allows firms to economize on scarce capital. However, it is possible for new instruments to be based on models, which are poorly designed or understood, or for the instruments to give rise to a high degree of common behaviour in traded markets. The result can be large losses to individual firms or increased market volatility. The foregoing provides background information that relates to understanding why and how banking credit risk exposure has and is evolving. The examples provided have been utilised to illustrate this. Seeing how banks use credit risk evaluation and assessment tools to mitigate their credit risk exposure. As credit risk is the focal point throughout this study, a definition of the term represents an important aspect. Credit risk is defined as (Investopedia, 2008): The risk of loss of principal orloss of a financial reward stemming from a borrowers failure to repay a loan or otherwise meet a contractual obligation. Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt. Investors are compensated for assuming credit risk by way of interest payments from the borrower or issuer of a debt obligation. Risk, in terms of investments, is closely aligned with the potential return being offered (Investopedia, 2008). The preceding means that the higher the risk, the higher the rate of return expected by those investing in the risk. Banks utilise a variety of credit risk evaluation and assessment tools to apprise them of credit risk probabilities so that they can mitigate, and or determine their risk exposure. There are varied forms of credit risk models, which are defined as tools to estimate credit risk probability in terms of losses from banking operations in specific as well as overall areas (Lopez and Saidenburg, 2000, pp. 151-165). Lopez and Saidenberg (1999) advise us that the main use of models by banks is to provide forecasts concerning the probability of how losses might occur in the credit portfolio, and the manner in which they might happen. They advise that the aforementioned credit risk model projection of loss distribution is founded on two factors (Lopez and Saidenberg, 1999): the multivariate, which means having more than one variable (Houghton Mifflin, 2008) distribution concerning the credit losses in terms of all of the credits in the banks portfolio, and the weighting vector, meaning the direction, characterising these credits. As can be deduced, the ability to measure credit risk is an important factor in improving the risk management capacity of a bank. The importance of the preceding is contained in the Basel II Accord that states the capital requirement is three times the projected maximum loss that could occur in terms of a portfolio position (Vassalou, M., Xing, Y., 2003). Risk models and risk assessment tools form and are a structural part of the new Basel II Accord in that banks are required to adhere to three mechanisms for overall operational risk that are set to measure and control liquidity risk, of which credit risk is a big component (Banco de Espana, 2005). The key provisions of the Basel II Accord set forth that (Accenture, 2003): the capital allocation is risk sensitive, separation of operational risk, from credit risk, vary the capital requirements in keeping with the different types of business it conducts, and encourage the development and use of internal systems to aid the bank in arriving at capital levels that meet requirements An explanation of the tools utilised by banks in terms of evaluation as well as assessment will be further explored in the Analysis segment of this study. The steps and methodologies used by banks to identify, plan, map out, define a framework, develop an analysis and mitigate credit risk. The process via which banks identify, plan, map out, define frameworks, develop analyses, and mitigate credit risk represent areas as put forth by the Basel II Accord, which shall be defined in terms of the oversight measures and degrees of autonomy they have in this process. In terms of the word autonomy, it must be explained that the Basel II Accord regulates the standard of banking capital adequacy, setting forth defined measures for the analysis of risk that must meet with regulatory approval (Bank for International Settlements, 2007). This is specified under the three types of capital requirement frameworks that were designed to impact on the area of pricing risk to make the discipline proactive. The rationale for the preceding tiered process is that it acts as an incentive for banks to seek the top level that affords them with a lowered requirement for capital adequacy as a result of heightened risk management systems and processes across the board (Bank for International Settl ements, 2007). The foregoing takes into account liquidity (operational) risk as well as credit risk management and market risk. The risk management active foundation of the Basel II Accord separates operational risk from credit risk, with the foundation geared to making the risk management process sensitive, along with aligning regulatory and economic capital aspects into closer proximity to reduce arbitrage ranges (Schneider, 2004). The process uses a three-pillar foundation that consists of minimum capital requirements along with supervisory review as well as market discipline to create enhanced stability (Schneider, 2004). The three tiers in the Basel II Accord, consist of the following, which are critical in understanding the steps, and methodologies utilised by banks to identify, plan, map, define frameworks, analyse and mitigate risk (Bank for International Settlements, 2007): Standardised Approach This is the lowest level of capital adequacy calculation, thus having the highest reserves. Via this approach risk management is conducted in what is termed as a standardised manner, which is founded on credit being externally assessed, and other methods consisting of internal rating measures. In terms of banking activities, they are set forth under eight business categories (Natter, 2004): agency services, corporate finance, trading and sales, asset management, commercial banking, retail banking, retail brokerage, payment and settlement The methodology utilised under the standardised approach is based on operational risk that is computed as a percentage of the banks income that is derived from that line of business. Foundation Internal Rating Based Approach (IRB) (Bank for International Settlements, 2007) The Foundational IRB utilises a series of measurements in the calculation of credit risk. Via this method, banks are able to develop empirical models on their own for use in estimating default probability incidence for clients. The use of these models must first be reviewed and cleared by local regulators to assure that the models conform to standards that calculate results in a manner that is in keeping with banking processes in terms of outcomes and inputs to arrive at the end figures. Regulators require that the formulas utilised include Loss Given Default (LGD), along with parameters consisting of the Risk Weighted Asset (RWA) are part of the formulas used. Banks that qualify under this tier are granted a lower capital adequacy holding figure than those under the first tier. Advanced Internal Rating Based Approach (IRB) (Bank for International Settlements, 2007) Under this last tier, banks are granted the lowest capital adequacy requirements, if they qualify by the constructing of empirical models that calculate the capital needed to cover credit risk. The techniques, personnel and equipment needed to meet the foregoing are quite extensive, requiring a substantial investment of time, materials, funds, and personnel to accomplish the foregoing, thus this measure generally applies to the largest banks, that have the capability to undertake these tasks. As is the case under the Foundation Internal Rating Based Approach, the models developed must meet with regulator approval. Under this aspect of the Basel II provisions for this tier, banks are permitted to create quantitative models that calculate the following (Bank for International Settlements, 2007): Exposure at Default (EAD), the Risk Weighted Asset (RWA) Probability of Default (PD), and Loss Given Default (LGD). The above facets have been utilised to provide an understanding of the operative parameters put into place by Basel II that define the realm in which banks must operate. These tiers also illustrate that the depth of the manner in which banks identify, plan, map out, define frameworks, analyse and mitigate credit risks, which varies based upon these tiers. Under the Standardised Approach the formulas are devised by the regulators, with banks having the opportunity to devise their own models. Graphically, the preceding looks as follows: Chart 1 Basel II Three Pillars (Bank for International Settlements, 2007) Determine the relationship between the theories, concepts and models of credit risk management and what goes on practically in the banking world. The Basel Committee on Banking Supervision (2000) states that the goal of credit risk management is to maximise a banks risk adjusted rate of return by maintaining credit risk exposure within acceptable parameters. The foregoing extends to its entire portfolio, along with risk as represented by individual credits, and with transactions (Basel Committee on Banking Supervision, 2000). In discussing risk management theories, Pyle (1997)/span> states it is the process by which managers satisfy these needs by identifying key risks, obtaining consistent, understandable, operational risk measures, choosing which risks to reduce, and which risks to increase and by what means, and establishing procedures to monitor the resulting risk position. The preceding statement brings forth the complex nature of credit risk management. In understanding the application of risk it is important to note that credit risks are defined as changes in portfolio value due to the failure of counter parties to m eet their obligations, or due to changes in the markets perception of their ability to continue to do so (Pyle, 1997). In terms of practice, banks have traditionally utilised credit scoring, credit committees, and ratings in an assessment of credit risk (Pyle, 1997). Bank regulations treat market risk and credit risk as separate categories. J.P. Morgan Securities, Inc. (1997) brought forth the theory that the parallel treatment of market risk and credit risk would increase risk management by gauging both facets would aiding in contributing to the accuracy of credit risk by introducing external forces and influences into the equation that would reveal events and their correlation with credit risk. Through incorporating the influence and effect of external events via an historical perspective, against credit risk default rates, patterns and models result that can serve as useful alerts to pending changes in credit risk as contained in Pyles (1997)/span> statement that ended in due to changes in the markets perception of their ability to continue to do so. The Plausibility Theory as developed by Wolfgang Spohn represents an approach to making decisions in the face of unknowable risks (Value Based Management, Inc., 2007). Prior to the arrival of the Plausibility Theory, Bayesian statistics was utilised to predict and explain decision making which was based upon managers making decisions through weighing the likelihood of differing events, along with their projected outcomes (Value Based Management, Inc., 2007). Strangely, the foregoing this theory was not applied to banking. The Risk Threshold of the Plausibility Theory assesses a range of outcomes that may be possible, however it does focus on the probability of hitting a threshold point, such as net loss relative to acceptable risk (Value Based Management, Inc., 2007). The new Basel II Accord employs a variant of the foregoing that is termed as Risk Adjusted Return on Capital which is a measurement as well as management framework for measuring risk adjusted financial performance and for providing a consistent view of profitability across business (units divisions) (Value Based Management, Inc., 2007). The foregoing theory of including external events in a calculative model with business lines credit risks is yet to be fully accepted as the variables from external predictive models to result in scenarios along with credit risk models is a daunting set of equations. Ascertain the scope to which resourceful credit risk management can perk up bank performance. In equating how and the scope in which resourceful credit risk management can improve bank performance, one needs to be cognizant that credit risk represents the primary type of financial risk in the bank sector as well as existing in almost all areas that are income generating (Comptroller of the Currency, 2001). From the preceding it flows that a credit risk rating system that is managed and run well will and does promote bank soundness as well as safety through helping to make and implement decision making that is informed (Comptroller of the Currency, 2001). Through the construction and use of the foregoing, banking management as well as bank examiners and regulators are able to monitor trends as well as changes occurring in risk levels (Comptroller of the Currency, 2001). Through the preceding, management is able to better manage risk, thus optimising returns (Comptroller of the Currency, 2001). The improvement of credit risk management in terms of identification and monitoring, the process when operated effectively can improve bottom line performance through laying off risk identified as potentially being problematic in the future (KPMG, 2007). Zimmer (2005) helps us to understand the nuances of transferring credit risk by telling us: A bank collects funds and originates loans. It might only be able to attract funds if it holds some risk capital that finances losses and saves the bank from insolvency if parts of its loan portfolio default. If the bank faces increasing costs of raising external finance, CRT has a positive effect on the lending capacity of the bank. Providing the bank with additional risk capital, CRT lowers the banks opportunity cost of additional lending and increases its lending capacity. As has been covered herein, credit risk represents a potential income loss area for banks in that default subtracts from income, thus lowering a banks financial performance. The Bank for International Settlements (2003) advises that the principle cause of banking problems is directly related to credit standards that are lax, which is termed as poor risk management. The preceding reality has been documented by the The Bank for International Settlements (2003) that advises that poor credit risk management procedures and structures rob banks of income as they fail to identify risks that are in danger of default, and thus taking the appropriate actions. A discussion of the means via which resourceful credit risk management enhance bank performance in delved into under the Analysis segment of this study. To evaluate how regulators and government are assisting the banks to identify, mitigate credit risk, and helping to adopt the risk-based strategies to increase their profitability, and offering assistance on continuous basis. In delving into banking credit risk management in the United Kingdom, legislation represents the logical starting place as it sets the parameters and guidelines under which the banking sector must operate. The Basel II Accord represents the revised i

Whos Your Congressman? :: essays research papers

Who’s Your Congressman? After several laps in circles in my head, I decided to give up. I did not know the person who was representing my district. The first step involved jumping on the internet and surfing for a "Congressman finder", if you will. I type the word congressman in the space provided. The search engine displayed several different topics to choose from and finally I see the site for a general purpose. Voila! I had become one step closer to find my Representative. After clicking in different places, I landed on the Postal Office web site. Why? You might ask yourself. This general site was to find my "guy" by typing in a five-digit zip code. I was thrilled and could hardly contain myself. I enter the code and it gives me an answer of "There are multiple Representatives who share your 5-digit ZIP code ( 21234 ). Please use the Postal Services ZIP+4 Lookup to determine your 9-digit ZIP code." In other words, I still could not locate this person who is representing my d istrict. I decided to actually do something smart. Look on my mail with the rest of my zip code. I put the code in and finally after thirty minutes of fighting for the truth, "The Honorable Benjamin L. Cardin, Maryland, 3rd" (www.house.gov) appeared. I was beside myself. The truth brought me Ben Cardin, a man with 57 years of age and fourteen consecutive years as the 3rd-District Congressman. How embarrassing is that? He has served seven terms and I found this news several days ago. The life of Ben Cardin began on â€Å"October 5, 1943† (The Sun, Sec B). After searching several books, magazines, and internet sites, I could not find any information about his life until 1964. In other words, twenty-one years of his life are not recorded publicly. In 1964, he "earned his BA degree from the University of Pittsburgh† (www.house.gov/cardin/bio 1), soon after he earns another degree. Only three years later in 1967, he becomes a "graduate of the University of Maryland Law School† (www.house.gov/cardin/bio 1). After the success of earning his BA and his Law Degree he decides he will serve in the Maryland House of Delegates. Mr. Cardin was a Delegate from 1967 until 1986. Following his â€Å"father’s and uncle’s footsteps† (The Sun, B) it seemed almost natural. During his time as a Delegate he was the "chairman of the Ways and Means Committee from 1974-1979† (www.

Preserving Minority Languages Essay -- Anthropology Globalization

Language has been used as a means of communication among society members as time began. Each and every community has its own unique language, which is used to convey a certain message from the sender to the recipient. For a language to be appreciated as a means of communication among society members, it should be clear, simple to use and understandable among the users. There are approximately six thousand different languages, which are used in the whole world. Such languages are unique and distinct from each. Yagmur (2009) supports that; a language acts as a reflection or like a mirror of the society from which it originates. For instance, a language may portray the culture and origin of a certain community. Due to current globalization effects, language integration has constantly been taking place. This has made some languages be adopted as the major communication tools. For example, English and French languages are now being used as the major languages of communication. People who are not conversant with these languages are being termed as society laggards who do not appreciate changes. This has received some support from Jiang (2007) who adds that; this language integration has caused some languages to be marginalized. Such languages that are considered to be minor are usually spoken or used by communities, which are minority and marginalized within the society. Various debates on whether to preserve these marginalized languages have arisen over the past decades. These minority’s languages accrue various society elements like culture, religion, beliefs, behaviors and practices. These languages are like an archeological site that should be preserved. As a result, marginalized la nguages should be preserved because they carry wit... ...gr114> LaPonce, J. A. 2004. â€Å"Minority Languages and Globalization.† Nationalism & Ethnic Politics, Spring Vol. 10 Issue 1, p15-24. Ushioda, E. 2006. â€Å"Language Motivation in a Reconfigured Europe: Access, Identity, Autonomy.† Journal of Multilingual & Multicultural Development, Vol. 27 Issue 2, p148-161. Yagmur, K. 2009. â€Å"Language use and ethnolinguistic vitality of Turkish compared with the Dutch in the Netherlands.’ Journal of Multilingual & Multicultural Development, Vol. 30 Issue 3, p219-233.

Brain research and full day kindergarten

Education is an important aspect of the human life and society. Today, it is quite noticeable how the society has institutionalized education and the educational system. Today, individuals start schooling as early as four or five years of age. The common entry point for schooling is kindergarten. All around the world, many parents send their children to schools for kindergarten, with many different expectations, but mostly in the belief that this is a solid starting point that can help the child be ready for the next step in his or her education.Over the years, kindergarten has become increasingly important, especially during the time when researchers have found out the connection on dendrite growth and academic stimulation. This made them believe that if individuals are submitted to academic stimulation in the earliest time possible, this can impact significantly his mental faculty and capacity. Brain development has been responsible for the new perspective and approach to kindergar ten leading the change and shift from half day to full day.However, it appears that in analysis, even with the merit of this model hypothetically, unanimous approval and appreciation for this scheme is still to be achieved considering how sectors of the society are reacting differently and in varied fashion regarding this issue. This is an important aspect of discussion and exploration regarding full day kindergarten scheme and the brain development premise. History Kindergarten Kindergarten came to America from Germany, the term meaning children's garden.Friedrich Froebel and Margethe Meyer Schurz are two of the leading personalities who began the practice of kindergarten (Persky, Golubchick, 1991, p. 263). As the name implies, it refers to a system and a place wherein children are brought together and is being prepared for formal schooling. Kindergarten, as a form of preparatory stage, at first, was focused on making children possess sufficient social skills to allow them to inter act correctly with other individuals during formal schooling.Kindergarten education prepares them by teaching basic things which they will need in formal schooling and will serve as foundation of what they will learn and how they will learn in formal schooling. Kindergarten eventually spread all around the world. Educators working in kindergarten follow learning models as well as educational theories that make the kindergarten experience useful and constructive for the child. Kindergarten originally was just a half day session, with educators thinking that half a day is enough schooling for individuals this age (Persky, Golubchick, 1991, p.263). This was changed when scientists put forward the discovery involving the brain and its development (Eden, 2008, p. 214). During this stage and age, the role of intervention and the resulting conclusion that if this was the case, then it is important that the child is correctly and sufficiently prepared, therefore the shift from half day to a ll-day or full day or whole day kindergarten scheme. Half day to full day kindergartenFrom purely being half-day sessions, changes and developments and new perspectives regarding kindergarten education surfaced and resulted in the change from half day to all-day or whole day sessions. There were two important factors that led to the shift from half day to whole day or all-day kindergarten – the scientific basis and the practical basis. No one knows for sure which came first. Is the practical need for all-day kindergarten inspired researchers to look at any possible scientific credence this option might possess?Or was it the other way around and was a case of scientific intuition among professionals leading to the discovery of the scientific basis for all day kindergarten? This, in turn, made parents realize that besides the scientific basis, this option also has practical significance for them and the children that support and popularity for all-day kindergarten grew especial ly across America, as well as in other parts of the world. Regardless of this chicken-and-egg condition, it is nonetheless important to discuss both aspects affecting the creation of and the shaping of all-day kindergarten as it is known to day.a. Scientific basis – The main artery of the shift from half day to all day or whole day kindergarten is based on the discovery on the brain, in particular, the development that is happening in the brain when it is being subjected to academic stimulation at an early age. Professionals who were involved in this scientific study explain that dendrites grew when under academic stimulation. Dendrites are found in the brain. They are important in the learning ability and processes of the human beings. Their development is important in the mental faculty of an individual.In layman's terms, the growth and branching out of dendrites indicate active mental practices and exercises which in turn allows for improved processes of the mental faculty or thinking. Professionals as well as neuroscientists have already connected the growth and branching out of dendrites when under academic stimulation. This is proof that when the brain is exposed to academic stimulation or learning process especially in the early formative years, the physiological make up of the individual, particularly the brain develops and adjusts depending on what it is being subjected to.Therefore the child’s mind is subjected to longer academic stimulation that can be an important factor for mental growth and capability in the future. This is the main premise of the scientific basis of the full day kindergarten scheme. Professionals argue that it is important that â€Å"we must look at our children's entry point into education (Miller, Gore, 2007, p. 140). † â€Å"New research into brain development demonstrates that the first three years of a child's life are extremely critical for her emotional and intellectual growth (Miller, Gore, 2007, p. 140)† which necessitated the need for â€Å"all day kindergarten programs (Miller, Gore, 2007, p.140). † People involved in it – Educators, psychologists, neuroscientists and different professionals have been involved in the studies leading to this particular discovery and in the creation of a new perspective in kindergarten. â€Å"Today's early childhood educators recognize children as active learners, not jugs waiting to be filled or blank slates waiting to be written upon (Handelman, Auerbach 2000, p. 4). † Individuals like David Sousa as well as many other professionals came forward in support of this new notion regarding brain development and the need for a whole day kindergarten schedule and the merits of this kind of scheme.Professionals explain that it is understandable why such discovery was only made today because of many important considerations, one of which is the ethical as well as technological considerations on the ability of the human to understand the brain. In the past and without the technology for non-invasive and ethical brain study procedures, scientists are left with the one and only option available for them – to study brains from dead people. This option left them with very limited areas of research and study, and no prospect at all at studying the human brain while it is still alive and in motion.However, because of the current technology and scientific processes and abilities available to scientists today, the brain is now accessible for exploration in such a way that it is not unethical, immoral and non-invasive. This led the scientists to what they recently discovered about dendrite activity and its connection with academic stimulation. b. Practical basis – Besides the scientific basis, there is also the practical basis that was used by parents and educators in approving the full day scheme.This has something to do with the current family and parent socio-economic and socio-cultural condit ions. Economy has made it a necessity for both parents to work at the same time. This allows the parents money to send their children to good schools which they hope can look after their children while they are at work. Parents believe that full day kindergarten is like hitting two birds with one stone. First, their child is exposed to extended periods of studying and education and has limited time for other things that are harmful to the child in the long run like watching television, for example.At the same time, parents are more assured of their child's safety and well being since they are at school, attended by teachers who are trained to handle children. While this does not fully eliminate the use of nanny or a household helper, parents believe that besides the children, parents are also benefited in particular, specific ways through this scheme (Lerner, Jacobs, Wertlieb, 2003, p. 202). â€Å"Full day kindergarten was introduced to speak to the needs of the growing number of w orking parents who wanted their children to be looked after for the whole day (Lerner, Jacobs, Wertlieb, 2003, p. 202). † Full day kindergarten todayToday, many schools all around the United States, as well as in many other different countries that feature kindergarten in their school and education system, use the all-day or whole day kindergarten scheme. It adheres to the idea presented by scientists, psychologists and educators who believe that exposing children to longer educational experiences at school can help improve the mind and improve the capacity of the individual for learning and mental processes in the future. The full day kindergarten scheme has attracted many supporters who called for the institutionalization of full day kindergarten schemes.Organizations, groups and institutions, such as the Education Commission of the States or simply the ECS (Neal, 2006, p. 117), support the full day kindergarten. The shift from half day to all-day or whole day kindergarten s ession is not just merely an extension of time, nor was it a quantum leap in the learning experience for the kindergarten. Part of the change in session was the realization that teaching style, educational approach and learning perspectives should also change. It should focus more on the newfound consciousness regarding the learning ability of a child and the importance of maximizing it in the earliest possible time.Because of this, kindergarten changed. From focusing in learning through play in the past, the learning structure of kindergarten became more oriented in structured academic learning. This means that part of the learning experience included learning languages and mathematics as well as other things like color and shape cognition and identification, memorization skills, interpersonal skills, play, even good morals and conduct and religion in other kindergarten schools and institutions (Persky, Golubchick, 1991, p.263). â€Å"These early kindergarten programs focused on t he basic concept that child's play was significant and that when it was intelligently directed gave impetus to cognitive development (Persky, Golubchick, 1991, p. 263). † From this point, the perspective changed and focused more on academic learning. This move towards change was hinged on the scientific discovery regarding the brain of the child and how in that stage the brain should begin the experience of being harnessed.When the individual grows up and matures, he or she will possess the mental capacity for competitive and capable learning and is suitable for more advanced learning in the future. Today's full day kindergarten, despite its admirable background and history, is nonetheless facing many different problems as well as criticisms. Professionals involved in this field undertake many different studies to be able to find answers to these problems and to address the different criticisms hurled at the practice of full-day kindergarten.a. Studies regarding all day kinder garten – Authors like Cryan (1992) and Elicker and Mathur (1997) provide the people with materials they can read and refer to when considering full day kindergarten scheme and their opinion about it (Cryan, 1992, p. 187; Elicker and Marthur 1997, p. 459). These authors as well as many other authors have come up with results of studies, research and analysis tackling this matter both in books as well as in peer reviewed journals.Psychologists and educators appear to have undertaken intensive study and research efforts regarding the different aspects of all-day kindergarten so that they can discover new information regarding this practice that can help in determining what new course of action to take with regards to the full-day kindergarten scheme. There are currently numerous published works as well as books and even internet articles about the results of studies and research efforts focused on full day kindergarten. In general, the content of these materials stand in two pol ar regions.There are those that attest to the positive impact of this scheme; while on the other hand, there are those who present criticisms as well as new areas of investigation which they believe is important. These realms that they identified remain unexplored. This means that full day kindergarten scheme cannot be considered to be fully ideal and suitable, not until all areas of inquiry and possible sources of problem are identified, studied and resolved. b. Criticisms and problems – The full day kindergarten scheme was not without criticisms as well as its own set of problems.Parents are one of the most important groups that can strengthen or derail the progress and practice of full day kindergarten. They also became sources of important criticisms and arguments regarding full day kindergarten scheme. One of the most basic areas of standoff resulting to criticisms of this scheme is the resulting tug of war between parents who want two different things for their children – those who want to keep kindergarten at half day while those who wanted schools to shift to whole day or full day kindergarten (Lerner, Jacobs, Wertlieb, 2003, p. 202).â€Å"The introduction of full day kindergarten more than a decade ago has brought to a head an ongoing controversy between parents who want half day program and those who want the full day program (Lerner, Jacobs, Wertlieb, 2003, p. 202). † Some parents point out that despite what scientific research claims as the ideal learning time and opportunity, a child is presented and should be exposed to at that age. Parents argue and reason that scientific research, on the other hand, has not fully answered the query regarding the effect to the children of being removed from their biological parents for that long period of time.They still could not explain the effects as well as possible problems that can arise when children are constantly under the care of someone they do not know and does not know the child , even with the fact that they are certified professional and capable educators (Lerner, Jacobs, Wertlieb, 2003, p. 202). â€Å"Parents†¦ look at kindergarten in the traditional way and regard full day away from home as too much time for a 5-year old to spend in the care of a non parental adult (Lerner, Jacobs, Wertlieb, 2003, p.202). † There are also those who pointed out that full day kindergarten does not automatically mean dramatic change in learning and development. The main supporting ideas for the establishment of this kind of approach to kindergarten education is about the scientific claims on improved and increased brain development via academic stimulation. Part of the equation (and an important part) is curriculum, teaching styles and methods as well as other equally important factors like teacher competency, environment.Eden (2008) pointed out in a book that â€Å"providing a full day program for four year olds, for example, has much merit, but not if what i s provided is simply watered-down first-grade curriculum (Eden, 2008, p. 214). † Conclusion The work of the forerunners of the concept of kindergarten has come a long way. Today, it is something that appears to have evolved significantly over time, with many different important changes. This includes the change happening during the 90s – the shift from half day to full day kindergarten school time.Like many complex issues in the society, the debate over which between half day and full day kindergarten scheme is better. There is also a debate if full day kindergarten schedule by itself and outside of comparison is ideal for children and their welfare is a topic that is not easily answerable by a yes or a no. There are many gray areas and dark areas that are yet to be discovered and explored so that more answers are available for people to use in this particular decision and position.Nonetheless, the brain development and its connection to education in early childhood is an important breakthrough that can impact education for years. As for kindergarten, the newfound scientific perspective has made it clear that even the humble and previously seemingly non-bearing educational experience which is kindergarten appears to be, after all, something that holds a significant importance in the mental development of the individual. This is something that professionals should look on and design carefully in the future, for the benefit of the child above anyone else.References Cryan, J. (1992). Success outcomes of full day kindergarten: More positive behavior and increased achievement in the years after. Early Childhood Research Quarterly, 2, 187-203. Eden, S. T. (2008). Play Works: Helping Children Learn Through Play. Indiana: Author House. Elicker, J. and Mathur, S. (1997). What do they do all they? Comprehensive evaluation of a full-day kindergarten. Early Childhood Research Quarterly, 4, 459-480. Handelman, M. S. and Auerbach, J. J. (2000). Jewish Every Day : The Complete Handbook for Early Childhood Teachers.Colorado: Behrman House, Inc. Lerner, R. M. , Jacobs, F. and Wertlieb, D. (2003). Handbook of applied developmental science: promoting positive child, adolescent, and family development through research, policies, and programs, Volume 1. California: SAGE. Miller, J. and Gore, A. (2007). The Compassionate Community: Ten Values to Unite America. New York: Palgrave Macmillan. Neal, R. G. (2006). The Deserved Collapse of Public Schools. Indiana: Author House. Persky, B. and Goubchick, L. , H. (1991). Early Childhood education. Maryland: University Press of America.