The Financial Crisis

The Financial Crisis Introduction Even though many intellectuals held that deregulation, poor supervision, lack of liquidity, casino banking, and Gaussian copulas are some of the factors that caused the financial crisis, failure to view the crisis from a multilateral perspective further heightened the situation. This is evident from the roles that international governments like the International Monetary Fund (IMF) and the European Union (EU) play.Advertising We will write a custom critical writing sample on The Financial Crisis specifically for you for only $16.05 $11/page Learn More Therefore, risk management within the banking industry did not have to stop within the UK. In addition, managing the risks ought not to have been left solely to the bank employees and management. For proper risk mitigation, all stakeholders ought to have learnt all the possible risks that may occur in the sector. In this line, the financial institutions would have distributed the risk to all the st akeholders. Instilling financial literacy in stakeholders only could have been a positive move towards risk management strategies. On the other hand, some risks are extremely complex, thus may require the attention of expertise or technocrats. This may be absent in some stakeholder, hence making collaboration difficult. Having been used in the implementation of Basel II Accord, collaboration allows specialists to devise their own risk management approaches (Who was responsible for the financial crisis? n.d.). With this nature of approach to risk management, all stakeholders need to acquire basic financial literacy. Notably, creating a network of risk managers eliminates unknown risks, popularly referred to as Black swans. Moreover, the network enables individuals to question assumptions in the risk management process, avoid overreliance and belief on models, as well as impart skills to distinguish between predictable and unpredictable risks. For proper risk governance, individuals m ust interrogate the validity of the rules put forward for implementation; this eliminates instances of failure in managing risks. Banks might have had limited resources to recognise the extent of the financial risks. The involvement of many players in the management systems of banks makes it out rightly difficult to blame banks for the financial crisis. The intertwined system makes it difficult for banks to act outside the outlined frameworks. To manage such financial crises effectively in future, there is need for wider responsibility using the concept of knowledge supervision. Therefore, the United Kingdom’s government and international governments are also to blame for the failure of risk governance.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More They ought to have involved expertise in the entire process, as well as trained all stakeholders on financial lite racy (Who was responsible for the financial crisis? n.d.). In essence, risk management requires a collective approach to avoid massive financial catastrophes. Risk Management Process The consequences of the financial crisis have made banks and other financial institutions to employ stringent measures of managing risks. However, the stern measures lacked strong implementation forces, as well as a centralised point to coordinate the entire process. Risk identification and categorisation use modelling, brainstorming, interviews, and analysis of project plans and different scenarios as key methods. After identification of risks, evaluation and ranking occurs in order to prioritise risks for management and effective allocation of resources in any sector. Under risk management, there are four key stages irrespective of the sector of application. Risk awareness, assessment, evaluation, and absorption are the four stages of managing any form of threat. In the banking industry, risk manageme nt remains the best option to curtail possible financial scarcity. If the banks could have understood the liquidity issues and the need for effective regulation, they could have put up necessary measures to curb the eventual financial meltdown. From the manner in which the banks dealt with the situation, it is evident that lack of unrivalled coordination was absent. Under risk awareness, identification of possible risks that can affect the banking industry is examined. After proper risk awareness or identification, it becomes easy to assess all the sources of such risks. In this stage, each risk receives a specific assessment procedure to ascertain its level of influence in case it occurs. The uncertainty perspective approach is the most preferable approach in the risk identification segment given that it does not only determine all possible sources of threats, but determines also all possible sources of positive risks or opportunities. With increasing changes in the banking industr y, there are always unrelenting follow-ups and frequent updating of the identification lists as per the knowledge and comprehension of the business atmosphere. If the approach could have been applied, the financial crisis could not have occurred.Advertising We will write a custom critical writing sample on The Financial Crisis specifically for you for only $16.05 $11/page Learn More Risk assessment helps firms to group risks according to their severity. The process helps financial strategists to prioritise risks as per their occurrence probability, as well as address uncertainty through effective decision-making. After risk assessment, vivid evaluation and estimation in terms of the probability of occurrence and consequence take place. Here, a clear comprehension on the major effects of the risks on the operations of financial institutions is imperative. Evaluation and ranking occurs in order to prioritise risks for management and effective allocation of re sources. The financial institutions ought to have evaluated all possible causes of financial crises, as this would have made it possible for the sector to absorb all the risks, which led the country to one of the worst financial crisis. In risk analysis within the banking industry, remedies like holding greater amounts of capital reserves in terms of liquidated assets could have minimised the extent of the crisis. Notably, the entire risk management process requires the inclusion of several numbers of actors; the actors should have sufficient skills in financial operations. This could have ensured that there is complete accountability and authority, shared responsibility, interdependence, and coordination of government’s roles. Shareholders, customers, government, and SMEs have close tie with banks; these stakeholders ought to have adequate knowledge on bank operations in order to be in a position to avert such disasters (Who was responsible for the financial crisis? n.d.). I n the case of stakeholders, there are voluntary and involuntary groups. For instance, the government can set boundaries for its financial institutions to follow in their operations. This did not occur at the time of the crisis. Since no single stakeholder can provide knowledgeable supervision on banking risks, the entire group of stakeholders ought to have taken full initiative of providing supervisory duties to the banking industry. Moreover, a systematic approach to managing risk as opposed to event-focused approach works well for the banking industry, as the former involves monitoring of signals, making use of existing knowledge, instead of searching for the unpredictable aspects.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Even though financial institutions had put in place some risk management strategies to curb the crisis, less was done to move the whole process to completion. This made the risk management process ineffective, thus failing to address the crisis. Conclusion In essence, the government’s coordination role, shared responsibility, interdependence, and authority versus accountability are the basic principles in controlling the occurrence of financial shocks in an economy. International governments and financial institutions, such as banks have to understand that financial literacy has to cut across the masses in order to support risk governance using both the old and new models. Since the society establishes the boundary of bank operations, it remains vital that knowledge supervision should be part of the society and those within the banking industry. The crisis required a collective approach to avert its massive effects on other sectors of the economy. Reference Who was responsibl e for the financial crisis? n.d..

Ontological Arguments About The Divine Command Theory Of Morality Essay

Ontological Arguments About The Divine Command Theory Of Morality - Essay Example Plato argues against every other theory that beats the logic of God in that God can only condemn something because it is wrong and something is condemned by the gods because it is wrong. Plato goes disowns the theory by bringing out a logical argument based on what he believes to the truth, especially on the concept of right and wrong and their relationship with the gods. On this topic, he brings up the issue of morality and immorality and the views of the gods on it based on why an action can be moral or immoral based on his argument with Euthyphro. In this case, he asks what if the gods considered what they asked to be done as the correct thing, despite being an immoral thing and one that inflicts pain and suffering amongst the people. In his objection against the theory, Plato argues the theory because it means that the gods that determine morality and human behavior by vouching for or criticizing it. For this reason, the foundation of morality in the case of the divine command th eory of morality, morality becomes an arbitrary issue (Austin). ... Logically, this does not make sense since Plato believes in a state of unambiguity, where such dilemmas do not come up; thus, there must be another form that guides morality. Another argument, by Plato against divine command theory of morality, is that if gods do not call the arbitral change in morality, then they must be mere spectators. This is to mean that they just act as beings with the ability to recognize right and wrong, and cannot direct ethics, which is based on the argument that the gods condemn something because it is wrong. To Plato, this is another absurd idea and basis of morality as it puts the gods at the same as a man; because man can also recognize right from wrong based on the law.

Company Law Essay Example | Topics and Well Written Essays - 2500 words

Company Law - Essay Example On the footing of equitable principles and on some common rules, these general duties have been imposed on a director, and director has to act in accordance with the same without showing any negligence while performing his duty as a director of a company. The general duties will be construed and extended in the same way as under equity principles and under common law rules and due weight will be given to the appropriate equitable rules and common law rules in construing and applying the general duties. As per section 172(1) , a director of a company must function in the style he regards , in good trust , which is most probably to enhance the growth of the company for the advantages of its shareholders in its entirety, and in exercising so, should give due consideration to the following: The probable outcome of any business decision in the long run. The requirement to function fairly as between the shareholders of the company. Further, under CA 2006, statutory statements on directorsà ¢â‚¬â„¢ duties have been included, which covers the following provinces concerning the director’s duties. ... In other words, it is the duty of the director not to act negligently. However, casual failures or sincere commercial misjudgments will not tantamount to the claims of negligence. It is to be remembered that the directors owe their duty to the company and not to any individual. However, in Dorchester Finance Co Ltd v Stebbing,1 a director was found to be negligent in his duty as he left signed blank cheques with another director. In Cohen v Selby, 2 a director was held liable for assigning a task to a specific employee who is not fit for that duty assigned3. In case of business judgment, the courts have been ever unenthusiastic to interfere. Further, the CA 2006 is not precise about how board of directors of a company should report their adherence under section 172 in board minutes. It is advised that companies may find it secure to add a reference to the fact that the directors have adhered to the decision making provisions as demanded in section 172 in their board minutes to escape any charges of negligence later. 172 of CA 2006 demands that a director should function bona fide in a manner that would kindle the success of the company for the advantage of its member in their entirety. In Rgentcrest Plc (in liq) v Cohen , it was held that the directors should act in what they think and should not act in what the court may think, and it should be for advantage of the whole of its members4. The section 173 requires the director of a company to use his independent judgment while making business decisions. This section facilitates the director to take an opinion from experts or in certain case, if a director fails to take proper advice from an expert will be regarded as an infringement of their fiduciary duty. However,

Does the Internet Make You Dumber Essay Example for Free

Does the Internet Make You Dumber Essay A psychologist, Patricia Greenfield has reviewed studies in our cognitive abilities from which Carr claims demonstrates we are becoming â€Å"shallower† (Carr 2010, p. w1). Carr refers to two specific examples. An experiment at Cornwell University, this was a small survey conducted in a classroom, the number of pupils was not documented in the article. Another experiment conducted at Stanford University with the conclusion being heavy multi-taskers were not effective at multi-tasking, as everything became a distraction. The more the person multi-tasks the more easily distracted and ‘had less control over their attention’. This experiment was more comprehensive. To back up claims that the internet changes the way we think, Carr refers to an experiment done on primates in the 1970s and 1980s. The test seems extensive on how quickly our brains circuits responce can change based on our can experience. This doesn’t talk about how quickly the brain can therefore revert back when needed for more reflective activities such as when reading a book. Carr assumes that the increased level of visual-spatial intelligence needed for fast internet usage is a negative. Carr hasn’t considered the effectiveness the increased spatial intelligence gives its user in other areas of technological advancement that require this skill set. Carr assumes that the internet is the main reason for people becoming distracted and therefore having low cognitive abilities, Carr’s studies don’t include how distractions can come in all forms not just pop ups and advertisements on a computer screen. He further assumes the classroom experiment revealing the internet didn’t help the learners is typical for all internet users. Undeniably Carr is right in his notions of the internet being an easy distraction; multi-tasking and prioritising are learnt skills and ones that are undeniably tested by the internets powers of distraction. In our increasingly fast paced world multitasking is a necessary for survival, and therefore will continue to be a required skill for our future. Multitasking is needed in all facets of life making the skill a valuable one. References Carr, N 2010, ‘Does the internet make you dumber? , The Wall Street Journal p W1

America Must Move Forward into the Electronic Age of Voting :: Politics Political Science

America Must Move Forward into the Electronic Age of Voting The levels of excitement grew throughout election night all across the nation. The respective parties gathered in various convention rooms all over the United States. The tension in the air could be felt as one entered the rooms hosted by any candidate’s party. As the evening progressed, one could tell this would be a close election. November 7 is a day many people in America take for granted. I have heard many times people muttering, ‘my vote is not going to even make the difference so why should I vote?’ Many Americans don’t feel their vote is important enough to even get off their butts to go and vote. However, as a political science major it is imperative to me to exercise my right to vote. Not only have people died fighting for rights such as this, but it also gives me the opportunity and the right to voice an opinion after the election. If you don’t vote what gives you the right to complain? Nothing. Since we are a democracy we should not take the right to vote lightly and a great majority of Americans do. For some reason, this election proved to be different. The voting percentages were higher than most election years. According to the www.msnbc.com the majority of votes come from retired people and military voters. College students throughout the past years have decreased percentage-wise in voter turnout. In 1996 the number of college students who cast their ballots had decreased 23% since 1992. Student Advantage Magazine (SAM) lists various issues for the decline in college voter turnout. The top two reasons SAM lists, as reasons for the dwindling numbers are apathy and laziness. However www.msnbc.com has stated with more students becoming politically active, the numbers should increase in future elections. For example, voting numbers increased a small percentage for this election. Why are people voting now? Is it because we have good candidates running? Is it because American’s finally feel the pressure to get off their lazy butts and make it to the polls? Does it have anything to do with absentee ballots being used at the highest rate in our nations history? Americans tend to think in the manner, â€Å"I will vote for this person if he wants what I want.† At least they have substance on their reasons for voting for someone.

Ikea Enntering the Russian Market Essay

The best way to search for viable alternative entry strategies is to watch the mistakes IKEA made and the problems they had by entering the Russian market. But first there are several company related attributes to mention. IKEA is a company which is highly related to their Swedish tradition and origin as this is a basically part of their marketing strategy and corporate identity. Many people are connecting IKEA’s Swedish image with the way IKEA is communicating their product range: Cheap, easy and yet reliable and stylish. Because of these conditions given, IKEA is forced to make sure that they are able to transfer these elements of their corporate idea into the Russian market. Of course there always are slightly differences from country to country in the way IKEA communicates to their customers, but adoptions should be limited to executive marketing decisions and not interfere with IKEA’s basic business idea. These previous points are strongly limiting any kind of indirect entry strategy. IKEA needs to keep the conceptional differences between their home markets and the Russian points of sale as small as possible. That means as further the gap is between the original shops and the ones in Russia, the bigger is the chance of a flawed identity. Therefore entry strategies like franchising, licensing and indirect export over all could not be an opportunity to enter the Russian market. The reason is simple: It will get quite hard to find a Russian businessman who is familiar enough with Swedish culture. The franchise guidelines IKEA would be forced to give out would probably fill up thousands of pages and even then, Russian IKEA franchise businesses would communicate anything else but Swedish family piece to their customers. IKEA remains facing the more viable entry strategies of a direct export in terms of opening their own stores in Russia as they did, or to start an alliance as a strategica lly partnership or joint venture. The major problem they IKEA faced by choosing the direct export as an entry strategy was the missing knowledge and experience about the Russian market, its further development, the people and the Russian culture as well as Russian living conditions. The arrangement and adaption of the communication strategy and the product range took place steadily and needed time. Therefore, even if the Russian market potential was still growing and expanding IKEA lost market share and sales power because of wasted resources and by performing a not optimally adjusted marketing strategy. A solution to face these problems from the start of the market  entry would have been to search for a Russian partner company that is capable of IKEA’s missing knowledge. The different opportunities in here are based in the shaping and the form of alliance. IKEA can be sure that they have got a very well working business model. They don’t want to share their success even if a deeper alliance would probably allow them to share loss as well in case of failure. IKEA wants to keep control of the company as it is still private hold and they want to keep it that way in Russia. In addition a joint venture alliance usually is kind of a long term relationship. IKEA indeed just needs a partner to get started in the market Russia. Once they catch on they might want to quickly quit former alliances. In my opinion the best solution would have been a strategic alliance with a possibly quite small partner as the object of trade for IKEA is just knowledge. A small, traditional company that enables IKEA the transfer and arrangement of their culture and company politics into the Russian market by providing all the information IKEA needs to prevent the above-mentioned mistakes. The partner company is not needed to perform in any physical goods business as their relationship to IKEA will only be based on information access. After the successful market entry, the strategic, information based alliance could be quit quickly and easy or getting changed into a usual business relationship, depending on the need of future information supply of IKEA.

Should Marijuana Be Legalized - 1145 Words

Legalizing Marijuana Marijuana is a drug that has been actively used for centuries. This drug can be traced back to 2737 BC by the Chinese emperor Shen Nung. He spoke about the euphoric effects of Cannabis and even referred to it as the â€Å"Liberator of Sin.† Since early on, marijuana was seen as a medicinal plant that was recommended for medical uses. Marijuana is currently in schedule I, which means that physicians are not allowed to prescribe it in the United States (Hart, Ksir 2013). This drug is also considered to have a high potential for abuse. In New York, a recent law was passed that states the penalties of possession of marijuana. If a person is carrying less than 25 grams and it is his/her offense, a $100 fine will be given to the individual. Marijuana is a very popular drug and in a study called Monitoring the Future Project by the University of Michigan in 2011, they state that next to alcohol, marijuana is the second most popular drug used by college students ( Hart, Ksir 2013). There are currently many ongoing debates on why marijuana should be legalized. Marijuana should be legalized for recreation use in New York State because it can bring many positive effects to one’s health and can improve the economy as well. Marijuana has been falsely linked to crime. The role of the media played a major effect on how people viewed the drug. Around the year 1930, reports on marijuana associated with crime and violence started coming out. This contradicts the effects ofShow MoreRelatedShould Marijuana Be Legalized?849 Words   |  4 Pageswhether marijuana should be legalized. Around 23 states have legalized marijuana for medical and recreational use. In the state of Illinois, medicinal use of marijuana has been passed on April 17, 2013. Since January 2014, patients are able to obtain marijuana with a doctor s recommendation. The new debate is whether marijuana should be legalized for the general public as a recreational drug. Although some believe that marijuana is harmless, and that it has beneficial medicinal uses, marijuana shouldRead MoreShould Marijuana Be Legalized?1715 Words   |  7 PagesMarijuana in Society Cannabis, formally known as marijuana is a drug obtained from the tops, stems and leaves of the hemp plant cannabis. The drug is one of the most commonly used drugs in the world. Only substances like caffeine, nicotine and alcohol are used more (â€Å"Marijuana† 1). In the U. S. where some use it to feel â€Å"high† or get an escape from reality. The drug is referred to in many ways; weed, grass, pot, and or reefer are some common names used to describe the drug (â€Å"Marijuana† 1). Like mostRead MoreShould Marijuana Be Legalized?1489 Words   |  6 Pagescannabis plant or marijuana is intended for use of a psychoactive drug or medicine. It is used for recreational or medical uses. In some religions, marijuana is predominantly used for spiritual purposes. Cannabis is indigenous to central and south Asia. Cannabis has been scientifically proven that you can not die from smoking marijuana. Marijuana should be legalized to help people with medical benefits, econo mic benefits, and criminal benefits. In eight states, marijuana was legalized for recreationalRead MoreShould Marijuana Be Legalized?1245 Words   |  5 PagesMarijuana is a highly debatable topic that is rapidly gaining attention in society today.   Legalizing marijuana can benefit the economy of this nation through the creation of jobs, increased tax revenue, and a decrease in taxpayer money spent on law enforcement.   Ã‚  Many people would outlaw alcohol, cigarettes, fast food, gambling, and tanning beds because of the harmful effects they have on members of a society, but this is the United States of America; the land of the free and we should give peopleRead MoreShould Marijuana Be Legalized?1010 Words   |  5 PagesThe legalization of marijuana became a heated political subject in the last few years. Twenty-one states in America have legalized medical marijuana. Colorado and Washington are the only states where marijuana can be purchased recreationally. Marijuana is the high THC level part of the cannabis plant, which gives users the â€Å"high† feeling. There is ample evidence that supports the argument that marijuana is beneficial. The government should legalize marijuana recreationally for three main reasonsRead MoreShould Marijuana Be Legalized?1350 Words   |  6 Pagespolitics in the past decade would have to be the legalization of marijuana. The sale and production of marijuana have been legalized for medicinal uses in over twenty states and has been legalized for recreational uses in seven states. Despite the ongoing support for marijuana, it has yet to be fully legalized in the federal level due to cultural bias against â€Å"pot† smoking and the focus over its negative effects. However, legalizing marijuana has been proven to decrease the rate of incrimination in AmericaRead MoreShould Marijuana Be Legalized?1231 Words   |  5 Pagesshows the positive benefits of marijuana, it remains illegal under federal law. In recent years, numerous states have defied federal law and legalized marijuana for both recreational and medicinal use. Arizona has legalized marijuana for medical use, but it still remains illegal to use recreationally. This is absurd, as the evidence gathered over the last few decades strongly supports the notion that it is safer than alcohol, a widely available substance. Marijuana being listed as a Schedule I drugRead MoreShould Marijuana Be Legalized? Essay1457 Words   |  6 PagesSHOULD MARIJUANA BE LEGALIZED? Marijuana is a drug that has sparked much controversy over the past decade as to whether or not it should be legalized. People once thought of marijuana as a bad, mind-altering drug which changes a person’s personality which can lead to crime and violence through selling and buying it. In the past, the majority of citizens believed that marijuana is a harmful drug that should be kept off the market and out of the hands of the public. However, a recent study conductedRead MoreShould Marijuana Be Legalized?1596 Words   |  7 Pages But what needs to be known before a user can safely and completely make the decision if trying Marijuana is a good idea? Many do not want the drug to be legalized because they claim that Cannabis is a â€Å"gateway drug†, meaning it will cause people to try harder drugs once their body builds up a resistance to Marijuana, because a stronger drug will be needed to reach a high state. This argument is often falsely related to the medical si de of the debate over legalization. It is claimed that this wouldRead MoreShould Marijuana Be Legalized?985 Words   |  4 PagesLegalize Marijuana Despite what people believe about marijuana, it hasn’t once proved to be the cause of any real issue. It makes you wonder what the reason as to why there is a war on drugs. Why is marijuana the main concern? Since the time that alcohol and tobacco became legal, people wonder why marijuana isn’t legal yet. The fact that marijuana is illegal is mainly caused by the amount of money, jobs, and pride invested in the drug war. Once the government starts anything, they stick to it. At