Strategic Management and Unilever Essay Example for Free

St enumerategic Management and Unilever EssayIntroductionUnilever is a multinational corporation with extensive harvest-festival offerings in the food, detergent, and personal care business. Because Unilever is organizing its companies on a decentralized mental synthesis, they are falling behind their competitors. In order for Unilever to succeed as a society they must look over their whole business strategy starting from their foundation and working their way through each and every subsidiary. In making minor adjustments for improvement, Unilever competency pull through and have a chance of becoming a successful company once again. Case ProblemsUnilever is facing umpteen problems not only within the company but with disputation as well. Competitors are more successful by create spherical brands, reducing greet structure, and executing simultaneous product launches in several national markets. In Unilevers case, the decentralized structure is working against any efforts of building both(prenominal) global and regional brands. Because of many duplicates in manufacturing, a lack of scale economies, and a high-cost structure, they are trailing behind competitors in bringing new products to the market.AlternativesOne utility(a) Unilever could take would be to focus more on the products that bring in the most expediency. In this case it would be the food products, which account for 60 portion of sales and include strong offerings in margarine, tea, ice cream, frozen foods, and bakery products. Mainly because not everyone is willing or able to buy name brands or certain detergents, but there will always be a need for food. If they put more of their focus on this they would be able to top off the already 70 percent of market share in other countries. The only downfall I see in this would be the extra profit that would normally come in from the other cardinal optionswould decrease. Another alternative Unilever might consider might be to focus its det ergents and personal care products in accordance to the needs and wants of communities in certain areas. For example, while one country might see it more fit to have Omo, another region might prefer the personal care products of Calvin Klein. In researching the area and what customers seem more comfortable with would servicing enhance sales. However, if the company would be willing to invest both time and money in doing this would be upon them. A third alternative would be for the companys financial and marketing team to use the fig out analysis. By using this, the company would get a better understanding of their strengths, weaknesses, opportunities, and threats. This would give them the chance to take advantage of what they are doing well while likewise showing them what exactly they should focus on to improve. Again, it would just be whether the company is willing to take the time and money to put into the analysis.SolutionsUnilever introduced a new structure based on regional business groups. By creating groups and divisions in the company, each team was able to focus on a specific category of products. In doing so groups and divisions coordinated the activities of national subsidiaries within their region to drive down operation costs and speed up the process of developing and introducing new products. However, however with this variegate in structure, Unilever was still lagging behind the competition. Therefore, the company cut the number of brands sold from 1,600 to 400 that could be marketed on a regional or global scale. They also reduced manufacturing final causets from 380 to about 280. Even after proceeding with this new foundation, they were still behind the competition. Unilever then decided to establish just two global product divisions. This included a food division and a home and personal care division.ContingencyIf the solutions and changes made to the company fail, one back-up plan would be to cut out either the food or home and person al care division. That way the company would be able to focus on just one certain area. In doing so they would cut back stock-still more products and brands, as well asreducing manufacturing plants even more. This would help cut not only labor costs, but operating costs as well. As far as competition goes, Unilever would fall behind competing companies even more, therefore, instead of going for a global business, they should start back locally and overtime work their way back up. If they keep going at the rate they are, the company would take a bigger fall and might be harder for it to bounce back. Overtime, as they work on building the business then they merchant ship look into adding the other division, and then eventually work into competition globally once again.ConclusionUnilever took a big step in trying to change and improve the company. Most businesses find it hard to accept change and thats always the downfall to any great company. As far as the competition goes, Unilever has a lot to catch up on. They fell to far behind other competitors and suffered greatly from this. As long as Unilever stays patient with building their company up to what it once was, I feel that they will have no problem accomplishing a very successful company overtime.

What Qualities A Teacher Should Have Essay Example for Free

What Qualities A Teacher Should Have EssayTeachers play an important role in the study of every student. There are many who conceive that a give instructioner have a certain skill in teaching their students. I think that a instructor should obtain multiple qualities to be able to have the skill in teaching. In my view, a teacher must enjoy their job. They should do this because if they do not then they will become unhappy. Once a teacher is unhappy, they will not be able to perform well for their job. If a teacher is not able to perform well how will a student be able to learn the proper skills for their subject? A teacher should have knowledge about their subject. If a teacher does not have the knowledge how will he be able to guide his students towards the right trend?The teacher should have knowledge because he will be able to share his knowledge with his students, which enables his students to learn more. I strongly believe that a teacher should present his subject in an interesting manner. If a subject is not presented in an interesting manner how will students be able to obtain the information given to them? Students these days have very limited attention spans. If very vital information is being presented in a boring monotone contribution do you think students will remember this information? A teacher should be hardworking, caring, responsible and must like children. If a teacher is none these how do you think a student will react? If a teacher is not hardworking will he be able to actually teach a student something?If a teacher is not caring will he able to gain the trust of a student? If a teacher is not responsible will he be able to handle the welfare of a student? If a teacher dislikes children will he be able to achieve in getting any information towards a student? In conclusion, I think in order to obtain a certain skill in teaching a teacher must be able to have certain qualities such as the ability to estimate his job, the knowledge of a subject, the ability to present their subject in an interesting manner, the ability to be hardworking, caring, responsible and the ability to like children. Teachers are counted as a noble profession as they shape the minds of tomorrow.

Main problem of House of Lords

Main problem of signal of LordsThe cure for admiring the House of Lords was to go and look at it1 recalled Walter Bagehot in 1867. The problems associated with the upper hold birth underg unrivalled three periods of amend since that time, with regard to both its powers and its composition. The two atomic number 18, of course, interconnected but composition is perhaps the more than vestigial of the two, since the composition of the Lords, and therefore its perceived full stop of democratic legitimacy, generally determines the power it should legitimately wield. One therefore needs to examine the problems created by the stream composition of the Lords, and to evaluate whether there exists a more preferable selection to the status quo. Yet in order to do that, it is necessary to determine what role the House of Lords should gratify in the political process.The role of the second domiciliate in a bicameral legislature varies from country to country, but in the UK the House of Lords should seek to fulfil three separate constitutional functions. Firstly, it should act as a delaying device on presidency legislation. This is not to say it should always seek to amend, or even reject, proposals that arrive from the lower have a bun in the oven, but rather it should apparently offer an opportunity of time for the mankind to become aware of the proposals and their consequences, as well as permitting various interest groups the time to reflect and to mobilise their lobbies in response to whatever protestations they might seek to raise. Lastly, as Archer argues succinctly, much(prenominal) a delaying function as fulfilled by the Lords protects the law from an ephemeral prime to judgement in response to a particular dramatic event2.The second role that the House of Lords should undertake is to scrutinise government legislative proposals in more detail than is currently achieved by the House of jet or its standing committees. Evidence suggests that such s tanding committees are sparsely attended and frequently exclude large sections of a given bill from detailed examination3, and therefore the Lords fulfil a vital role in ensuring that the legislative program is thoroughly examined. As a result of the Life Peerages Act of 1957, it is now not unreasonable to argue that the Lords is more abundantly equipped with technical expertise than the lower domiciliate and, as such, bills may be improved by revision. This is particularly necessary where proposals have been subjected in the Commons to amendments drafted in haste by government ministers, in response to criticisms and compromises from both MPs and outside interest groups. This charge of rapidly imposing an ill-thought-out legislative agenda is hotshot that is frequently levelled at the New labor party government, whose ambitions have led to an unprecedented number of new bills being forced through Parliament across different parliamentary sessions.Finally, the upper sleeping ro om mustiness seek to protect those constitutional principles which are fundamental to our democracy. The Parliament Act of 1911 removed the sacrosanct veto over legislation which the Lords had previously enjoyed, entirely deprive the Lords of its powers over each bill certified by the Speaker as a money bill and introduced the idea of a suspensory veto whereby any law passed in three (later two post 1949) successive sessions would receive Royal Assent regardless of Lords objections. Yet the Lords stop to retain certain absolute powers. Perhaps most importantly, it remains able to reject any bills proposing to extend the demeanor of Parliament beyond the statutory five years. In addition to this fundamental right, the House of Lords consent is required by a government seeking the dismissal of a High Court judge, Appeal Court judge or a judge of the new Supreme Court. The upper chamber thus offers some protection against a government seeking to subvert either the electoral or th e judicial process. This function of constitutional protection, although limited, is nevertheless of great importance, since Britain lacks a codified constitution guaranteeing regular elections and the independence of the judiciary. Without the House of Lords therefore, there would be a dangerous gap in the political system it is the only body which bottomland prevent a transient majority in the House of Commons from extending its own life or dismissing a judge whom the government finds inconvenient.In order to fulfil these roles effectively, Alexandra Kelso4 argues that any upper chamber in a all-encompassing democracy must be considered legitimate. In order to be legitimate, she argues that the chamber must have stimulant drug legitimacy, and output legitimacy. The former stems from the control exercised by the public in determining the chambers nature and composition, while the latter concerns the degree to which the institution performs its particular functions within the bro ader political system and meets the needs of the public (ie, those requirements detailed in the three roles listed previously). Clearly, the House of Lords in its present state, having undergone the reforms of 1999, suffers from input illegitimacy. Despite the removal of the vast majority of hereditary peers, that 92 still retain their seats in the upper chamber must strike any impartial observer as an anomaly no modern day parliamentary system can claim democratic legitimacy at a time when members of the legislature owe their positions to an accident of birth. There are arguments proposed in their defence which insist that by virtue of their entrenched positions, they are less likely to be affected by short-term political decisions and as such can propose solutions which are of benefit to the country in the long term. Yet such problems are already resolved by the Life Peerages Act of 1957, which allowed government to nominate life peers who would be as equally unaffected by such sh ort-term thinking. Hereditary peers were evidently aware of their limited legitimacy in objecting to legislation emanating from a democratically elected chamber, for the frequency of rebellion against the commons prior to 1999 was relatively low. However, since their removal, the propensity of the upper chamber to reject both bills and amendments has markedly increased, as the freshly reformed house clearly now sees itself as more democratically legitimate. According to the Constitution Unit at University College, London, the Lords rejected clauses put forward by the commons a total of more than 350 times in between 1999 and 20075. Furthermore, a vote to oppose government legislation cannot be carried by one party alone anymore in the way that it could when the Conservatives enjoyed a majority in the Lords the upper houses verdicts nowadays, therefore, carry more weight. Around 40% of the defeats that the government has suffered since 1999 have been behaveed by the government6.Fur ther input illegitimacy could alike be argued to be evident in the right of Church of England officials to sit in the Lords. The objection is straightforward why should the claim of the church to representation be greater than that of any other interest group? In an increasingly secular age, it is ingratiatory to argue that no religious group should be entitled to such representation. Alternatively, were one to reject such secular reasoning, then one must accept that provision should also be made for the representation of other churches and religions.How, then, to solve the problem of input illegitimacy? The Royal Commission on Reform for the House of Lords was required, by its terms of reference, to have regard to the need to maintain the position of the House of Commons as the pre-eminent chamber of Parliament7. This essay wholeheartedly agrees with this principle, but in so doing seeks to argue that as a direct result of this term of reference, the upper chamber cannot include any representatives that are directly elected. This does not needs compromise Kelsos input legitimacy requirement however, providing that one were to accept that representatives are still democratically legitimate even if not elected directly. If the upper house were to be 100% appointed by party leaders and the crossbench peers by the Independent Appointments Commission, the make-up of which lies in the hands of democratically elected leaders in the House of Commons, then input legitimacy could be maintained. The principle that no party should gain an overall majority should also be retained. Furthermore, peers that were appointed for the get purpose of fulfilling a government role, such as Lord Adonis or Lord Sugar, should relinquish their seats in the upper house when their work are no longer required in the role for which they were appointed. Should they feel that they are able to offer further service to Parliament, they could request their names be put forward for a more pe rmanent position by the party leaders, or else hope to be nominated by the Appointments Commission. It is of course bid to argue for an elected element to the upper chamber, but one quickly falls into the traps illustrated by Bogdanor8 briefly, a fully or majority elected chamber risks being more legitimate than the House of Commons, both as a result of the electoral system used, the terms of representation and timing of an election furthermore, such a chamber would also suffer from the lack of technical expertise that so helps the current House of Lords hold the Commons and government legislation to cover a minority elected chamber risks subsiding into a two-tier chamber, whereby it might be felt that democratically elected representatives have a higher degree of legitimacy than their appointed counterparts. This essay maintains therefore that the only attractive option for House of Lords reform is to maintain a 100% appointed chamber, while removing any remaining hereditary peer s, as well as those representing the Church of England, from the chamber.Having made a proposition as to the most preferable composition of the Lords, and argued that it confers to Kelsos definition of input legitimacy, one must proceed to output legitimacy, and examine the case for reform with regard to the powers of the upper house. In order to justify reform from the status quo, one must persuasively argue that an upper chamber formed along the lines outlined above either would not have sufficient power to fulfil the roles expected of it, or else so much power as to lead to a danger of the Lords becoming more powerful than the Commons. The reformed, more-legitimate Lords would be able to continue to delay legislation, although it is important that its powers remain limited to a suspensory veto. The directly elected house must never be perpetually constrained by one which is not directly elected. Secondly, a house which is 100% appointed, with a greater number of cross-bench peers , would be able to fulfil the second function, scrutiny of government legislation, to a higher standard than before. Given that the suspensory veto would be maintained, this too is a positive step which would not grant the Lords undue power. Finally, providing that the current absolute rights of the Lords are maintained, the upper chamber would be able to continue to fulfil its final constitutional role. Output legitimacy is maintained.The composition of the upper house will always have a direct result on the legitimate use of its powers. The current House of Lords lacks input legitimacy as a result of the continued presence of both hereditary peers and representatives of the Church of England. Furthermore, the gift of a life peerage allows recipients to act largely with impunity, while the House is also in danger of becoming a graveyard of ex-government employees. The introduction of a term limit could solve the first problem, while forcing government ministers in the Lords to stan d down following completion of their role could solve the second. By only slightly amending the Lords composition, then, one can confer input legitimacy House of Lords, which would in turn make the use of the powers of the House, already sufficient for the completion of its constitutional duties, both more effective and more legitimate.Lords Save Us, The Economist, 2002P Archer, The House of Lords, Past, show Future, Political Quarterly 1999P Dorey, 1949, 1969, 1999 The Labour Party and the House of Lords Reform, Parliamentary Affairs 2006A Kelso, Reforming the House of Lords, Parliamentary Affairs 2006House of Lords post-reform, Constitution Unit, University College London, 2007V Bogdanor, The New British Constitution, 2009A House for the Future Report from the Royal Commission on Reform of the House of Lords, HMSO, 2000V Bogdanor, Reform of the House of Lords A Sceptical View, Political Quarterly 1999.

Meritocracy: Definition, concepts and ideology

Meritocracy Definition, concepts and ideologyMeritocracy as an ideologyMeritocracy can refer to an idealised society where disparity on the basis of race, nationality, gender, age, and other irrelevant characteristics is completely absent. Merit is the encompassing value, the basic and morally correct criterion for any and all social divideifications, oddly in respect to socioeconomic standing and in public space. A notion, emphasising societal consensus on the means and processes of selection for particular roles through a trunk of sifting, sorting, and rewarding talent and ability, motivated by competition for qualifications that in turn structure access to wealth, prestige, and personal satisfaction. It is conceived as a repudiation of systems like aristocracy where item-by-item(a)s inherit their social status. A meritocracy resembles aristocracy in the classical sense of the term meaning rule by the best. What has happened over the centuries, however, is that aristocracy has become associated with contagious privilege and a rigid class system. Instead of this, a meritocracy promotes worthy various(prenominal)s regardless of which social strata they happen to be born in and each individual has good fortune in proportion to the individuals deservingness (Rawls, 1999, Nozick 1974, Miller 1999).IQ tests primarily tap analytical, logic- ground reasoning and surely that conformation of cognitive ability is associate to performance in numerous job settings. But other kinds of cognitive ability are as well related to performance and thus also patch up merit. For instance imagination, practical sense, and the ability to interpret others perspectives. By the same token, the effort component of Youngs formulation suggests that a number of personality factors may figure into a reasonable conception of merit. For example, being conscientious may enhance job performance. Of course, some individual traits and social skills may be rewarded because they refl ect conformity to dictatorial group norms. It is not clear why the term merit should be identified so closely with mental ability as distinct from many other conditions and traits that improve the chances of social and economic success (Hauser et als, 2000, p. 203). David Miller (1996, 300) eluding on Walzer (1983) has indicated that a meritocracy is not only more stable but also more socially just if there are a number of socially recognised forms of merit economic contribution would be one kind of merit, education and scholarship another, artistic achievement a third, public service yet another, and so forth. However these other conditions and traits do not contribute to a fair opportunity. In Rawls view, the correlation between ones social origins and ones outcome in life is zero in a meritocracy and as long as some form of the family exists in society fair opportunity cannot be achieved as (Rawls 1971, 64). The social context within which individuals grow up influences the achi evements of equally commensurate persons. Success in the labour market is transmitted from parents to children, and the advantages of the children of successful parents go considerably beyond the upbeats of the best education, wealth and genetic cognitive ability. Many of the criteria associated with individual talent and effort do not measure the individual in isolation but rather parallel the phenomena associated with aristocracy what is called individual talent is in reality a function of that individuals social side or opportunities gained by virtue of family and ancestry. Among these, for example, one might list ambition or drive, perseverance, responsibility, personal attractiveness, and physical or artistic skills or talents, along with access to social support and to favourable social and economic networks and resources. Access to education is partly defined by heritage as much research has demonstrated (Bowles and Gintis, 2002 Bourdieu and Passeron 1990 Aschaffenburg an d Maas 1997 Sacks, 2003 Ballantine 2001). Compiling evidence from other studies Herrnstein concludes that 80% of the differences in IQ among individuals is explained by inherited factors and 15% is explained by environmental factors (Herrnstein 1971, 171). Children from the upper class get upper class education, middle class children get middle class education, works class people get working class education, and poor people get poor education. Privileged young people can perceive reachable goals and develop lofty aspirations because they tend to receipts from high expectations and support networks from the family and social milieu, as well as extensive economic and educational resources. Those who have the resources, via their parental background, will move through higher(prenominal) education, get well paid jobs, and postpone family plans until they are well into their thirties, building their financial and cultural capital significantly prior to family formation. Inheritance may erect access to powerful forms of social capital (who you know) and cultural capital (what you know). Bourdieu Passeron (1990) indicate that students who lack the required knowledge and skills with which to successfully navigate the parameters of middle class gloss inevitably fail at school. It therefore seems that unequal educational opportunity is the driver of individual achievement. Research shows that as class rises so does the level of education. As a consequence, the expansion of higher education will broaden the gulf between rich and poor (Blanden et al. 2005). So achievement capacities are ascribed to social class. Thus, IQ tests measure intelligence as a reflection of inherent intellectual capacity combined with environmental influences. Thus parents can predispose their children to succeed or fail in life as they are a part of the environment that affect the abilities that children attain. Thus the first and foremost among non-merit factors is the effect of social clas s at birth on future life. Therefore truly equalizing childrens environments in an effort to create a system with equal opportunities for all would mean having to quench the family. Meritocracy thus could lead to a hereditary caste system that, far from promoting social mobility, actually makes social advancement nearly impossible for the lower orders. This could be the case if wealth and social position are or primarily distributed by unchangeable genetic characteristics of individuals. This argument can be reworked into the form of a Hernsteins syllogism If differences in mental abilities are inherited, and If success requires those abilities, and If earnings and prestige depend on success, Then social standing (which reflects earnings and prestige) will be based to some extent on inherited differences among people. (Herrnstein 1971, 197-8)This implies that absolute equality of opportunity is an ideal that cannot be achieved. (Loury 1977, p. 176).For John Rawls, the question of d istributive justice is rather different. He is not content to say that any person begins at some point in the process of acquisition and then is barely constrained by a set of rules and procedures to ensure fairness. Rather, the socioeconomic position of the agent is also considered. Rawls bases his query on how the agent is presented with the distribution of talents and social position. His conclusion is that these distributions are inadvertent and arbitrary. It is an accident that someone is born with whatever natural traits he may possess. The question is raised whether a meritocracy based on natural abilities is thus unfair. slightly might contend, for example, that even if we do not deserve our natural abilities it is not unfair if we reap the rewards of those abilities because the system of reward is independent of the system of deserts. However, Rawls makes the case that social position is also random and arbitrary. The fact that natural abilities may or may not be rewarde d in that society is an accident. To be rewarded based merely on an accident is not deserved. Thus, a meritocracy that is based on reward from undeserved social position is similarly unfair.Therefore, both natural abilities and social position may not be the basis of distributive justice because they are unfair. The naturally advantaged are not to gain merely because they are more gifted. The individual cannot help how she begins life. Why make her pay for her positive talents and advantages? The rectification of these disparities in Rawls is his difference principle that makes all inequalities subject to the stipulation that the least advantaged will benefit from them.

Types And Causes Of Liquidity Risk Finance Essay

Types And Causes Of fluidness Risk Finance EssayInfinance, silver state perilis the luck that a given security or addition bath non be traded quickly enough in the mart to prevent a deprivation (or make the look atd profit).ORLiquidity essay is the current and prospective guess to earnings or capital arising from a banks inability to meet its obligations when they recognise due without incurring unacceptable departurees. Liquidity risk includes the inability to manage unplanned decreases or changes in reinforcement sources. Liquidity risk also arises from the misadventure to recognize or address changes in food commercialise conditions that affect the ability to liquidate assets quickly and with minimal loss in value.2.1-Types of Liquidity risk plus runniness Due to the lack of runniness in market an asset can non be sold it is basic ally subset of market risk. This can be done byWidening bid/offer spreadMaking explicit fluidness reservesLengthening guardianship closure for Vary calculations backing liquid state Risk that liabilityCannot be met when they fall dueCan only be met at an uneconomic priceCan be name-specific or organizationic2.2- Causes of Liquidity RiskThere ar many causes of liquid risk runniness risk actually arises when the one keep familiarity trusts to art an asset cannot do it because in the market no one wants to trade that asset .The persons who ar about to hold or currently hold the asset and want to trade that asset then fluidness risk become partial important to them as it affects their ability to do profession.From drop of price to zero is really incompatible from that appearance of runniness risk. In the case when the assets price drop to zero then market said that asset is valueless. On the other get through when one party found that the other party is not interested in buying and selling of an asset then it become a cock-a-hoop problem for the participant of a market to find the other interested party. So we can say that in the emerging markets or low mint markets the risk of liquidity is higher.Due to uncertain liquidity the liquidity risk is known as a financial risk.When the credit entry rating falls the impressionion whitethorn lose its liquidity, in this way rapid unexpected cash outflows, or as a result of this happening the counterparties may evacuate the business of buying and selling with or borrowing the loan to the institutions. A firm is also clear to liquidity risk if markets on which it depends argon subject to loss of liquidity. The firm is also seen to the risk of liquidity when the markets in they depend are under the liquidity loss.Liquidity risks tend to compound other risks. If a trading organization has a position in an illiquid asset, its limited ability to liquidate that position at short notice will compound its market risk. let us suppose a firm has a cash flows offsetting on a given day of with two different counter parties. If the counter pa rty do not make the payment and become a payment defaults. In this way firm will have to make the cash from most other sources in cast to make payment. Credit risk is the risk arises due to the liquidity.A position can be hedged against market risk but still entail liquidity risk. This is true in the above credit risk example-the two payments are offsetting, so they entail credit risk but not market risk. Another example is the 1993Metallgesellschaftdebacle. Futures contracts were used to hedge an Over-the-counter finance OTC obligation. It is debatable whether the hedge was effective from a market risk standpoint, but it was the liquidity crisis caused by staggering margin calls on the futures that forced Metallgesellschaft to unwind the positions.As compared to the risks like market, credit and other risks the liquidity risk is also has to be managed. It is impossible to isolate the liquidity risk because it has the tendency to compound the other risks everywhereall the most si mple circumstances. Liquidity risk does not exit in the comprehensive metrics. In order to assessed the liquidity risk the certain techniques of asset liability circumspection can be apply on a day by day basis. A simple test is conducted for the liquidity risk in ordered to see the net cash flows. whatsoever day which shows a sizeable negative cash flow is of concern.Analyses such as these cannot easily take into account contingent cash flows, such as cash flows from derivatives or mortgage-backed securities. If an organizations cash flows are largely contingent, liquidity risk may be assessed using some form of scenario analysis. A general overture using scenario analysis might entail the following high-level stepsConstruct multiple scenarios for market movements and defaults over a given period of eraAssess day-to-day cash flows under each scenario.Becausebalance sheetsdiffer so strongly from one organization to the next, there is little standardization in how such analyses are implemented.Regulators are primarily concerned about systemic and implications of liquidity risk.2.3- Liquidity gapThe liquidity gap is the net liquid assets of a firm.As a static measure of liquidity risk it gives no indication of how the gap would change with an change magnitude in the firms marginal supporting cost.2.4- Liquidity risk elasticityCulp denotes the change of net of assets over funded liabilities that progress when the liquidity premium on the banks marginal funding cost rises by a downcast amount as the liquidity risk elasticity. For banks this would be measured as a spread over libor, for nonfinancial the LRE would be measured as a spread over commercial paper rates.Problems with the use of liquidity risk elasticity are that it assumes parallel changes in funding spread across all maturities and that it is only accurate for small changes in funding spreads.2.5- Measures of Asset LiquidityFollowing are the measures of asset liquidity.2.5.1. Bid-offer spreadT hebid-offer spreadis used by market participants as an asset liquidity measure. To compare different products the ratio of the spread to the products mid price can be used. The smaller the ratio the more(prenominal)(prenominal) liquid the asset is.This spread is comprised of operational costs, administrative and processing costs as well as the compensation required for the possibility of trading with a more informed trader.2.5.2. Market depthHachmeister refers tomarket depthas the amount of an asset that can be bought and sold at various bid-ask spreads.Slippageis related to the concept of market depth. Knight and Satchell mention a flow trader needs to consider the effect of executing a large order on the market and to adjust the bid-ask spread accordingly. They calculate the liquidity cost as the difference of the execution price and the initial execution price.2.5.3. ImmediacyImmediacy refers to the eon needful to successfully trade a certain amount of an asset at a prescribe d cost.2.5.4. ResilienceHachmeister identifies the fourth dimension of liquidity as the urge with which prices return to former levels after a large transaction. Unlike the other measures resilience can only be determined over a period of time.2.6- Managing Liquidity Risk2.6.1-Liquidity-adjusted value at riskLiquidity-adjusted VAR incorporates exogenous liquidity risk intoValue at Risk. It can be defined at VAR + ELC (Exogenous Liquidity Cost). The ELC is the worst expected half-spread at a particular confidence level.Another adjustment is to consider VAR over the period of time needed to liquidate the portfolio. VAR can be calculated over this time period. TheBISmentions a number of institutions are exploring the use of liquidity adjusted-VAR, in which the holding periods in the risk assessment are adjusted by the length of time required to unwind positions.2.6.2-Liquidity at riskGreenspan (1999) discusses attention of foreign transposition reserves. The Liquidity at risk measu re is suggested. A countrys liquidity position under a range of possible outcomes for relevant financial variables (exchange rates, commodity prices, credit spreads, etc.) is considered. It might be possible to express a standard in terms of the probabilities of different outcomes. For example, an acceptable debt structure could have an average maturity averaged over estimated distributions for relevant financial variables in excess of a certain limit. In addition, countries could be expected to hold sufficient liquid reserves to ensure that they could avoid new borrowing for one year with certain ex ante probability, such as 95 percent of the time.2.6.3-Scenario analysis-based misfortune plansThe FDIC discuss liquidity risk management and write Contingency funding plans should incorporate events that could rapidly affect an institutions liquidity, including a sudden inability to securitize assets, tightening of collateral requirements or other constrictive terms associated with s ecured borrowings, or the loss of a large depositor or counterparty.Greenspans liquidity at risk concept is an example of scenario based liquidity risk management.2.6.4-Diversification of liquidity providersIf several liquidity providers are on call then if any of those providers increases its costs of supplying liquidity, the impact of this is reduced. The American Academy of Actuaries wrote While a company is in good financial shape, it may wish to establish durable, ever-green (i.e., always available) liquidity lines of credit. The credit issuer should have an appropriately high credit rating to increase the chances that the resources will be there when needed.2.6.5-DerivativesThe five derivatives that are discuss by bhaduri,meissner yon created specifically for hedging liquidity risk.Withdrawal option A adjust of the illiquid underlying at the market price.Bermudan-style return put option Right to put the option at a specified strike.Return swap shift the underlings return for LIBOR paid periodically.Return swaption Option to enter into the return swap.Liquidity option Knock-in barrier option, where the barrier is liquidity metric.otherFunding sources are ample and provide a competitive cost advantage.Funding is widely diversified. There is little or no reliance on sell funding sources or credit-sensitive funds providers.Market alternatives exceed demand for liquidity, with no adverse changes expected.Capacity to augment liquidity through asset sales and/or securitization is strong and the beach has an established record in accessing these markets.The volume of wholesale liabilities with embedded options is low.The Bank is not vulnerable to funding difficulties should a material adverse change occur in market perception.Support provided by the parent company is strong.Earnings and capital exposure from the liquidity risk profile is negligible.-Quantity of Liquidity Risk IndicatorsIn order to assess the quantity of liquidity risk the following indicat or should be used. Every characteristic is not necessary to be demonstrated.2.7.1-LowThe sources of funding are abundant and provide a advantage of competitive cost.Funding is generally expanded. There is little or no reliance on wholesale funding sources or other credit-sensitive funds providers. On the sources of wholesale funding or others providers of credit sensitive fund in it there is no trust.The demand for liquidity goes above by the market alternatives and there are no any expected changes.Capacity to augment liquidity through asset sales and/or securitization is strong and the Bank has an established record in accessing these markets.The wholesale liabilities have a low volume with fixed options.The Bank is not weak to funding difficulties should a material adverse change occur in market perception.The parent company provides the support which is strong.Earnings and capital exposure from the liquidity risk profile is negligible.2.7.2-ModerateThe funding sources which are sufficient are available that provides a liquidity which is cost effective.Funding is generally expanded, by a few providers that may share their common objectives and their economic influences, but no significant concentrations. The wholesale funding is clear and it has a modest reliance. The market alternatives that is available in order to meet the demand for liquidity on reasonable terms.The Bank possesses the potential capacity to expand liquidity through asset sales and/or securitization. The bank has a modest experience in order to access these marketsSome wholesale funds contain embedded options, but potential impact is not significant.The Bank is not excessively vulnerable to funding difficulties should a material. the adequate support is provided by the parent company.Earnings or capital exposure from the liquidity risk profile is manageable.2.7.3-HighFunding sources and liability structures suggest current or potential difficulty in maintaining long-term and cost-effectiv e liquidity.Borrowing sources may be concentrated in a few providers or providers with common investment objectives or economic influences. A significant reliance on wholesale funds is evident.Liquidity needs are increasing, but sources of market alternatives at reasonable terms, costs, and tenors are declining.The Bank exhibits little capacity or potential to augment liquidity through asset sales or securitization. A lack of experience accessing these markets or unfavorable reputation may make this option questionable.Material volumes of wholesale funds contain embedded options. The potential impact is significant.The Banks liquidity profile makes it vulnerable to funding difficulties should a material adverse change occur.Parent company provides a little or unknown support.Potential exposure to loss of earnings or capital due to high liability costs or unplanned asset reduction may be substantial.Liquidity risk managementAchieving best practiceManaging liquidity risk is often abou t applied common sense, like operational risk it requires a firm-wide approach and this places a high demand on the right processes and procedures.Any management cultivation system used to mitigate liquidity risk should beAccurateThe best way of encouraging accuracy is to keep reporting simple.CommunicativeReport and information should speak plainly.RegularTimely reporting allows managers to judge changes in the market and their organizations liquidity profile.ComprehensiveMust reflect your organizational reality, such as different entities, jurisdictions and regulations.RealisticScenario must be rigorous if risk is to be identified in real situations.2.8-Quality of Liquidity Risk ManagementThe following indicators, as appropriate, should be used when assessing the quality of liquidity risk management.2.8.1-StrongThe polices are approved by the board and communicate guidelines effectively for the liquidity risk management and responsibilities are designated.The liquidity risk manag ement process is effective in identifying, measuring, supervise, and irresponsible liquidity risk. The process of liquidity risk management is effective for identifying liquidity risk, for measuring, monitoring, and controlling the liquidity risk.A sound culture reflects that has provenLiquidity risk is fully understood by the management in all the aspects.Management anticipates and responds well to changing market conditions.The contingency funding plan is well-developed, effective and useful. The plan incorporates reasonable assumptions, scenarios, and crisis management planning, and is tailored to the needs of the institution.Management information systems focus on significant issues and produce timely, accurate, complete, and meaningful information to enable effective management of liquidity.Internal audit is comprehensive and effective.The scope and frequency are reasonable.2.8.2-SatisfactoryPolices are approved by the Board which communicate adequately guidance for liquidit y risk management and responsibilities are assigned.There may be a minor weakness present.The liquidity risk management process is generally effective in identifying, measuring, monitoring, and controlling liquidity.There may be minor weaknesses given the complexity of the risks undertaken, but these are easily corrected..the key aspects of liquidity risk are reasonably understands by the management.Management adequately responds to changes in market conditions when changes occur in the market conditions the management respond adequately.The plan of contingency funding is adequate.The plan is current, reasonably addresses most relevant issues, and contains an adequate level of detail including multiple scenario analysis.The plan may require minor refinement.Management information systems adequately capture concentrations and rollover risk, and are timely, accurate, and complete.Recommendations are minor and do not impact effectiveness.Internal audit is reasonable.Any weaknesses are minor and do not impair effectiveness or reliance on audit findings.2.8.3-WeakThe Board has approved policies which are insufficient or incomplete.In one or more material respects the policy is incomplete.the process of liquidity risk management is useless in identifying, monitoring and controlling the liquidity riskThis may be true in one or more material respects, given the complexity of the risks undertaken. The liquidity risk does not fully understand by the management. In the conditions when the market changes the management does not take any timely or suitable actions and do not participate. .The contingency funding plan is inadequate or nonexistent.The plan may not consider cost-effectiveness or availability of funds in a non-investment grade or CAMEL 3 environment.The information systems of management are deficient. The plan may be there but they do not adopted by the institutions, it is not reasonable, or they are not implemented as it should be.The information which is mat erial may be a incomplete or lacking.Due to one or more material deficiencies the internal auditor coverage is missing or useless.2.9-Common problems and misconceptionsLiquidityriskis one of the least understood and most underestimated risks that financial markets participants are exposed to.Reasons for this include Under normal market conditions,liquidityproblems are not observed Liquidityriskdoes not lend itself to readily usable measures despite specific BIS recommendations,liquidityriskmanagementis left out of capital adequacy calculations due to a lack of control and regulation Liquiditymanagement is often confused with liquidityriskmanagement Market and creditriskmanagementfocus on assets, whileliquidityrisk can stem from liabilities as wellLiquidityriskis also different in nature to market and creditriskand needs to be archetype of differently Normal markets analyses (expected or going-concern situations) are insufficient liquidityriskcan only be understood with scenario-ba sed stress testing Historical measures ofliquidityare irrelevant prospective views are essential Liquidityriskcannot be readily hedged, and can only be militated against through rigorous monitoring and controls The pricing of many instruments does not properly charge forliquidity.

The Story of Joshua and the Battle of Jericho Essay example -- The Hol

When the trumpets sounded, the people shouted(and) the w exclusively collapsed (Joshua 620). This is the account of Joshua and the people of Israel when they entered the Promised Land known as Canaan. As the Lord commanded they entered the land and conquered all the cities there, beginning with Jericho. The story of Joshua and the Battle of Jericho is a famous one. Everyone who has ever attended sunlight school has heard this famous Biblical account. What is overlooked in Sunday school is the passage after the walls fall down, They devoted the city to the LORD and destroyed with the sword every living thing in it men and women, early days and old, cattle, sheep and donkeys (Joshua 621). This is one of the more difficult passages in the Bible. It raises many questions, questions that are not easily answered. In fact, scholars today still debate them. Reading this discussion section of the Bible, found in Joshua chapter 6, you ask yourself how contribute we worship a God who permi ts His own people to slaughter innocents? How did the Israelites justify breaking one of the Ten Commandments (or speech communication as is the more accurate translation)? If God is just, then how can he allow the slaughter of innocents? Is God really a just god? much(prenominal) are the questions that come up whenever the slaughter at Jericho is brought up. Further seemingly brutal violence is found within Gods own people. If you enounce on an Israelite named Achan steals some of the bounty from Jericho when God commanded them not too. He was stoned along with his whole family God seems to be a violent, harsh god in these passages. How can this be if He is supposed to be the God of love, compassion and mercy? Israel, at this point in their history is very young as a nation and a people. Actually, it ... ...e question him? Yes, because Yahweh has a true desire for us to know Him personally and have a personal relationship with Him. How can we do that without asking questions an d studying His word? We cant. In the end it comes down to the fact that He is in contro1, He is always right and He is a just godWorks CitedDavis, John J. Conquest and Crisis Studies in Joshua, Judges, and Ruth. BMH Books. Vinona Lake, Indiana. 1969.Hamlin, John E. Joshua - Inheriting the Land. Wm. B Eerdmans Publishing Co. Grand Rapids MI, 1983.Jensen, Irving L. Joshua Rest-Land Won. Moody coerce Chicago IL, 1966.Paul Heinisch, Theology of Old Testament. Liturgical Press. St. Paul MN, 1955. Pink, Arthur W. Gleanings in Joshua. Moody Press Chicago IL, 1964. Yahweh. The Holy Bible New International Version. Broadman &Holman Publishers Nashville, TN, 1973

Whose Fault Is It? :: Dialogue Conversation Essays

Whose Fault Is It? Whitney Hey, Jessica, nurture a seat. You always seem to be looking for a place to hide. It must be tough with your dad on the television almost every night now. Cafeterias sure arent private, and you do ingest to eat Jessica What a pain hiding from people sometimes Still, dads been in politics for awhile now, so Im getting used to it. Brett Lorrin Im over here. Brett Hi, guys. Jessica, that was a unsloped report you gave today in Environmental Studies, even though I think youre wrong, of course Lorrin You two never agree on anything Jessica Well, I have the facts to prove my point. Dad showed me some of his research. Industries and factories are directly at fault for pollution. It is a simple as that. Lorrin Now, you two will drag me into this. I dont worry it the way politicians push the blame off on those without the money or power to do anything about the destruction. We elect government representatives to fight for our rights and well being. Bret t Well, I simply dont see it that simply. We are all responsible for our environmental destruction. Whitney Now that is simple. It seems to me that much of this environmental destruction issue is in our heads. Things seem fine to me. I dont see dead fish, breathe black air, or contract unexplainable illnesses, and neither do any of you that I know. Jessica I think you would feel otherwise if you saw EPA test results on the air you do breathe. The EPA sets limits on the amount of toxins that various industries, cars, and other polluters are permitted to release into the air. Lorrin Yes, but the EPA as a political agency only performs those texts once a year. Brett The EPA is underfunded and understaffed. Not only that, but when it does shut down factories, in many cases, the people who become unemployed plain about the lack of work and the factory is usually reopened. Similarly, when factories are to be inspected, they are usually informed weeks before the inspections o ccur, allowing time for temporary arrangements to clean up their toxic emissions and making the tests invalid. Jessica The EPA must give a company at least one day notice before an inspection.