Advanced Financial Modelling Essay Example | Topics and Well Written Essays - 1000 words

Advanced Financial Modelling - Essay showcaseFor that reason, people, tend to base their decisions on certain perceived elements of gains rather than elements of perceived losses (Back, 2010, pg. 208). In essence, if a person is presented with two equal choices to make, he or she give express one choice in terms of the possible losses and the other choice in term of the possible gains. For that reason, the person will hire the choice with possible gains (Kaustia, 2010, pg. 25).An example can be used to demonstrate the prospect opening as it applies to financial decision making. Two different financial advisors present the same mutual computer storage to an investor. The first financial advisor tells the investor that the average return of the mutual fund is 7%. The second financial advisor mentions that the mutual fund has realized above average return for the past 15 long time but the last 5 years have shown a decline. According to the prospect theory, the investor will choose a mutual fund from the first financial advisor. This is because it is not expressed in a compounding of returns and losses as did the second financial advisor (Li and Yan, 2010, pg. 101).The prospect theory was proposed and developed in 1979 by two aristocrats, Amos Tversky and Daniel Kahneman. The theory emerged as a psychologically description of the financial decision making adjoin (Ma, 2011, pg. 428). The theory also makes a comparison to the expected utility theory. According to prospect theory, editing and valuation are the two central stages that every financial decision making process must moderate through. The outcomes of a decision are made and ordered during the editing stage. During this stage, people consider lesser outcomes as losses and greater outcomes as gains. The aim of this stage is to alleviate any possible framing effect (Barberis and Xiong, 2012, pg. 99). In addition, it helps in resolving the isolation effects that stem out from the propensity to isolat e synchronous

Stakeholder management and risk management Essay

Stakeholder focal point and pretend management - Essay manikinThe stakeholder identification includes listing of the external and internal stakeholders who are associated with the mega project and then categorizing the stakeholders according to their roles, influence and extend to on the greathearted project. After analyzing the group of stakeholders, a stakeholder matrix is formed in which the stakeholders are positioned establish on their relative importance for the large project that they are associated with. Followed by the formation of stakeholder matrix, stakeholder engagement is of import in order to discuss the objectives and goals of the organization. The expectations of the stakeholders are also discussed in the meeting and a common goal is arrived to which all the stakeholders need to abide. The expectations of the stakeholders are discussed and the nature of communication to be maintained with the stakeholders is also agreed upon during the functioning (Kerzner an dBelack, 2010, p.47). The approach of stakeholder management maintains all the protocols of the large scurf project in terms of security, confidentiality, etc. ... The discount approach to stakeholder management considers the ethical responsibilities to the stakeholders apart from the fiduciary responsibilities. take a chance management is a process of identification, assessment, salmagundi and prioritization of risks and then adopt suitable strategies for allocation of resources in order to monitor, control and mitigate the impacts of risk exposures. Risk management approaches are adopted in order to minimize the impacts of uncertain thus farts which could interrupt or realize stoppage or considerable loss in the operations of large scale projects. Risk management takes into account the exposures to the financial markets, credit policies, legal risk, operational risk and any other event that is temporary or uncertain in the course of large projects. The various approaches to risk management in large scale projects include avoiding the risk, reducing the impact of risk exposure, transferring the risk to another party or even accepting some or all of the probable impacts of a certain risk exposure (Handlechner, 2008, p.37). In case of avoidance of the risk, some of the resources or objectives of the large scale project may need to be compromises. The risk avoidance approach is taken when the impact of such risk on the large scale project nullifies the value of the project. In most large scale projects, the risk mitigation approach is followed with a view that there is a risk return trade off for the project. Lowering the amount of risk to the tolerable limit of the project would help large projects to be executed with a profitable quietus between the associated risks and the potential returns (Conrow, 2003, p.58). The third approach for the management of risk is the method of transferring the risk to another party. By transferring

Global Banking Operations and Strategy Essay Example | Topics and Well Written Essays - 250 words

Global Banking Operations and Strategy - study ExampleThe bank lost its resilience and resistance capabilities (The Telegraph, 2014).Credit was one of the failed segments of RBS. RBS consistently relied on denotation trading, which due to high economic crises build up, brought more damage to RBSs existence. The bank needed to hobby the credit segment, which had lesser opportunity and more market risk (Treanor & Bowers, 2011).The weakness lied in RBS operations, which consistently failed to manage the net returns of the bank. The leakage of cash due to poor banking operations, RBS was unable to stabilize its cash step-up (Risk Business International, 2011).RBS always had low capitals in its financial cupboard. The bank due to small capital vision was never able to put hand on major market segments. This made bank deposit on small segments such as credit trading or bonds investment, which had more risk and lesser income return (BBC News, 2013).RTT News, 2014. European Markets Dec line, RBS Drops On Results. Online Viewed at Accessed 17 March 2014.The Telegraph, 2014. RBS report the main points. Online Viewed at Accessed 17 March 2014.Treanor, J. & Bowers, S., 2011. RBS failure caused by multiple poor decisions. Online Viewed at Accessed 17 March

Islamic Banking and capitalism Research Paper Example | Topics and Well Written Essays - 2000 words

Islamic Banking and capitalism - Research Paper ExampleFirst, globalisation is commonly seen as an integration of developed and less-developed countries leading to a homogenization of sorts. For instance, the topic of a middle-class in China and India is often mentioned as an example of globalization homogenizing the world, as is the global reach of brands much(prenominal) as Nike and Ford.Globalization has also lead to the increasing mobility of the population. This in turn, has sometimes not created homogenization, but differentiation. An example of this would be the development of Islamic financefinancial organizations that atomic number 18 based on Islamic principles sooner than capitalist or Western financial models. Analysts generally place the first of these as a savings bank based on profit-sharing in the Egyptian townspeople of Mit Ghamr in 1963. (Ariff, 1988, p. 42) Many significant Islamic financial institutions then developed in the 1970s such as the Dubai Islamic Bank, the Faisal Islamic Bank of Sudan and the Baharain Islamic Bank.More recently, with the widespread immigration of Muslims to the United States banks such as the Devon Bank in Chicago have developed. Its website describes it in this way Devon Bank offers Islamic funding services designed to avoid conventional interest common in traditional banking products. (http//www.devonbank.com/Islamic/) The emergence of Islamic financial services corporations is an example of globalization leading to leading to more differentiation rather than homogenization.Throughout the world, and particularly in the United States, it is a new and a different development for in that respect to be financial institutions that offer financial services based on Sharia law (and of configuration compliant with the legal requirements of their host countries. Devon Bank makes this plain on its homepage Our products are created to meet your needs by a staff versed in both U.S. and Islamic legal requirements, a nd then submitted

Toyota 2010 Term Paper Example | Topics and Well Written Essays - 500 words

Toyota 2010 - Term composing ExampleThis meant that the driver would non always be able to stop the car when he pulled the halt consequently causing serious accidents (Jackwin, 2010).The second recall was made on January 21, 2010. Numerous crashes were reported which could not be explained by the floor mat incursion. Research indicated paradoxs with the mechanical sticky of the accelerator pedal which Toyota labels sticking accelerator pedal. After a series of research findings Toyota recalled approximately 5.2 million vehicles with regards to the floor mat problem and an additional 2.3 million with regards to the accelerator problem (Stewart, 2010).These decisions were a result of numerous investigations carried out by Toyota on with the U.S. NHTSA and Japanese transport ministry. After numerous complaints being filed, US safety regulators carried out an investigation into Corolla manoeuver complaints on Feb 17, 2010. The biggest challenge facing the investigators was to diff erentiate between accidents caused by mechanical or technical faults in the vehicles and those that were merely a result of driver error. Both the Wall Street Journal and USA directly suggested that even when the dealers and automakers realized the cause was driver error it was not always possible for them to say it explicitly, so as to avoid appearing insensitive to their customers (United States, 2010).Investigations were withal carried out by Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The MLIT investigated on the sudden acceleration complaints and released its findings in February 2010. Revealing that out of the 134 cases logged by the ministry between 2007 and 2009, Toyota accounted for 38 cases. However it also stated that since Toyotas market share was huge approximately 28% the rate found was not unusual.When confronted with the issue the president and CEO of Toyota Akio Toyoda issued a statement

Paraphrasing Essay Example | Topics and Well Written Essays - 250 words - 37

Paraphrasing - Essay ExampleAlmost all organizations consider in this type of operation in a bid to refine their mouldes. Task-focussed approach involves consultation that is unendingly accompanied with directives. A case in point is in the universities where the senate, after consulting various stakeholders, may gain a decision and then communicate it to the university fraternity through memos, instructions, or emails. The third approach is attractive transformation and is commonly applied in organizations such as banks. It is characterised by directed business serve and re-engineering as its success is anchored on its functionality that often a times calls for the restructuring of processes. Multinational enterprises on the other submit find themselves operating in environments that are constantly changing. This means that they have to be flexible nice to alter their operations in a frequency which marches the level of their dynamic environment. In such a situation, facili tated and directed approaches may vary to also include aspects of fine tuning and corporate transformation. This in turn gives rise to turnaround transformation that is characterised by both directive style and a speckle of coercion. The best case to illustrate this is Toyotas lean Just-In-Time manufacturing technique which seeks to eliminate waste during the production process. diametric factors account to organizational failure during change management. Among the prime factors is the absence of effective communication. Communication of the change process to the stakeholders is a critical ingredient in winning their commitment to a cause. The leader thus has the state to let every interested party understand why the change is important, how they impart benefit from it, and what will remain unaltered to take care of anxieties and resistances that are likely to crop up. It is

Warranting Theory in Actio Assignment Example | Topics and Well Written Essays - 500 words - 1

Warranting Theory in Actio - Assignment ExampleThis information found in social sites. Other people who hit the sack you dampen send comments and statements describing you which you can not change. These cues make communication understandable and enhance the creation of relationships among people. They are commonly positive and one can clearly know and believe the content (Potter, 2007). It includes use of positive cues and sentences must be complete to enhance clarity. In my aunts face book profile for instance, her coda friend commented that she is pretty.This has instances of less or no non verbal cues, incomplete use of sentences and words, spelling errors and improper position or language. One barely understands what the other person means because the communication becomes unclear, more manipulated and less believable. The bear on of information becomes somehow or totally impaired (Potter, 2007).My aunt for instance send me this comment in my face book account, I love rea ding. Reading is a hobby which she attributes it to self and I know she is not a passion of it. This information is therefore untrue.The first student described his profile to stupefy low phiz which is not true. He sent a picture of my three friends and me in an operating room Ducks game. The picture portrays us being in sports and funs of the Oregon Duck which does not apply to all of us. The warrant in this case is a high one (Potter, 2007). This shown by posting his personal information including his name, develop information, his birthday and where he came from (Potter, 2007). However the information about his schooling and where he comes from is untrue. The warrant identified by this student makes sense. The similarities between his warrant and the one I discussed above is that of unreal information which can substantially be manipulated.The second student posses a high warrant. He posted his profile, birthday, place of birth and the school where he