A critical examination of the relationship between entrepreneurial Dissertation

A basic assessment of the connection between innovative progression and information improvement in Italian privately-run companies - Dissertation Example The investigation expects to discover which elements are altogether corresponded with progression viability from Italian business owners’ point of view; and to figure out which information the board factors are fundamentally associated with progression adequacy from Italian business successors’ viewpoint. Through a comfort test of 29 family-claimed Italian organizations, the investigation found that the entirety of the subscales in Pyromalis et al’s (2006) structure have been settled upon by the proprietors of family-possessed Italian organizations. These remember their eagerness to move to one side for favor of their replacements; the successors’ saw ability to assume control over; positive family relations and correspondence have gotten understanding from the proprietors; progression arranging; and successor’s suitability and readiness. The components which are altogether connected with the adequacy of the progression exertion from the perspective of proprietors were discovered, and these ended up being successor’s ability to assume control over; positive family relations and correspondence; progression arranging; and successor’s suitability and readiness. Moreover, the entirety of the subscales of Krueger and Day (2010) were settled upon by the respondents and these incorporate observation and innovativeness; expectation; key convictions and perspectives or self-viability; more profound convictions and information structures; enterprising learning; and setting matters. At last, the accompanying features of information the executives are essentially and decidedly related with apparent viability of the progression effort:... positive family relations and correspondence have gotten understanding from the proprietors; progression arranging; and successor’s fittingness and planning. The variables which are altogether corresponded with the viability of the progression exertion from the perspective of proprietors were determined, and these ended up being successor’s ability to assume control over; positive family relations and correspondence; progression arranging; and successor’s suitability and readiness. Also, the entirety of the subscales of Krueger and Day (2010) were settled upon by the respondents and these incorporate discernment and inventiveness; expectation; key convictions and mentalities or self-adequacy; more profound convictions and information structures; pioneering learning; and setting matters. At long last, the accompanying aspects of information the board are fundamentally and emphatically corresponded with apparent adequacy of the progression exertion: Key convictions and mentalities or self-viability; innovative learning; setting matters; and more profound convictions and information structures. Suggestions on further improving the progression endeavors at Italian family-possessed organizations have been advanced. Part 1 INTRODUCTION Background In this section, the scientist will introduce essential data on the idea of progression (particularly in Italian families) and how information is created inside every age to keep the business above water through the ages. In Italy, most of organizations that keep the country’s economy above water are independent ventures and a large portion of these are â€Å"family-owned.† (ISTAT, 1996). Studies on Italian families have likewise indicated that relatives tend to â€Å"diffuse† their time for their family alongside other routine exercises, for example, maintaining a business (Arcidiacono and Pontecorvo,

The Wine Industry Analysis Essay Example | Topics and Well Written Essays - 1250 words

The Wine Industry Analysis - Essay Example Bit by bit the business began modernizing every one of its procedures and utilizing maturation and refrigeration for creating better quality items. Starting at now European market contains most of wine shoppers, with different districts step by step participate. In this way the business is undoubtedly an alluring one, yet the developing contention among the contenders has brought about decreased edges for the business. Also danger of substitutes like other delicate drinks has constantly kept the wine business keeping watch for overhauling their own norms and quality. A portion of the significant wine makers are Constellation Brands, Inc. E. and J. Gallo Winery, Janton, Pernod Ricard and so on. By virtue of expanding rivalry some union is additionally occurring in the business, with mergers and acquisitions. In any case, the sort of rivalry among the huge number of makers can be checked from the way that none of the significant makers can flaunt a piece of the pie of 2%. Watching the wine creation figures since 1994 and anticipating a gauge for the following five years till 2005, Morgan Stanley made sense of that there could a checked reduction in the creation levels in certain nations, especially after 2000, yet this is more a result of the expanding rivalry, which again is a pointer towards the fascination of the business. Wine carries cheers to the customers and has endure numerous unfriendly conditions. Be that as it may, today the business has made itself strong enough towards such conditions and confronting them intensely. Q-2: What is the reason for upper hand Ans: Wine industry has in reality acquired a portion of the serious quality as its relationship with notoriety and sharing satisfaction. When all is said in done the upper hand of wine industry depends on the accompanying realities; Nature of wine is chosen according to the climatic conditions, the land and the feeling, which gives it a one of a kind personality. Its timeframe of realistic usability is considerably more when contrasted with different beverages and drinks. Wine is generally utilized as a joy drink, with companions and associates. Hence the utilization of wine in a gathering will in general become more. Wine organizations by and large have an arrangement of items mirroring a wide assortment of decisions requested by buyers in different style and value ranges. There are ease high volume assortments, premium assortments and ultra premium assortments. The market is ever developing with the beverage getting very popular among the adolescent. Wine whenever taken in controlled amount can have therapeutic impacts too, in this manner even specialists, other wellbeing experts, NGOs also don't want to be quite agitated against the beverage. It has been seen that residents over the age of 50 years expend more wine than the more youthful ones. Also, with the a sharp ascent in the normal age of an individual, on account of the progressions in social insurance

9 (Mostly) Free Gifts Readers Can Give Over The Holidays

9 (Mostly) Free Gifts Readers Can Give Over The Holidays When we think reading and gifts we tend to think about giving the gift of books. But giving a book is sometimes complicatedâ€"people like what they like and might not be interested in books that were picked out for them. Giving a book can also be expensive if youre short on cash. And what if youre just remembering you need to get something for a book lover now? Luckily, you are a reader. You have  a very particular  set  of  skills.  Skills  you have acquired thanks to years of reading all the books. Skills that make you uniquely qualified to give very thoughtful gifts to the people you love, gifts thatâ€"in some casesâ€"cost nothing. (Most of these gifts can be put together on very short notice as well.) What are these gifts? Im so glad you asked. Have a read aloud party: I know this sounds corny, but have you ever read favorite books aloud with other adults who love the same book? Its like getting together to watch your favorite show with friends, except people are taking turns reading chapters. I recommend doing this with a bunch of friends (so you dont go hoarse), and choosing a book/series youve all read and loved, or something you think they might love. Harry Potter books, The Hobbit, and Terry Pratchett books are great for this. Read to someone who cant read for themselves: This could be a child, or it could be an older relative, or someone who is sick and cant read. Some of my own relatives have lost their eyesight and can no longer read their favorite books. While audiobooks are an option for them, sometimes its nice to have someone read to you instead. Make your own audiobook: Maybe you want to read to someone but dont live nearby. Maybe you just know your best friend, who has a long commute to work, would love a book. Record yourself reading it and send her the file. This can be a little time consuming, but you dont have to hold yourself to professional voice actor standards here. Your friend would love to hear your voice. Read your friends manuscript/essay/poem: Have a writer in your life? I guarantee they need someone to read their manuscript, and you, my speed reading friend who has read many books, are the person to do it. Word of advice: ask what sort of criticismâ€"if anyâ€"they would like to receive. This is a gift, after all. Be someones regular ride to the library: Can you commit to giving someone a regular ride to and from the library this year? Maybe you go that way anyway once a week and can bring your friend with you. Maybe you can make it your thing to do with your elderly neighbor every Saturday. People use the library for so many reasons, so if you drive and can commit to bringing someone who doesnt drive to the library on the regular, thats a wonderful gift. Make a bookmark: O sweet bookmark, thou easiest of book-related gifts to make! Weve written about free printable bookmarks, so you can definitely print out a bookmark for a friend, but if youre more artistically inclined, you can also make your own out of almost anything. (May I suggest using comic books?) A personalized list of book recommendations:   You know books, and you know your friends better than anyone. Who better to give them a list of titles theyll love than you? (Short on cash? I recommend pairing this gift with a handmade bookmark.) Tutor someone: Know a college kid whos having trouble passing an English course? What about a high schooler who needs help with a college essay? A child in the family who has trouble with reading homework? Reading is your super-power. You can totally pass that super-power on. Donate in someones name to a literacy group. This one isnt free. But it is something you can do on short notice. If you dont know what to get someone who loves reading but is hard to buy a book for for whatever reason, donate in their name to a bookish charity or literacy group. That way you can give the gift of reading to someoneâ€"even if youre not giving a book. Im sure I missed some (mostly) free bookish gift ideas in this post. What are your best ideas? Share them in the comments. Sign up to The Goods to  receive emails about new products and promotions in the Book Riot Store. Thank you for signing up! Keep an eye on your inbox.

The Problem Of Cyber Crime - 988 Words

Introduction Qualified candidates are limited since, for those investigating or examining cyber-crime must be highly trained specialists, requiring detective and technical skills, including knowledge of various IT hardware and software, and forensic tools. Nevertheless, in the modern world computer or computer related crime makes up a great amount of percentage of all the crimes happiness which is bound to increase. The Office for Victim Assistance ensures that victims of crimes investigated by the FBI are presented the opportunity to receive the services and notification as required by federal law guidelines Issues law enforcement must deal with regarding digital crime and terrorism. The number of police agencies with advanced or computer crime unit has increased extensively over the last several years, but the majority of these agencies serve large urban populations (Wolf, 2009). Also, prosecutors and judges are turning out to be well versed in computer crime and the unique law and vagaries inherent in these cases. Thus, it has been unclear how well the state and local law enforcement agencies are equipped to handle these offenses. For instance, a study of forensic examiners found that they are frequently overworked and experience stress related to their work. Actually, for those who were interviewed, half of them felt that they did not have the workforce to complete their tasks at work (Wolf, 2009). In addition, assessors recognize that they need greater trainingShow MoreRelatedCyber Crime Prevention Is Not Only A Continuing Problem969 Words   |  4 PagesApplications Cyber Crime Prevention Internet security is not only a continuing problem, but an increasing one. Yet, many companies do not have adequate internet security measures in place. To help businesses thwart cyber criminals operating over the internet, several steps are recommended. First, before deciding to use the internet for business purposes, organizations should articulate how they intend to use the internet (e.g., e-commerce; marketing web site; communication with business partnersRead MoreCyber-Crime is a Serious Problem Essay examples2268 Words   |  10 Pagesbenefits to the society but it has also brought some problems and cybercrimes is one of them. â€Å"The times have really changed,† said Greg Garcia, the department’s assistant secretary for cyber security and communications. â€Å"We’re seeing now phishing, farming, botnets †¦ war dialing and domain server spoofing. And we’re seeing coordinated cyber-attacks against nation states.† (Fowler 5) Cybercrime is one of the most prevalent and most popular rising crimes being committed today. This is criminal activityRead MoreEssay on Computer Crime: Technology and Cyberspace1343 Words   |  6 Pagestrivial or major crimes; so it is not hard to imagine that these two actions would start to syndicate into one. 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However, given the realisation that cyber crimes can be committed byRead MoreThe Article On Cyber Crime Laws772 Words   |  4 Pages I read the article What Makes cyber crime laws so difficult to enforces by Deb Shinder of the Tech Republic . The article talks about why it is so hard to control cyber crime and enforce laws that will help prevent and protect people from cyber crime. The article starts about talking about how at first when the internet got mainstream it was not regulated at all, but over the coming years we have passed law that regulate thi ngs that you can do on the internet. Even though weRead MoreEssay about CyberCrime and Terrorism1088 Words   |  5 Pagessteady increase in the amount of cyber crime committed. Technology is a constantly changing entity, constantly evolving, always progressing. Naturally this can make it hard to stay on top of things. In turn, law enforcement runs into various issues regarding cyber crime and cyber terrorism. Cyber crime and terrorism is so complex of a crime that it can be hard to break down the barriers that can lead to justifying the action. Major issues that are prominent in cyber crime and terrorism are that laws varyRead MorePolicy Memo For White Collar Crimes1573 Words   |  7 PagesKristofer Llauger CJBS 101 Assignment 1 Policy Memo Part I I. PROBLEM Write one (1) sentence that clearly states the problem. Big financial institutions are difficult to prosecute in white-collar crimes because of their influence. Write two (2) sentences that describe the problem in greater detail (what are the effects of the problem?) The Holder Doctrine, which comes from a memo created in 1999, has been the reason behind a lack of criminal prosecution against big companies that were part of theRead MoreCom176 outline and thesis statement1246 Words   |  5 Pagesadvancement in technology are increasingly rising; however, our development of laws, law enforcement resources, and training to combat cyber crimes are inadequate. Outline: I. Introduction Societies dependence and advancement in technology are increasingly rising; however, our development of laws, law enforcement resources, and training to combat cyber crimes are inadequate. Technology changes at very fast rate, before you know it the processors and programs we are currently using quicklyRead MoreCyber Bullying Is An Action Of Harassing Or Harming People Using Technology945 Words   |  4 PagesCyber bullying is an action of harassing or harming people using technology. It is increasing with the increasing technology. People of all ages are victims for this where majority of them are teenagers. It includes posting rumors or gossip about a person and insulting them or sometimes it may include morphing of their photos and posting them in social media networks to embarrass them. A victim can t cyber predict the cyber bully and is difficult to know that person. A cyber bully can be any unknownRead MoreCyber Bullying Has Become A Significant Problem Among Teenagers1583 Words   |  7 Pagesâ€Å"Cyber bullies can hide behind a mask of anonymity online, and do not need direct physical access to their victims to do unimaginable harm.† I believe this qu ote significantly summarizes the cowards who take advantage of others through the power of electronics. Verbal bullying has always happened in schools, but cyber bullying has become a significant problem amongst teenagers. Electronic access to social media outlets such as facebook, twitter, vine and snapchat, has made it easy for people to bully

Teaching Assistant Level 2 Supportive the Pupil Essay

UNIT 1 SUPPORTING THE PUPIL TASK 6. The social and emotional development of children from 5 to sixteen plays a crucial part in in the impact and quality of the child’s lives these influence the development of the child in various ways which is why it is important for a Teaching Assistant to recognise these factors so they can help the child continue learning and use the skills already instilled in them. By treating each child as their own person you learn that they are all different and develop at their own pace but in order to do this you must see the child developing and to show support to both the teacher and child you are able to better the child’s learning experiences and embrace their own developmental skills. I am aware of the†¦show more content†¦They would not forget if they needed would ask for help this in itself shows a child at 10 years is recognising ways to provide better relations and communications. So in effect good listening skills are formed and the child would know how to better themselves and others. Age 11 years: From this age the child should demonstrate they have developed the importance of family and peer relations. They will have utilised their decision making and problem skills more. They should show they can work with and in groups without difficult including displaying their own goals and how to work towards them with realistic expectations. By this age children should recognise the relationship between mental and physical health. Age 12 years: At this age the child is able to form anger management skills and is able to deal with their own stress. They are understand being down through disappointment including sad emotions like bereavement. At this age also the child should associate friends, family and others through positive and negative behaviours. They should know the difference between these two behaviours. Through this they are able to recognise the difference between safe and unsafe behaviour in relationships. Age 13 years: During this year children would have developed a good understanding of knowing what is expected of them. They will haveShow MoreRelatedNcfe Teaching Assistant Essay7227 Words   |  29 PagesThe primary objective of a teaching assistant is to support the school by carrying out a variety of tasks in order to create and maintain a safe, positive learning environment thus allowing teachers more time to focus on teaching. It is therefore paramount to remain flexible at all times. The purpose of this essay is to summarise the major learning points from the Teaching Assistant Diploma Course. I will address the nine subject areas separately. Supporting the teacher - Teachers are incrediblyRead MoreRole Of A Modern Primary School Teacher1114 Words   |  5 Pagesare educationalists tasked with transferring knowledge and skills that will enable that child to develop and learn independently. But, first of all, a teacher has to prioritise the many important tasks that they must perform on a daily basis. This essay will attempt to set out and analyse some of the roles and responsibilities they undertake during term time. Starting with the learning environment, the pastoral care, lesson planning, other relationships and the teacher as a student. The many hatsRead MoreA Critical Review of a Senco Essay4380 Words   |  18 Pagespromote an inclusive school system whereby dyslexia is considered but not in isolation. The BDA (2009) state that importance ought to be placed on acknowledging dyslexia as â€Å" a specific learning difficulty† as a specific learning difference† so that teaching is inclusive and focuses on all learners rather than just the dyslexic learner who may already feel something is wrong with them. However, I stress that this general definition is simplistic and I agree with Reid that there should be a working/operationalRead MoreTeacher and Students6350 Words   |  26 Pages-------------------------------------------------------------------------2 Acknowledgement -----------------------------------------------------------------------3 Dedication ----------------------------------------------------------------------------------3 AMECI Philosophy, Vision, Mission -------------------------------------------------4 II. Field Study 5 – Learning Assessment Strategies Episode 1 – My Assessment List -----------------------------------------------------------------------------5 Episode 2 – My ATM Card (Available TestRead MoreAcademic Achievement7009 Words   |  29 PagesResources available (e.g., computers, laboratories, textbooks) Teacher level (qualifications, experience, etc.) Student motivation Rating 1.3 Add and rate some of your own ideas. Then compare your list and ratings with a partner. Focus task Your reason for reading Text 1-1 is to get some background information to help you write the following essay. English for academic study 18 Academic Achievement 1 Task 2: Reading for a purpose 2.1 Look carefully at the title of Text 1-1. DoRead MoreThe Learning Theories of Skineer, Brunner and Maslow.4710 Words   |  19 PagesEDUCATION AND MY FUTURE TEACHING PRACTICE. ASSIGNMENT 1: GTP In reviewing the process of learning theories a definition of learning would appear to be a fundamental focus point from which to initiate discussion. Without the knowledge of how we learn, how are we to understand its importance for learners and their abilities to grasp the information being given? This definition of learning implies three objectives: 1. that learning must change the student in some way; 2. that this change comesRead Moreptlls assignment Essay7948 Words   |  32 Pagesï » ¿ Level – 4 (Prepare to teach in the lifelong learning sector) - PTLLS The following are headings for broad areas students will have to research to show evidence of competence in PTLLS. GROUP A: Roles and responsibilities and relationships in lifelong learning GROUP B 1: Understanding inclusive learning and teaching in lifelong learning GROUP B 2: Using inclusive learning and teaching approaches in lifelong learning GROUP D: Principle of assessment in lifelong learning Read MoreASSESSING LEARNERS IN LIFELONG LEARNING7015 Words   |  29 Pagesas necessary. (www.llantarnamschool.net/). In recent years, assessment of student achievement has been receiving the attention of teachers, parents, researchers and education systems. This attention has highlighted assessment as integral to the teaching and learning process. Current assessment practices need to reflect changes based on new understandings of learning theories, new curricula that are being developed, new knowledge and skills that are necessary for the 21st Century and the accountabilityRead MoreUnit 024 Promote Child And Young Person Development Essay6079 Words   |  25 Pagesis completed with every essay and sent to qualificationsteam-mailbox@devon.gov.uk for marking Process for marking Once submitted, we will acknowledge that your essay has been received and it will be marked by an Assessor. You will receive feedback stating whether you have achieved or not yet achieved. If you have achieved, you will be contacted by telephone by the Assessor who marked your essay. The Assessor will ask you some questions about your essay to validate this. If youRead MoreSupporting the Development of English Literacy in English Language Learners22851 Words   |  92 Pagesliteracy for English language learners. The report next reviews family literacy programs and special education programs and discusses cross-cutting issues in the acquisition of literacy, including assessments and benchmarks, accommodating multiple levels of English proficient students in literacy instruction, and integrating subject matter into literacy instruction. Finally, it concludes with a plea for additional research on the development of literacy for English language learners and brief mention

Vermont Teddy Bear Brief Free Essays

Vermont Teddy Bear Company From Wikipedia, the free encyclopedia Jump to: navigation, search Vermont Teddy Bear Company Type Privately held company IndustryManufacturing, retail Founded1981 HeadquartersShelburne, Vermont ProductsTeddy bears Owner(s)The Mustang Group Subsidiaries Calyx Corolla Gift Bag Boutique PajamaGram TastyGram WebsiteVermont Teddy Bear Company The Vermont Teddy Bear Company is one of the largest producers of teddy bears and the largest seller of teddy bears by mail order and Internet. The company handcrafts each of its teddy bears and produces almost 500,000 teddy bears each year. The company was formerly traded on the NASDAQ stock exchange under the ticker symbol BEAR, but was taken private by The Mustang Group, a Boston-based private equity firm, on September 30, 2005, partially to avoid the reporting requirements of the Sarbanes-Oxley Act. We will write a custom essay sample on Vermont Teddy Bear Brief or any similar topic only for you Order Now The company was founded in 1981 by John Sortino, who sold handcrafted teddy bears in an open-air market in Burlington, Vermont. Sortino happened upon the idea of packaging and selling bears through the mail when a tourist visiting Burlington wanted a bear mailed to her home. The concept was called the â€Å"Bear-Gram†, which features the customized teddy bear placed in a box (complete with an â€Å"air hole†) and stuffed with other goodies. By 1995, the company moved into its new headquarters in Vermont’s Champlain Valley. The company has two factories: one in Shelburne and one in Newport. The Shelburne factory is an especially popular tourist destination, and also served as a concert site for the annual Vermont Mozart Festival. The company also maintained two retail locations in Vermont – Shelburne and on the main road between Waterbury and Stowe. VTB acquired Calyx Corolla, an upscale flower company headquartered in Vero Beach, Florida in 2003. Ironically, one of Vermont Teddy Bear’s marketing slogans claimed that sending a teddy bear is â€Å"a creative alternative to sending flowers. † In 2005, the company launched a new sister company, Gift Bag Boutique, which offered handbags and purses along with many make-up accessories. Along with PajamaGram, which sold gift pajamas, and TastyGram, which offered gourmet food gifts, the creation of this sister company brought the total number of companies under the Vermont Teddy Bear umbrella to five. Gift Bag Boutique and TastyGram stopped accepting orders as of June 26, 2008. [1] â€Å"Crazy† Controversy For Valentine’s Day of 2005, Vermont Teddy Bear caused widespread controversy by offering a â€Å"Crazy for You† Bear. The bear was offered dressed in a white strait jacket with a red heart embroidered onto the front of the jacket. A tag entitled â€Å"Commitment Papers† came with the bear. The tag read â€Å"Can’t eat, can’t sleep, my heart’s racing. Diagnosis – crazy for you. â€Å"[2] Mental health groups from all over the U. S. sked for the bear to be pulled out of production and removed from VTB’s website. Many groups called for a boycott of the company. They claimed that the bear made light of the suffering caused by severe mental illness and contributed to the stigma that people with mental illness often encounter. The company’s response was that there was no offense intended and it was merely a play on the phrase â€Å"I’m crazy about you. † The company claimed that the bear was intended to be a light-hearted depiction of the sentiment of love. When asked to remove the bear from their inventory, VTB responded by keeping their existing stock up for sale although they stated that they would not make any more in the future. The price of the bears from VTB was US$69. 95. After the company sold out, which happened within just a few days of the story hitting the news, the eBay bids reached several hundred dollars. Elizabeth Robert, the CEO and CFO of VTB was serving as a member of Vermont’s largest hospital, Fletcher Allen Health Care, at the time of this incident. In response to the significant controversy she resigned from the board. [3] Advertising VTB was listed amongst â€Å"‘a broad range of direct marketers’ pitched by the show’s hosts themselves† who were taking out more ads on talk radio in 2010, according to Dan Metter, director of talk-radio sales of Premiere Radio Networks. Conservative radio hosts were seeing an uptick in listener numbers and advertising in the lead-up to the year’s midterm elections. Premiere is the syndicator of the top three talk-radio shows — hosted respectively by Rush Limbaugh, Sean Hannity and Glenn Beck. [4] How to cite Vermont Teddy Bear Brief, Essay examples

Vietnam War My Lai Massacre Essays - Vietnam War,

Vietnam War: My Lai Massacre The Vietnam War The Vietnam War is truly one of the most unique wars ever fought by the Unites States of by any country. It was never officially declared a war (Knowll, 3). It had no official beginning nor an official end. It was fought over 10,000 miles away in a virtually unknown country. The enemy and the allies looked exactly the alike, and may by day be a friend but by night become an enemy (Aaseng 113). It matched the tried and true tactics of World War Two against a hide, run, and shoot technique known as Guerrilla Warfare. It matched some of the best trained soldiers in the world against largely an untrained militia of untrained farmers. The United States' soldiers had at least a meal to look forward to unlike the Communist Vietnamese soldiers who considered a fine cuisine to be cold rice and, if lucky, rat meat. The Vietnam War matched the most technically advanced country with one of the least advanced, and the lesser advanced not only beat but humiliated the strongest military in the worl d (Aaseng, 111). When the war was finally showing signs of end, the Vietnamese returned to a newly unified communist country while the United Stated soldiers returned to be called baby killers, and were often spat upon. With the complexities of war already long overdrawn because of the length of the war it is no wonder the returning solders often left home confused and returned home insane. Through an examination of the Vietnam War, in particular an event know as the My Lai Massacre, and the people involved with both, it can be proven that when the threshold for violence of a person is met or exceeded, the resulting psychological scarring becomes the most prominent reason for war being hell. Although officially, the Vietnam Conflict had neither a beginning nor an end, for the purpose of this paper it can be best examined through the decade the United States was involved: February 6, 1965 - August 30, 1975. During World War Two the French had been a major ally to the United States in the defeat of Adolph Hitler and the Axis Powers. France occupied and claimed the small coastline country of Vietnam in Indochina. In this region there had been recent Communist uprisings funded by the USSR The Vietnamese were willing to accept Communism in return for what they had been fighting for over 2000 years: self rule. In 1950 the United States, owing a debt of gratitude towards France, sent several advisors to aid French control in Vietnam. Over the next decade and a half, the United States would send an entire Army and Navy to aid the French in maintaining control in South Vietnam, which had separated from the Communist North Vietnam by treaty in 1954. In early August of 1964 a small Vietcong (term used to identify South Vietnamese in favor of communism and unification) patrol boat had an encounter with a United States war ship in the Gulf of Tonkin. Gunfire was exchanged, and, in the end, President Johnson agreed to allow aggressive retaliation. On February 6, 1965, the United States began the bombing of North Vietnamese cities, marking the unofficial start of the Vietnam War (Winthrop, 853-861). In the years of the war to follow, the media began to play a role. Photo-journalists would accompany platoons on missions and, through the aid of cameras and video equipment, relate the stories to the American at home. Every night for the length of the war news programs were saturated with reports of the happenings in Vietnam and death tolls for the day. Grossly eggzrated enemy casualty numbers were reported, giving the public a false view of happenings of the war. Suddenly on January 30, 1968 a Vietcong uprising, now commonly known as the Tet Offensive, took place. Tet is the Vietnamese new year and is commonly accepted as a cease-fire. With a cease-fire in effect, most major cities' defensives were less tight. As if all at once, more than one hundred South Vietnamese cities were being shelled with Vietcong gunfire. Included in the cities were Saigon, capital of South Vietnam and home to the United States

General Belisarius - Byzantine Military Hero

General Belisarius - Byzantine Military Hero This profile of Belisarius is part ofWhos Who in Medieval History   Byzantine Military Hero Being the leading Byzantine general during the reign of Emperor Justinian I. He won significant battles against the Persians and Ostrogoths, suppressed the Nike Revolt, and served his emperor with unstinting loyalty. Occupations: Military Leader Places of Residence and Influence: Byzantium (The Eastern Roman Empire) Important Dates: Born: 505Takes back the city of Rome: Dec. 9, 536Died: March, 565 About Belisarius: Belisarius served in Justinians bodyguard and earned a command in his mid-twenties. After distinguishing himself in several battles against the Sasanian Empire, he returned to Constantinople, where he quashed the Nike Revolt. Next he scored notable victories against Germanic peoples in his quest to win back Italy for Justinian. His subsequent successes against the Ostrogoths were overshadowed by political difficulties. He fell out of favor with the emperor and only his wifes friendship with the empress saved him. His later years were spent in relative peace. Find out more about the generals life and achievements in your Guides Concise Biography of General Belisarius. Myths About Belisarius: A great deal of misinformation was generated about Belisarius centuries after his death. One notable story had him blinded by Justinian and wandering the streets as a beggar. There is absolutely no truth to these stories, but they have served as the basis for epic tales, novels and plays. More Belisarius Resources: Concise Biography of General BelisariusGeneral Belisarius on the Web BelisariusConcise overview at Infoplease.Gothic War: Byzantine Count Belisarius Retakes RomeComprehensive overview of the Byzantine generals attempt to retake the city of Rome from the Goths, by Erik Hildinger at Military History magazine, online at TheHistoryNet. ByzantiumMedieval WarfareMedieval Military Leaders QuizChronological Index Geographical Index Index by Profession, Achievement, or Role in Society The text of this document is copyright  ©2007-2016 Melissa Snell. You may download or print this document for personal or school use, as long as the URL below is included. Permission is  not  granted to reproduce this document on another website. For publication permission,  please   contact  Melissa Snell. The URL for this document is:http://historymedren.about.com/od/bwho/p/who_belisarius.htm

Definition and Examples of Performative Verbs

Definition and Examples of Performative Verbs In English grammar  and speech-act theory, a performative verb is a  verb  that explicitly conveys the kind of speech act being performed- such as  promise, invite, apologize, predict, vow, request, warn, insist,  and  forbid. Also known as speech-act verb or  performative utterance.   The concept of performative verbs  was introduced by Oxford philosopher J. L. Austin in  How to Do Things With Words  (1962) and further developed by American philosopher J.R. Searle, among others. Austin estimated that a good dictionary contains upwards of 10,000 performative or speech-act verbs. Examples and Observations Performative verbs name actions that are performed, wholly or partly, by saying something (state, promise); non-performative verbs name other types of actions, types of action which are independent of speech (walk, sleep).-Kirsten Malmkjaer, Speech-Act Theory. The  Linguistics Encyclopedia, 2nd ed. Routledge, 2004As your lawyer, your brother, and your friend, I highly recommend that you get a better lawyer.-David Patrick Kelly as Jerry Horne in Twin Peaks, 1990The faculty at Ohios Bowling Green State University vetoed a professors planned course on political correctness. Kathleen Dixon, director of womens studies at the university, explained: We forbid any course that says we restrict free speech.-George Will, Newsweek. December  25, 2000I declare, he said, with the mamma I got its a wonder I turned out to be such a nice boy!-Flannery OConnor, Greenleaf. The Kenyon Review, 1957As your president, I would demand a science-fiction library, featuring an ABC of the genre. Asimov, Best er, Clarke.-Martin Prince in Lisas Substitute. The Simpsons, 1991 ApologizingBy saying we apologize we perform an expressive act simultaneously with the naming of that expressive act. It is for this reason that apologize is called a performative verb, defined as a verb denoting linguistic action that can both describe a speech act and express it. This explains why we can say that we are sorry, but not that we are sorry on someone elses behalf because be sorry only expresses, but does not describe the act of making an apology.-R. Dirven and M. Verspoor, Cognitive Exploration of Language and Linguistics. John Benjamins, 2004Hedged PerformativesGenerally, the performative verb...is in the simple present active and the subject is I, but the verb may be in the simple present passive and the subject need not be I: Smoking is forbidden; The committee thanks you for your services. A test for whether a verb is being used performatively is the possible insertion of hereby: I hereby apologize; The committee hereby thanks you. In hedged performatives, the verb is present but the speech act is performed indirectly: In saying I must apologize for my behavior, the speaker is expressing an obligation to make an apology, but implies that the acknowledgment of that obligation is the same as an apology. In contrast, I apologized is a report, and Must I apologize? is a request for advice.-S. Greenbaum, The Oxford Companion to the English Language. Oxford University Press,  1992

European Debt Crisis Essay Example | Topics and Well Written Essays - 1500 words

European Debt Crisis - Essay Example According to Investopedia (2012) the crisis led to the reduction of the confidence of the market for European businesses and economies. In contrast, according to the version of Constancio (2012), the European sovereign debt crisis emerged only in spring 2010. The European sovereign debt crisis is the climax of the banking crisis resulting from the demise of the Lehman Brothers and the resulting bailout extended by governments to their banking system (Constancio 2012). In other words, it is held that the European debt crisis started out as a financial crisis from the Lehman Brothers. In the climax of the crisis, government was forced to support the financial system, creating large debts for government leading to the sovereign debt crisis. II. Impact on bond and other markets (equity, derivatives, commodities, forex, gold, etc.) Constancio (2012) has a good discussion on the emergence of European sovereign debt crisis and its impact on the financial markets. We use his interpretation. After the failure of the Lehman Brothers, the ECB or the European Central Bank implemented a policy of strong credit support and measures to boost liquidity way above than what could be achieved by a mere interest rate policy. The European government implemented measures to increase the maturities for debts, more access to foreign currencies and a program of bond purchases. The European sovereign debt crisis became severe with Moody’s downgrade of Portugal on 5 July 2011 (Constancio 2012). The situation plus the risk of a Greek default triggered a sell-off of Italian and Spanish assets. The initial effects of a sovereign debt crisis are for bond yields to go up. However, investors find it appropriate to reduce their exposures to government bonds in view of risks that governments may not be able to pay for their debts. Simultaneously, markets can expect that the foreign exchange markets can be affected substantially as demand for currencies affected by the crisis can significa ntly go down, proportional to the perception of the extent that the would be affected by the sovereign debt crisis. The effect on the foreign exchange market is important as the effects reverberate on the equities, commodities and derivatives markets. Expected depreciation of currencies affected by the sovereign debt crisis can lead to falling equities, commodity prices and derivative prices. However, as markets are interrelated, or as companies in one country may have investments in companies directly affected by the sovereign debt crisis, all of the financial markets are affected. The more correlated the companies in a region, for example, the more the rest of the markets are affected by the sovereign debt crisis in one country and soon, especially as governments respond to the crisis with bailouts and enhanced liquidity, the correlated governments and economies are affected by the sovereign debt crisis and not only the countries that were initially affected by the sovereign debt crisis. In contrast, to the extent that gold is seen as a store value of value, gold prices can pick up and enjoy a better market. When the financial markets are in doldrums and gold is seen as the better store of value than the bonds, equities, commodi

EBay Website Profile Essay Example | Topics and Well Written Essays - 1000 words

EBay Website Profile - Essay Example Many web experts have classified eBay as original Web 2.0 Company. The company uses eBay wiki and eBay blog as tools for knowledge sharing among online community. eBay blog helps user to promote their business and product offering to other users. Application of web 2.0 not only helped users to promote offering but enhance two way communications between vendors also. eBay wiki has revolutionized the concept knowledge sharing by creating online platform to transfer product knowledge between users (Campanelli, 2008, p. 165). Web 2.0 can be used as an alternative to integrated marketing communication to promote product by means of using digital marketing. The process decreases cost of promotion manifold in comparison to traditional advertising technique (Hof, 2006).Company’s eBay listing & store design helps them to increase visitor retention. It helps the seller to showcase the product portfolio in best possible color combination to buyers while flexible update function empower t he vendor to change content in accordance with the demand of market.eBay always try to improvise in website design to compete with their business competitor Amazon. Use of catalog in the website helps customers to navigate all the products under one product category and this process not only augment shopping experience but saves lot of time also. eBay has enhanced shopping experience in four dimensional ways. 1- Condition- eBay sellers offer items in range of various conditions increasing flexibility in offering.

Analysis of Risk Management in Banking Activity

Analysis of Risk Management in Banking Activity The Case of Mauritian Banks Financial deregulation, globalization and liberalization have heightened considerable banking risks. Moreover, banks necessitate effective risk management strategies to promote banking welfare, protect outside agencies transacting with banks and to ensure stable banking operations. Risk managers need to focus on the diversity of risks and secure the interests of the overall banking sector. Risk Management is nowadays segregated where there is inconsistency in reporting, insufficient evaluation and low quality of management and becomes ineffective due to lack of pertinent information and improper analysis of the risk factors (Prabir Sen, 2009). Nonetheless, banks are unable to keep equilibrium in the situations of risks with huge losses and slight possibility of occurrence and risks of minimal losses with propensity of occurrence.   According to Talmimi and Hussein, Mazroezi and Mohammed (2007), risk management enables profits maximization and entails restrictions in risky activities. Risks can be averted by ordinary banking procedures, can be shifted to other institutions and can be managed actively in banks (Oldfield and Santemero, 1997). 1.1 Objectives of the Study The core objectives of the study are: To probe into the methodologies and aspects of the risk identification, assessment, monitoring, management and mitigation in Mauritian banks. To ascertain the effects of risk management on Mauritian banks. To determine to which extent risk management strategies like Basel II, derivatives, stress testing and Asset and Liability Management are applicable in Mauritian banks. To analyze the factors which improve Risk Management Practices in Mauritian banks and the perspectives about Banking Risk Management. To explore the reasons for managing risks in Mauritian banks. 1.2 Statement of the Problem There is an increasing awareness that the gradual intensification of banking risks impacts adversely on banking transactions which raises the concerns for risk management. The basis concern of this study is whether the Mauritian banks are using diverse risk management tactics and whether they are able to cope with the present and prospective challenges of risks and risk management requirements. 1.3 Significance and Contribution of the Study Bank managers can be conversant with divergent risk management techniques, their implications, effects and their relevance in banks through the practical aspects of risk management application. Bank managers can analyze the mechanisms resulting in the increasing level of risk exposures. Business administrators and management practitioners can use this study as guide to design efficient measures to mitigate risks in the process of developing marketing tactics. 1.4 Structure of the Project Chapter 2 elaborates on the literature review related to the risk management. Chapter 3 uncovers the general overview of Mauritian Banking Sector. Chapter 4 focuses on the detailed research methodology that has been used. Chapter 5 discusses the analysis and interpretation of the Mauritian banking risk management information. Chapter 6 probes on the recommendations to improve Risk Management practices in Mauritian banks. Chapter 7 concludes the whole findings of the project. PART 1- THEORETICAL ASPECTS 2.1 Introduction The advent of technology, globalization and the competition has encouraged banks in risk taking activities exposing banks to risks. Regulatory and supervisory institutions have emphasized the need for banks to enhance their risk management practices. Risks arise from the probabilities of the occurrence of losses and usually emerge from the internal and external banking transactions. 2.2 Banking Failures determinants The past decades have encountered numerous bank turbulences where high costs have been incurred on both local and overseas level (Gaytà ¡n and Johnson 2002, p.1), hindering the credit facilities, minimizing investment and consumption and generating bankruptcy cases (Demirguc-Kunt and Detragiache, 1998a, p.81). According to them, the expensive monetary policy was used to force the sound banks to sustain the failures of insolvent banks which dissuade risk management. Fluctuations in interest rates post abolition of Brettons Woods System, higher banking competition, the non existence of intermediation margins, unskillful lending and investment tactics (Hellwig 1995, p.724-726 ) , the diminishing role of the oligopoly rents as stated by Gehrig (1995 cited Hellwig 1995, p.726 ), the lower level of capital reserves in banks, companies high reliance on banks for external finance mentioned by Rajan and Zingales (1998 cited Randall S. Kroszner 2007),systemic shocks caused by credit risks, the inability to diversify loans, trade deterioration and decrease in asset prices caused bank failures argued by Gorton (1988 cited Demirguc-Kunt and Detragiache1998b, p.85). Moreover, regime changes like financial repression, liberalization and severe macroeconomic conditions encourage the entry of inexperienced players and preference for the acquisition of useless loans stated by Honohan (1997 cited Gaytan and Johnson 2002, p.4) have generated banking turbulences.   Non-performing loans increase where the asset returns are less than the returns to be paid on liabilities. Banks borrow in international currency and lend in local currency where the latter depreciates if the foreign exchange currency risk is shifted to local borrowers if they loaned in foreign currency. Banks buy insurance protection which encourages risk taking activities in the absence of prudential supervision and regulation. Bank managers engage in fraudulent actions by taking a portion of money for their personal use (Demirguc-Kunt and Detragiache 1998c, p.85-87). Diamond and Dybrig (1983 cited Demirguc and Detragiache 1988d, p.86) argued that banks portfolio assets can worsen and depositors believe that other depositors are removing their money. Obstfeld and Rogoff (1995 cited Demirguc and Detragiache 1988e, p.87) mentioned that an anticipated devaluation could occasion bank runs in local banks and these deposits are shifted overseas and render the domestic banks without l iquidity. 2.3 Banking risks alsamakis et al (1996 cited Young 2001, p.57) argued that risks can be classified as pure risks and speculative risks. Pure risks which embody market risks, credit risks, interest rate risks, liquidity risks, country risk and settlement risk are associated with the probability of occurrence of loss or no loss and can be curtailed by risk management strategies. However, speculative risks comprising of operational risks, technology risk, reputational risk, compliance risk, legal risk and insurance risks involve an opportunity for gain or loss which can be hedged. 2.3.1 Credit Risks These major risks occur in banks when the borrower defaults on his obligation to reimburse the principal amount and the interest charged of the loan. Credit risks consist of three types of risks like (Arunkumar and Kotreshwar 2005, p.9): Transaction risk emerges from the fluctuations in the credit type and capital depending on how the bank underwrites individual loan transactions. Intrinsic Risk is risk prevailing in some institutions and on granting credit to some firms. Concentration risk is the average of transaction and intrinsic risk within the portfolio and encourages granting of loans to one borrower or one firm. 2.3.2 Interest rate risks Koch (1995 cited Beets and Styger 2001, p.9) defined interest rate risk as the future changes in a banks net interest income and market value of equity due to changes in the market interest rates. Kropas (1998 cited Martirosianien) enumerated three types of interest rate risks like: Reappraisal risk stems from the diverse periods of assets and liabilities Profitableness curve risk entailselements affecting the reappraisal risk. Basic point risk concernsflawed association between the receivable and payable interest rate. Option risk is where the benefits of options can adversely affect the banks equity. 2.3.3 Liquidity risks Liquidity risks occur when the banks are unable to meet the demands of the depositors because of lack of funds and the illiquid assets resulting eventually in bank insolvency. Credit, strategic, interest rate and reputation risks build up liquidity risks (Gaulia and Maserinskieno 2006, p.49). 2 types of liquidity risks are (ADB Report 2008, p.9): Funding liquidity risk is the potentiality to obtain money via the sale of bank property and by borrowing. Trading Liquidity risk arises from making a constant entry in market activities and dealings. 2.3.4 Market risks These risks arise when the value of the financial products changes negatively and consist of currency risk, interest rate risk, equity or debt security price risk (Gaulia and Maserinskieno 2006, p.49). 2.3.5 Operational Risks Basel Committee (2004) which imposes a capital charge defined operational risks as the risk of direct or indirect losses resulting from inadequate or failed internal processes, people, and systems, or from external events. This definition includes legal risk, but excludes strategic and reputational risk. 2.3.6 Reputational Risks These risks emerge when the number of clients decreases as they hold negative perspectives about the quality of services offered by the banks. 2.3.7 Strategic risks Strategic risks arise when bad decisions and projects are undertaken to develop a special system in banks due to the lack of resources, technological tools and the expert staff. 2.3.8 Foreign Exchange Risks These risks come when the prices of the currency fluctuate when engaging in foreign activities. There are 3 types of foreign exchange currency risks. (Deloitte Treasury and Capital Markets 2006) Transaction risk entails the future of original cash flows like imports and exports. Translation risk is concerned with the disparities between foreign exchange encountered when again transforming a foreign exchange value into the functional currency of the company concerned. Translation risks are usually converted into transaction risks on a late basis as earnings are repatriated or assets and liabilities are realized. Economic risk arises when indirectly exposed to buying and selling of goods from someone who buys goods overseas. 2.3.9 Systemic risks The bank cannot collect money from an organization it is dealing owing to the political, economic and social conditions prevailing in the country where the organization is situated. Country risk includes political, economic risk and transfer risk (National Bank of Serbia). 2.3.10 Legal Risks Legal Risks are losses incurred when the bank is sanctioned by a court for the non-compliance with the lawful rules and regulations and on not fulfilling its obligations towards the other parties (National Bank of Serbia). 2.3.11 Financial Fraud There is mismanagement of money and fraudulent actions from the members of the banks who embezzle some deposited money and when there is lack of security controls. 2.4 Bank risk management methods Greenspan (2004 cited in Lam 2007, p.3) said that It would be a mistake to conclude..that the only way to succeed in banking is through ever-greater size and diversity. Indeed, better risk management may be the only truly necessary element of success in banking. 2.4.1 Risk Management in Banking Sector Flaker (2006, p.4-8) proposes three methods: 2.4.1.1 Risk Identification The board must set the risk profile of the bank and identify the risk-return tradeoff. The bank should understand and identify types of risks exposures, their sources and their effects on the overall banking stability. 2.4.1.2 Risk management and reduction Risk management and minimization embody the following: (1) Allow loans after considering their financial status of the borrowers. (2) Comparison of the expected risks with the actual ones to diminish the loan losses in a bigger portfolio. (3) Loan losses will decrease due to diverse borrowers in the lending transactions. (4) Actual risks can be compensated through the opposite movement of other risks in particular financial activities. (5) Insurance negotiations can be used to protect against diverse risks. 2.4.1.3 Risk Management System This flexible system encompasses the combined structure of identification, evaluation and risk mitigation techniques. The Board must set up a strong risk culture and an effective governance structure where the risk management system aligns with the existing structure of the bank. Risk management procedures are possible when retaining higher level of capital to cushion the risks. Furthermore, the risk management functions comprises of: (1) Delegation of responsibilities to each banking segment (2) Auditing system to deal with the internal control processes and proper execution of risk controls (Nikolis, 2009). (3) Ongoing reviews, reporting, updating and the control of risk management system must be executed to ensure that they tailor with the banking aims (4) Training courses gaining know-how about the design of the risk management system and risk models must be offered to avert banking failures. (5) Establish rules and regulations and take necessary actions to those who contravene with them regarding risk management practices. (6) Participation of the banks, regulatory and supervisory bodies where information is disseminated externally and internally in the banks (Kroszner, 2007). 2.4.2 Asset and Liability Management Asset and Liability Management entails the design of organizational and governance models which define the risk approaches subject to the banking operations (ADB 2008, p.10). 2.4.2.1 ALM operations are as follows (ADB 2008, p.10-12): ALM ensures a risk and return management process where the combination of expertise and risk appetite is needed. ALM unit manages bank risks either through a passive or aggressive approach thus increasing its value. ALM unit investigates upon the static and dynamic mismatch; sensitivity of net interest income; and, market value under multiple scenarios -including under high stress. The net interest income evaluates the sophisticated banks operating results. It does not project the effects of risk compared to the economic value which can identify banking risks but is inaccessible to most banks. 5. Funds Transfer Pricing eradicates the interest rate risks by securing a spread in loan and deposits by allocating a transfer rate that mirror the repricing and cash flows of the balance sheet. Liquidity risks can be managed like diversification of financing sources, correlate the liquidity risks with other risks and use stress testing analysis. 2.4.3 Stress testing Practices Stress testing is another risk management strategy where Stress testing is a generic term used to describe various techniques and procedures employed by financial institutions to estimate their potential vulnerability to exceptional but plausible event (Kalfaoglou 2007, p.1). It uses statistical data analysis to risk management techniques, interpret and control the unfavorable outcomes. JP Morgan Chase has integrated stress testing equipment to manage and analyze the sources of possible banking risks, implement tests on the value of its portfolio, analyze its risk profile and contemplate the effects while applying diverse scenarios. An effective risk management scheme, stress testing project and bank staff expertise are requisite to tackle the statistical and economical fundamentals of stress testing with a data measurement tool. Board of directors should monitor the inputs of stress testing system (Seminar on Stress Testing Best Practices Risk Management Implications for Egyptian Banks 2007, p.2-3). Furthermore, the 2 types of stress testing strategies in banks like: (1) Simple Sensitivity Test deals with the rapid fluctuations of the portfolio value due to a risk factor on a short term basis. (2) Scenario analysis is used by large complex banks and is associated with a realistic and econometrics approach towards shifts in portfolio value due to changes in many risk factors. 2.4.4 Basel II Basel II published in June 2004, promotes banking supervision and emphasizes the specified capital requirements to cushion against potential losses. Basel II uses qualitative and quantitative requirements to monitor risk management strategies, to ensure compliance with regulations and reinforce corporate governance structure. The risk based supervision has enabled the supervisors to concentrate on the origins of banking risks. 2.4.4.1 Pillars of Basel II Pillar 1 entails capital needed for credit risk, market risk and operational risk. Moreover, banks under this regime must have a capital adequacy of 8 %. The methods for the computation of the capital charge to measure operational and credit risks (Ma, 2003)are: Basic Indicator Approach The size and capital requirements of the operational risk are estimated as a fixed proportion of the banks net interest income and non-interest income, measured as the average over the last three years. The Standardized Approach –The activities of the banks are allocated risk ratios weights related proportionally to the quantity distributed to every category. The aggregate capital requirements are the addition of all the requirements for the categories. Advanced Measurement Approach Computation of credit and market risks and the capital requirements are founded on the banks internal system for the measurement and management of operational risk for large banks An Internal Rating Based System The BIS stated that capital requirements must be founded on a qualitative and quantitative analysis of credit risk and must be used for diverse bank units. Founded IRB approach indicates that large banks should calculate probability default related to a borrowers grade to demonstrate the capital requirement level. However, under advanced IRB approach, these banks with an internal capital allocation can furnish the loss given default and exposure at defaults which are processed. Pillar 2 A supervisor must ensure that the bank has the adequate capital requirements to deal with risks. Banks estimate the internal capital adequacy by adopting quantitative and qualitative techniques. On-site investigation and ongoing reviews probe in capital adequacy. Pillar 3- Market discipline framework provides with detailed information about the banks risk profile to evaluate and report capital adequacy where risk exposures can be analyzed through quantitative and qualitative approach regularly. The risk based capital ratios and qualitative information about the internal procedures are needed for capital adequacy purposes. 2.4.5 Derivatives olatility of financial market, the liberalization and deregulation in the 1980s and 1970s has founded derivative markets (Hehn no date a, p.100). Derivatives are financial tools (like futures, commodities futures, options, swaps, forwards) whose returns, values and performance are derived from the returns, values and performance of the underlying assets. Hedging is covering against potential risk through an opposite position in the derivative markets. Bank International Settlements (2004 cited Bernadette A. Minton et al 2008, p.2) noticed that the quantity for derivatives has leveled from $698 billion in 2001 to $ 57,894 billion in 2007. Proper derivatives trading can insure against market risks and interest rate risks without retaining additional capital requirements in the balance sheet (Kaudman no date a, p.85). The determinants of derivatives use are banking size, balance sheet constituents, aggregate risk exposures, profitability, performance and risk taking incentives. Jason and Taylor (1994 cited in Hundman b, p.86) argued that speculation used with derivatives to make profitable returns can engenders more interest rate risks. Moreover, Tsetsekos and Varangis (1997 cited Roopnarine and Watson 2005a, p.9) argued that financial derivatives promote increase in resource allocation and increase the productivity of investments projects. Jorion (1995 cited Roopnarine and Watson 2005b, p.9) argued that in price discovery, market participants are offered information on balance prices that mirror the present demand on the supplies which enable effective decision making and reveal the position of the cash prices. Besides, liquid funds are increased and transaction costs are reduced and the futures market reflects the large transactions at prevailing prices (Roopnarine and Watson 2005c, p.10).   However, derivatives have generated enormous failures in Barings Collapse, Merill Lynch and Procter Gambler (Hehn b, p.101). Bank staff must be trained and educated about derivatives use. Derivatives trading can be constrained with the liquidity problems and legal uncertainties that emerged from the market price movement which is argued by Bhaumik (1998 cited Roopnarine and Watson 2005d, p.11). Pricing of assets becomes difficult if there is insufficient information about the derivatives use. Principal agent problem is aggravated (Roopnarine and Watson 2005e, p.12). The derivatives market must be regulated properly to avert fraudulent actions and insolvency. Partnoy and Skeel (2006 cited Minton et al. 2008a, p.2) claimed that derivatives intensify systemic risks as banks do not control the lending activities. Hunter and Marshall (1999 cited Roopnarine and Watson 2005f, p.28) argued that derivative markets attract investors whose private information are assimilated in the observable p rices and diminish the bid ask spread. The underlying cash prices reduce the transaction costs and the demand for money thereby affecting the operations of the monetary policy. Bedendo and Bruno (2009a, p.2-4) argued that credit transfer tools like securitization, credit derivatives and loan sales reduce regulatory capital requirements, motivate lending and enhance the banking liquidity positions. Moreover, they remedy the issues of information asymmetries as stated by Greenbaum and Thakor (1987 cited in Bedendo and Bruno 2009b, p.2). Duffee and Zhou (2001 cited Minton et al. 2008b, p.11) mentioned that credit derivatives are used if the loan sales or securitization techniques become expensive due to moral hazard problem and can shift default risk where information advantage is insignificant and retain some portion of risks where information advantage is huge. Banks use credit transfer tools as they have little access to inter-bank funding, huge funding expenses, low capital and want loan transfer (Bedendo and Bruno 2009c, p.8-9). CRT tools encourage banks to use originate-to-distribute models via aggressive lending occasions (Bedendo and Bruno 2009d, p.10) . Pricing of CRT tools is preferred by large banks having higher skills. Some loans sales have loan characteristics like small size, asymmetric issues and standardization convenient for securitization (Bedendo and Bruno 2009e, p.11). PART 2- EMPIRICAL REVIEW There is a growing literature that examines the relationship of banking risks with other many economic and financial variables. Moreover, this section describes the diversity of banking literature where different types of risk management strategies were tested and criticized. Even the links between different types of risks were experimented using banking information and models derived from other authors empirical work. Peek and Rosengren (1996) found that the large users of derivatives for speculation purposes are the troubled organizations using derivative information of 25 active banks in the United States from 1990 to 1994 in the US dummy regression model.   Banks are unable to track the risky aspects of these derivatives and guide their risk profile because of insufficient derivative information which could jeopardize the overall banking system. The onsite targeted examinations can enable banks to window dress their derivatives. Regulatory rules and formal transactions must be imposed on the banks taking unfavorable speculation and to constrain the moral hazard problem related to the derivative transactions. The use of speculative derivatives constitutes a stringent criminal penalty for breaching the established rules and regulations. Cebenoyan and Strahan (2001) used data of the sale and purchase of bank loans and those loans sold or purchased without recourse from all domestic commercial banks in the US from 1987 to 1993 in a regression model. They found that banks that engage in loan sales market to manage credit risks retained minimum level of capital which can be modified. Moreover, these banks retained more risky loans since they managed credit risks and were exposed to an unsafe position despite they endured lower level of risks compared to the other banks who manage risks without the loan sales market. Banks that employed the risk management techniques are more inclined to engage in risk taking activities. In fact, banks that manage credit risks lend to more risky loans depicting that complex risk management practices enhanced the bank credit position rather than minimizing the risks. Gatev et al (2006) investigated upon the presence of liquidity risk from both sides of bank balance sheets using some aspects of the Kashyap, Rajan and Stein (2002) model (that liquidity risks originating from the two fundamental businesses of banking promotes a diversification benefit) to analyze the link between deposit taking and commitment lending for large, publicly traded banks using regression analysis. Pooling deposits and commitment lending insure against banking liquidity risks and deposits activities insure against liquidity risk from idle loan activities. Bank stock-return volatility increases with idle loan transactions which is insignificant for banks with huge amount of depository dealings. The deposit-lending risk management becomes more reinforced when there is low level of liquidity and when troubled market participants deposit money in banks. Shao and Yeager (2007) used information of large publicly traded U.S BHCs from 1997 to 2005 using regression models to find the link between credit derivatives and their risk, return and lending issues. Banks buy credit derivatives to hedge against risks, to increase their equity and to compensate for the risky loan losses. However, they sell credit derivatives exposing themselves to risks to gain a premium charge. Moreover, the credit derivatives users enjoyed minimal returns and increase risks which are compensated. Their findings implied that on a general basis, the impact of credit derivatives on risk relies on the risk management strategies. Holod and Kitsul (2008) used panel data of stock returns from 53 U.S BHCs from 1986 to 2007. They found that after 1996, poor capitalized banks engaged in active trading transactions are more exposed to systemic risks compared to well capitalized banks. Banks cannot always have enough capital to cushion the market risks and must sell their illiquid assets or invest in the financial markets to compensate for the lack of capital to adhere to the market-based capital requirements. Capital requirements in Basel II do not help to reduce banking risks totally but contribute towards increasing systematic risks. Topi (2008) used a model of Allen and Gale (2004) where banks offer deposit contracts to ex ante identical, risk averse depositors who face heterogenous liquidity shocks for Bank of Finland which shows that the liquidity can impact on the banks motivations to minimize the default losses. The bank runs encourage the banks to avert the credit losses after the sub-prime mortgage crisis. However, the bank runs without a signal of the credit risks will reduce the banks willingness to curb the incidence of credit losses. The central bank can mitigate the propensity of liquidity stress for solvent banks rather than insolvent banks. In addition, this research provides an area for further research where the policy interventions and financial market innovations can be integrated in the model to identify the impact on banks motivations. Achou and Tenguh (2008) used regression model for Qatar Central Bank by executing a time-series analysis of financial data from 2001-2005 to examine the correlation between profitability and loan losses. They showed that effective credit risk management improves the financial result of the bank with the aim to secure the banking property and to work in the welfare of the market participants. Besides, their study revealed that credit risk management infrastructures are used to minimize the credit losses. Banks with efficient credit risk management system have insignificant loan default ratios, good revenues, minimal non-performing loans and are able to tackle credit losses. Minton et al. (2008) investigated the use of credit derivatives using U.S BHCs (assets overtakes $ 1 billion) and non-missing data on credit derivatives use from 1999 to 2005. Few companies use credit derivatives for dealer activities rather than for hedging against default losses. Credit derivatives use is constrained because the liquidity of credit derivatives market is favorable for investment grade companies since they can use derivatives to insure against the default losses. Therefore, the illiquidity of credit derivatives market affects the non-investment grade companies as they need confidential information for loans where higher cost of hedging will dissuade banks to hedge. Nevertheless, the bank borrowers get loans at a cheap price and banks are more on a competitive stance with the capital markets to provide loan facilities if the credit derivatives can help bank to retain capital. Credit derivatives can only promote the financial health of banks if they generate lesser ban king risks. The sub-prime crisis prior to 2007 has shown that the dealer activities via the credit derivatives contain many risks and in 2008 generated systemic risks. This study provides an avenue to assess the risks posed by credit derivatives when engaging in dealers transactions dealers. Bedendo and Bruno (2009) differentiated between the application of loan sales, securitization and credit derivatives for a sample of US large domestic commercial banks (total assets greater than one billion USD) for June 2002-2008   They found that the most CRT users employ conservative tools and large international banking corporations utilize credit derivatives. They detected that highly capitalized banks with less risky portfolios purchase credit derivative protection to hedge against capital inadequacy.   Moreover, banks with riskier loan portfoli Analysis of Risk Management in Banking Activity Analysis of Risk Management in Banking Activity The Case of Mauritian Banks Financial deregulation, globalization and liberalization have heightened considerable banking risks. Moreover, banks necessitate effective risk management strategies to promote banking welfare, protect outside agencies transacting with banks and to ensure stable banking operations. Risk managers need to focus on the diversity of risks and secure the interests of the overall banking sector. Risk Management is nowadays segregated where there is inconsistency in reporting, insufficient evaluation and low quality of management and becomes ineffective due to lack of pertinent information and improper analysis of the risk factors (Prabir Sen, 2009). Nonetheless, banks are unable to keep equilibrium in the situations of risks with huge losses and slight possibility of occurrence and risks of minimal losses with propensity of occurrence.   According to Talmimi and Hussein, Mazroezi and Mohammed (2007), risk management enables profits maximization and entails restrictions in risky activities. Risks can be averted by ordinary banking procedures, can be shifted to other institutions and can be managed actively in banks (Oldfield and Santemero, 1997). 1.1 Objectives of the Study The core objectives of the study are: To probe into the methodologies and aspects of the risk identification, assessment, monitoring, management and mitigation in Mauritian banks. To ascertain the effects of risk management on Mauritian banks. To determine to which extent risk management strategies like Basel II, derivatives, stress testing and Asset and Liability Management are applicable in Mauritian banks. To analyze the factors which improve Risk Management Practices in Mauritian banks and the perspectives about Banking Risk Management. To explore the reasons for managing risks in Mauritian banks. 1.2 Statement of the Problem There is an increasing awareness that the gradual intensification of banking risks impacts adversely on banking transactions which raises the concerns for risk management. The basis concern of this study is whether the Mauritian banks are using diverse risk management tactics and whether they are able to cope with the present and prospective challenges of risks and risk management requirements. 1.3 Significance and Contribution of the Study Bank managers can be conversant with divergent risk management techniques, their implications, effects and their relevance in banks through the practical aspects of risk management application. Bank managers can analyze the mechanisms resulting in the increasing level of risk exposures. Business administrators and management practitioners can use this study as guide to design efficient measures to mitigate risks in the process of developing marketing tactics. 1.4 Structure of the Project Chapter 2 elaborates on the literature review related to the risk management. Chapter 3 uncovers the general overview of Mauritian Banking Sector. Chapter 4 focuses on the detailed research methodology that has been used. Chapter 5 discusses the analysis and interpretation of the Mauritian banking risk management information. Chapter 6 probes on the recommendations to improve Risk Management practices in Mauritian banks. Chapter 7 concludes the whole findings of the project. PART 1- THEORETICAL ASPECTS 2.1 Introduction The advent of technology, globalization and the competition has encouraged banks in risk taking activities exposing banks to risks. Regulatory and supervisory institutions have emphasized the need for banks to enhance their risk management practices. Risks arise from the probabilities of the occurrence of losses and usually emerge from the internal and external banking transactions. 2.2 Banking Failures determinants The past decades have encountered numerous bank turbulences where high costs have been incurred on both local and overseas level (Gaytà ¡n and Johnson 2002, p.1), hindering the credit facilities, minimizing investment and consumption and generating bankruptcy cases (Demirguc-Kunt and Detragiache, 1998a, p.81). According to them, the expensive monetary policy was used to force the sound banks to sustain the failures of insolvent banks which dissuade risk management. Fluctuations in interest rates post abolition of Brettons Woods System, higher banking competition, the non existence of intermediation margins, unskillful lending and investment tactics (Hellwig 1995, p.724-726 ) , the diminishing role of the oligopoly rents as stated by Gehrig (1995 cited Hellwig 1995, p.726 ), the lower level of capital reserves in banks, companies high reliance on banks for external finance mentioned by Rajan and Zingales (1998 cited Randall S. Kroszner 2007),systemic shocks caused by credit risks, the inability to diversify loans, trade deterioration and decrease in asset prices caused bank failures argued by Gorton (1988 cited Demirguc-Kunt and Detragiache1998b, p.85). Moreover, regime changes like financial repression, liberalization and severe macroeconomic conditions encourage the entry of inexperienced players and preference for the acquisition of useless loans stated by Honohan (1997 cited Gaytan and Johnson 2002, p.4) have generated banking turbulences.   Non-performing loans increase where the asset returns are less than the returns to be paid on liabilities. Banks borrow in international currency and lend in local currency where the latter depreciates if the foreign exchange currency risk is shifted to local borrowers if they loaned in foreign currency. Banks buy insurance protection which encourages risk taking activities in the absence of prudential supervision and regulation. Bank managers engage in fraudulent actions by taking a portion of money for their personal use (Demirguc-Kunt and Detragiache 1998c, p.85-87). Diamond and Dybrig (1983 cited Demirguc and Detragiache 1988d, p.86) argued that banks portfolio assets can worsen and depositors believe that other depositors are removing their money. Obstfeld and Rogoff (1995 cited Demirguc and Detragiache 1988e, p.87) mentioned that an anticipated devaluation could occasion bank runs in local banks and these deposits are shifted overseas and render the domestic banks without l iquidity. 2.3 Banking risks alsamakis et al (1996 cited Young 2001, p.57) argued that risks can be classified as pure risks and speculative risks. Pure risks which embody market risks, credit risks, interest rate risks, liquidity risks, country risk and settlement risk are associated with the probability of occurrence of loss or no loss and can be curtailed by risk management strategies. However, speculative risks comprising of operational risks, technology risk, reputational risk, compliance risk, legal risk and insurance risks involve an opportunity for gain or loss which can be hedged. 2.3.1 Credit Risks These major risks occur in banks when the borrower defaults on his obligation to reimburse the principal amount and the interest charged of the loan. Credit risks consist of three types of risks like (Arunkumar and Kotreshwar 2005, p.9): Transaction risk emerges from the fluctuations in the credit type and capital depending on how the bank underwrites individual loan transactions. Intrinsic Risk is risk prevailing in some institutions and on granting credit to some firms. Concentration risk is the average of transaction and intrinsic risk within the portfolio and encourages granting of loans to one borrower or one firm. 2.3.2 Interest rate risks Koch (1995 cited Beets and Styger 2001, p.9) defined interest rate risk as the future changes in a banks net interest income and market value of equity due to changes in the market interest rates. Kropas (1998 cited Martirosianien) enumerated three types of interest rate risks like: Reappraisal risk stems from the diverse periods of assets and liabilities Profitableness curve risk entailselements affecting the reappraisal risk. Basic point risk concernsflawed association between the receivable and payable interest rate. Option risk is where the benefits of options can adversely affect the banks equity. 2.3.3 Liquidity risks Liquidity risks occur when the banks are unable to meet the demands of the depositors because of lack of funds and the illiquid assets resulting eventually in bank insolvency. Credit, strategic, interest rate and reputation risks build up liquidity risks (Gaulia and Maserinskieno 2006, p.49). 2 types of liquidity risks are (ADB Report 2008, p.9): Funding liquidity risk is the potentiality to obtain money via the sale of bank property and by borrowing. Trading Liquidity risk arises from making a constant entry in market activities and dealings. 2.3.4 Market risks These risks arise when the value of the financial products changes negatively and consist of currency risk, interest rate risk, equity or debt security price risk (Gaulia and Maserinskieno 2006, p.49). 2.3.5 Operational Risks Basel Committee (2004) which imposes a capital charge defined operational risks as the risk of direct or indirect losses resulting from inadequate or failed internal processes, people, and systems, or from external events. This definition includes legal risk, but excludes strategic and reputational risk. 2.3.6 Reputational Risks These risks emerge when the number of clients decreases as they hold negative perspectives about the quality of services offered by the banks. 2.3.7 Strategic risks Strategic risks arise when bad decisions and projects are undertaken to develop a special system in banks due to the lack of resources, technological tools and the expert staff. 2.3.8 Foreign Exchange Risks These risks come when the prices of the currency fluctuate when engaging in foreign activities. There are 3 types of foreign exchange currency risks. (Deloitte Treasury and Capital Markets 2006) Transaction risk entails the future of original cash flows like imports and exports. Translation risk is concerned with the disparities between foreign exchange encountered when again transforming a foreign exchange value into the functional currency of the company concerned. Translation risks are usually converted into transaction risks on a late basis as earnings are repatriated or assets and liabilities are realized. Economic risk arises when indirectly exposed to buying and selling of goods from someone who buys goods overseas. 2.3.9 Systemic risks The bank cannot collect money from an organization it is dealing owing to the political, economic and social conditions prevailing in the country where the organization is situated. Country risk includes political, economic risk and transfer risk (National Bank of Serbia). 2.3.10 Legal Risks Legal Risks are losses incurred when the bank is sanctioned by a court for the non-compliance with the lawful rules and regulations and on not fulfilling its obligations towards the other parties (National Bank of Serbia). 2.3.11 Financial Fraud There is mismanagement of money and fraudulent actions from the members of the banks who embezzle some deposited money and when there is lack of security controls. 2.4 Bank risk management methods Greenspan (2004 cited in Lam 2007, p.3) said that It would be a mistake to conclude..that the only way to succeed in banking is through ever-greater size and diversity. Indeed, better risk management may be the only truly necessary element of success in banking. 2.4.1 Risk Management in Banking Sector Flaker (2006, p.4-8) proposes three methods: 2.4.1.1 Risk Identification The board must set the risk profile of the bank and identify the risk-return tradeoff. The bank should understand and identify types of risks exposures, their sources and their effects on the overall banking stability. 2.4.1.2 Risk management and reduction Risk management and minimization embody the following: (1) Allow loans after considering their financial status of the borrowers. (2) Comparison of the expected risks with the actual ones to diminish the loan losses in a bigger portfolio. (3) Loan losses will decrease due to diverse borrowers in the lending transactions. (4) Actual risks can be compensated through the opposite movement of other risks in particular financial activities. (5) Insurance negotiations can be used to protect against diverse risks. 2.4.1.3 Risk Management System This flexible system encompasses the combined structure of identification, evaluation and risk mitigation techniques. The Board must set up a strong risk culture and an effective governance structure where the risk management system aligns with the existing structure of the bank. Risk management procedures are possible when retaining higher level of capital to cushion the risks. Furthermore, the risk management functions comprises of: (1) Delegation of responsibilities to each banking segment (2) Auditing system to deal with the internal control processes and proper execution of risk controls (Nikolis, 2009). (3) Ongoing reviews, reporting, updating and the control of risk management system must be executed to ensure that they tailor with the banking aims (4) Training courses gaining know-how about the design of the risk management system and risk models must be offered to avert banking failures. (5) Establish rules and regulations and take necessary actions to those who contravene with them regarding risk management practices. (6) Participation of the banks, regulatory and supervisory bodies where information is disseminated externally and internally in the banks (Kroszner, 2007). 2.4.2 Asset and Liability Management Asset and Liability Management entails the design of organizational and governance models which define the risk approaches subject to the banking operations (ADB 2008, p.10). 2.4.2.1 ALM operations are as follows (ADB 2008, p.10-12): ALM ensures a risk and return management process where the combination of expertise and risk appetite is needed. ALM unit manages bank risks either through a passive or aggressive approach thus increasing its value. ALM unit investigates upon the static and dynamic mismatch; sensitivity of net interest income; and, market value under multiple scenarios -including under high stress. The net interest income evaluates the sophisticated banks operating results. It does not project the effects of risk compared to the economic value which can identify banking risks but is inaccessible to most banks. 5. Funds Transfer Pricing eradicates the interest rate risks by securing a spread in loan and deposits by allocating a transfer rate that mirror the repricing and cash flows of the balance sheet. Liquidity risks can be managed like diversification of financing sources, correlate the liquidity risks with other risks and use stress testing analysis. 2.4.3 Stress testing Practices Stress testing is another risk management strategy where Stress testing is a generic term used to describe various techniques and procedures employed by financial institutions to estimate their potential vulnerability to exceptional but plausible event (Kalfaoglou 2007, p.1). It uses statistical data analysis to risk management techniques, interpret and control the unfavorable outcomes. JP Morgan Chase has integrated stress testing equipment to manage and analyze the sources of possible banking risks, implement tests on the value of its portfolio, analyze its risk profile and contemplate the effects while applying diverse scenarios. An effective risk management scheme, stress testing project and bank staff expertise are requisite to tackle the statistical and economical fundamentals of stress testing with a data measurement tool. Board of directors should monitor the inputs of stress testing system (Seminar on Stress Testing Best Practices Risk Management Implications for Egyptian Banks 2007, p.2-3). Furthermore, the 2 types of stress testing strategies in banks like: (1) Simple Sensitivity Test deals with the rapid fluctuations of the portfolio value due to a risk factor on a short term basis. (2) Scenario analysis is used by large complex banks and is associated with a realistic and econometrics approach towards shifts in portfolio value due to changes in many risk factors. 2.4.4 Basel II Basel II published in June 2004, promotes banking supervision and emphasizes the specified capital requirements to cushion against potential losses. Basel II uses qualitative and quantitative requirements to monitor risk management strategies, to ensure compliance with regulations and reinforce corporate governance structure. The risk based supervision has enabled the supervisors to concentrate on the origins of banking risks. 2.4.4.1 Pillars of Basel II Pillar 1 entails capital needed for credit risk, market risk and operational risk. Moreover, banks under this regime must have a capital adequacy of 8 %. The methods for the computation of the capital charge to measure operational and credit risks (Ma, 2003)are: Basic Indicator Approach The size and capital requirements of the operational risk are estimated as a fixed proportion of the banks net interest income and non-interest income, measured as the average over the last three years. The Standardized Approach –The activities of the banks are allocated risk ratios weights related proportionally to the quantity distributed to every category. The aggregate capital requirements are the addition of all the requirements for the categories. Advanced Measurement Approach Computation of credit and market risks and the capital requirements are founded on the banks internal system for the measurement and management of operational risk for large banks An Internal Rating Based System The BIS stated that capital requirements must be founded on a qualitative and quantitative analysis of credit risk and must be used for diverse bank units. Founded IRB approach indicates that large banks should calculate probability default related to a borrowers grade to demonstrate the capital requirement level. However, under advanced IRB approach, these banks with an internal capital allocation can furnish the loss given default and exposure at defaults which are processed. Pillar 2 A supervisor must ensure that the bank has the adequate capital requirements to deal with risks. Banks estimate the internal capital adequacy by adopting quantitative and qualitative techniques. On-site investigation and ongoing reviews probe in capital adequacy. Pillar 3- Market discipline framework provides with detailed information about the banks risk profile to evaluate and report capital adequacy where risk exposures can be analyzed through quantitative and qualitative approach regularly. The risk based capital ratios and qualitative information about the internal procedures are needed for capital adequacy purposes. 2.4.5 Derivatives olatility of financial market, the liberalization and deregulation in the 1980s and 1970s has founded derivative markets (Hehn no date a, p.100). Derivatives are financial tools (like futures, commodities futures, options, swaps, forwards) whose returns, values and performance are derived from the returns, values and performance of the underlying assets. Hedging is covering against potential risk through an opposite position in the derivative markets. Bank International Settlements (2004 cited Bernadette A. Minton et al 2008, p.2) noticed that the quantity for derivatives has leveled from $698 billion in 2001 to $ 57,894 billion in 2007. Proper derivatives trading can insure against market risks and interest rate risks without retaining additional capital requirements in the balance sheet (Kaudman no date a, p.85). The determinants of derivatives use are banking size, balance sheet constituents, aggregate risk exposures, profitability, performance and risk taking incentives. Jason and Taylor (1994 cited in Hundman b, p.86) argued that speculation used with derivatives to make profitable returns can engenders more interest rate risks. Moreover, Tsetsekos and Varangis (1997 cited Roopnarine and Watson 2005a, p.9) argued that financial derivatives promote increase in resource allocation and increase the productivity of investments projects. Jorion (1995 cited Roopnarine and Watson 2005b, p.9) argued that in price discovery, market participants are offered information on balance prices that mirror the present demand on the supplies which enable effective decision making and reveal the position of the cash prices. Besides, liquid funds are increased and transaction costs are reduced and the futures market reflects the large transactions at prevailing prices (Roopnarine and Watson 2005c, p.10).   However, derivatives have generated enormous failures in Barings Collapse, Merill Lynch and Procter Gambler (Hehn b, p.101). Bank staff must be trained and educated about derivatives use. Derivatives trading can be constrained with the liquidity problems and legal uncertainties that emerged from the market price movement which is argued by Bhaumik (1998 cited Roopnarine and Watson 2005d, p.11). Pricing of assets becomes difficult if there is insufficient information about the derivatives use. Principal agent problem is aggravated (Roopnarine and Watson 2005e, p.12). The derivatives market must be regulated properly to avert fraudulent actions and insolvency. Partnoy and Skeel (2006 cited Minton et al. 2008a, p.2) claimed that derivatives intensify systemic risks as banks do not control the lending activities. Hunter and Marshall (1999 cited Roopnarine and Watson 2005f, p.28) argued that derivative markets attract investors whose private information are assimilated in the observable p rices and diminish the bid ask spread. The underlying cash prices reduce the transaction costs and the demand for money thereby affecting the operations of the monetary policy. Bedendo and Bruno (2009a, p.2-4) argued that credit transfer tools like securitization, credit derivatives and loan sales reduce regulatory capital requirements, motivate lending and enhance the banking liquidity positions. Moreover, they remedy the issues of information asymmetries as stated by Greenbaum and Thakor (1987 cited in Bedendo and Bruno 2009b, p.2). Duffee and Zhou (2001 cited Minton et al. 2008b, p.11) mentioned that credit derivatives are used if the loan sales or securitization techniques become expensive due to moral hazard problem and can shift default risk where information advantage is insignificant and retain some portion of risks where information advantage is huge. Banks use credit transfer tools as they have little access to inter-bank funding, huge funding expenses, low capital and want loan transfer (Bedendo and Bruno 2009c, p.8-9). CRT tools encourage banks to use originate-to-distribute models via aggressive lending occasions (Bedendo and Bruno 2009d, p.10) . Pricing of CRT tools is preferred by large banks having higher skills. Some loans sales have loan characteristics like small size, asymmetric issues and standardization convenient for securitization (Bedendo and Bruno 2009e, p.11). PART 2- EMPIRICAL REVIEW There is a growing literature that examines the relationship of banking risks with other many economic and financial variables. Moreover, this section describes the diversity of banking literature where different types of risk management strategies were tested and criticized. Even the links between different types of risks were experimented using banking information and models derived from other authors empirical work. Peek and Rosengren (1996) found that the large users of derivatives for speculation purposes are the troubled organizations using derivative information of 25 active banks in the United States from 1990 to 1994 in the US dummy regression model.   Banks are unable to track the risky aspects of these derivatives and guide their risk profile because of insufficient derivative information which could jeopardize the overall banking system. The onsite targeted examinations can enable banks to window dress their derivatives. Regulatory rules and formal transactions must be imposed on the banks taking unfavorable speculation and to constrain the moral hazard problem related to the derivative transactions. The use of speculative derivatives constitutes a stringent criminal penalty for breaching the established rules and regulations. Cebenoyan and Strahan (2001) used data of the sale and purchase of bank loans and those loans sold or purchased without recourse from all domestic commercial banks in the US from 1987 to 1993 in a regression model. They found that banks that engage in loan sales market to manage credit risks retained minimum level of capital which can be modified. Moreover, these banks retained more risky loans since they managed credit risks and were exposed to an unsafe position despite they endured lower level of risks compared to the other banks who manage risks without the loan sales market. Banks that employed the risk management techniques are more inclined to engage in risk taking activities. In fact, banks that manage credit risks lend to more risky loans depicting that complex risk management practices enhanced the bank credit position rather than minimizing the risks. Gatev et al (2006) investigated upon the presence of liquidity risk from both sides of bank balance sheets using some aspects of the Kashyap, Rajan and Stein (2002) model (that liquidity risks originating from the two fundamental businesses of banking promotes a diversification benefit) to analyze the link between deposit taking and commitment lending for large, publicly traded banks using regression analysis. Pooling deposits and commitment lending insure against banking liquidity risks and deposits activities insure against liquidity risk from idle loan activities. Bank stock-return volatility increases with idle loan transactions which is insignificant for banks with huge amount of depository dealings. The deposit-lending risk management becomes more reinforced when there is low level of liquidity and when troubled market participants deposit money in banks. Shao and Yeager (2007) used information of large publicly traded U.S BHCs from 1997 to 2005 using regression models to find the link between credit derivatives and their risk, return and lending issues. Banks buy credit derivatives to hedge against risks, to increase their equity and to compensate for the risky loan losses. However, they sell credit derivatives exposing themselves to risks to gain a premium charge. Moreover, the credit derivatives users enjoyed minimal returns and increase risks which are compensated. Their findings implied that on a general basis, the impact of credit derivatives on risk relies on the risk management strategies. Holod and Kitsul (2008) used panel data of stock returns from 53 U.S BHCs from 1986 to 2007. They found that after 1996, poor capitalized banks engaged in active trading transactions are more exposed to systemic risks compared to well capitalized banks. Banks cannot always have enough capital to cushion the market risks and must sell their illiquid assets or invest in the financial markets to compensate for the lack of capital to adhere to the market-based capital requirements. Capital requirements in Basel II do not help to reduce banking risks totally but contribute towards increasing systematic risks. Topi (2008) used a model of Allen and Gale (2004) where banks offer deposit contracts to ex ante identical, risk averse depositors who face heterogenous liquidity shocks for Bank of Finland which shows that the liquidity can impact on the banks motivations to minimize the default losses. The bank runs encourage the banks to avert the credit losses after the sub-prime mortgage crisis. However, the bank runs without a signal of the credit risks will reduce the banks willingness to curb the incidence of credit losses. The central bank can mitigate the propensity of liquidity stress for solvent banks rather than insolvent banks. In addition, this research provides an area for further research where the policy interventions and financial market innovations can be integrated in the model to identify the impact on banks motivations. Achou and Tenguh (2008) used regression model for Qatar Central Bank by executing a time-series analysis of financial data from 2001-2005 to examine the correlation between profitability and loan losses. They showed that effective credit risk management improves the financial result of the bank with the aim to secure the banking property and to work in the welfare of the market participants. Besides, their study revealed that credit risk management infrastructures are used to minimize the credit losses. Banks with efficient credit risk management system have insignificant loan default ratios, good revenues, minimal non-performing loans and are able to tackle credit losses. Minton et al. (2008) investigated the use of credit derivatives using U.S BHCs (assets overtakes $ 1 billion) and non-missing data on credit derivatives use from 1999 to 2005. Few companies use credit derivatives for dealer activities rather than for hedging against default losses. Credit derivatives use is constrained because the liquidity of credit derivatives market is favorable for investment grade companies since they can use derivatives to insure against the default losses. Therefore, the illiquidity of credit derivatives market affects the non-investment grade companies as they need confidential information for loans where higher cost of hedging will dissuade banks to hedge. Nevertheless, the bank borrowers get loans at a cheap price and banks are more on a competitive stance with the capital markets to provide loan facilities if the credit derivatives can help bank to retain capital. Credit derivatives can only promote the financial health of banks if they generate lesser ban king risks. The sub-prime crisis prior to 2007 has shown that the dealer activities via the credit derivatives contain many risks and in 2008 generated systemic risks. This study provides an avenue to assess the risks posed by credit derivatives when engaging in dealers transactions dealers. Bedendo and Bruno (2009) differentiated between the application of loan sales, securitization and credit derivatives for a sample of US large domestic commercial banks (total assets greater than one billion USD) for June 2002-2008   They found that the most CRT users employ conservative tools and large international banking corporations utilize credit derivatives. They detected that highly capitalized banks with less risky portfolios purchase credit derivative protection to hedge against capital inadequacy.   Moreover, banks with riskier loan portfoli