Main Causes Of The Global Financial Crisis Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1553 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? To understand the main causes of global financial crisis of this decade we need to first understand few characteristics of Globalization mentioned below To economically boost international trade, capital flows and global financial systems. To increase the number of multi-national corporations to increase global economy. To rapidly foster technological development and to boost outsourcing activities. To ease communications and lead access to Trans border data. (Web 1) There were many causes for the current Global financial Crisis. SECURITISATION AND REAL ESTATE The credit crunch or the financial crisis started when the US government started lending loans at cheaper interest rates to people like sub-prime brokers who usually are not eligible to get loans. The loans in-turn were securitized or converted to investments. Securitization involves turning an asset, such as mortgages or credit card debt, into a financial instrument that can be traded. Regular house-holds had now turned to be investors and security issuers, which in turn led to a very complex trading system. This complex system was lucrative only initially and was highly instable which led to the downfall of financial institutions. (Gerald F. Davis (2009), These securitized products were combined with other collaterals to attract more investors which gave a perception of mitigating risk at very low interest rates; however unfortunately interest rates rose steadily and this lead the sub-prime brokers to default. This was the prime reason where the financial downfall started. All the financial institutions were under serious monetary deadlock, because in the first place when borrowers defaulted, they were not able to pay back the principal amount, forget interest on principal. At the same time the housing and real-estate industry was on a boom. Borrowers who wished to purchase home were easily given loans. Massive residential re-construction took place, however borrowers as mentioned started to default and were unable to re-pay their debts and defaulted. (Web 2) The above two factors were mainly responsible for the financial crisis, or rather led to fuel and ignite the recent credit crunch. Don’t waste time! Our writers will create an original "Main Causes Of The Global Financial Crisis Finance Essay" essay for you Create order BANKING AND SAVINGS The banking sector also played a significant role in the financial crisis, with corporate and investment banking, bringing both significant profits but ultimately also bringing billions of pounds in toxic debt and trillions in banking bailouts around the world.( ACCA Global- Web 3). This strategy adopted by the retail banking activities to reap more profits by providing loans to people with low creditability (low credit-score), which proved to be a costly affair to the banks when customers defaulted. The UK and US markets is largely relying on consumption (personal debt) with very low savings and huge debts. Considering the current financial turmoil, savings has become a distant dream and people are currently become debtors because of their ways of expenditure. (Web 3) Thus the retail bankers gave consumers a dream of luxurious life-style by offering them loans which were been utilized and got converted to bad debts. GOVERNANCE and LENDING According to Suetin. A (2009) ineffective corporate governance is also a major factor for the financial crisis. The organizations have forgotten and not taken a responsibility to protect their share-holders because of the lack of governing body for organizations. Lending from the financial institutions have now stopped lending to other banks which has led to the credit-markets to disintegrate, which in turn has led share-holders the lack of confidence to invest and since investors seem disinterested to buy shares, the share-market has dropped significantly. Suetin. A(2009) RISING OIL AND COMMODITY PRICES is also a major factor for the current financial crisis. According to Sarkar, Mitali (2009) the rising oil and commodity prices which have led to inflation and low consumer spending is also a major factor for the global financial crisis. Borrowers became defaulters because of all these above mentioned factors joining hands at the same time, worsening time and again, and one fact or adding woes to another by effecting borrower at the same time. STEPS THAT UK GOVERNMENT CAN TAKE TO REDUCE FINANCIAL CRISIS: The financial crisis can also be described as a combination of banking, debt and currency crisis. ADPOTING EUROS One of the method UK government could take to reduce the financial crisis is by adopting Euros. Euros when it was launched across Europe it was just 0.6 the value of pound, however it came close to equaling pound as illustrated in the graph below. The reason behind the loss in value of pound was due to the lack of confidence by the investors in the GBP due to the recession. (Web 4) EURO/ GBP Graph since January 1999 Source- www.tititudorancea.com (Web 5) BAIL-OUTS According to Davis, G. F. (2009) UK government has invested billions of dollars of pounds to bail-out banks that have faced financial crisis. The UK government also lifted guarantee for deposits considerably to  £100,000. Even after major bail-out packages to the crisis financial banks and organization seems to have been of less significance. FINANCIAL SERVICES BILL (UK treasury) The Government of U.K introduced the financial Services Bill and the Bill includes the below mentioned reforms as per Chancellor of the Exchequer Alistair Darling said to editors and press- Consumers will have powers to challenge the banks with the help of a consumer governing financial body and will also get privilege to free money guidance services. Firms should develop living wills by understanding the risks involved during financial crisis to make sure they can sustain future crisis. Human Resource will be ensured that the bonus and pay does not exceed the limits which are a high risk for the companys P AND L. Financial Services Authority will be empowered and a new governing body called Council for financial stability will be created to regulate financial institutions. (Web 6) CONSUMER EXPENDITURE, TAXATION and BUDGET According to Bell, Geoffrey L. (1968) UK government have taken stringent steps by tightening hire purchase controls and restricting bank lending and the Govemment also withdrew the Selective Employment Tax premiums paid to manufacturers and increased Corporation Tax.By exercising effective controls on financial institutions government is trying to mitigate the risk by implementing the above mentioned steps. Increasing tax has also become a positive aspect to generate revenues for government but it has negative feedback from organizations. The total effect of the Budget is estimated to raise revenue by about $2 billion, equivalent to 7% of total revenues. (Bell, Geoffrey L (1968). Hence all these factors to a certain extent imposed by the UK government have been effective. REGULATION OF NON-BANKS According to Butler, Patrick(2009) Government of UK is trying to regulate the non-banks through a phenomenon called shadow banking for institutions such as hedge funds, private-equity funds and insurance companies, To save tax-payers money it is necessary to have necessary regulations in place and initiate shadow banking, however this practice is still not been implemented because of the complex mechanisms of these institutions. Conclusion The 2007-2009 crises can be described as the worst-ever financial crisis in both modern and pre-modern times. The impact of the crisis is many fold as compared to the Great Depression of 1930s. Just because globalization is an emerging phenomenon and all the financial institutions want to make the most out of the globalization to reap huge profits, organizations and borrowers became equally responsible for the crises as discussed. Because of the lack of credibility to re-pay by borrowers and due to the generosity of lenders to lend money led to the financial crises and many more factors followed as discussed. The government of UK has provided bail-out packages, passed the budget and financial bill and much more to evade and get out of the crises, but it seems a huge task to get things back to normal. The questions to be asked is will the lenders become more sensible, so will the borrowers?. Will people start saving money rather than disinvesting and becoming bankrupt? Will there be reforms by government and measures to control any future crises?. All one can hope in the present scenario is to slowly and steadily get out of the crises and start thinking of efficient methods to avoid any future crises. REFERENCES Bell, Geoffrey L. Economic Conditions in the United Kingdom, Today and Tomorrow. Financial Analysts Journal 24, no. 4 (July 1968): 147-150. Business Source Premier, EBSCOhost (accessed February 16, 2010). Butler, Patrick. Learning from financial regulations mistakes. McKinsey Quarterly no. 3 (September 2009): 68-74. Business Source Premier, EBSCO host (accessed February 16, 2010). Davis, G. F. (2009). Managed by the markets: How financer-shaped America. Oxford, U.K.: Oxford University Press. Gerald F. Davis (2009), The Rise and Fall of Finance and the End of the Society of Organizations, Academy of Management Perspectives, Volume 23, Number 3, pp. 27 44. Suetin, A. Causes of the Current Financial Crisis. Problems of Economic Transition 52, no. 3 (July 2009): 44-58. Business Source Premier, EBSCOhost (accessed February 16, 2010). Sarkar, Mitali. Financial Crises and Economic Recession. Vikalpa: The Journal for Decision Makers 34, no. 3 (July 2009): 117-130. Business Source Premier, EBSCOhost (accessed February 16, 2010). Globalization characteristics available online from WEB 1- https://www.experiencefestival.com/a/Globalization_-_Characteristics/id/1291173 WEB 2- https://www.asa.asn.au/Miscellaneous/CommSec_WorldFinancialCrisis.pdf WEB 3- https://www.accaglobal.com/pubs/about/public_affairs/unit/global_briefings/financial_stability.pdf WEB 4 -UK: Will the weak Sterling rescue the British economy https://www.theeuros.eu/IMG/article_PDF/UK-Will-the-weak-Sterling-rescue,2664.pdf WEB 5- https://www.tititudorancea.com/z/euro_to_gbp_exchange_rates_pounds_sterling_uk.htm WEB 6 -https://www.hm-treasury.gov.uk/press_108_09.htm -Newspaper Press Article.

Factors In Health Care Organizations That Affect Patient Safety. How

Essays on Factors In Health Care Organizations That Affect Patient Safety. How Is The Human Factor Revelant To Article Factors in Health Care Organizations that Affect Patient Safety. How is The Human Factor Relevant to Patient Safety. of Factorsin Health Care Organizations that Affect Patient Safety. How is The Human Factor Relevant to Patient Safety.NameName of Institution Factors in Health Care Organizations that Affect Patient Safety. How is The Human Factor Relevant to Patient Safety? Patient safety is paramount to any hospital and health care worker. The health care workers take an oath that provides a promise to protect the sanctity of life. The factors that are paramount to patient safety all revolve around the medical personnel. This paper narrows down to the Human factors in patient safety. The organizational managerial procedures influence the human factor in terms of safety culture. The management has the task to cultivate this culture by giving questioner surveys to patients to monitor their staff (World Health Organization, 2009, p. 12). The leadership style that encourage patient saf ety, many hospitals its only doctors that are allowed to prescribe and the nurses effect the prescription. The structures of communication in the hospital on patient safety are essential in this case. The patient progress is noted down to encourage informed prescriptions. Team work is a human factor that is key to patient safety. It ranges from shifts that work in words to the team of experts in the theater room. The patient safety is guaranteed by team work tools like objective briefing for a particular team and management attitude tools as ORMAQ (World Health Organization, 2009, p. 25). Individual personalities play a big role in patient safety. Many refer to the medical field as a calling profession. This implies that the management should foster the care and concern attitude among its staff. Situation awareness and decision making skills are essential to ensure patient safety when the medical machines fail. The health workers should be in a position to monitor what is happeni ng and what to expect. In conclusion all these factors play a big role in patient safety. Fatigue management techniques are also essential to ensure that the patient well being is safe. ReferencesWorld Health Organization. (2009). Human Factors in Patient SafetyReview of Topics and Tools:Report for Methods and Measures Working Group of WHO Patient Safety April 2009. New York: World Health Organization.

History of Chess Free Essays

The precursors of chess originated in India during the Gupta Empire,[2][3][4][5] where its early form in the 6th century was known as chatura? ga, which translates as â€Å"four divisions (of the military)†: infantry, cavalry, elephantry, and chariotry, represented by the pieces that would evolve into the modern pawn, knight, bishop, and rook, respectively. [6] Chess was introduced to Persia from India and became a part of the princely or courtly education of Persian nobility. 7] In Sassanid Persia around 600 the name became chatrang, which subsequently evolved to shatranj, due to Arab Muslim’s lack of ch and ng native sounds,[8] and the rules were developed further. We will write a custom essay sample on History of Chess or any similar topic only for you Order Now Players started calling â€Å"Shah! † (Persian for â€Å"King! â€Å") when attacking the opponent’s king, and â€Å"Shah Mat! † (Persian for â€Å"the king is helpless† – see checkmate) when the king was attacked and could not escape from attack. These exclamations persisted in chess as it traveled to other lands. The game was taken up by the Muslim world after the Islamic conquest of Persia, with the pieces largely keeping their Persian names. The Moors of North Africa rendered Persian â€Å"shatranj† as sha? erej, which gave rise to the Spanish acedrex, axedrez and ajedrez; in Portuguese it became xadrez, and in Greek zatrikion, but in the rest of Europe it was replaced by versions of the Persian shah (â€Å"king†). Thus, the game came to be called ludus scacchorum or scacc(h)i in Latin, scacchi in Italian, escacs in Catalan, echecs in French (Old French eschecs); schaken in Dutch, Schach in German, szachy in Polish, sahs in Latvian, skak in Danish, sjakk in Norwegian, schack in Swedish, sakki in Finnish, sah in South Slavic languages, sakk in Hungarian and sah in Romanian; there are two theories about why this change happened: 1. From the exclamation â€Å"check† or â€Å"checkmate† as it was pronounced in various languages. 2. From the first chessmen known of in Western Europe (except Iberia and Greece) being ornamental chess kings brought in as curios by Muslim traders. The Mongols call the game shatar, and in Ethiopia it is called senterej, both evidently derived from shatranj. Chess spread directly from the Middle East to Russia, where chess became known as (shakhmaty, treated as a plural). The game reached Western Europe and Russia by at least three routes, the earliest being in the 9th century. By the year 1000 it had spread throughout Europe. [9] Introduced into the Iberian Peninsula by the Moors in the 10th century, it was described in a famous 13th century manuscript covering shatranj, backgammon and dice named the Libro de los juegos. Chess spread throughout the world and many variants of the game soon began taking shape. [10] Buddhist pilgrims, Silk Road traders and others carried it to the Far East where it was transformed and assimilated into a game often played on the intersection of the lines of the board rather than within the squares. [10][11] Chaturanga reached Europe through Persia, the Byzantine empire and the expanding Arabian empire. 12] Muslims carried chess to North Africa, Sicily, and Iberia by the 10th century. [10] The game was developed extensively in Europe, and by the late 15th century, it had survived a series of prohibitions and Christian Church sanctions to almost take the shape of the modern game. [13] Modern history saw reliable reference works,[14] competitive chess tournaments[15] and exciting new variants which added to th e game’s popularity,[15] further bolstered by reliable timing mechanisms (first introduced in 1861), effective rules[15] and charismatic players. [16] How to cite History of Chess, Essay examples

Business Impact Analysis-Free-Samples for Students-Myassignment

Question: Discuss about Business Impact Analysis. Answer: Definition of Business Impact Analysis (BIA) Business Impact Analysis is an organised process through which a situation is analysed and evaluated where a crucial business function is interrupted due to any emergency, accident or natural disaster (Jarvelainen 2013). Definition of Business Continuity Plan (BCP) The purpose of a Business Continuity Plan is to create a plan of action by identifying threats and risks confronted by an organisation. This is done to ensure the security of assets and employees of the company so that they are functional even in the face of any crisis (Snedaker 2013). Relation between BIA and BCP In the event of any disaster, a company creates an organised strategy to identify the threats and risks faced by it that can damage the company assets or employees and interrupt their functionality. This is known as Business Continuity Plan (BCP) that not only identifies the issues but also finds possible remedies to ensure the protection of the assets as well as personnel and continuity of their function (Torabi, Soufi and Sahebjamnia 2014). In case, the BCP fails to safeguard the interest of the company and a crucial function of the company is interrupted; the company analyses and evaluates the situation through an organised process to resolve the issue as soon as possible. This process is known as Business Impact Analysis (BIA). Business Function Table Business Functions Qualitative Business Impact Value IT systems, applications and resources affected. Recovery Time Objective (RTO) Internal and external voice communication with customers in real time. Major Applications 1 day Internal and external email communication with customers via store and forward messaging. Minor IT systems and Applications 1 day Domain Name Server (DNS) for internal and external Internet protocol (IP) communications. Minor IT systems 1 day Internet connectivity for email, store, and forward customer service. Major IT systems 1 hour Self-service website for customer access to information and personal account information. Minor IT systems and Applications 1 day e-Commerce site for online customer purchases or scheduling 24x7x365. Critical IT systems and Applications 1 hour Payroll and human resources for employees. Critical Resources 1 day Real-time customer service via Web site, e-mail or telephone requires customer relationship management (CRM). Major IT systems and Resources 1 hour Network Management and technical support. Major Resources 1 hour Marketing and events. Major Resources 1 week Sales orders or customer/student registration. Minor Applications and Resources 1 day Remote branch office sales-order entry to headquarters. Major Resources 1week Voice and email communications to remote branches. None IT systems and Applications 1 day Accounting and finance support: Accounts payable, Accounts Receivable, etc. Major IT systems and Applications 1 hour Table 1: Business Function Table Source: (Nielsen and Denmark 2013 References Jrvelinen, J., 2013. IT incidents and business impacts: Validating a framework for continuity management in information systems. International journal of information management, 33(3), pp.583-590. Nielsen, P.B. and Denmark, S., 2013. Measuring International Organisation of Enterprises and Sourcing of Business Functions. In International Statistical Institute: Proceedings of the 2013 World Statistics Congress. Snedaker, S., 2013. Business continuity and disaster recovery planning for IT professionals. Newnes. Torabi, S.A., Soufi, H.R. and Sahebjamnia, N., 2014. A new framework for business impact analysis in business continuity management (with a case study). Safety Science, 68, pp.309-323.