The operations of Basil Essay Example for Free

The operations of Basil Essay 1.1 The operations of Basil II Basel II was developed to ensure that there is less risk on capital allocation, unraveling operational risk from credit risk and quantifying both, and attempting to align economic and regulatory capital more closely to reduce the possibility of regulatory arbitrage. 1.2 The pillars used in Basel II The Basel II International Convergence of Capital Measurement and Capital Standards, the reviewed framework is based on three main pillars. 1.2.1 First Pillar – Minimum Capital Requirements The first principle of this revised framework comprises the minimum capital requirements necessary to cater for the three fundamental risks that a bank faces in business operations. These consist of Credit risk, Capital risk and Operational risk, which shall be further expounded below: A choice between two main methodologies is allowed by the Basel Committee on Banking Supervision for the determination of credit risk. These consist of the standardized approach and the internal rating based approach, which is further divided into the foundation and advanced internal rating based system.   Under the standardized scheme, a set of external credit ratings achieved from recognized agencies are utilized in the determination of capital risk.   A number of countries intend to authorize only this approach in credit risk measurement. The internal rating based model permits banks to develop their own experimental model to determine the probability of default for isolated clients or segmented customer groups.   Adoption of the regulator’s loss given default and other set parameter is necessary. As regards the Operational Risk, three approaches are suggested under the Basel II International Convergence of Capital Maintenance and Capital Standards revised framework, which consist of the Basic Indicator Approach, Standardized Method, and the Advanced Measurement Scheme. The standardized approach is similar to the same model applied for capital risk, explained in the previous bullet.   As regards the Advanced Measurement System, this entails the development of an empirical business model originating by the bank for the quantification of operation risk.   Section 664 of the original Basel demands that a minimum of a board of directors and senior management, a conceptually sound operational risk management structure and enough resources for the proper adoption of this scheme. Under the Basic Indicator Approach, banks are required to hold capital for operational risk corresponding to the average over a three year time frame of a fixed percentage of a positive annual gross income. For the Market risk there is on suggested approach, commonly known as the Value at Risk Method. The positioning of financial instruments should either be made with the objective of trading or hedging.   The three main parameters is this model are: The confidence level at which the forecast is made; The monetary currency unit that will be adopted to denominate the market risk; and The time horizon that will be examined. 1.2.2 Second Pillar – Supervisory Review Process The basic principles of this pillar of the Basel II International Convergence of Capital Maintenance and Capital Standards revised framework include the supervisory review and transparency, risk management direction and accountability of the adoption of the aforementioned revised concept. The supervisory review process is designed not only to ensure that targeted banks possess proper capital to sustain all the risks in their business, but also to induce banks to develop and maintain better risk management techniques in monitoring and assessing their respective risks.   There are the following four key principles of the supervisory review: A process for evaluating the overall capital adequacy of banks with respect to their risk profile and strategy. Supervisors assigned ought to review the banks’ internal capital adequacy assessments/strategies, and monitor to make sure compliance with regulatory capital ratios. Monitoring that banks operate above the minimum regulatory capital ratios. Supervisors are expected to arbitrate at an early stage to avoid banks’ capital from falling below the minimum levels set. The Committee has also identified the following vital issues that banks and supervisors are required to focus on:   interest rate risk in the banking book, credit risk and operational risk.   It is also recognized that since supervision of banks is not an exact science, discretionary measures and procedures ought to be adopted.   The importance of transparency, accountability and proper cross-border communication and cooperation arise in this respect. 1.2.3 Third Pillar – Market Discipline Disclosure requirements are highly focused in this final pillar in order to induce the market to perceive a better picture of the general risk position of the banks and thus sustain counterparties of the bank to price and deal correctly.   This last pillar is also aimed to compliment the previous two important areas discussed. The Committee recognizes the factor that the supervisor is a key player in the achievement of disclosure requirements.   Such market discipline is a vital feature for a safe and sound banking environment.   This safe environment arises from additional information disclosed in periodic and annual financial reports.   The methods that can be adopted in order to induce these disclosure requirements may vary depending on the countries legislation and present practices.   Examples that come to mind are through penalties, advices and more. The Basel II International Convergence of Capital Maintenance and Capital Standards revised framework also notes that such necessary disclosure requirements ought to be practical and in line with accounting standards and other relevant regulations.   For instance, management is allowed to use his discretion in the determination of the location and medium of these disclosures.   Materiality, frequency and proprietary and confidential information are also considered in order to minimize such reporting costs and ensure that organizations are not put in any competitive disadvantage with the application of such information requirement. The disclosure requirements demanded encompass a number of factors, such as: General qualitative disclosure requirements on each risk area. Capital structure. Capital adequacy. Brief description of different entities in case of business combinations. Aggregate amounts of firm’s total interest in insurance entities. References: Bank for International Settlements (2004). Basel II International Convergence of Capital Maintenance and Capital Standards: a Revised Framework (on line). Available from: http://www.bis.org/publ/bcbs107.htm (Accessed 16th April 2007). Basel Committee on Banking Supervision (2004).   International Convergence on Capital Measurement and Capital Standards. Switzerland: Bank for International Settlements

Atomic Bomb :: essays research papers

Atomic bombs were the first nuclear weapons to be developed, tested, and used. In the late 1930s physicists in Europe and the United States realized that the fission of uranium could be used to create an extremely powerful explosive weapon. In August 1939, German American physicist Albert Einstein sent a letter to U.S. president Franklin D. Roosevelt that described this discovery and warned of its potential development by other nations. The U.S. government established the top secret Manhattan Project in 1942 to develop an atomic device. The leader of the Manhattan Project was U.S. Army Brigadier General Leslie R. Groves. His team, working in several locations but in large part at Los Alamos, New Mexico, under the direction of American physicist J. Robert Oppenheimer, designed and built the first atomic bombs. The first atomic explosion was conducted, as a test, at Alamogordo, New Mexico, on July 16, 1945. The energy released from this explosion was equivalent to that released by the detonation of 20,000 tons of TNT. Near the end of World War II, on August 6, 1945, the United States dropped the first atomic bomb on the Japanese city of Hiroshima. It followed with a second bomb against the city of Nagasaki on August 9. According to U.S. estimates, 60,000 to 70,000 people were killed by the Hiroshima bomb, called â€Å"Little Boy,† and about 40,000 by the bomb dropped on Nagasaki, called â€Å"Fat Man.† Japan agreed to Allied terms of surrender on August 14th. These are the only times that a nuclear weapon has been used in a conflict between nations. Fusion bombs, also called hydrogen or thermonuclear bombs, were developed and tested in the early 1950s, but these have never been used in warfare. A thermonuclear device depends on a fission reaction to produce extreme heat that causes hydrogen isotopes of deuterium and tritium to come together, or fuse, but the main energy source for thermonuclear devices comes from the fusion reaction, not the triggering fission reaction. For more information on this type of bomb, see Hydrogen Bomb.

Bharti Airtel Outsourcing

* Bharti Airtel aimed to be a low cost provider in the highly capital intensive telecom industry. They needed to keep pace with the rapid growth of their customer base, which was growing at almost 100 percent per year. Their strategy was to acquire new customers and achieve low cost per minute, but it required huge capital investments. * They outsourced everything and concentrated only on marketing, sales and distribution. They redefined the core activities in telecom industry and concentrated all their resources in acquiring and retaining customers. There were two parts to the Outsourcing deal between Bharti and telecom vendors. First was build up, maintenance, and servicing of the telecom network to equipment vendors Nokia, Siemens and Ericson. Then there was the deal with IBM to provide all in all IT solutions. 1) Advantages of Outsourcing their Network management to Ericsson, Nokia, & Siemens: * Keeping pace with network expansion due to faster installations. * Freed the manageme nt of time consuming budgeting, tendering, financing, purchasing and installing process.They could now focus on core competencies of the company. * Shift from short-term agreements with equipment vendors to long term commitments to get better bargains and service. * Bharti will pay for network capacity (erlangs) only when it up and running. No need to pay for unused capacity. This solved the problem of conflict of interest between Bharti and the network suppliers. * Increased flexibility, no need to make huge capital investments will enable transferring of the risk to the network supplier. No Production costs( no capital investments, no labor costs), reduced Transaction costs as no need for new tenders every six months( reduced search & contract costs, reduced enforcement costs because of implementation of relational governance, lower adaptation costs because of pay for use model) * They were able to achieve Predictable Cost Model, no unplanned expenditures. Use the savings in capit al expenditure in focusing on new customer acquisition, building new services etc. Disadvantages of deal with Ericsson, Nokia, & Siemens: The project might be difficult to manage and become increasingly complex because of the involvement of 3 vendors to provide the network management. * There might be resistance from the existing employees to get transferred to vendor companies because of the cultural barriers that may arise. * There is a chance of developing rivalries among the 3 vendors if the margins and competition starts getting stiff. * Wastage of installed capacity. * It will increase their dependence on vendors. After a period of time they may move on the back foot in negotiation meetings with vendors. No previous deals of such outsourcing has happened and hence risk is high Advantages of end to end IT management Outsourcing deal with IBM: * Airtel can now concentrate on their core business activities of marketing and sales. * Revenue sharing agreement thus there was big inc entive for IBM to make the outsourcing deal a success. Reduced opportunism by the vendor. * Solved the scalability issue. * Avoid major increases in capital expenditures in IT. * Gain access to IBM’s rich talent pool, IBM’s expertise in IT. They can work together to create new products and services. (Value added services). * No Production costs ( no capital investments, no labor costs), reduced Transaction costs (reduced search & contract costs, reduced enforcement costs because of implementation of relational governance, lower adaptation costs because of revenue sharing model). Disadvantages of deal with IBM: * Excessive dependence on IBM and if they are not able to provide many innovative solutions, then Airtel won’t be having any option to go with a new vendor. There was a concern that the applications not supported by IBM may become obsolete * Revenue sharing was a new model which Airtel and IBM were trying for payments. As both of them didn’t have an y experience in it, there was a considerable risk because of the unforeseen uncertainties. 2) How would you structure the agreements to address your concerns and capture any advantages you have identified? Structure of Agreement with IBM * There should be some provision of fixed and minimum costs for the revenue share in the agreement. IT applications not supported by IBM should be available to ensure they don’t get obsolete. * The terms and conditions in the contract should be flexible enough to cover the changing environment dynamics over the period of 10 years. * Furthermore not all the details of the partnership can be written in the agreement. So a joint governing body should be formed to manage the arrangement and resolve the issues. * Agreed metrics to measure the quality of IT services provided by IBM. Structure of Agreement with Ericsson, Nokia, & Siemens: Network and Operations Management should be transitioned to the vendors in a phased and planned manner under con stant observation. * To tackle the concern of cultural barriers while working for the vendors, the Airtel employees should be absorbed on the same TnCs as they were working in Airtel. * Further recruitment of new employees should be the responsibility of vendor. * The expectations and duties of all the 3 vendors should be properly outlined and explained to prevent development of unnecessary tensions and unhealthy competition among them. The vendors should be continuously monitoring the networks and provide rapid response once the issue has been identified by them. * To be fair with the vendors if the network capacity remain unused for a major period of time, some part of payment should be done to them or it can be redeployed at other sectors. What measurements, rewards and penalties, and other governance mechanisms would you design for these two different agreements? With IBM * Strategic Alignment Measurements Process Performance Metrics – % of orders not delivered within the promised date, % of inaccurate and incomplete orders, Percentage of escalated cases, Through output. * Metrics to measure innovation – No of innovative ideas provided over a period of time. Ericsson, Nokia and Siemens * Performance Measurement and Quality Metrics – Call drop rate in the peak hours, Call drop rate over a cellular circle, Average Issue Resolve time, amount of time (measured in milliseconds) taken by data to travel from one location to another across a network etc.Penalties on the vendor if the performance of a cellular circle is not good over a period of time due to high call drops. * Customer Experience and Satisfaction Measurements -Network Availability, Call Accessibility measure eg. how many customers fail to make a call in the first attempt , Call Retainability, voice quality etc. * Management of Resources – Utilization of resources, Amount of time taken to meet request or demand, Capacity of the resource etc. Reward and appreciation for the employees who are able to solve the issues in minimum time. * Risk assessment – Security over the network etc.

The Social Of Social Networking Sites - 1459 Words

Social Signals On June 2014, Matt Cutts announced Facebook, Twitter Social Signals not part of Google Search Ranking Algorithms. Social networking sites can still help you to easily connect prospect and direct traffic to your website. Use it correctly, your social profile page can show up on search result as it s matched with the searcher s intent. 23. Spend time on social networking sites While creating a business page on social media sites, you must promote and share web content relentlessly. †¢ Facebook †¢ Tumblr †¢ Twitters †¢ Google+ †¢ Pinterest Pins †¢ Google+ †¢ Yelp †¢ Linkedin When someone types a brand name on Google, you will notice a page one ranking. How you accomplish this goal you ask? Say you actively share and promote content on Yelp. With solid effort, Yelp treats your social profile pages as incredible relevant to their audience. In addition, your Yelp profile page receives tons of link juice. In other word, you can experience multiple benefits: An increase in rankings in search engine results: †¢ The chance to be distinguished as an authority in your industry †¢ More targeted traffic coming to your site †¢ The potential for more customers to reach you †¢ The chance to develop new partnerships and better relationships 24. Write quality reviews Google is paying attention to the feelings, emotions and good/bad opinions of the web content from your customers. Source: Sentiment Search Signals SEO 25. Start sharing other people s content This encourages theShow MoreRelatedSocial Networking Sites1296 Words   |  6 PagesSocial Networking Site A social networking site is an online service, platform, or a site that focuses on facilitating the building of social networks or social relations among people who, for example, share interests, activities, backgrounds or real-life connections. It allows users to share ideas, activities, events, and interests within their individual networks. 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These have played a crucial in bridging boundaries and crossing the seas and enabling them to communicate on a common platform( Dinh ,2011).The increased use of social networking sites has become an international phenomenon in the past several years. Through these websites everyone connect with their peers , share information ,reinventRead Moreimpact of social networking sites1577 Words   |  7 Pagesï » ¿ IMPACT OF SOCIAL NETWORKING AMONG STUDENTS A STUDY OF NTHMC KRISHNA MAN SHRESTHA Symbol no. 12030706 P.U registration no: 2011-2-03-2065 Nepal Tourism and Hotel Management College (N.T.H.M.C) Business Management Center (B.M.C) Submitted for the degree of: Bachelor of Business Administration (B.B.A) Pokhara, Kaski, Nepal 2013 TABLE OF CONTENTS CHAPTER- I INTRODUCTION