...Catastrophe Bonds Financial markets are consistently changing as new opportunities arise and others die off. Catastrophe bonds are an example of a new market opportunity that had not been thought of before. Catastrophe bonds can be defined as a high-yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophe such as a hurricane or earthquake. One of the advantages of catastrophe bonds is that they are not linked to the stock market or the poor economic conditions occurring today. The emergence of catastrophe bonds occurred because of the large losses insurance companies suffered following Hurricane Andrew. A catastrophe bond deal occurs as; “an insurer will issue a bond whose returns are tired to the likelihood of one or more natural disasters over a certain period of time. If the event does not happen, investors earn a yield on the bond. But the principle can be wiped out if a devastating storm does strike,” (Ahmed). The catastrophe bond can be beneficial to the insurance company when a natural disaster occurs because they now have more money on hand due to the investors. It can also be very beneficial for investors when a natural disaster does not occur and they earn a relatively high yield compared to other securities. The main issue with the catastrophe bond as both an insurance company and an investor is that the likelihood of a natural disaster is entirely random and cannot be predicted through any mathematical formula...
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...Faculty of Economics Seminar paper on the subject: English 4 Crisis management June, 2012 Crisis management is the process by which an organization deals with a major event that threatens to harm the organization, its stakeholders, or the general public. The study of crisis management originated with the large scale industrial and environmental disasters in the 1980. Three elements are common to most definitions of crisis: (a) a threat to the organization, (b) the element of surprise, and (c) a short decision time. Venette argues that "crisis is a process of transformation where the old system can no longer be maintained." Therefore the fourth defining quality is the need for change. If change is not needed, the event could more accurately be described as a failure or incident. In contrast to risk management, which involves assessing potential threats and finding the best ways to avoid those threats, crisis management involves dealing with threats before, during, and after they have occurred. That is, crisis management is proactive, not merely reactive. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and cope with a serious situation, especially from the moment it first occurs to the point that recovery procedures start. Introduction Crisis management consists of: * Methods used to respond to both...
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...Malthus KEY POINTS * Thomas Malthus warned that population growth would exceed resource growth, leading to catastrophic checks on overpopulation. This would occur because population grew exponentially while food supply grew arithmetically. * Without population control, the population would be reduced by catastrophes such as famine or war according to Malthusian theory. * As a solution, Malthus urged moral restraint: people must practice abstinence, sterilization, and have criminal punishments for those who have more/">more children than they can support. * Malthusian catastrophes refer to naturally ocurring checks on population growth such as famine, disease, or war. * These Malthusian catastrophes have not taken place on a global scale due to progress in agricultural technology. However, many argue that future pressures on food production, combined with threats such as global warming, make overpopulation a still more serious threat in the future. Early in the 19th century, the English scholar Reverend Thomas Malthus published "An Essay on the Principle of Population. " In it, he argued that overpopulation was the cause of many of the social ills observed in the industrial societies of Europe: poverty, malnutrition, and disease could all be attributed to overpopulation. According to Malthus, this was a mathematical inevitability. Malthus observed that, while resources tended to grow arithmetically, populations exhibit exponential growth. Thus, if left...
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...Week 3 Discussion 1 From the e-Activity, develop a regression equation using the data you collected from your research. Use the regression equation to focus the demand for the product you chose for the next three periods. Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitability. I decided to take a brief look into Buffalo Wild Wings Chain future expansion near college campuses. The restaurant chain's management wants to determine the best locations in which to expand their restaurant business. So far the most successful locations have been near college campuses. This opinion is based on the positive numbers that quarterly sales (y) reflect and the size of the student population (x). Management's mindset is that over all, the restaurants that are within close proximity to college campuses with large student bodies generate more sales than restaurants located near campuses with small student bodies. Imagine you are a manager for the good or service used above. From the results of the regression equation, suggest strategies to either maintain demand (if an increase over three periods occurs) or improve demand (if a decrease over three periods occurs). Provide support for your recommendations. The regression analysis of the demand patron assures that managers are able to forecast the future sales. For profitability perspective, the demand for the future should show an increasing trend...
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...Introduction and Overview Business complexity and increase in uncertainty amplifies the conflict between documented means of managing risk and current practices. While companies had been conventionally addressing issues of foreign exchange, taxation, interest rate and prices, the widespread adaptation of internet in sourcing customers and online facilities are creating a new wave of corporate risks. Do current corporate risk practices prove wrong the established academic theories? Large Corporation such as Lehman Brothers, Northern Rock, Royal Bank of Scotland and many organisations had fallen to receivership all across the world showing the evident of the necessity of risk management strategy and a business continuity strategy. Some multi national organisations had also been exposed to risks such as Sony with unidentified battery issue before release of product in 2006, Dell supply chain problem in 2007, fiasco caused by software failure in 2008 to British Airways etc. This is because they had failed to take into account risks that could be created by people, resources and occurrence that is outside the normal business practises. Risk management is now an essential element of organisation’s strategy by putting in place a process to handle risk in priority of the likelihood of occurrence. The managerial decisions necessary for smooth running of organisation cannot be taken without element of risk. As a cornerstone of business practice the question management need to be...
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...Models of Crisis Intervention Carolina A. Pagan Troy University Abstract Natural disasters come fast and leave fast but the communities are left with long and difficult injuries. They can be physical, monetary, family structure, and mental injuries and they do not leave along with the hurricane or ease up quickly like the earthquake, they stay around leaving many in need of multiple services. Communities are not ready most of the time and crisis intervention models have been created along the way in the aftermath of several disasters. These models include an important element used today when natural disasters strike and it is called Psychological First Aid (PFA). Many professionals and volunteers get together to collaborate and aid the communities in need. This research is focused on the services offered for mental health disturbances, and compare and describe some of the models seen in a disaster area today. Models of Crisis Intervention Natural disasters like hurricanes, earthquakes, tornadoes, fires, and floods are some of the numerous crisis situations many individuals experience every year around the world leaving many off them in need of crisis intervention. Throughout a lifetime people have seen and gone through some of the hardest natural disasters in history and have been left with many physical and emotional disturbances. While the physical disturbances are easy to see, the emotional disturbances are no,t and interventions from mental health professionals...
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...Disaster Pedro Eza ID number: z3366523 Executive Summary Fukushima crisis management showed system failures from the public and private actors that led to overall human error and opened a continuous debate within international community about holding nuclear plants under public hands rather than private ones whose incentives clearly differ from the public interest: * The Government and regulatory agencies failed to push Tepco to heed several anomalies and warnings causing the operator to be unprepared at an operational risk level evidencing an embarrassing incompetency to make decisions. * Tepco, as this report will prove below, lacked a culture of safety failing to respond effectively to subsequent events after the accident. For all these, the need to build an adequate resilience framework within the nuclear industry covering the main pillars: Crisis Management, Disaster Recovery, Business Continuity and Emergency Management, are paramount within risk management. Case’s Background On March 11, 2011, Japan suffered an earthquake of magnitude 9.0 with an epicenter near the northeast coast of Honshu, Japan. Consequently, a massive tsunami hit the eastern...
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...that we use. Some of it we cannot help, like snowstorms, wildfires and floods. Those are some of the affects we are seeing. The Earth is warming up at a rapid speed and melting the glaciers that are causing floods. Some areas are so dry that when a severe thunderstorm occurs and lighting strike, this cause a wildfire. In the news every day we are hearing about earthquakes, volcanoes and flooding. Just this past winter was the worst one we ever had. Global Warming is far from over but we can do some things to try to prevent it but God has the last say so. It was predicted long ago that mankind was going to ruin the earth with all the consumption of gas and polluting the air. If we start now trying to go green we probably can pro long the crisis. You can get tips from Al Gore the former Vice President. He has written books and has video tapes on how we can save our planet. The most talked about effort is called “going green.” Buy all natural cleaning products, use a reusable shopping bag and build energy efficient buildings. Global Warming: Real or Temporary Climatic Change? Global warming has been the topic of many articles, newscast, congressional meetings, and documentaries. One of the most famous documentaries/movies was done by Al Gore. Al Gore has made it his life’s work to give us the needed information to understand how serious global warming really is. Some people may thing that global warming is just another...
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...China in the Debt-Deflation Trap HONG KONG – In the wake of a global stock-market sell-off triggered by economic turmoil in China, the US Federal Reserve has just decided to postpone raising interest rates. Indeed, China is facing the huge challenge of dealing with the risk of a global debt-deflation trap. In 1933, Irving Fisher was the first to identify the dangers of over-indebtedness and deflation, demonstrating their contribution to the Great Depression in the United States. Forty years later, Charles Kindleberger applied the theory in a global context, emphasizing the problems that arise in a world lacking coordinated and consistent monetary, fiscal, and regulatory policies, as well as an international lender of last resort. In 2011, Richard Koo used Japan’s experience to highlight the risks of a prolonged balance-sheet recession, when over-stretched debtors deleverage in order to rebuild their balance sheets. The debt-deflation cycle begins with an imbalance or displacement, which fuels excessive exuberance, over-borrowing, and speculative trading, and ends in bust, with procyclical liquidation of excess capacity and debt causing price deflation, unemployment, and economic stagnation. The result can be a deep depression. In 2000, the imbalance was America’s large current-account deficit: the world’s largest economy was borrowing heavily on international capital markets, rather than lending, as one might expect. According to then-Fed Chairman Ben Bernanke, the problem was...
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...Communication And Crisis Paper Samantha Kendrick HCS/320 October 8, 2012 Henny Breen Communication And Crisis Paper As the director contingency plans would be in place according to the emergency Management office. My job would be to make the decisions to make sure the right staff was on hand. Once the staff is countable with the contingency plan as a director, we would start contacting local agencies such as, Law Enforcement and Public works to establish how severe the contamination and how widespread is. Most of all determine the agent used and was prepared to have the necessary medications to combat the agent. I would be contacting poison control to assist I would hope to have a list of Military Doctors to assist with any advice with the agents who could have been used. Delegation would be key for the me as the director to have a sound staff to assist with the workload, tensions will be high during this time and very stressful and as a director. Potential advantages within the agency would be he or she would have already been surrounded by good members and are highly trained for any circumstance. The public would be a key factor in providing feedback and how severe the reaction is. Private sectors could be a resource such as news media, and public works. The water department would be key in testing the water ways and determine who is infected, as well I would notify the Environmental Protection Agency and the Department of...
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...The problem to be investigated is how unethical loan practices can result in the macroeconomic crippling of a nation. This paper will discuss the driving forces of unethical lending, contributing factors that foster such behavior, and the destructive results that follow. It would be an injustice to attribute the subprime mortgage financial crisis to only one factor, as there were several key elements that factored into the fall. It would be safe to say, however, that greed was factor that contributed the most to the downfall, mostly because it was greed that perpetuated the continuation of the disaster. There were also contributing factors that were predicated from good intentions, such as the Clinton administration’s campaign to put more American taxpayers in homeowner status by establishing the Community Reinvestment Act Legislation. In theory, the concept was worthy of merit, but the movement was undermined by the predatory instincts of financial organizations and the brokers and professional people who would stand to profit from the plan. As the regulatory requirements for obtaining home mortgages became more relaxed, scores of people who were previously unable to qualify for home loans, were suddenly able to not only qualify, but also qualify for homes that were otherwise out of their financial range (Reinhart, Carmen & Rogoff, 2008). This was due, in part, to a number of extenuating circumstances, and a mélange of different standards that were loosened to accommodate...
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...Financial meltdown I agree with the basic premises of article one. It did take all of these factors to align in order for such a major financial catastrophe. However, some of these factors are much less important and less to blame then others. In a sense, blaming concerned citizens for there “shock and panic” as a factor for the financial crisis is similar to saying my dog wouldn’t have bit you if you weren’t afraid of him. No, people were only afraid because the actions had taken place. The people had plenty of reasons to be afraid and “shock and panic” along with “severe contraction” were the effects of the outcome, not the causes. I do agree with the financial aspects of article one more. It brings up the key aspects, such as the detriment leverage and the uses of short-term debt to finance investments, which were extremely over-looked by companies. The main thing that the article ignores are the actions of the companies, crimes committed, corruption in government, and the fact that these companies ran themselves into the ground while getting filthy rich. Greed was a large factor in the cause of the crisis. CEOs weren’t happy with the normal compensations; they need a fleet of jets, cruise ships, fancy cars, and drugs at the company’s expense. The inflation rate The second article comes off as more political. The article focuses mainly on what government needs to do in order to correct and “try” to prevent this from happening again. However, the article also...
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...Crisis Management Communication Plan General communication is significant in terms of any disasters strike. In healthcare setting, when at the time of acute or prolong of crisis, mass trauma or disaster, communication is very crucial. More often, during the times of major disasters on which communication will impair are due to lack of preparation and training. In addition, failure to communicate systematically will result with chaos arising. Yet, due to the fear of the unknown, stress is increasing among healthcare staff , patients and family. To effectively control the chaotic situation, all healthcare facilities should create a frameworks to create strong leadership teams to guide the employees, and exercise about the knowledge, skills and abilities of communication in response to different type of crisis. Communication Types of Crises "Crisis is a stage of an individual who experienced from an unexpected thread, loss self controlled, or dealing with terminal illness"( Arnold.E.C., 2011). When caring patients who experienced mental illness. To achieve communication effectively, health care teams must clearly understand the different type of crisis and the caused that affecting patient's well being, Foremost, the successful of communication during crisis depend on the coping mechanism of an individual. There are many different kinds of crisis; situational crises, adventitious crisis which included mass trauma and nature disasters. A situational crises...
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...Lauren Volosin 4/29/13 PR Crisis Com. Research Paper Toyota Recall Crisis Toyota Motor Company has been known to be one of the greatest automobile manufacturers in the United States due to their durability and good quality. Toyota had a great reputation for many years until August 28, 2009 was the day that began the start of a crisis that led the company to turmoil. On this day, four people were killed in a fatal crash due to a gas pedal being stuck and they no longer had control of their car’s speed (Autoevolution). This became a public relations crisis communication catastrophe as soon as this story got out into the public. Toyota made several PR mistakes before and after this event but they did a few things right as well and managed to overcome this issue with success. Evaluating the effectiveness of the response to this crisis and analyzing the communication, there are many things in which a PR practitioner can learn from. To properly analysis the Toyota Recall Crisis, I have researched the organization, situation, and nature of the crisis as well as reviewing three particular artifacts from the company’s response to the crisis. The organization of the crisis was Toyota Motor Company which was made up by its image on quality guarantee and dependability. According to a study conducted by global research group Millward Brown, Toyota was voted seventh most trusted consumer brand in the United States. It was seen as one of the strongest corporate brand names around...
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...Banking & Finance Submitted to: Sir Hamad Rasool Bhullar Submitted by: Maria Saleem (l1s10bsaa2009) Imran Arif (l1s10bsaa2031) Zeeshan Ahmed (l1s10bsaa0033) Gohar Nouroze (l1s10bsaa2018) Hassan Sarib (l1s10bsaa0011) Umair Khan (l1s10bsaa2006) Inside Job Inside Job is a 2010 documentary film about the late 2000s economic catastrophe Charles H. Ferguson. In five parts, the film delves into how changes in the policy environment and banking practices helped generate the financial crisis. Background of Iceland: Iceland had a stable environment and it was a complete structure of a modern economic society. Its population was 320,000 with a GDP of $13 billion. Gylfi Zoega Professor of Economics at the University of Iceland said that, “A fine location for families to live happily.” In 2000, Iceland’s government began a policy of deregulation. This set up the basis for the banks to upload debts when the foreign companies were accumulated. As the crisis unfolded itself the banks became unable to refinance their debts. The financial crisis of Iceland was the largest suffered by any country in the economic history. It was a political crisis collapse of all the three major privately owned commercial banks, with their difficulties in the refinancing their short term debt and run on deposits. In September 2008, Glitnir bank would be nationalized followed by the Landsbanki. Two days later another bank, Kaupthing was also nationalized. As Iceland was from a small domestic market...
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