A Brief History of a Colony That Never Was

New Devon settlement was established on the north-west shoreline of the advanced USA in the Delaware river’s valley.â â It was the Indians who had lived here before Europeans came. These were the Indians who communicated in the language of Algonquian gathering. They called themselves Lenni Lenape that implied ‘progenitors‘ or ‘first people’.Other Indian clans called them ‘grandfathers’ and this reality additionally affirms that Lenni Lenape was the most seasoned clan in this valley. The Indians chased, angled, cultivated developing oats and legumes.â Depending on the season the Indians moved from backwoods to the coast. Toward the start of seventeenth century around 7,000 individuals lived here.First European examiners of these terrains were Dutch. Anyway a few sailors researched the North-West coast prior: Englishman John Cabot (1497), Frenchman Giovanni da Verrazano (1524), Spaniard Estevan Gomez (1525), Frenchman Jehan Allefonsce ( 1542), Englishman Sir John Hawkins (1562) and others.In 1615 Dutch Johan Stuyvesant left his nation for the north-west coast to discover appropriate spot for exchanging. In June being not a long way from New Foundland the boat shockingly took fire. Stuyvesant needed to land so as to fix the boat. After the assessment of this spot the chief turned out to be certain that terrains are good for exchange furriery and the waterway was brimming with fish.As an outcome ofâ Stuyvesant journey the Dutch post Hoek was established here.â Soon Englishmen found out about these grounds. They were exceptionally dazzled with anecdotes about fruitful valley and in 1632 John Welsh visited this region. He was energetic about the possibilities of these terrains and affirmed everythingâ the Dutch brokers had told.So in 1635 the region of New Devon was allowed to the Earl of Worcester and Englishmen started to move here. Those Dutchmen who to swore devotion to King could possess the terrains they ha d settled previously. The land settlement in 17thâ century required cautious arranging and leading.It was extravagant and unsafe business. The pilgrims needed to deal in excess of 4,000 miles, they required food, arm, garments, seed, actualizes. Just little gathering of rich foreigners could stand to pay for such journey. Others utilized extraordinary colonization organizations. These association paid for the outing while pioneers will undoubtedly work off this obligation in the state asâ hirelings. Following four †five years hirelings could even get a plot to farm.The connection between the Indians and pilgrims of New Devon were not all that grieved as we can might suspect. William Penn and his Society of Friends or Quakers living in neighboring Pennsylvania impacted the circumstance enormously. To tail them New Devon finished up a bargain with the Indians in 1701 to keep the peace.As forâ financial aspects of New Devon it thrived. The principle business was horticulture . Numerous individuals anyway got utilized as little fish handling or processing plants laborers. Shipbuilding prospered. Oats, wood, dairy items were sent out toward the southern states., West India and Europe.Too occupied with business inhabitants of New Devon didn’t give a lot of consideration to the training and were clearly behind the southern provinces in this field. Just by the center of eighteenth century King’s College was opened here. In 1739 ‘New Devon Weekly Journal’ started published.When allowed to the Earl of Worcester King likewise gave a sanction to New Devon. This report broadcasted authorityâ to be practiced by alleged freemen †free pioneers. Its aftereffect was that gatherings assumed control over the control of money. The representative selected by the Earl couldn’t even gather burdens and went through spending cash without congregations authorization. When in 1684 Britain endeavored to restore King’s rule and drop the contract pilgrims basically removed the senator send by London.Though British specialists understood the need to modify the Empire the circumstance in America wasn’t great. Provinces got acquainted with autonomy and required more opportunity. To solidify power Britain needed to start battle. The initial step was the Sugar Act going in 1764.The sugar act put a duty on sugar, wine, espresso, silk that delivered to the provinces from nations other than Great Britain. New Devon dealers joined endeavors toâ blacklist English merchandise. Inhabitants utilized just those items which were delivered by New Devon plants. Later in 1764,Parliament sanctioned a Currency Act to forestall paper bills of credit gave in any of King's provinces from being made lawful. Since the province were a shortfall exchange zone and were continually shy of hard cash, this measure added a genuine weight to the pilgrim economy.Equally shocking from the frontier perspective was the Quartering Act, wen t in 1765, which expected settlements to give imperial soldiers arrangements and barracks.â But the demonstration that infuriated the inhabitants above all else was The Stamp Act. The Stamp Act put an expense on completely printed paper merchandise that pioneers purchased. Pilgrims needed to pay an assessment when purchasing books, papers and playing a game of cards. An individual who completed school needed to pay an assessment on the diploma.Lawyers needed to pay an expense on the wills, understandings and different archives. To show that the assessment had been paid, a stamp merchant put a stamp on the paper.â The antagonistic vibe emerged. Individuals got authorities gathered charges and tarred them. In October of 1765 accordingly toâ Massachusetts gathering New Devon send assigns in New York to examine the Stamp Act. After the long disputesâ the congress sanctioned to consider as legitimate just the expenses forced by states themselves. Anyway George III was not going t o make any concession. The Revolution became inevitable.During the Revolution numerous about 7000 men of New Devon enrolled for administration disregarding the way that there no significant fights here aside from a few engagements. New Devon furnished the Army with food and arm.Lack of ammo made occupants to liquefy the sculpture of King to cast projectiles. In 1781 English armed force gave up to American and French ones. On September 3, 1783 Great Britain marked Treaty of Paris â€â the harmony settlement announced the autonomy, opportunity and sway of the states. New Devon just as different states became independent.Bibliography1.     About Connecticut; 15 July 2004; accessible from htpp://www.ct.gov./ctportal/cwp/view.asp?a=843&q=246434; Internet2.â â â â â Boorstin, Daniel J.  The Americans: Vol. 1: The Colonial Experience, Vol. 2: The Democratic Experience, Vol. 3: The National Experience, Hardback ed., Random House, 19753.â â â â â Dugan, Jeann ine Colonial Immigration: An Overview; 25 January 2004; accessible from htpp://www.suite101.com/article.cfm/5871/32260; Internet4.â â â â â Morris, Richard B.; Henry Steel and Jeffrey B. Morris, eds. Reference book of American History, sixth ed., Hardback ed., Harper and Row, 19825.â â â â â Pennsylvania state history,â accessible from htpp://www.phmc.state.pa.us/bah/pahist/overview.asp?secid=31; Internet6.â â â â â State of Delaware (A concise history), 12 July 2004; accessible from htpp://www.state.de.us./gic/realities/history/delhist.htm; Internet

Is it Glorious to Die for your Country Essay Example For Students

Is it Glorious to Die for your Country? Paper Is it great to kick the bucket for your nation?. This inquiry has been presented to numerous youngsters going to set out on war despite the fact that the appropriate response has for the most part been yes because of their nation due chiefly to the way that the administration ingrains it in the individuals of the nation to help ones nation and one path is to send youthful abled bodied men into the military. In the event that you were one person that was not for battling for your nation you would definitely turn into an outsider by the nations individuals. To dodge deride and turning out to be outcasted by the individuals living around you, you would join the military just in the idea that you were committed to for the sole purpose of your nation. Such musings were fortified by the administration advancement of purposeful publicity. Extolling passing isn't should have been instructed and ought to be up to the sole person. Educational systems should show a fair-minded perspective of wa r to empower the kid to settle on their own choice to battle for ones country.Is it Glorious to Die for your Country? Inside the training framework it was told to the instructors to encourage the youngsters at a youthful age during the verge of war to impart that their the life of the nation and for them to protect their nation against the foe. Educators indicated being in a military was speaking to respect and the pride of the nation. Blame was laid on the understudies who indicated resistance by the instructor. Ordinarily the educator would attempt to show a trooper that looks glad and substance attempting to speak to being a warrior makes you cheerful and content. Numerous youthful unpracticed troopers were sent to preparing camps close to the war zones that they would before long be sent to battle, for their nation and their life. The preparation camps were arranged on comparative enviroments that took after the combat zones of where the battling would happen. Fortified displine to the youthful and uninformed men. Channel fighting is when numerous troopers of contradicting nations battle against one another over a tremendous forsaken, earth secured land, and the main feeling of spread was to squat in a generally water logged channel. The feeling of death immersed your very soul, the consistent barrage of shells reverberation in your psyche long after it had stopped. On the Western front conditions were ghastly most definitely, smell of death remained continually noticeable all around, bodies filled with shot injuries lay over the bottoms of the channels, eviscerated bodies dissipated over the scene and the hints of anguishing and biting the dust men reverberation over the fight grounds. Extremely constrained proportions offering next to no in flavor was the main food accessible to the officers. Frequently coming down, it caused sloppy, clammy conditions. The men remaining in a channel loaded up with water and sloppy conditions regularly caused such sicknesses as channel foot and channel mouth. Infectious sicknesses were spread rapidly. Absence of cleaniness gave numerous troopers lice and rodents would go through the channels benefiting from the trash and human squanders. A huge number of fighters would arrange under the front of their channels for a stretch of miles and trust that the main official will give the sign for the charge. At the point when the sign was given the a huge number of troopers would all attempt to stumble into the no-keeps an eye ashore to endeavor the penetrate of the adversaries channel. This charge would be under consistent automatic rifle discharge and mortar shelling by the adversary. These sort of assaults for the most part flopped maily because of the reality the chances were at that point stacked against the assaulting party. The separations the charging men needed to race to get to the foes channel was far enough for the foe to utilize its consistent shelling and its automatic rifle discharge to lessen the assaulting armed force critical enough for the assaulting armed force to withdraw. .u3273abc6606b4014d787674110919100 , .u3273abc6606b4014d787674110919100 .postImageUrl , .u3273abc6606b4014d787674110919100 .focused content territory { min-stature: 80px; position: relative; } .u3273abc6606b4014d787674110919100 , .u3273abc6606b4014d787674110919100:hover , .u3273abc6606b4014d787674110919100:visited , .u3273abc6606b4014d787674110919100:active { border:0!important; } .u3273abc6606b4014d787674110919100 .clearfix:after { content: ; show: table; clear: both; } .u3273abc6606b4014d787674110919100 { show: square; change: foundation shading 250ms; webkit-progress: foundation shading 250ms; width: 100%; mistiness: 1; progress: obscurity 250ms; webkit-progress: murkiness 250ms; foundation shading: #95A5A6; } .u3273abc6606b4014d787674110919100:active , .u3273abc6606b4014d787674110919100:hover { haziness: 1; progress: darkness 250ms; webkit-progress: murkiness 250ms; foundation shading: #2C3E50; } .u3273abc6606b4014d787674110919100 .focused content region { width: 100%; position: relative; } .u3273abc6606b4014d787674110919100 .ctaText { fringe base: 0 strong #fff; shading: #2980B9; text dimension: 16px; textual style weight: intense; edge: 0; cushioning: 0; content adornment: underline; } .u3273abc6606b4014d787674110919100 .postTitle { shading: #FFFFFF; text dimension: 16px; text style weight: 600; edge: 0; cushioning: 0; width: 100%; } .u3273abc6606b4014d787674110919100 .ctaButton { foundation shading: #7F8C8D!important; shading: #2980B9; outskirt: none; fringe span: 3px; box-shadow: none; text dimension: 14px; textual style weight: striking; line-tallness: 26px; moz-outskirt range: 3px; content adjust: focus; content enhancement: none; content shadow: none; width: 80px; min-tallness: 80px; foundation: url(https://artscolumbia.org/wp-content/modules/intelly-related-posts/resources/pictures/basic arrow.png)no-rehash; position: supreme; right: 0; top: 0; } .u3273abc6606b4014d787674110919100:hover .ctaButton { foundation shading: #34495E!important; } .u3273abc 6606b4014d787674110919100 .focused content { show: table; tallness: 80px; cushioning left: 18px; top: 0; } .u3273abc6606b4014d787674110919100-content { show: table-cell; edge: 0; cushioning: 0; cushioning right: 108px; position: relative; vertical-adjust: center; width: 100%; } .u3273abc6606b4014d787674110919100:after { content: ; show: square; clear: both; } READ: Ebonics A Bridge to Help Black EssayCounter assaults were immediately endeavored after the assaults. The counter assaults were similiar to the genuine assaults aside from the thing that matters was that the counter assault included the murdering of the withdrawing of the adversary as opposed to assaulting somebody under the front of the channel. During the war all warriors were influenced either genuinely or phsycologically. Shell stun was a progressing infection influencing numerous troopers in the channels. The steady siege of mortar shelling turned out to be so defeaning and dull the hints of shelling stayed with the f ighter in any event, when there was no shelling. Such cases turned out to be so serious for some the fighter would go in attacks of anger and dread at exactly the same instantance. Essentially all troopers felt achy to visit the family at once or another. The officers being out on the fight fronts for quite a while before long overlooked the purposeful publicity convictions the nation had imparted the warriors, rather the troopers simply needed to endure their voyage through obligation anyway long it would be. Demise had been experienced and seen by the warriors on the front for quite a while that the topics had gotten comparative with their every day life on the front. Returning to their homes the troopers had gotten and learned of another perpective on war. It was that when up close and personal with death the political convictions that were held were irrevalant when attempting to get by in the war. Glorification of death is strange except if you were being assaulted and danger of death was available that would be another story however beyond words a something numerous miles away is something that the individual must take in thought in when settling on their choice. I for one would not hazard demise if loved ones were not in danger. Since our nation has gotten less mobilized since WWII the requirement for military staff has not been as essential. Be that as it may, as referenced previously if the nation I lived was under a danger of takeover I trust I would wage war to protect against the individuals who might attempt to assault. Other than that the physcological and physical harms fighters suffer would prevent me from joining any military.

Will Management Consulting Prepare You for Entrepreneurship

Will Management Consulting Prepare You for Entrepreneurship © Shutterstock.com | ImageFlowThe aim of this article is to analyze and to answer the question of whether management consulting would prepare you for entrepreneurship. In order to answer this question, I will go through the following sections: 1) an introduction to management consulting vs entrepreneurship; 2) whether management consulting is good preparation for entrepreneurship, 3) overall answer to the question, and 4) real life stories from several entrepreneurs utilizing consulting skills.CONSULTING VS ENTREPRENEURSHIP AN INTRODUCTIONWhat is entrepreneurship?An entrepreneur is a person who starts and manages his/her own business or enterprise and takes the onus of all risks and opportunities. An entrepreneur is wholly responsible for planning business strategies, acquiring human and other resources and deciding on budget allocations.To become a successful entrepreneur, youll need to get into the type of business that you know you will enjoy doing and are also qualified enough to handle. You should be an avid planner and a great money manager. Also, sales and marketing should come naturally to you, and you should be able to forge strong relationships with your customers. You should be ready to update your business regularly with the latest technologies, and to craft your business to have that all-important competitive edge over your rivals and to create a positive business image. Lastly, you should be able to put together a great and highly-motivated team.What is management consulting?Management consulting is the branch of consulting that helps a business augment its performance by analyzing problems facing the business and providing solutions. Management consulting spans across most fields like human resources, marketing, technology, payroll, and finance.As a management consultant, there is a vast scope for gathering industry experience at both macro and micro levels, and this goes a long way toward personal development.In what ways do management consult ants differ from entrepreneurs?Although related to each other in several aspects, management consultants differ vastly from entrepreneurs.Doers vs. Advisers: First and foremost, entrepreneurs are the business owners, consultants are not. An entrepreneur takes ALL responsibilities for the business, whereas a management consultant only HELPS the business achieve its goals. Entrepreneurs are the DOERS while consultants are the advisers.Theory vs. Practice: Management consultants are more theory-oriented. They possess all the intricate knowledge necessary to run a business. Entrepreneurs are more street-smart. Entrepreneurs are typically a lot closer to the actual markets than consultants are.Risk taking: Entrepreneurs are much more likely to take risks on behalf of the business than consultants would be willing to. Entrepreneurs focus on the risk aspect of any new proposition. Entrepreneurs can be much more sceptical than consultants.Multitasking: Entrepreneurs inherently multitask af ter all they own the business. So its not unusual for entrepreneurs to have a hand in most of their companies tasks. The role of management consultants is much more specialized and restricted.IS MANAGEMENT CONSULTING GOOD PREPARATION FOR ENTREPRENEURSHIP?In order to answer this question, I would like to walk through several areas.SkillsSkills you can learn in Management ConsultingA management consultant has to hone a good number of specialized skills if he/she hopes to succeed as an entrepreneur. They are:Analytical skills: Analytical skills are the USP of any successful management consultant. A skilled consultant is able to analyze and solve problems that are outside the purview of even top-level management.Strategy and critical thinking: By way of management consulting, knowledge about how to analyze and structure a problem will be attained. A skilled consultant is able to break down a problem into its constituent elements and then compare it with existing case scenarios. He/she i s able to get to the core of the problem and represent it concisely. The consultant is then able to provide a viable solution to the problem, effectively taking care of all constrictions and compromises. These strategic skills will definitely help the consultant cultivate competence in problem-solving and help him/her apply these skills in the future as a possible entrepreneur.Networking skills: Understanding the customer and communicating effectively with him is one of the essential skills of a management consultant. A good consultant listens to his/her customers and makes sure that he/she is well understood as well. Networking skills help the consultant develop his/her capabilities to identify their audience, whether it is within the company or outside, and understand what drives or motivates them and what constrains them.Fast learning skills: A good consultant has to be a quick learner. A consultant should also be a continuous learner. He/she should be prepared to ask questions a nd seek clarifications. Asking questions is a great way to convey to your client or customer that you are getting involved.Presentation skills: Good presentation skills are a given for any management consultant. A good consultant is able to condense weeks of hard and fruitful work into concise, to-the-point presentations.Prioritizing skills (80/20 approach): A corollary of the Pareto Principle states that 80% of a companys profits comes from 20% of its customers. An efficient consultant is able to identify these high-priority customers and give them their deserved right of way.Skills you need to become an Entrepreneur and start your business, depending on the stage of the businessThere are generally three stages of a business. They are:1st Stage The Idea StageIn the idea stage, two abilities are tested:The ability to innovate, andThe ability to take initiatives.At this stage, an entrepreneur decides on the central idea of his startup company. He focuses on the three core innovation skills thinking, talking and doing. Thinking is research. Research and analysis done well will reveal the needs of the market and what kind of product or service it is ready for.But, of course, as a consultant, the ability to innovate is limited creativity cannot be acquired, nor does it come from experience. Hence, skills learned from being a consultant helps only limited at this stage of starting your business.As an entrepreneur you must be able and willing to act proactively. You must display the three central qualities of a proactive actor self-discipline, optimism and competitiveness.2nd Stage The Prototyping and Development StageIn this stage, two more abilities are put to the test:The ability to plan and foresee, andThe ability to learn and network.As an entrepreneur you should be able to plan his resources, whether they are financial, personal or time-related. You should be able to set realistic deadlines and routinely meet them.Successful entrepreneurs are continuous l earners. They do not shy away from asking for advice from their mentors. They communicate frequently and clearly. They are endless networkers, always looking for opportunities to create new customer bases.3rd Stage The Growth StageHere, the following two qualities of an entrepreneur come into play during the growth stage of a startup:Analytical and decision-making abilities, andProfit-oriented focus.The analytical and problem-solving skills of a consultant do come in handy when transforming into an entrepreneur. As a consultant, one is exposed to  many different scenarios that are both unique and challenging. This vast  amount of experience gathered in diverse fields is priceless to the future  entrepreneur.Building a rock-solid reputation and competitive advantage will guarantee profits.This brings us back to the question: Does Management Consulting prepare you for Entrepreneurship?The answer is YES. A vast majority of the skills are pretty useful. BUT this depends on  the develop ment stage of the startup, the startup business model, and the market where it operates.Responsibility StressResponsibility you can expect in Management ConsultingResponsibility is typically restricted if you are a management consultant. You are only responsible to solve company problems analytically and using market and industry knowledge. But the responsibility for the success of the solution, when implemented, is not carried by a management consultant.Stress you can expect in Management Consulting The stress situation for a management consultant typically stems from client pressure and the urgency to meet deadlines. Getting random work assignments also lengthens the project and increases the stress level. Then there is the much-dreaded travel-related stress.Responsibility (but with Ability to take risks)  you can expect as an EntrepreneurThe scenario is vastly different when you assume the role of an entrepreneur. I have mentioned before that an entrepreneur is ENTIRELY responsi ble for the success of his startup. As an entrepreneur, you OWN your companys vision. Other people are there just to help. So, its paramount that you communicate your vision to your employees and associates in clear terms. You need to inculcate the sense of responsibility in them and help them embrace your values. From these values, you will be able to create a work culture that is unique and beneficial to your company.You are responsible for measuring the performance of your company and driving it. You need to plan your time slots and set priorities to your tasks.An entrepreneur is not only responsible to solve startup issues, but also to take and carry the risk of the decisions made during every stage of the startup development. Hence, an entrepreneur experiences rather often the so-called roller coaster.Lets face it the decision to abandon your paycheck as a consultant and take on the role of an entrepreneur is in itself a big risk.Secondly, as an entrepreneur, you are liable to use up your personal savings on your business. You should have the gumption and the moral fiber to put your hard-earned money on the line. And its not money alone. As an entrepreneur, you will be required to invest a lot of your personal time and, of course, your health in your business.You also must have the ability to cope with a less-than-steady cash flow. However, one of the biggest responsibility to take as an entrepreneur is to completely trust your employees. As a startup, you would not have the luxury of hiring a full-fledged team and will have to pass on a few important tasks to some key employees. Absolute trust is a must in this scenario.Stress you can expect as an EntrepreneurStress in the case of entrepreneurship is based mostly on the market. It also has a lot to do with your constant endeavor not to make a wrong decision and dent your business prospects.Does Management Consulting prepare you for Entrepreneurship?Mostly, No. But consulting has little to do with coachi ng you on your responsibilities. It teaches you great skills, no doubt, but skills alone are not enough to assume the role of a successful entrepreneur. Responsibilities can seldom be taught and are not acquired by experience. A sense of responsibility is inherent its all in the attitude and not in the aptitude.ExpertiseMarket and industry expertise in Management ConsultingExperience in the market and industry will impart a set of essential skills to the management consultant.Market knowledge domain expertise you need as an Entrepreneur A highly-educated and management trained consultant can ease his way into the market. The market, especially, provides a consultant ample opportunities to hone his domain expertise and make practical use of it. Management consulting prepares you to face the market by associating you with clients that have a strong market presence. Working with these clients in order to augment their operational efficiency and formulate business strategies helps you be at the top of things in your domain.Typical requirements of the market and industry knowledge for becoming an Entrepreneur and starting your business:The market and industry knowledge that you gather as a consultant will make you proficient in understanding your customers needs as an entrepreneur. This knowledge helps you understand the market your competitors, their pricing strategies, new entrants, new products, etc.Does Management Consulting prepare you for Entrepreneurship?As far as expertise is concerned, definitely. Aptitude is the biggest fringe benefit that you can hope to gain by being associated with major industry players as a consultant.Co-WorkingCo-working skills you can learn in Management ConsultingPeople Skills: Management consultants may not be very well-received internally at the client company. As such, people skills are an absolute must. Every consultant is required to develop a relationship of trust and mutual goodwill with employees at short notice.Teamwor k: Consulting inherently provides a great environment for teamwork. Since, as a consultant, you work with other consultants as well as with employees of the client company, there is a lot of interaction and collaboration taking place.Skills you need to become a successful EntrepreneurAs an entrepreneur, the biggest challenge is to initiate co-working interaction. When you start your own business, it is highly probable that you are working with a few or no co-founders at all. The best thing to do in this situation is to communicate and associate with other similar entrepreneurs.But as your company gets bigger, you have to ensure a friendly and collaborative atmosphere in your company. Hence, co-working skills will be of use for every entrepreneur as well.Does Management Consulting prepare you for Entrepreneurship?Yes, co-working and people skills gained as a consultant should help you in forging new social and business relationships.Working HoursTypical working hours in Management Co nsultingWorking hours in management consulting are not predictable they vastly depend on the project you have at hand. Although you generally work fixed hours, it is often difficult or even impossible to predict possible overtime hours.Typical working hours if you are an EntrepreneurWorking hours in entrepreneurship can vary depending on your current projects and the development stage you are in. Overtime hours are very typical especially for young startups.Does Management Consulting prepare you for Entrepreneurship?Yes, management consulting does prepare you to take up ad hoc responsibilities as an entrepreneur. It also prepares you for those last-minute schedule changes as and when they come.TravelingAmount of traveling you should expect in Management ConsultingTraveling may be appealing to the new consultant, but with time, travel takes its toll, especially when the consultant has a family to care for. Management consulting will prepare you to schedule your travels and make last -minute travel arrangements.Amount of traveling you should expect as an EntrepreneurAs an entrepreneur, you are much less likely to travel unplanned. However, due to business constraints, you will most likely be obligated to travel when you want to communicate in person with your clients or look for investors in other cities or even countries.Does Management Consulting prepare you for Entrepreneurship?When you start as a business model which requires geographical flexibility, your traveling experience as a former consultant comes in handy. You are able to carry over your cultivated habits of flying to different locations and entertaining clients.OVERALL ANSWER TO THE QUESTIONPartly Yes, management consulting definitely would help you in some areas of entrepreneurship. It does so in the following ways:Application of best practices: As a consultant, you get to polish all your theoretical skills obtained during your management education. You are able to develop core competency skills l ike time management, people management, teamwork and change management.Knowledge of the market: Exposure to the market empowers you with that all-important market knowledge.Problem-solving skills come in handy: Dealing with a variety of clients with conflicting interests, handling projects with sharp deadlines and dealing with other stressful situations from time to time help you gain expertise as a problem solver.Wider network connections: Working in different teams helps you network with people around you better. You learn how to get involved and build your community.BUT this is not the full list of the skills required for entrepreneurship. This depends on the development stage of your startup, on the industry where the startup is working, etc.REAL LIFE STORIES OF ENTREPRENEURS UTILIZING THEIR MANAGEMENT CONSULTING EXPERIENCESHere are a few real life instances of successful entrepreneurs with previous experience in management consulting.The Story of Diana GoodwinA commerce graduat e from the University of Toronto, Diana had several years worth of experience as a swimming instructor under her belt. After graduating, she joined Bain Company as a management consultant.With a high-profile job in her hands, Diana still dreamt of starting a swimming school for children that would provide individualized training.Pretty soon, Diana realized her dreams in the form of AquaMobile Swim School a school providing premium coaching to children. A part-time business at first, the school soon developed into a full-time business once Diana realized its immense business potential.Diana quit her job and enrolled in an MBA program. By the time she graduated, Diana was armed with a strong business plan about how to push AquaMobile into the big league. Her management experience helped her bring in the money easily.Now a successful entrepreneur, Diana points out some things that helped in her transition to an entrepreneur starting early, focusing on the main business idea, and net working vigorously.The Story of Dan StreetDan Streets story began differently. Management consulting and private equity finance were not really useful, and actually even hurtful in an early stage, while growing his startup, Borrowed Sugar, a software company. However, it was pretty useful for his company in the later stages when his motive was to raise capital and scale up his business. Management consulting helped Dan grow his company with ease.The Story of Slava RubinMedia entrepreneur, Slava Rubin is a great example of how a university-based academic education, a stint abroad for global/international education, and management consulting for corporate education taught him how big companies operate and make decisions.Corporate education in a form of a management consultant taught Slava the ins and outs of how Fortune 500 companies operate. He obtained the essential skills of decision-making and varied exposure by working with different companies.According to Slava, management consu lting was nothing short of an extension of his education to reach his ultimate goal entrepreneurship.

Euthanasi A Good Death - 2562 Words

INTRODUCTION Euthanasia back then is defined literally as a good death, but in this recent times, it is defined as the intentional ending of a life or a suffering and is more reserved for situations involving doctors and also in the case of assisted dying (Huxtable, 2013). It is further defined as ending a life in order to relieve pain and suffering (Healey, 2013). In Australia, the Commonwealth government consequently tried to counteract euthanasia by passing the Criminal code Amendment or which is known as Suicide Related Materials Offences Bill of 2004. Euthanasia was legal in the Northern Territory by the Rights of the Terminally Ill Act 1995, the act stated that a terminally ill patient, experiencing pain, suffering and distress to an extent deemed unacceptable, could request a medical practitioner for assistance to end his or her life (Isted Freegard, 2012). However this act was overrode through the introduction of the Euthanasia Laws Act 1997 (Healey, 2013). In Switzerland, Swiss people o r foreigners may be prescribed a deadly drug where the recipient takes the final active role in the drug administration. Other countries that has a legal law on euthanasia includes three European countries such as Luxembourg, Netherlands and Belgium and three states of the United States namely, Oregon, Washington and Montana (Healey, 2013). Dignitas is the only organization in the world which offers a physician assisted suicide service to and from people from all around the world

Could Herding Be Consequence Of Vietnamese Banks Reform - Free Essay Example

Sample details Pages: 22 Words: 6740 Downloads: 6 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Risk management become an essential part in the operation of developed banks in the world as it contributes to reduce risk in financial market from which minimize the loss from crisis and turbulence. However, from the view of herding behavior, a tighter risk management regulation may worsen the downturn by quickly contagion in national-wide as well as global scope (Persaud (2000) (1)). In Vietnam, risk management system is in initial process; nevertheless, potential risks in Vietnamese market have proved the necessity of more prudent risk management tools such as VaR model or credit scoring model. Don’t waste time! Our writers will create an original "Could Herding Be Consequence Of Vietnamese Banks Reform" essay for you Create order However, the use of VaR may cause so-called risk management herding, for which solutions should be addressed. CHAPTER I: INTRODUCTION 1. The problem 1.1. Poor risk management as a source of crisis History has witnessed a large number of financial crash and turbulence in the world banking system and many of them left very serious consequences because of their quickly widespread and contagion to worldwide scope. As could be seen in Table 1, the root of these crises is various, such as non-performing loan, illiquidity or changes in real interest rate; however, one of the most important reasons is the inefficiency and laxity of risk management system in banks and financial institutions at the time of the downturn. Mike Batty (2008) indicates that à ¢Ã¢â€š ¬Ã…“an overarching theme of the credit crisis is a failure of risk managementà ¢Ã¢â€š ¬?. According to Batty (2008), credit crisis is the result of the inadequacy in risk management system and failure in risk management techniques. Browel (2001) also point out that financial crises or banking crises in Europe in 1990s decade implies common characteristics containing external circumstance and poor risk management practices. 1.2. Risk management herding: 1987 crash and 1998 LTCM crisis In 1990s decade, herding was very common phenomenon in which market participants with the same risk management policy have taken the same reactions to the risk would make markets to be more volatile and vulnerable (Avinash Persaud (2000)(1)). Therefore, once crisis occurs, it could be quickly contagious from one market to another and push financial system into the deep hole. 1987 crash and 1998 LTCM crisis are two typical examples for the turbulences which were in connection with so-called risk management herding. 1987 crash has happened because of both internal and external causes in which the economists usually see the external reasons as the main causes: program trading strategy, portfolio insurance, derivatives markets and lack of liquidity (Edward (1988)). However, from another view about the reasons for crash based on information avalanches, internal causes like the herding behavior of market participants in buying and selling stock is emphasized. On Monday, 19th October, 1987, which is known as double à ¢Ã¢â€š ¬Ã…“Black Mondayà ¢Ã¢â€š ¬?, The Dow Jones Index sharply fell 22.6 percent (508points) in a single day, the largest one day plunge in the history of stock market. In the weeks or even months before the crash, investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ confidence has become weak because they gradually realized the downward trend of stock prices[2]and the reason for this, based on Shiller (1987)à ¢Ã¢â€š ¬Ã¢â€ž ¢s survey, could be the herding behavior between market participants: similar risk management policy (using the same VaR model) leading to similar reaction to the change of the economy, a large number of investors sell stocks may lead to more and more other investors selling their stocks. Another crisis which is concerned to risk management herding is the collapse of Long-term Capital Management in 1998. LTCM crisis is related to the decline in liquidity condition which is explained by three factors: the born of EMU (European Economic and Monetary Union) in January 1999; the increase in the different ways of transaction such as ATS (electronic alternative trading system) and ECNs (electronic communication networks); and the third factor is herding behavior between investors (Avinash Persaud (2000)(2)). The reason for this, according to Persaud (2000)(2), is changes in factors that affect international capital flows, from which these factors could affect market liquidity. When international capital flows depend on institutional market participants who desire to get higher return than the others, this can boost liquidity of the market. However, herding behavior prevents investors from doing so because many investorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ decisions now are identical: they en ter and leave the market at the same time. With tighter risk management system, herding has even caused more volatility when herding investors reach their DEAR (daily earning at risk) limit at the same time, they sell stocks at the same time and drive the crisis to be further. Persaud (2000)(1) analyses this issue based on a cycle of DEAR limit. At first, there is some bad news related to a particular stock, increasing volatility in this stockà ¢Ã¢â€š ¬Ã¢â€ž ¢s market. Banks who have a large amount of this stock in their portfolio can find that their DEARs are reached together, thus they sell their stocks at the same time to decrease DEAR level. This would increase market volatility and correlations because of decline in stocksà ¢Ã¢â€š ¬Ã¢â€ž ¢ prices. Market volatility, in turn, leads to more banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ DEAR limit are reached and create contagion in financial market. In other words, crisis contagion phenomenon in this case could be explained (as Nishimura and Kiyohik o G. (2009)) that in boom, decrease in risk also pushes down capital requirement thus decreases lending. In contrast, when the economy in downturn, bank lending increases due to the rise in downside risk leading to bigger capital requirement. From this, capital adequacy requirement regulated in Basel II is criticized in causing so-call à ¢Ã¢â€š ¬Ã…“procyclicalityà ¢Ã¢â€š ¬? problem[1], when it combines with the herding behavior of investors. First, regulations in Basel II could increase the volatility of the market, and with a minimum capital requirement, the reserve may not satisfy the liquidity demand in bad times. Second, the fair-value accounting in which reference value would not present the value of real market may trigger the problem. Third, herding behavior of investor also amplify procyclicality effect and crisis would be contagious in a wide and unpredicted scope. 1.3. Reasons for herding It can be seen from the issues above that herding can cause negative impacts to finance system in time of crisis because it can cause the contagion effect of the crises. In fact, Stephanie Kremer (2010) states two kind of herding: intentional and unintentional. Unintentional herding is usually driven by fundamentals such as the same information set, the same investment style or the same risk management model. Intentional herding is the imitation of market participants in buying and selling the same stocks, and this imitation is not related to private information or prior belief. Unintentional herding can be a good outcome while intentional herding is seen as an inefficient phenomenon which can cause awful effect to financial market. However, in some case, such as the case indicated by Persaud (2000), unintentional herding which is driven by using the same VaR model also triggers the bad effect of banking crash and financial crisis (Kremer (2010). Therefore, the question why market pa rticipants herd should be addressed. Avinash Persaud (2000) indicated three explanations for herding: Firstly, because we are living in the world of uncertainty, the best way to discover information of the others is imitating them. The second reason is investors are usually rewarded by relative performance, so if an investor strays so far from the others, he may not rewarded. The indicated third reason is investors are easier to be fired if they made their own decision and wrong than if they are wrong but in a group. Because of these reasons, herding becomes very common and difficult to control. The changes in risk management regulations aiming to more transparency, stronger prudential and more market sensitive risk management system may even trigger the effects of herding behavior (Persaud (2000)). 2. Aim of this paper This paper aims to analyze risk management system in Vietnamese banks as well as herding behavior in Vietnamese banks regulatory and financial market to suggest some solutions for controlling this behavior phenomenon. The following of this paper concludes Chapter II to Chapter V, in which Chapter II indicates the literature review related to risk management, herding behavior in institutional investors and regulatory responses. In this Chapter, I discuss the use of VaR as a risk management tool in banks, its drawback in encouraging herding behavior in financial market and also, I consider the literature about the solutions for this phenomenon. In Chapter III, I present the application of international risk management tools in Vietnam banks and potential herding behavior in Vietnamese banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ risk management system. To do that, I summary the risk management system in Vietnamese banks as well as potential risks they could face in the near future, from which I prove the necessity of enhanced risk management tools like VaR model and credit score model. These models on the one hand could create a tighter risk management system, which, on the other hand can lead to contagion in financial crisis. Chapter IV is my conclusions about Vietnamese risk management system, the danger of herding and some recommendations to improve liquidity as well as to avoid herding in this market. Chapter V indicates the drawbacks of this paper. CHAPTER II: LITERATURE REVIEW Introduction of Value at Risk In the late 1980s, the concept of VaR (Value at risk) was first used by major financial institutions to measure their portfolioà ¢Ã¢â€š ¬Ã¢â€ž ¢s risk (Linsmeier and Pearson (1996)). However, the current VaR as a market risk measure was just born since 1993 when the report of G-30 about the born of off-balance-sheet products was published. The born of these new products has addressed a need of smart risk management for them (Alexander J. Mc Neil, Rudiger Frey, Paul Embrechsts (2005)) and with the release of RiskMetrics in 1994, it has created a strong incentive in using VaR as a popular risk management technique in banks and financial firms since that time (Linsmeier and Pearson (1996)). As the definition from businessdictionary.com, à ¢Ã¢â€š ¬Ã…“VaR is the largest loss likely to be suffered on a portfolio position over a holding period (usually 1 to 10 days) with a given probability (confidence level)à ¢Ã¢â€š ¬?. Therefore, VaR could be considered as the maximum potential lost of a portfolio in specific time period with a given confidence interval. For example if the 95% value at risk of a portfolio is GBP1milllion in weekly period, the probability for total loss of this portfolio exceeds GBP1million for the next week is just only 5% (Natasa Kozu (2010)). From the calculation of VaR, banks and financial firms could manage their capital requirement by retaining enough money provision of market downward trend so as to avoid market risk. Because VaR is easy to understand and apply and it is also a single measurement for risk which is accepted widely (Natasa Kozu (2010)), a VaR model was allowed by Basel Committee in 1995 for banks to measure their capital requirement in case of market risk, based on the parameters from the committee (Linsmeier and Pearson (1996)). This is indicated in Basel Accord I which requires banks to calculate regulatory capital (minimum capital charge) and remain the minimum capital in line with potential loss of banks. However, the p ublication of Basel Accord II framework has required more market sensitive risk management, more prudential principles to guarantee that banks have enough capital to support their risk and stronger market discipline by increasing transparency of banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ publications (Neil, Frey Embrechsts (2005)). Although Basel II and VaR have their own merits, the use of VaR also has some drawback such as it cannot measure risk in extreme situations and may bring the wrong results with the less frequently traded stocks (Natasa Kozu (2010)). In addition, the release of Basel Accord II with three pillars above may increase the effect of risk management herding in crisis period which is considered as à ¢Ã¢â€š ¬Ã…“procyclical effects of financial regulationà ¢Ã¢â€š ¬? (Alexander J. Mc Neil, Rudiger Frey, Paul Embrechsts (2005)) in which minimum capital requirement increasing in recession and decreasing in boom may cause the liquidity of market decline. Literature for risk management herding solutions Avinash Persaud (2000) has suggested the solutions for herding behavior in financial market which, as he indicated, could create systemic risks. The problem that policy makers face is the tighter risk management regulation focusing on market-sensitivity, prudence and transparency can increase the effect of herding behavior, therefore it should be reconsidered in a new way. The requirement of setting an extra capital aside for systemic risk of regulators in particular market where herding exists just only make the problem become more vicious when there is negative information (why). The solutions here are encouraging banks and other financial institutions to allocate collateral in case of systemic risk, or to buy liquidity options from central bank but in good times, not in awful times. In addition, because there are investment inflows that herds less than the others, regulators should facilitate those inflows, including foreign direct investment, equity portfolio and hedge funds rath er than bond flows andà ¢Ã¢â€š ¬Ã‚ ¦..Transparency in the long run is a good action; however, governments should not expose the information with too high frequency. In particular, information should be published or released monthly of weekly, but not daily. Small markets even find it even better not to release their reserves weekly. Peter Haiss (2009) considered the solutions for risk management herding through both sides: regulatory side and banking side. In regulatory side, he suggests to change from actor-based approach to product-based and to consider macroprudential factors in making regulation. In banking side, Haiss (2009) suggests banks to set up conflict mechanism in the management systems (devils advocate-approaches or dialectical inquiry for example) and to control the reward systems to resist herding. CHAPTER III: RISK MANAGEMENT AND RISK MANAGEMENT HERDING IN VIETNAM BANKING SYSTEM Overview of risk management in Vietnamese banks and financial system In Vietnam, risk management systems is in improvement process toward an international standard risk management system (Loi, Hoang Tien (2004)); however, currently, Vietnam is just still apply the Basel I which has revealed many shortcomings in the past decade (Ha, Tran Manh (2009)). The requirement of minimum capital has just concentrated on credit risk, while market risk is also a important source of financial turbulence and downturns. In Vietnam, risk management system is mainly based on Decision no. 457/2005/QD/NHNN of State Bank of Vietnam (with Basel I fundamental) in which regulates capital adequacy ratio (CAR), the ratios of payment ability, credit limitations which are mainly credit-risk related regulations. The market risk is still not focused while financial crisis is happening in global scope. The collapse of Northern Rock in 2007 due to the change in interest rate when LIBOR (London Interbank Offered rate) reached its highest level at 7% in July 2007 and the loss of Ameri can commercial banks in 1990s prove the essential of management of market risk. In 2008, when interest rate and exchange rate in Vietnam proved its strong volatility[1], few commercial banks have a forecast systems which could predict the potential loss that may occur from which brings suitable solutions in case of crisis (Ha, Tran Manh (2009)). Nevertheless, risk management in banks and financial institutions in Vietnam is moving toward the Basel II with new standards aiming to assure healthy Vietnamese financial system (Loi, Hoang Tien (2004)). The four state-owned banks of Vietnam (Bank for foreign trade Vietcombank, Bank for Investment and Development BIDV, Bank for Industry and Trade à ¢Ã¢â€š ¬Ã¢â‚¬Å" Vietinbank, and Agriculture and Rural Development Bank Agribank) have been advised by the State Bank of Vietnam to build credit manuals which contain the international standard in risk management[1]. Along with credit manuals, the four state-owned commercial banks also carry out other activities such as asset-liability management or insider audit which contributes to recognize potential risks in banks operation although there is still a big gap between the standards and the implementation (eStandardsforum (2008)). According to Technical Assistance Report of ADB (Asian Development Bank) 2008, ADB will assist Vietnam in improving their account and auditing system as well as support this country in drawing a draft of new law related to independent audit and strengthening standards for SMEs (Small and Medium-sized Enterprises). Credit information becomes also more transparent through the establishment of Credit Information Centre (CIC) which supplies information of the borrowers to banks and financial institutions. This may decrease the risk of the lending in the future: once banks and creditors have enough information about borrowers, effect of asymmetric information will reduce and therefore put down the risk that creditors may face in the future. Before 2004, the CIC provided entry to information for credit firms only but from 2004 onward, the CIC already facilitated the access to information for all parties of all economic sectors and received the fee. This has improved the transparency in financial market as indicated in pillar 3 of Basel Accord II. However, improvement of transparency in Vietnam financial systems has been facing with many difficulties, especially in case of non-performing loans (NPLs) and non-performing assets (NPA) of state-owned firms which are still considered as state secrets. NPL s in Vietnam has been estimated by Fitch Ratings[2]that it accounts for about 13% of Vietnam banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ total loan at late 2008, however, this is still an underestimated percentage of NPLs (Champleboux, Kurdi, Bultez Gain (2010)). Cleaning NPLs and NPA is currently the target of AMC (Asset Management Company) which belongs to commercial banks and DATC (the national Debts and Assets Trading Company) which belongs to Vietnam Ministry of Finance. In Vietnam there currently are ten commercial banks who have established their AMCs which concentrate on mortgage asset transferred from the banks to recover NPLs of these banks. The DATC concentrates on State-owned Enterprises (SOEs) in which it focuses on resolving the long out-standing NPLs and NPA of these SOEs. Although AMCs and DATC have been established in order to resolve NPLs and NPA which have been overdue for a long time, the targets of these companies still contain conflict: on the one side, they aims to clear NPLs an d NPA but on the other side, they also need to gain profit by dealing with transaction related to NPLs (Loi, Hoang Tien (2004)). In Vietnam Best Practice Report 2008 (Estandardforum (2008)), it is indicated that there is not enough information available to conclude that Vietnam banking and financial system is compliance with Code of Good Practices of IMF on Transparency in Monetary Policy. (Table) Vietnam has already joined the General Data Dissemination System of IMF from 2003 but its entry to Special Data Dissemination System of this organization, which has stricter regulations, is not yet approved because this country has not yet met the entry requirements. The main reason is data published in Vietnam lacks reliability, opportuneness and coverage, especially in case of national accounts. Moreover, difficulties in cooperation between governmental offices who has responsibility of data dissemination also leads to the failure of Vietnam in the road to IMFà ¢Ã¢â€š ¬Ã¢â€ž ¢s Special Data Dissemination System (Estandardforum (2008). About fiscal policy transparency, a report published in 1999 of IMF and World Bank has indicated that Vietnam does not meet the requirement of the Code of Good Practices of IMF on transparency in Fiscal Policy; however, the next reports of IMF also indicated that Vietnam has a good improvement in transparency in fiscal policy presenting in State Budge Law (2002) and altered budget categorization method. National budget was being published annually and national accounting standards were being revised and integrated financial control system was introduced aiming to enhance fiscal report and treasury management. Nevertheless, Vietnam OBI (Open Budget Index) 2006 related to the openness and transparency in budget just reached 2%. The reason for it is among seven documents related to budget which must be public, Vietnam just satisfied only one and even did not allow the public access to the detailed content of that document (Estandardforu m (2008)). Besides, regulation about risk management practices in Vietnam also gives more power to banks and financial institutions (Loi, Hoang Tien (2004)). In particular, Vietnam state-owned commercial banks are allowed to reject the projects that cannot be commercially vital, even in the case of big projects of state-owned huge companies. In Vietnam, there was situation in which state-owned commercial banks understand that a project does not have potential commercial benefit but they still must approve that project because it is from big state-owned company. This is called as lending based on relationship between banks and clients (Dinh and Kleimeier (2006)) in which approval for lending is not only depends on quantitative characteristics of borrowers like income or collateral but also based on qualitative factors such as fame or borrowersà ¢Ã¢â€š ¬Ã¢â€ž ¢ position in the community. Therefore, the big state-owned companies usually have advantage in applying for a loan from state-owned comme rcial banks even if their projects do not have bright prospect about success ability which contributes to raise the risk in banking lending operation. Giving more power to SOCBs (State-owned commercial banks) is one in many steps of reform in banking system and would also help to reduce risk in financial and banking operation. Potential risk and the need of risk management in Vietnam financial system Vietnam financial system contains many potential risks Downgrade of Vietnam Issuer Default Ratings Although Vietnam banking system is in improvement process with its own merits, the country still has to face many difficulties brought by a weak banking and finance industry, which is rated as à ¢Ã¢â€š ¬Ã‹Å"BB+à ¢Ã¢â€š ¬Ã¢â€ž ¢/Negative B by the StandardPoorà ¢Ã¢â€š ¬Ã¢â€ž ¢s and as à ¢Ã¢â€š ¬Ã‹Å"CCCà ¢Ã¢â€š ¬Ã¢â€ž ¢ by the Economist Intelligence Unit (Champleboux, Kurdi, Bultez Gain (2010)) . Fitch Ratings have also just downgraded Vietnam IDRs (Issuer Default Ratings) of long-term loans in both domestic and foreign currency from à ¢Ã¢â€š ¬Ã‹Å"BB-à ¢Ã¢â€š ¬Ã¢â€ž ¢ to à ¢Ã¢â€š ¬Ã‹Å"B+à ¢Ã¢â€š ¬Ã¢â€ž ¢, in which short-term IDRs in foreign currency is remained at à ¢Ã¢â€š ¬Ã…“Bà ¢Ã¢â€š ¬Ã¢â€ž ¢ because of Vietnam weak banking and financial system[4]. Liquidity risk and inflation risk The potential risks in Vietnam current financial market contain two main risks that are liquidity risk and inflation risk. One of the main reasons of the global subprime crisis which started in the US from 2007 is liquidity risk, in which short-term deposits were used to finance long-term loans. In Vietnam, the economy has suffered from the crisis, however, the effects were not too serious as developed countries who received direct consequences of the downturn because Vietnam banking systemà ¢Ã¢â€š ¬Ã¢â€ž ¢s scale is small, banks in Vietnam are mainly commercial banks and Vietnam has not yet deeply joined the world playground. Nevertheless, the global turbulence has been warning Vietnam about the danger of liquidity risk in Vietnam financial system (Hookway Barta (2009)). Inherent liquidity risk in Vietnam is caused by bad-debt (NPLs) which is mainly from SOEs (State-owned Enterprises) and therefore, it is difficult to be resolved. Another reason is the dollarization of Vietnam eco nomy which disappears one of the most important functions of central bank: à ¢Ã¢â€š ¬Ã…“lender of the last resortà ¢Ã¢â€š ¬? (Hauskrecht Nguyen, T.Hai (2004)). Dollarization is the situation in which a country use foreign currency (US dollar) to carry out the transaction in this country due to the stability of foreign currency compared to domestic currency[1]. Vietnam has a highly dollarized economy and it is not beneficial dollarization (Hauskrecht Nguyen, T.Hai (2004)): in case liquidity demand become emergent, central bank could not have enough money to inject to the economy because of the inelasticity of money supply in foreign currency. Bank panics followed by financial crisis are easy to happen especially when Vietnam economy is wider opened as its promise for the entry to WTO. Beside liquidity risk, inflation risk is also a danger to Vietnam financial system. In current time, Vietnam has plenty liquidity which pushes the Government of this country pumping a great deal of credit to the economy to reduce lending interest rate from which supports banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ lending. This may worsen the problem of NPLs and NPA which have existed in Vietnam banks system for a long time, raise the current account deficit of this country and increase inflation back to the level of over 20% of 2008 (Champleboux, Kurdi, Bultez Gain (2010))[6]. Therefore, Vietnam financial system is still facing the danger of future inflation. Applications of VaR in Vietnam bansks (for market risk) Vietnam financial market is in reform progress to the light of Basel II; therefore, using VaR as a measure of risk in risk management system of this country (pillar 2 of Basel II) would be inevitable in the near future. Currently, there are three main methods to measure VaR: Delta-Gama, Monte Carlo and historical simulation in which Monte Carlo method or stochastic simulation method is used most popularly because of it is more exact and more flexible than the others (Natasa Kozu (2010)). Delta-Gama method is quite similar due to its assumptions that risk of the portfolio is linear and risk factors are normally distributed and thus these are also disadvantages of Delta-Gama method. Historical simulation method uses historical data to measure VaR with weights in present and Monte-Carlo method is more sophisticated with assumption that each risk factor has different distribution and parameter. (Natasa Kozu (2010)). To apply VaR into risk management system of Vietnam banks and financial institutions, Ha Tran, Manh (2009) recommends historical simulation method because it seems the most suitable method for Vietnam banking system. According to Tran, Delta-Gama method is simple but lack of accuracy, while Monte Carlo is too complicated with a small economy like Vietnam: it is difficult to build different simulation program for each Vietnamese bank due to limit in financial ability as well as staffà ¢Ã¢â€š ¬Ã¢â€ž ¢s skill to apply the model. Historical simulation is considered as the most suitable one because it brings quite exact result and is easy to construct; in addition, Vietnam commercial banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ historical data is initially established and market factorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ data like interest rate, exchange rate are also easy to capture in the past ten years. Applying historical simulation method to measure VaR in Vietnam banks follows seven steps: The first step is determining the risk factors (as market variables) which can affect banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ income. Second step is gathering historical data in an enough long period. In the third step, the simulation of changes in market variables in the future will be carried out based on assumption that they have the similar tendency as in the past, from which identifying the potential lost correspondence to each episode of market variables as the fourth step. In the fifth step, VaR could be calculated with a given confidence interval. The two final steps are using Stress-test and Back-test to ensure the accuracy of VaR and banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ ability to stand changes in risk factors that are far different from changes in the past. To calculate VaR of an investment portfolio, assume that present value of the portfolio is Pt: Pt=P (f1,t , f2,t ,à ¢Ã¢â€š ¬Ã‚ ¦.,fn,t) Where f1,t , f2,t ,à ¢Ã¢â€š ¬Ã‚ ¦.,fn,t are risk factors at time t The changes in risk factors in the past could be expressed as: à ¢Ã‹â€ Ã¢â‚¬  f ­ik = (à ¢Ã‹â€ Ã¢â‚¬  f1,t , à ¢Ã‹â€ Ã¢â‚¬  f2,t ,à ¢Ã¢â€š ¬Ã‚ ¦, à ¢Ã‹â€ Ã¢â‚¬  fn,t ) (k=1,2,à ¢Ã¢â€š ¬Ã‚ ¦,s where s is the number of episodes of each factor) From which calculate simulated value of each factor, starting with factor 1: f ­ik = f1,t + à ¢Ã‹â€ Ã¢â‚¬  f1,t And simulated value of the portfolio will be: Pk= P (f ­1k , f ­2k ,à ¢Ã¢â€š ¬Ã‚ ¦, f ­nk) The changes in portfolio value will be: Rk=( Pk à ¢Ã¢â€š ¬Ã¢â‚¬Å" Pt )/ Pt From that VaR could be calculated as: VaR=Ave(Rp) à ¢Ã¢â€š ¬Ã¢â‚¬Å" Rp(c) Where Ave (Rp) is average return of the portfolio Rp(c) is return correspondence to the cth differentiation Thus we could use changes in stocksà ¢Ã¢â€š ¬Ã¢â€ž ¢ market price to calculate VaR without deriving parameters as well as identifying functional distribution. To illustrate this method, assume that a bank has a portfolio including 1,000 stocks ACB of Asia Commercial joint-stock Bank with price VND28,350,000 in 09/09/2010 and 1,000 stocks AGC of An Giang coffee joint-stock company with price of VND24,200,000 in 09/09/2010. Historical data about price of this stock is collected in Table 2, and that is data from 09/09/2009 to 09/09/2010. From Table 2, VaR was calculated equaling to -2039.2[1]that means the maximum loss of portfolio in 10/09/2010 will not excess VND2,039,200 with confidence level of 95%. By calculating VaR, bank could prepare enough money to survive if the worst situation occurs. However, in fact there are changes in risk factors that are not similar to changes in the past, thus Stress test becomes a necessary tool in banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ risk management (Ha, Tran Manh (2009)). One of the risk factors that affects bank operation is interest rate: changes in interest rate will immediately have effects to banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ assets. Therefore, banks could use historical simulation method to estimate the maximum loss in the future with a given confidence level based on changes in historical data of interest rate, after that expanding changes more than the fluctuation in the past thus banks would prepare more careful for potential loss in the future. Similarly, Vietnam banks could use historical simulation method to calculate VaR due to the changes in inflation rate as well as exchange rate and use Stress test to establish solutions to cope with these market risks. Applying VaR in Vietnam banking system requires Back-test from central bank because sometimes VaR model could bring wrong result compared to reality. For example, if a bank applies VaR model with confidence level of 95% in 252 working days for the past year, the bank would calculate VaR of its portfolio. However, if portfolio loss excesses VaR in more than 13 days (5% of 252), VaR model of that bank would not be accurate and it should be modified to more accurate model. Applications of credit score model in Vietnam banks (for credit risk) As indicated above, liquidity risk due to non-performing loans is a big problem in Vietnam banking system. To solve this, some commercial banks in Vietnam have used credit scoring model which is an important section in their credit manuals (Dinh and Kleimeier (2006)). One of the credit score model being used in Vietnam banks is described in Table 3, in which 14 variables are divided into two panels A and B corresponding to first round and second round in evaluating loans. Borrower is first evaluated based on nine variables (Panel A) and if his or her score is over a certain level, loan applicant will be continuous assessed by other five variables (Panel B). After this second round of assessment, borrower will be ranked as different categories in Panel C and from which, banks could make its loan decisions. As can be seen from Table 3, loan applicants are assessed by experience of credit staff while score assigned to each borrower is not calculated statistically. Therefore, the bank could not find the probability of default of borrowers that helps banks in enhancing their risk management system. This requires a more effective credit score model (in which probability of default should be considered) for Vietnam banks to improve their bad-debt problem. Dinh and Kleimeier (2006) suggested a model with 22 different variables including nine quantitative and thirteen qualitative criteria. Each variable is divided into small groups, then it is coded based on the formula: Ln(gi/bi) + ln(B/G) Where: gi and bi is number of good loans and bad loans of ith group respectively G and B is number of good loans and bad loans in total From this probability of default corresponding to each group could be estimated and banks would have reference to make loans decisions. Table 4 presents 22 variables being used in the model, in which data was collected from one of Vietnam commercial banks (Dinh and Kleimeier (2006)) to calculate probability of default. As can be seen in Table 4, each group in each variable is assigned to a probability of default from which the bank would find it much easier to make their own loans decisions. For example, the higher income, the lower probability of default, so loans condition could be easier for applicants with higher income; or college graduate applicants have the highest probability of default thus should be limited in making loans. Bank can depend on probability of default of each loan applicantsà ¢Ã¢â€š ¬Ã¢â€ž ¢ group to decide whether loans should be made or not; however in this model ln(B/G) is constant but it might be changed in reality of banking practices (Dinh and Kleimeier (2006)). Therefore, it should be combined with relationship lending, that is, banks could apply this model for loans that are already approved by credit staff before because in some cases, credit officer may realize qualitative risk based on his relationship with borrowers (Schereiner (2003)). Risk management herding in Vietnam Herding in risk management policy In the past, risk management in Vietnam was still considered as an expense and banks must pay for it because of law and regulations. Very few banks, especially state-owned commercial banks, understand the strategic importance of risk management as well as the danger of financial turbulence arising from poor risk management. The reason for it is the strong protection policy of this country in which State Bank of Vietnam intervene deeply into state-owned commercial banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation, thus they rarely have to face bankruptcy; therefore, state-owned commercial banks usually care about profit rather than risk management. Currently, although banking system in Vietnam is in reform process in which risk management has been focused to satisfy WTOà ¢Ã¢â€š ¬Ã¢â€ž ¢s requirement, it is still very initial and in original process in which commercial banks have still not conceived enough about risk management techniques as well as their applications[2]. Herding in Vietnamese stock market V. Kallinterakis (2007) has found the evidence of herding in Vietnamese financial market and the relationship between herding and thin traded market in which people do not trade stock continuously thus stock price is unchanged for several days. By using the model of Hwang and Salmon (2003), Kallinterakis (2007) collected the data of VN-index and closing prices as well as market capitalization of the stocks listed in Ho Chi Minh Stock Exchange from 01/03/2002 to 28/02/2007. The result shows that thin trading could be the intensiveness for herding behavior in Vietnamese stock market because after the days in which orders implementation were postponed, the next active trading days would witness a huge demand or supply accumulated in the postponed days, from which possibility of herding in buying or selling stocks could be increased. By using model of Christie and Hwang (1995), Faber, Nam and Hoang (2006) also find out the exist of herding in Vietnamese stock market in 2000-2006 period, toward stocks that have extreme positive returns in the market. The results from research above due to bubble in stock market in the period 2006-2007 in which Vietnamese stock market grew at second highest speed in Asia, just followed China (Pham Ha (2010)). The growth of Vietnamese stock market in which stock price soared is the main reason for herding behavior between stock investors. Nevertheless, stock market bubble has burst in 2008 leading to the plunge in Vietnamese stocksà ¢Ã¢â€š ¬Ã¢â€ž ¢ price after VN index reached its peak at March 2007 ( this can be seen in Figure 1). This due to global financial crisis which started from US subprime crisis 2007-2008 pushing Down Jones and SP500 index fell at very high speed. At present time stocks have been thought that being traded with real price, however, with the lack of information and transparency, the only way for many individual investors is herding, especially herding to foreign investors. Although Vietnamese financial system is in reform progress which contains enhancing transparency, this still has faced many difficulties; therefore, herding could still happen in the future. CHAPTER IV: CONCLUSION AND RECOMMENDATIONS Some conclusions From above analysis about risk management system and potential risks in Vietnamese financial market, I would like to conclude the main points as follow: Firstly, risk management system in Vietnam banks is still in initial stage with many drawbacks, especially bad-debt and liquidity problems, transparency or the lack of international auditing. Government still intervenes too deep into banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation to protect state-owned commercial banks and this creates dependent psychology in state-owned banks system. Regulations about risk management system in Vietnam banks are still based on Basel I, however, this country is in reform process toward the light of Basel II, in which VaR model is core tool in controlling market risk. Vietnam are facing many potential risks in which liquidity risk (credit risk) and inflation risk (market risk) are big dangers to the financial system thus finding solutions for these risks would become essential once this country steps completely to the world playground. Therefore, using VaR model to estimate price of market risk would be inevitable although herding could be its possible outcome. Secondly, herding has happened in Vietnam stock market as a common phenomenon in 2000-2007 period, and whenever the lack of transparency and the inaccuracy of information in Vietnam financial market exist, herding still to happen and can could other stock bubbles which has burst in 2008. After bubble burst in stock market, investors are more careful in making investment decisions; however, the transparency has not been improved enough and the evidence for which is that Vietnamà ¢Ã¢â€š ¬Ã¢â€ž ¢s Issuers Default Rating has been downgraded by Fitch to à ¢Ã¢â€š ¬Ã…“B+à ¢Ã¢â€š ¬? due to high NPLs and NPA which are considered as state secret. In addition, Vietnam stock market is still a start-up market, very few investors have ability to analyze market and make decisions strategically; therefore, herding would not disappear from the market just after one bubble burst. Thirdly, according to V. Kallinterakis (2007), thin trading in Vietnamese stock market could encourage herding phenomenon; thus correction for thin trading can reduce herding in Vietnames stock market. Fourthly, Vietnamese financial market is in reform toward WTO entry requirement; thus in the future, transparency must be enhanced, VaR could be used to measure market risk from which avoiding loss if crisis occurs. However, as Persaud (2000) research, the application of VaR and more transparency in banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation could worsen the problem in case of crisis. If banks use the same VaR model, it could create contagion phenomenon; and Vietnamese banks are in a very early stage in using such a VaR model, with limitation in skill of staff to apply VaR, thus banks using similar models is a reasonable possibility. Moreover, Vietnam Central Banks, as requirement of WTO, would must not intervene too deeply into banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ operation as well as financial market; therefore, in the future, this country would have to face crisis more frequently with more serious consequences: Vietnamese financial market would not separate from global financial system, and if herding happens in time of crisis, the downturn could contagious widely and worsen the problem. Fifthly, beside market risks, Vietnamese banks also have to cope with credit risks and credit score model is using in some commercial banks of Vietnam although it just stops at a qualitative model in which loans decisions are made mainly based on experience of credit staff. The suggestion of Dinh and Kleimeier (2006) about the model in which banks could estimate probability of default of each category of loan applicants might be a good suggestion for Vietnamese banks in controlling credit risk. This could help banks reduce probability of default of borrowers and increase liquidity, especially in crisis situation. Recommendations From the conclusion above, I would like to suggest some recommendations for improving risk management system in Vietnamese banks as well as controlling herding behavior in Vietnamese financial market and banking system: Firstly, applying solution of Persaud (2000) that is using VaR model as a risk measure and enhancing transparency because they are good for banks in the long-term. In Vietnam the application of historical simulation VaR model could help banks avoid their DEAR limit being hit at the same time because each bank has a different portfolio and even in case they unintentionally invest in the same portfolio, banks have prepared for the loss thus avoiding probability of default. Transparency should be enhanced, especially in stock market, but it should stop at publishing information weekly only. Secondly, applying credit score model of Dinh and Kleimeier (2006) to decrease credit risk and increase liquidity. Thirdly, thin trading in Vietnamese stock market should be corrected, i.e orders should be implemented continuously in everyday to avoid excess trading in the next à ¢Ã¢â€š ¬Ã…“activeà ¢Ã¢â€š ¬? day. It could decrease herding in stock market. CHAPTER V: DRAWBACK OF THE PAPER Drawback of this paper is I could not find the evidence for herding of institutional investors but find the evidence for herding in all market containing both institutional and individual investors thus just could bring solutions for all market. This due to limitation in collecting data in Vietnamese financial market. In addition, risk management in Vietnam is still initial, therefore, risk management herding and its consequences to this country are not as mature as in developed countries and thinking of solutions for this problem seems too early to the country in which banking system is still in strong protection of Government. However, Vietnam is in reform progress and sooner or later, the country would have to face this problem when it really becomes a player in global playground.

Religion-Effect of Dispossession on Aboriginals Free Essays

Religion Discuss the connection between the dreaming and the land rights movement. Aboriginal spirituality is determined by the dreaming. The dreaming is a complex concept of fundamental importance to Aboriginal culture, embracing the creative era long past of the ancestral beings as well as the present and the future. We will write a custom essay sample on Religion-Effect of Dispossession on Aboriginals or any similar topic only for you Order Now The Dreaming’s importance to the aboriginal people is emphasised through it providing for the obligations and responsibility of the aboriginal people, and furthermore accounting for their past, present, and future. The dispossession of land of the aboriginal people has led to various problems, including psychological and social issues experienced by communities and individuals, who in the past, have been forcibly removed from their land, their ‘home’. The Land Rights Movement is a movement targeted at recognising the issue of dispossession and progressing towards a. Thus Land Rights Movement, a movement based on the claims by the Aboriginal and Torres Strait Islander peoples to repossession and compensation for white use of their lands and sacred sites, became the resolution. The motivation of this movement was ultimately base upon Aboriginal peoples reliance on a sense of spirituality connected to the land. As the movement strengthened, so too did the awareness of the effect of the dispossession, leading to an increase in the movement itself, and also enforcing the Aboriginal people’s sense of spirituality. Essentially, it becomes evident that the importance of the Dreaming was ultimately the reason for, and motivation behind the Land Rights movement. Thus it is needless to say that the Dreaming is fundamental to the Lands Rights Movement. Analyse the importance of the Dreaming for the land rights movement Land rights are of critical importance in relation to Aboriginal spirituality, because the Dreaming is inextricably connected with the land. Therefore the dispossession of Aboriginal native land is also the dispossession of Aboriginal spirituality. The link between the Dreaming, land and afterlife holds significance spiritual importance to the Aboriginal peoples as the land is the resting place for all aboriginal beings. Furthermore each Aboriginal community is connected with the land through their spiritual totems. Specific areas of Aboriginal communities’ have important spiritual meaning for those particular groups of aboriginal people-these are known as sacred sites. What’s caratagoried in ever aboriginal sacred site is the connection to the Dreaming and aboriginal mythology. There are special responsibilities attached to sacred sites such as important ceremonies like weddings and it could be a place of death for an aboriginal elder. The identity of an Aboriginal person is inextricably linked to the land and hence the land is like a mother for the people. How to cite Religion-Effect of Dispossession on Aboriginals, Essay examples

Humanism in Renaissance Essay Example For Students

Humanism in Renaissance Essay The Renaissance, occurring between the fourteenth and seventeenth centuries, was a period of great rebirth. Humanism, an important part of the Renaissance, brought about more color, perspective, and realism within the artistic community. A few aspects of humanism include individualism and Greece-Roman influences. Humanist ideals manifested themselves in works of Renaissance art such as Michelangelo Sistine Chapel and his David sculpture, as well as Repeals School of Athens. Individualism emerged in the works of Michelangelo along with numerous other Italian artists of the time. In Michelangelo Sistine Chapel painting, each of the over one hundred people depicted has its own distinct facial features. Prior to the Renaissance, artists would replicate the same prosaic face onto all of the people in a large group. However, Michelangelo preferred to distinguish every individual figure present. He also ventured so far as to include a depiction of God in the form of he paintings benefactor, Pope Julius II. The characteristics of individualism repeatedly appear in the works of Italian Renaissance artists. The prevalence of humanist ideals is also present through the inclusion of Greek and Roman themes. The statue of David by Michelangelo was a sculpture created between 1501 and 1504 featuring a nude male representing the biblical hero David. Davits contrasts pose is the Renaissance interpretation of the common Greek theme of a casually standing heroic figure. Another ancient Greece-Roman theme represented in the statue is the idea of a biblical hero depicted as a supreme athletic embodiment. Additionally, Repeals School of Athens, painted between 1 509 and 1 510, conveys classical Greek and Roman ideals. Aristotle and Plato, well known Greek philosophers, serve as the central focus of the scene. Furthermore, the building portrayed in the painting has the rounded appearance and incorporation of columns used commonly in Romanesque architecture. Also, there are two statues visible in the background of the painting: one is of the Greek god Apollo, the god of light and cheery, and the second is of the Roman goddess Minerva, the goddess of wisdom. A myriad of Italian artists were influenced by the humanist ideals of the great thinkers. The likes of Michelangelo and Raphael used these principles of the great Renaissance humanists to advance their artwork. Humanism in Renaissance Art By illegible