Q1.
1.
Here we shall be starting with the explanation of our understanding of operations of money and capital modern and classical, domestic and global markets. Let us start with the explanation of what has been the impact on stability and interconnectedness of international financial economies and financial markets alongside with regulatory responses implemented in an attempt to stabilize the financial system by Global Financial Crisis [GFC]. These crises had first of all led in East Asian countries to be stressed in such a fashion during the financial crises which were has been beyond imagination. This led to the extremely negative international outlook for Asian markets. This led to the loss of huge amount of Asian currencies to international markets. There had been a shortage of funding in the domestic markets.
Macroeconomic policies are required to be implemented for making sure that the domestic markets recover. This is required as it averages off and aids in again making the balance-sheet strong. This we could expect to potentially have the capacity to prevent a vicious circle. The Asian economy is one which receives a big amount of stimulus by favorable fiscal measures. The packages of fiscal stimulus like for example for scrapping old cars have helped in improving the production of industries and also in their exports. IMF had projected the output of the world to contract in 2009 by 1.1 percent which grew with above 3 percent in 2010. This was seen to be more than that recorded in 2007 by over 5 percent.
2.
a.
Business continuity risk management is the framework is used to identify risk exposure of an organization due to threats which maybe internal or external. The framework includes management of the crisis, management of emergency, planning, contingency, management of incidents, disaster, and business recovery.
b.
Assessment of risk whereby it should be thorough. This can be done by running through many past scenarios on disaster recovery noting the impact of the results on the business. The results then come in handy to determine the assets of information technology which should return to the normal way, the acceptable levels of operation for the function of business. Set goals so that exercises of risk assessment can help in defining your business tolerance for the loss of data and downtime. The downtime for tolerance can vary in different companies, size, and business sector. For instance, an e-commerce store has low tolerance hence less downtime compared to a contractor locally. A large company with more resources can prevent and recover faster compared to a smaller company. All hardware need to be stored in inventories as well as the assets in software so that the downtime a business can tolerate is determined for each. Therefore, with your needs defined the right recovery and backup solution can be found that suits the technology you use.
Disaster recovery strategies and scenarios should be created. This can be easily done after running through several scenarios and therefore IT assets can be determined which are for the functionality of the business in its minimum because then the business is ready for disaster recovery scenarios and strategies creation. Identify a threat for each sector of the business and come up with a strategy of recovery, response, and prevention. These are going to form a good foundation for the business disaster recovery plan. The roles and responsibilities should be directly defined, so that specific roles and responsibility in the occurrence of a disaster are taken by staff as defined. A first and second tier can be chosen as responders for each scenario. Tasks needed to be done should be identified in the sequence they are to be done and by who.
c.
A business can be interrupted by many threats such as interference of power supply, virus invading the computer software causing its malfunction or even fire. When it occurs a strong disaster recovery process makes the difference in preventing a great cost blow to the company or even interruptions in operations of the business. Normally businesses are a series of interconnected parts, and these elements would, therefore, go into the strategy to recover the disaster. These pieces are key and should be included for sure; secure the storage of data. This is because network failure could lead to the loss of information stored or corruption of the same. Preservation of data is crucial to any recovery process so as normal operations are restored as soon as possible. Having backups regularly is essential as it can prevent you from rebuilding your projects that you did recently from scratch if back up was done along, time ago maybe weeks or months before the disaster. Some companies handle a great deal of data that even backing up daily might not be good enough but its advised. Detecting quickly helps a lot since interruptions in service can be in various forms and its of great importance to know what caused the problem for success in coordinating a response.
Companies which have tools build for diagnosis have great help in the effort of coordination of disaster recovery since these tools help in evaluating the system. Offsite locations such a secondary site to your main work place comes in handy so that operations can continue despite disruptions in the main especially if it bad enough to take time fixing it. The company can continue running smoothly though virtually if you have data backups offsite thus giving you time to move to another space physically.
To prevent redundancy in service secondary sources are crucial more than an alternative location physically. This could be lines of communication for use when the current network of telephone fails, and an email server backup since emails are important too. Your employees to familiarize them with the recovery process so that in the case of a disaster they already know what to do. Plan succession so that many employees know the disaster recovery response process. This is because if an employee depends on information that is no longer available and there is no other employee can come in, then there can be a problem. Backup your employees too its crucial. Finally, the process needs to be given the serious attention, and this is done by creating awareness to strengthen the disaster recovery response process. This helps in minimize damage when a disaster occurs because now the tendency of employees viewing a disaster as unlikely to occur.
Q2.
The approach is used in accounting ratios. Accounting ratios help in the measurement of the efficiency and company profitability according to financial reports. Therefore, helping to express the relationship between accounting variables providing useful comparison further.
It can also be used in putting checks on the following measures in areas such as budgeting, the setting of goals, business forecasting, security analysis among others.
1.
a.
There is the awareness of the business product and the user. The realization of benefits is in the early business phases. It is possible to replace many processes that are manual with automation early with the implementation of manageable password for many users. Custom adapters need not be developed in the early phases.
It is in the first phase that the organize gets to broaden the skills of identity management. While introducing Tivoli Identity Manager operations are less intruded.
b.
Debt ratio measures a company’s total liabilities as a percentage of its total assets. It is a solvency ratio. The debt ratio is calculated by dividing total liabilities by total assets. Equity ratio is a ratio of solvency or leverage measuring the assets amount which is financed by the owner’s investment as compared to total equity for the total company’s assets. Its calculated by dividing total equity by total assets.
The debt to equity ratio as a liquidity and financial ratio which compares the total debt of the company to its total equity. It is calculated by dividing total liabilities by total equity. The receivables turnover ratio is calculated by dividing net revenue by average receivables. It measures the speed with which company collects its bills and how efficiently it does this. Cash Flow Indicator Ratio is normally expressed as a percentage comparing operating cash-flows of the company to its revenues and nets sales giving the investors an idea on the ability to turn sales into cash by a company.
Inventory turnover ratio is calculated by dividing the cost of goods sold by average inventory. When the turnover is high than the average of the industry, then inventory is selling faster.
c.
Setting goals are closely related to budgeting. This is done by the executive management where using the bottom-up approach every department, and business unit gives out their targets and plans. Business forecasting on bottom-up approach starts with product specific projections by sales channel perhaps for either geographical sales or by the type of customer. A bottom-up method for securities and analysis of company builds to a total company projection for specific products, the division of business or lines of products.
2.
a.
Top down and bottom up approaches have the same goal in the end which is to get as much as better returns as possible though their parameters and selection criteria and evaluation are different. The top-down approach considers variables of macroeconomics such as GDP monetary and fiscal policy and inflation to come to a decision. Based on the investor analysis after monitoring the above macroeconomic factors, investment is in the portfolio that appreciate changes results in the variables above.
The bottom-up approach does not emphasize on the trends in the market or economic ones but focuses on the vehicle or entity of investment targeted. The financial health is analyzed by the investor of the particular vehicle, and the most promising one is chosen. Therefore, I would recommend this approach.
b.
An investor who has an interest in maintaining investments of portfolio outside the domestic market must put into considerations globalization effects and fiscal market international trends. For instance, after the European crisis investments credit ratings in those nations fell drastically, but because of economic powers rising such as China and India, the subcontinent of Asia indicates a big foreign investment potential.
Q3.
a.
A corporate structure consists typically of directors, officers or executive management and the shareholders. The handling, of the day to day business is done by officers as the directors’ act as overseers of the organization’s affairs while they protect shareholders interest and shareholders want a return on their investment. The roles of the board of directors are directing the path of the business and the affairs of the corporation. They have legal responsibility for actions of agents, employees, officers, the corporation, and its subsidiaries. They act on the company’s behalf for its best interest with loyalty to the corporation itself and the corporation’s shareholders. Regularly they participate in meetings with the duty of approving some matters and transactions such as contracts or agreements. Participate in the election of corporate officers, purchases, and sales of new assets, new policies approval or amendment of the by rules and regulations of the company.
The corporate officers act according to the authority they are given by the stipulated law to oversee the daily operations of the business. The officers are the chief executive officer or president; signs contract and is ultimately responsible for corporation’s affairs, chief operating officer; day to day affairs manager, chief financial officer; deals with all corporation’s finance to do matters and the company secretary, maintaining records and keeping them including minutes taking during meetings. Shareholders have ownership in the company through investment if money. They take part in annual meetings held by the company where they elect corporation directors. They can also hold meetings though rare to approve major transactions. Their rights are well stipulated in articles of incorporation.
b.
Regulation acts as a balance between investor protection and formation of capital. It allows the flourishing of formation of capital this is because investors are given the confidence needed to invest. It is key for regulation to be smart. Regulation which is not smart is evident as it burdens businesses, with failure in showing technological change or maybe excessively protective. Sufficient protection levels are provided in smart regulation boosting confidence while the entities are not necessarily burdened.
Coordination is a requirement for regulation between states, and there must be a will to let go of some of your preferences so that rules are fostered consistently from one state to the other. Regulation rules and laws vary from state to state. Thus they do not look the same. There can be exemption here and there. It is important for regulators to promote the progress of the economy. This is through innovation in how regulation is done either through coordination, or unique exemptions innovation can be spurred and entrepreneurship. This provides a protection layer needed by investors giving them the confidence needed to invest in the things you offering them. Securities fraud can bring devastation. That is why today rules and regulation are still needed. That’s why regulation by the federal government of securities began after the crashing of the stock market since there was a manipulation that had spread widely on markets and insider rampant trading.
Money was being hoarded by people as a result making the loss in a steam of the economic engine. President Franklin D Roosevelt had to recommend the security act 1933 so that he could bring the confidence back the confidence of the public with honesty in dealing with security. Through innovative regulation that is smart economic development is spurred on another level. In businesses and management of corporates, compliance means the obedient by the company of all set legal laws rules and regulations. This is done regarding the way business is managed, how they treat their customers and their staff management. This concept ensures that corporations are responsible and act that way all the time. Compliance leads to avoiding charges that are criminal. Firms don’t want to have problems with the law by facing charges due to the failure of adhering to the law. Laws and regulations are available for businesses to apply to their firms. From the way staff should be managed, how the stock should be handled, advertising and rules on how to engage while buying and selling, how to negotiate with customers, employees’ salary including safety and the list is endless.
c.
Releasing on a continuous basis of financial and non-financial information based on near real time or real time is called continuous reporting. This is done to so that parties from the external side of the company can have access to information on underlying events taking place instead of waiting for reports normally compiled at the end of periods. To make it easy for the continuous release of information on continuous reporting. XBRL is adopted by companies which make information more feasible.
Users who are under fair disclosure regulation benefit a lot from continuous reporting. It is constantly a debate point. It is of great interest to know the performance of the company at a particular time by parties such as investors and analysts. This is because for one to take advantage of important business opportunities right on real-time information is crucial. On the contrary, there are those who are skeptical about the usefulness of raw information or how overloaded it is, whether it is too irrelevant when it released outside the company. There are companies which fear that continuous reporting could allow access to important strategies which would reduce a company’s competitive advantage.
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