Risk Management And Financial Performance In The Bank Of China Finance Essay - Free Essay Example

Bank of China (Hong Kong) Limited (BOCHK) is the second-largestÂÂ  commercial banking groupsÂÂ  inÂÂ  Hong Kong with more than 300 branches. In spite of its magnitude and systematic risk management, 2008 has witnessed a decline in operational income and a negative shock to BOCHK. In this report, I will first investigate the overall risk management of BOCHK followed with its measurement and management of credit risk, and finally compare the 2008 financial performance with previous year by utilizing ROE framework. I. Overall Risk Management Principles for the Management and Supervision of Interest Rate Risk published by Bank for International Settlements (2004), in 2004 provides not only a guideline on how to conduct interest rate risk management, but also principles that can be applied to manage the overall risk of a financial institution. This part will evaluate to what extent BOCHK meets this international standard. According to the report, the BOCHKs risk management governance structure is designed to cover the whole process of all businesses and embrace a swift and prudent manner to manage various risk exposures, which basically conforms to the requirements stipulated by BIS. The report shows that first, to align management strategies with the corporate interests, Chief Risk Officer (CRO) reports directly to Risk Committee as well as to Chief Executive (CE), whose responsibility is to ensure the proper implementation of the policies and procedures and oversee the effectiveness of managing and controlling risk. The regular basis reports guarantee a timely assessment of the effectiveness of risk control strategies, for which the Board of Directors has the ultimate responsibility to determine. In addition, the independent operation between business units and risk management units complies with the principle of segregation of duties since the independence is sufficient and necessary for risk management (Khambata , Dara 2006). In accordance with BISs requirement, however, risk control function (CRO) should report directly to the Board of Directors. Otherwise, some potential risk that CRO and CE may conspire to fake the risk management report would threaten the fairness of the risk management system. Secondly, BOCHKs principal banking subsidiaries Nanyang and Chiyu, executes their risk management strategy independently and share the consistent risk management policies with those of the Group, report to BOCHKs management on a regular basis. Thirdly as found in the 2004 report, BOCHKs stress testing is a risk management tool for estimating risk exposures under stressed conditions that arise from extreme but plausible macroeconomic movements. Fourthly, its information systems are well established to provide timely reports within different levels of management, while CRO stipulates specific procedures concerning the promotion of new products and activities. BOCHK also prudently enacts and administers operating limits so that risk exposures are consistent with internal policies. However, the mere existence of risk management mechanisms does not guarantee sufficiency or effectiveness. Enforcement of risk control policies should be applied to ensure an efficient risk management system. II. Measurement and Management of Credit Risk According to the note 4 of the BOCHK financial statement in 2008, BOCHK manages two broad classes of assets: loans and advances and debt securities and derivatives. The overall assets exposure to credit risk in 2008 is HK$1,364,462 million, which includes HK$1,111,073m on-balance-sheet exposures and HK$253,389m off-balance-sheet exposures. To safeguard corporate interest, BOCHK should manage credit risk related to these assets in a prudent manner, especially during a financial crisis. This part of the report will investigate how BOCHK measures and manages credit risk of these assets. To minimize the credit risk, the 2008 report shows that BOCHK adopts credit approval policies and procedures that are reviewed and updated by the risk management department and other relevant departments. Regarding loans and advances, BOCHK not only adopts different credit control procedures and credit grading systems according to the level of risk associated with customers, but also utilizes bank s corecard for financial institutions, credit scoring system for retail credit transactions, and small business credit scorecard for small firms. BOCHK identifies credit concentration risk by industry, geography, customer and counterparty risk. For instance, classified or impaired advances are HK$1,792m in Hong Kong, HK$323m in Mainland China, and HK$23m in elsewhere. Besides, loans and advances are classified into five categories to improve the ability to identify and assess credit risk: pass, special mention, substandard, doubtable and loss. For example, the total assets marked as substandard or below, the high risk category, account for 0.08% (HK$379m). As for debt securities and securitized assets, the 2008 report indicates that BOCHK adopts the external credit rating systems, such as Moodys, to manage the credit risk. Moodys ratings in 2008 showed that 19.34% of BOCHKs debt securities rated as Aaa compared with 2.36% lower than A3 debt securities. Particularly, BOCHK applied a comprehensive methodology in determining whether a particular asset/mortgage backed security (ABS/MBS) is impaired is determined by such factors as the mark-to-market price, external rating, and delinquencies. Except these factors, ABS/MBS has to further pass the required credit enhancement coverage ratio set by BOCHK. To manage credit risk in a dynamic market environment, policies, procedures and appropriate credit risk limits have been established. The corporate organization structure defines a clear line of authority and responsibility for supervising compliance with relevant rules (Khambata , Dara 2006). For instance, the Credit Risk Assessment Committee takes charge of assessing independently all credit scoring facilities and reviewing reports submitted by risk management units. In addition, Khambata , Dara (2006) argues that collateral is another key element to manage credit risk. The value of collateral for a new loan is determined by an independent appraiser at the ti me of loan origination. Collateralized loans are subject to loan-to-value ratio limits. Collaterals are also revalued and managed periodically by BOCHK. BOCHK documents acceptance criteria, validity of collateral and revaluation of collateral on a regular basis to monitor the status of collateral. III. Financial Performance Comparison According to the 2008 reports, BOCHKs ROA and ROE were 0.26% and 3.56% in 2008, versus 1.48% and 16.64% respectively for 2007. BOCHKs Profit Margin also decreased to 5.97% in comparison with 24.24% in 2007. These substantial statistical decreases were caused mainly by the increase in impairment charges on the US non-agency residential mortgage-backed securities and other securities investment. Furthermore, significant increment in Provision for loan losses/Total operating income (2.22% to 24.95%) and dramatic decline in investment-related commission income both produced a negative impact on the profit in 2008. Increments in provision for loan losses were directly caused by the sluggish investment environment brought by the global financial crisis. As customers mostly steered clear of investment products, the investment and insurance fee income decreased by 34.3% to HK$2,964 million. Note 12 shows that net charge of impairment allowances increased from HK$1,448 in 2007 to HK$ 12, 573 in 2008. Despite of a bleak financial environment, the ineffective credit risk management was still to blame for the sudden increase in loan impairment losses. From the perspective of overall risk management, it can be suggested that BOCHK should conduct a more strict stress testing and scenario analysis to predict the sensitivity of risk factors with various degrees of severity.

The Gospel Of Matthew Is Considered A Gospel - 1705 Words

The Gospel of Matthew is considered a Gospel based on the premise that it describes the life, death and resurrection of Jesus of Nazareth. Translated into narrative form means ‘good news’ and the preferred standard to communicate the mystery of Christ. A Gospel is the committing to write of a narrative born of the faith-filled vision, theological perspective and pastoral concerns of the evangelist (Mullins 2007, VI). The famous theologian Rudolf Bultmann saw the gospel as an original Christian creation that centered on faith; cult and pastoral concerns arising from and illustrating the Christian Kerygma (Mullins 2007, IV). Kerygma is a fancy Greek word that is the very heart of the gospel, the core message of the Christian faith that†¦show more content†¦Numerous studies show that the Gospels of Luke and Matthew contain much material from the Q-source and none in Mark’s Gospel. This is significant as the contents of these texts apparently passed do wn verbally from one generation to another. The M-source on the other hand is a hypothetical textual source likely written by Matthew and defined as special material that is neither Q source nor Markan. The M-source distinguishes itself from both Q and Markan influence with inclusions such as Jesus’s Genealogy (Matthew 1:1-17) and the Infant Story (Matthew 1:18-23). The Gospel of Mark or Markan material is plausibly the earliest of the Gospels and an influence to the Lukan and Matthean writings. There are 661 verses in Mark, 606 of those verses appear in Matthew, however Matthew is a simple, easy to read style as compared to that of Mark. Exegesis of Matthew 4:23-25 9:35-38 4:23 Teaching and Preaching: There is a difference in these two acts that Jesus practiced. The teaching term is in reference to all things present, while preaching is things yet to come (Aquinas 1993, 142). By the word of divine power he cured the weaknesses of the body and by the medicine of heavenly teaching, he healed the wounds of the soul (Simonetti 2001, 74). It should be noted that at this stage of Jesus’s ministry, he is directing everything to his own people and only later in his ministry doesShow MoreRelatedThe Gospels Are The Closest Things We Have A Primary Source For The Life Of Jesus1460 Words   |  6 PagesThe four gospels are the closest things we have to a primary source for the life of Jesus. Each one recounts the same story, but with different details and focuses. During my research of the gospels, I noticed that Jesus seemed to be a large advocate of women’s rights for his time period. He changed the laws of divorce to be more equal between the sexes, and treated everyone he met equally, regardless of their gender or ethnic background. Additionally, there are prominent female figures that playedRead MoreGospel of Matthew in the New Testament674 Words   |  3 PagesMatthew is the first Gospel in the New Testament and is often considered to be the bridge between the Old Testament and the New Testament. It was once thought to have been the first written Gospel because of it being placed before all others, but that belief is not widely held (Hahn, n.d.). Just like much of the rest of the Bible, no one is truly sure who the author or authors of the Gospel of Matthew really were (Hahn, n.d.). While is it generally thought that Matthew, one of the Apostles ofRead MoreSimilarities And Differences Between The Synoptic Gospels, And Luke1241 Words   |  5 PagesMark, Matthew, and Luke make up what is known as the Synoptic Gospels. They are called synoptic because it can be easy to see the parallels between them. For that reas on, scholars study them to identify the similarities and differences between the synoptic gospels, and what it informs them about relationship between them. This paper will do a similar task, and will look at passages from Matthew, Mark, and Luke that deal with the baptism of Jesus. The following passages that will be looked at are:Read MoreThe Gospel Of Matthew s Gospel787 Words   |  4 PagesThe Gospel of Matthew historically was thought to be the first Gospel written, followed by the Gospel of St. Mark. Early church historians believed that Matthew was one of the twelve Apostles. Gospel of Matthew according to biblical historians came from the Gospel of Mark. Gospels of Matthew written before the destruction of Temple in Jerusalem in seventy AD. Matthew was a tax collector and as a tax collector considered a sinner by members of the Jewish community. Sinners, because they were uncleanRead MoreExegesis of Luke1212 Words   |  5 PagesThe sinners were considered unclean and profane, yet Jesus is there to be their physician. He is there to pursue the faith in them (Just 96). Historical Analysis The Gospel of Luke was originally written in Koine Greek (McKenzie 525). The intended audience is Greek-speaking, meaning Christianity was an international religion. The Gospels of Luke, Mark and Matthew have many of the same stories, but sometimes in different words or order. One of the problems of these Synoptic Gospels is the synopticRead MoreAnalysis Of The Synoptic Gospels And The Psalms As Prophecy By J. Samuel Subramanian Essay1486 Words   |  6 PagesConceptual Perspective Review the relevant literature available on the topic. Synthesize the literature into a coherent picture of what is known about the topic. Formulate a considered opinion or a perspective on the topic. The final project is the submission an annotated bibliography based upon the above conceptual perspective outlined in the project description for your selected project or paper. An annotated bibliography is a list of the references you will be using to support your perspectiveRead MoreStudy Of The Gospel Of Matthew Essay1729 Words   |  7 PagesSTUDY OF THE GOSPEL OF MATTHEW A No Travel Seminar Introduction: This is a summary of a No Travel Seminar on a Study of the Gospel of Matthew. The seminar was lead by Dr. John Dunaway who is a professor at NTS and has served as a pastor for over 50 years. After his brief self-introduction, he began his presentation with an overview of the Gospel of Matthew, followed by a more elaborated narrative summarizing the gospel, and he finished with brief closing remarks. Throughout this enthusiastic presentationRead MoreExploring Anti-Semitism in the Gospel of Matthew Essay1437 Words   |  6 Pages The issue between the Gospel of Matthew and Judaism is a convoluted one. The picture that emerges when talking about whether Jesus’s teaching is anti-Semitic or not becomes ambivalent and it is not easy to interpret, as Coogan has pointed out, â€Å"Matthew functions as a bridge between the two Testaments . . .†(Coogan, 1746). In the context of Jewish-Christian dialogue, the fundamental question is how much of Judaism’s principles and pra ctices ascribed to Jesus are preserved from traditional JudaismRead MoreAnalysis Of Mark s Poem Mark 1449 Words   |  6 Pagesresurrection of Ja’irus’ daughter. Prior to this encounter, Jesus’ previous experience in a synagogue resulted in the congregation chasing him out of the synagogue in an attempt to assassinate him. Within the Jewish world Jesus’ teachings were probably considered taboo because he emphasized something beyond simply obeying the law. For Ja’irus, a ruler of a synagogue to approach Jesus in desperation provides the reader with an indication that Ja’irus believed in Jesus’ divinity. If Ja’irus had not believedRead MoreThe Infancy Gospel Of James1684 Words   |  7 PagesThe Infancy Gospel of James, otherwise known as the Protoevangelium Gospel of James, begins by introducing part of Mary’s lineage. It informs the reader of Joachim and Anna, Mary’s parents. Joachim is known to be a very rich and generous man with his money, but is prevented from offering gifts to Israel because he has yet to produce offspring for Israel. Joachim decides that he will go into the desert and fast and pray in the effort to receive a message from God about offspring. He is recorded as

Gay Culture As My Study Intercultural Communication

I have chosen the Lesbian, Gay, Bisexual and Transgender culture (LGBT), more specifically, the Gay culture as my study in intercultural communication. My person of contact is a 21-year-old homosexual male by the name of Scott Gardner. Scott identifies himself as gay but more specifically a panromantic homosexual; meaning, he is sexually attracted to men, but romantically attracted to all genders. People all around the world fall victim to violence and inequality – some suffer torture, some even executed – because of who they choose to love, their appearance, or who they are. Our sexual orientation and gender identity are fundamental characteristics of ourselves, and that should never be factors for suffering from abuse or discrimination. Homosexuality is all over the world; coincidentally, so is the inequality and discrimination. According to the, International Lesbian and Gay Association, 75 countries still incriminate same-sexual acts between consenting adults, which is dropped from 92 countries when previously examined in 2006 (ILGA) According to information from national and state-level population based surveys, it estimates between 2.2% to 4.0%, or 5.2 million to 9.5 million individuals ages 18 and older fit within the LGBT spectrum (Gary). Based on the most recent data, the LGBT population has some variance between state to state; however, across the United States the average population of LGTB is 3.5. For example, Washington State has an LGBT density of 4%, RhodeShow MoreRelatedIntercultural Communication Is Important for an Effective Communicator1169 Words   |  5 PagesIntercultural Communication is Important For An Effective Communicator Qianya Zhuo Principle Practice of Human Communication 02/19/2011 In order to be an effective communicator, it is important that people should have a solid understanding of intercultural communication. The term intercultural communication is often used to refer to the wide range of communication issues that inevitably arise within an organization composed of individuals from a variety of religious,Read MoreIntercultural Communication21031 Words   |  85 PagesI. INTERCULTURAL COMMUNICATION. FRAMEWORK ...the single greatest barrier to business success is the one erected by culture. Edward T. Hall and Mildred Reed Hall Why study Intercultural Communication? Cultural diversity and multiculturalism are the realities of everyday life for almost everyone. The growth of interdependence of people and cultures in the global society of the twenty-first century has forced us to pay more attention to intercultural issues. In order to live and functionRead MoreDeaf Culture2444 Words   |  10 Pagesof hearing or have a loss of hearing are classified as deaf. There are many deaf people in the world, it can range from 5 million to 40 million people. The population of people who are deaf is so large, they even have their own Deaf culture or community. The Deaf culture is best defined as a social group of people who consider deafness to be a difference in human experience. Most people believe it’s a disability, but it’s not. It is assumed that if you are deaf you are automatically included into theRead MoreThe Reality Of Reality Television2912 Words   |  12 Pageshome or the date who may be turned down. It’s synonymous with dr ama and pushing people’s buttons. Simply put, viewers enjoy watching other people’s malaise. Mills refers to reality television as humiliation TV since it represents a rise in popular culture in which taking pleasure from others misfortunes is the ultimate aim. Interestingly, the Germans actually have a specific word that describes this particular phenomenon perfectly; it’s called schadenfreude, the pleasure derived by someone from anotherRead MoreYouth, Digital Media and Their Roles in Social Changes5494 Words   |  22 PagesYOUTH, DIGITAL MEDIA AND THEIR ROLES IN SOCIAL CHANGES Idola Perdini Putri Communication Science Program Study – School of Multimedia and Communication Telkom Institute of Management Jalan Telekomunikasi No. 1 – Dayeuh Kolot, Bandung Cell. +6285294258565 / e-mail: idola_perdiniputri@yahoo.com INTRODUCTION New Media And Youth Every day, a story runs in the news media that relates to teenagers and the internet or social networking or digital media. There are many stories –one of themRead MoreAre Women More Emotional Then Men2333 Words   |  10 Pagessure most women have. My reaction was not one of anger or frustration because to some extent I agree that women can be more emotional then men. I thought back to my very first boyfriend when I was in high school and when we broke up how distraught I was. I cried and I didnt eat very well. It was like something inside me shut down. I constantly questioned myself, wondering what I had done wrong to make him leave me. I cried and pleaded with him, but was unsuccessful in my attempts because he saidRead MoreEthical Dilemmas in Multicultural counselling Essay4201 Words   |  17 Pagesthe values of the dominant culture. A decade before (Sue Sue 1990) argued that ethical guidelines are by no means neutral and have at best suppressed diversity and often pathologised the behaviour of minorities. According to (Sue Sue, 1990) this â€Å"westernized† set of ethical values falsely put practitioners’ minds at rest for not advocating for a culturally sensitive ethical thinking that takes into account the perspective of minorities and diverse cultures . These issues become more complexRead MoreLanguage as a Social Construction of Reality.4593 Words   |  19 PagesLanguage and the Social Construction of Reality: Spinning Social Reality with Euphemisms Steve Eliason Montana State University, Billings ABSTRACT This paper describes an exercise I use in my introductory sociology classes that introduces students to language and the social construction of reality process. The Sapir-Whorf hypothesis is widely taught in introductory sociology classes and suggests that we perceive the world in terms of our own language, and that individual languages produce differentRead MoreAn Employers Guide Inclusive Workplace16409 Words   |  66 Pages 5 4.2 Undertake an inclusion review 6 4.3 Create an action plan 10 4.4 Communicate and implement the action plan 38 4.5 Review policies, practices and informal working culture on a regular basis 43 Section 5: How will I know if I’m successful? 44 Section 6: Practical ideas for small businesses 45 Section 7: A success story 51 Section 8: Question and Answers 52 SectionRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesMotivation: From Concepts to Applications 239 3 The Group 9 10 11 12 13 14 15 Foundations of Group Behavior 271 Understanding Work Teams 307 Communication 335 Leadership 367 Power and Politics 411 Conflict and Negotiation 445 Foundations of Organization Structure 479 v vi BRIEF CONTENTS 4 The Organization System 16 Organizational Culture 511 17 Human Resource Policies and Practices 543 18 Organizational Change and Stress Management 577 Appendix A Research in Organizational

Research Question free essay sample

The goal of this short paper is to show, why a clear research question is important for successful research and for a rigorous paper or thesis. In addition it outlines how a research question can be formalized in a sound form. Therefore the first chapter of this paper describes the different kinds of research questions and their characteristic. Chapter three focuses on the development process of a research question and chapter four concentrates on the research questions task and its impact on a research project. We conclude by summarizing how it impacts our thesis. . What is a research question? Generally a research question can be defined as a statement that identifies the phenomenon to be studied (Campbell et. al. , 1982). The research question usually consists of one or two sentences that state precisely what will be confirmed, refuted or generally answered. There are several ways to draw a research question. One possibility is to start from a broad idea and then narrow it down. In such cases, many teachers are led to believe that doing research papers is pointless if not futile. 2. 2 What topics lead to lifting: The most important step to prevent lifting is choosing the research question carefully. When the research question is not well formulated or when the student goes for information that can be found in encyclopedias, lifting becomes inevitable. e. g. â€Å" The History of Prince Islands† With a topic like this, our students are bound to come up with encyclopedic information. A prep school student, who is no expert in history, cannot interpret the history of Prince Islands using the sources he has found. He is going to find some books from the library, visit a few websites, find a few tourist brochures, put them together and write a paper, which is 90% plagiarized. e. g. â€Å"Environmental Pollution in the Mediterranean Region† Again such a topic is dangerous because 1. It is too broad as a topic, 2. It requires expert knowledge to interpret, 3. Our students are not informed enough to put together that kind of information intelligently. Therefore, the result is going to be quoting one or two writers without even acknowledging the sources. e. g. â€Å"The Komodo Monster† (which is my favorite example. ) What can a student do about such a topic apart from consulting some encyclopedias or natural history books? A student of mine presented information in such a way that it looked like he himself had done all the studies in Malaysia jungles, observing the hunting habits of this monstrous lizard. 3. The correct research question: Our students are novices in every way: They are novices in English language and they are also novices in academic life. Therefore, when they are assigned the question â€Å"What is X? † they will go to the library and gather information from whatever source they can find, put it together without putting it through any analytical process of thinking. The correct research question must be formulated so as to produce results that the students have to find out by themselves, or at least that they have to interpret intelligently and with sufficient amount of reasoning. Given their level of academic expertise, students must be pursuing research on topics that they are familiar with, or that they can study safely using their general knowledge plus some amount of reading. (The golden rule of (i+1) where â€Å"i† represents the student’s level of competence or information. ) The reading they do must be of the kind they can analyze and read critically with their level of knowledge and English. e. g. An oral history project to be done with the residents of one of the Prince Islands , for example with the storekeepers in Burgaz Ada , collecting their memories about the Turkish writer Sait Faik Abasiyanik. Prep school students can handle a project of this size and scope, with some reading about the life of S. F. Abasiyanik, studying some oral history interview techniques minimal knowledge of transcribing their interviews making sense of the data they have gathered. e. g. Environmental pollution in YADYOK building or on BU campus. setting the parameters of pollution choosing some unobtrusive methods such as interviewing the personnel in charge of waste removal from the YADYOK building interviewing the faculty secretary and the janitors, for instance, reading some articles for theoretical background reporting the results of their research students may come up with data showing the extent of the pollution we are producing here before our noses. B. Types of research The research project can be of two types Library research Qualitative research There are also quantitative methods of research; however, since our students do not possess the required knowledge of statistics that accompany that kind of research, we should make do with the two types mentioned above. B. 1. Library research: As discussed above library research, or in more modern form the Internet sources, usually takes the form of informative research, that is the student gathers information on a topic. A library or Internet research project should be carefully monitored by the teacher to prevent plagiarizing. A library research paper usually takes the form of the literature review paper. I. Purpose of the literature review paper The purpose of the literature review paper may be: State-of-the-art review: What information exists on the topic? What are the current views/ knowledge/theories/methods in the field? e. g. AIDS: What medical knowledge is there? What are the current methods of treatment? What drugs, medicine are used? What is the epidemiology of the disease? Historical review: This review aims at revealing the history of the development of a topic. e. g. Theories of second language learning from past to present Comparison of perspectives: the focus is on the comparison of theories, or approaches to an issue. e. g. Theories of second language learning compared and contrasted As discussed above, such a research process needs to be carefully monitored by the teacher. Starting from the submission of the research proposal, the teacher should emphasize the importance of student contribution and originality. During the stage of writing the paper, the importance of paraphrasing, summarizing and quoting from the original sources needs to be emphasized. Otherwise, students are bound to produce plagiarized papers. Instead, such literature review may be integrated into the research paper itself. Literature review is an integral part of every research paper, and preliminary reading constitutes the backbone of the research process. From choosing a topic to what method to use, from the interpretation of data to the interpretation of results, the researcher has to refer to data and scientific knowledge accumulated by other researchers in the field.