The Sarbanes-Oxley Act of 2002 Essay Example | Topics and Well Written Essays - 1250 words

The Sarbanes-Oxley Act of 2002 - Essay Example Some scholars have argued that this legislative framework is too intrusive, that corporate fraud ought to be managed through market mechanisms rather than intrusive governmental agencies, and that the Act is more political than helpful (Ribstein, 2005). Other scholars concede the intrusive effects of the Act, but argue instead that the main policy objectives, such as curtailing corporate fraud and improving transparency, are enhanced by the Act (Cunningham, 2003). This essay will argue that, given the nature and the scale of the scandals that have occurred in the absence of such legislation, corporations ought to be compelled to comply with the Act; in order to more fully develop this thesis, this essay will present the type of abuse which led to the legislation, an overview of the main provisions of the Act, and an analysis of the conflicting opinions regarding the efficacy of the Act. In the Enron case, a major employer that was deemed financially stable and a model of sound business practices collapsed suddenly and dramatically. This was a company with billions in annual revenues, well-respected by a broad spectrum of the public, and politically well-connected. Its collapse was subsequently described as the result of deliberate and conscious decisions, by both Enron's management and by its outside accounting firm, to engage in accounting fraud (Fox, 2003). In short, corporate liabilities were understated or hidden and corporate assets were inflated or misrepresented. The public had been lied to, the investors had been lied to, and a great many people were injured when the company was finally forced into bankruptcy. A similar case involved WorldCom, at one time the second most significant long-distance telephone service provider in the United States, which engaged in fraudulent accounting practices in order to misrepresent its true financial condition to banks, c reditors, and other investors (Jeter, 2003). This didn't merely involve creative accounting; quite the contrary, WorldCom entered fictional transactions into its accounting records. When the weakened financial structure could no longer be hidden, the company filed for one of the largest bankruptcy cases in America history. In the final analysis, both of these cases illustrate the types of problems that the Act was designed to minimize. 1.2 An Overview of the Sarbanes-Oxley Act of 2002 As a preliminary matter, the most significant feature of the Act was its creation of a governmental agency to oversee corporate accounting and financial practices. This agency is now known as the Public Company Accounting Oversight Board. The focus is on publicly traded companies, rather than privately held forms of business organization, and the scope of the agency's power is broad. It is vested with rulemaking authority, with disciplinary powers, and with enforcement authority. In short, this agency is possessed of the same powers as the United States government-legislative, judicial, and executive-with respect to the accounting practices of public companies. Thus, it can be argued that the legislation has created a private government for public companies. An examination of the particular provisions of the Act further demonstrates the

Of mice and men dramatically conveys to us the vital importance of dreams in helping us to deal Essay Example for Free

Of mice and men dramatically conveys to us the vital importance of dreams in helping us to deal Essay Of mice and men dramatically conveys to us the vital importance of dreams in helping us to deal; with the often difficult realities of our lives. In this novella by John Steinbeck, some characters had dreams to get them out of difficult realities, their dreams helped them to combat the loneliness and hopelessness of there existence. George Milton and Lenny Small, two poor homeless migrant workers who belonged nowhere and to know one were doomed to a life of wandering and toil, in which they will neve be able to reap the fruits of there labour. The one thing that that kept them strong through this repetitive and useless life was a dream. Someday were gonna get the jack together and were gonna have a little house and a couple of acres an a cow and some pigs (George- pg 14). It was a dream that was shared by every American worker, to have a place of their own, the opportunity to work for themselves and know one to give them orders. For Lenny the dream was very much real, it helped him to cope with the boredom that he faced and he always went to sleep happy thinking about tending the rabbits. For George on the other hand, the dream was at first like a fairytale he told Lenny to bring a smile upon his face and the promise of tending the rabbits helped him to stay out of trouble but all the while he was very optimistic about the dream and felt that there was no way it would become a reality. Georges first views towards the dream were soon changed when Candy found out about what they were planning, he offers financial help and suddenly a new view is seen of the dream. This unexpected offer by Candy means that the dream is no longer a fantasy and finally all the pain and suffering might have payed off for George, Lenny and Candy but the threat to the fulfilment of this dream is ever present in Lennys behaviour and in the end its Lennys uncontrollable actions which finally destroy dream. The dream is constantly changing, at first it was just a story told by George to cheer up Lenny, then in the middle it seemed like it would come true and finally in the end it was apparent that everyones dreams were shattered with Lenny as the only exception, because he dies happy with the picture of the dream in his head. Candy wishes to share in the dream with George and Lenny because he is becoming old and useless like his dog, he has nowhere to go to and now one to care about him and unlike his dog theyre not going to take him out and shoot him, instead there going to put him in an old folks home where he will feel lonely and have no freedom. By joining Lenny and George he can live out his days happy and free, forever safe knowing he wont be canned. Once Candy realises that the dream is more or less a reality he stands up for what he believes in with dignity and courage, something he didnt do before he realised the dream was within reach. Candy realises that he doesnt have to be the useless old cripple anymore because he can live the rest of his life happy, without being told what to do. Candys dream ended in a pessimistic way because all he wanted got destroyed leaving him with nothing and hence left in the same way he was before the dream- old, useless and hanging onto his job by a thread. Crooks dream was to be respected and not judged by his colour, he too wanted to live on the ranch with Candy, George and Lenny. Crooks is an example of the bitterness, anger and hopelessness that a black American struggling to be recognised as a human being is faced with. At first Crooks was most cynical about the dream of owning a ranch but the dream was powerful enough to convince him that it was the real thing for a few moments only to be shattered by Curleys wife who made it clear that there is no way a black, crippled outcast such as himself would ever make such a dream a reality. That statement that Curlys wife made, made Crooks realise that he was nothing more than an outcast and what she said was in a way true, with that all the hopes and dreams of Crooks were crushed. Like Crooks, Curleys wife is stricken with isolation and sadness. She was out of place on the ranch and because of that she was a really lonesome person with lonesome feelings and hence was often desperate for someone to talk to. Throughout the novel Curleys wife stirred up many emotions among the workers of the ranch, such as the way she looked and acted lead other characters in the novel to see her as a tart. Curlys wife indulged in a dream which had already passed her by, leaving her with a life of empty hope. Like many young women, she aspired to stardom in films after being wrongly told that she was a natural. At first she seemed cold hearted and set herself to make trouble but then it became apparent that she was just lonely adn wanted someone to talk to and as Curley was not interested in hearing about her hopes or dreams, the only person she found willing to listen to was Lenny.

Impact Of The Monetary Policies

Impact Of The Monetary Policies Introduction Through a literature review, this chapter aims to explore the impact of the monetary policies and regulations on bank risks and their operations in Zimbabwe. Section 2.1 will give a brief over view of Zimbabwe and Section 2.2 will discuss the Zimbabwean economy. Section 2.3 will outline a background on the rationale of financial regulation through the exploration of the Basle Accord II. In section 2.4, financial regulation in Zimbabwe and its influence to the economy will be examined. An overview of the banking system and the type of risks it is exposed to will be considered in section 2.5. Section 2.6 will explore the Zimbabwean banking system and its major challenges also linking these to the country„Â ¢s financial regulation. In section 2.7 the author discusses Enterprise Risk Management (ERM) which is an integrated and holistic risk management framework that organisations are encouraged to use as a change management strategy for managing risks. Section 2.8 will finally sum marise this chapter. Overview of Zimbabwe Zimbabwe (formerly Rhodesia) is a landlocked country in south-central Africa. It lies between the Zambezi River which in the north and the Limpopo River in the south. Its neighbouring countries are Zambia, South Africa, Mozambique and Botswana. Zimbabwes capital city, Harare, is located in the northeast part of the country (Coltart 2008). Zimbabwe gained its independence from Britain in 1980 after a long armed struggle led by the leading party, Zimbabwe African National Union Patriotic Front known as ZANU-PF, (Makumbe, 2002). It has a population of 13,349,00 people with a gross domestic product that is estimated to have fallen by about 14% in 2008 due to economic disruptions caused by hyperinflation and the further deterioration in the business climate (World Bank 2008). The economy of Zimbabwe Chitiga (2004) contends that agriculture plays a central role in the economic performance of Zimbabwe. The agricultural sector is important to the economy for several reasons (Christiansen 1993).In the 1980s, it was the major employer, employing a total of over 70% of the country„Â ¢s population. The sector continues to be a major employer to this day. In Zimbabwe, droughts continue to be a major problem and raises concern about food security (Chitiga 2004). However despite the ever changing weather patterns affecting the agriculture sector in Zimbabwe, Coltart (2004) notes that agriculture the mainstay of the economy was all but destroyed by the politically expedient and violent land reform program initiated by the ZANU PF government in 2000. Collapse of Zimbabwean economy Coorey et al( 2007) argues that, while the initial output collapse is widely attributed to the chaotic seizure of commercial farms in Zimbabwe which is the backbone of the economy, other factors have also contributed in recent years to the county„Â ¢s collapse which include; 1) high and accelerating inflation of 230 000 000% in 2008, 2) price distortions due to extensive controls and regulation, particularly relating to the exchange rate which is fixed by the Reserve Bank of Zimbabwe (RBZ) at a highly overvalued rate, 3) the collapse of investor confidence due to unpredictable policies and lack of respect for property rights, particularly in agriculture and mining and 4) minimal external financing because of poor relations with creditors and donors and deteriorating economic and social conditions. (Munoz 2006, Dore et al 2008, Hanke 2008) argue that the RBZ„Â ¢s polices such as printing of money, quasi-fiscal activities by the RBZ, have specifically caused the economic instability in Zimbabwe. The consensus amongst these authors is that the country„Â ¢s government policies alongside with the central bank have played a major role in causing hyperinflation which rose to 230 000 000% in 2008. Coltart (2004) highlights that the government is chiefly responsible for an economic meltdown. Muponda (2008) notes that Zimbabwe„Â ¢s inflation was driven higher by the central banks lack of independence from the government. Therefore the banks policies have been primarily dictated by the government. The RBZ has been forced to be financier of first choice and literally print money to fund its the quasi fiscal activities.. The challenges faced by Zimbabwe have been contributed by various factors including, the land reform programme in 2000 (Coorey et al 2007), political unrest in the country which has isolated the country from the global community through sanctions and withdrawal of investments and international business community. Research by Cukierman (2001) and the IMF (1996) suggest that countries accorded greater autonomy to their central banks also experienced lower average inflation whilst those economies where there is no central bank independence have higher inflation rates. The influence of the government on the RBZ has resulted in the bank implementing unorthodox monetary practices such as printing of money which has fuelled hyperinflation. Hanke (2008) refers to hyperinflation as the hallmark of Zimbabwe„Â ¢s economic collapse. The state of the Zimbabwean economy has undergone, major changes with major economic and political reforms implemented by government officials to restore the economic soundness of the country in the year 2009. There is the use of multi currencies in the country as the economy was officially dollarized by the central bank in February 2009 resulting in the removal of the local currency (RBZ 2009). Since the adoption of multiple currencies, deposits into the banking system have grown to US$705.7 million by 3 June 2000 (Government of Zimbabwe 2009). Already, the economy is on a recovery path as reflected by macro-economic stability, inflation reduction, enhanced capacity utilisation, resulting in improved supply of goods and services as well as overall growing business confidence (Biti 2009). Financial Regulation Effective regulation is of fundamental importance for the economic performance of any sector in the economy to address market failure (Jalilian et al 2003). The mishaps and failure of large corporate institutions in the financial sector have caught the attention of regulators, who have taken a more stringent regulatory approach in the financial sector. In recent years, a number of financial crises have brought about a large number of bank failures (Casu et al 2006), such as Barings Bank in 1995 and Northern Rock in 2007. Likewise the banking crises in the early 1980s and early 1990s have shown that banks experience problems which create a potential threat to depositors, investors and the safety of the industry with unpleasant consequences for the economy as a whole (Caprio and Klingebiel 2003). Financial regulation focuses on the factors that are essential to the stability and well being of the financial sector (Stewart 2001). The susceptibility of banks to contagion creates systemic risk which is the risk that disturbances in a financial institution or market will spread across the financial system (Heffernan 2005). It is the role of the central bank to implement measures to shield the country„Â ¢s economy from being affected by the results of the crises. Stiglitz (2000) contends that the aim of regulators is to minimise the possibility of a breakdown in the financial sector and prevent any adverse effects on the long term growth rate in the economy. In some instances government have had to rescue banks to avoid the crises from spreading to other banks and affecting depositors as well.. Restrictions on bank activities, risk adjusted minimum capital requirement, direct intervention of managers decisions are three basic devices that can be applied by regulators to control bank risks (Fenandez and Gonzalez 2005). Minimum capital requirements Various authors (Besanko and Kanatas 1996, Calem and Rob 1999) however argue that regulations such as minimum capital requirements are likely to increase the risk taking behaviour of banks. According to Kendall (1992) higher capital requirements may cause riskier bank behaviour at some point in time, although it does not necessarily imply a trend towards a riskier banking system. Beatty and Gron (2001) indicate that capital regulatory variables have significant effects for low-capital banks but not necessarily for other banks. Studies by Barth et al. (2004) also indicate that while more stringent capital requirements are associated with fewer non performing loans, capital stringency is not robustly linked with banking crises or bank development or efficiency when controlling for other supervisory and regulatory policies. Bank Regulations Bank authorities regularly attempt to promote bank soundness by imposing restrictions on banks activities (Constantin et al, 2006). In their research, Constantin et al (2006) found that restricting bank activities is negatively associated with bank development and stability. Barth et al. (2001) found that greater regulatory restrictions on bank activities are associated with higher probability of suffering a major banking crisis, and lower banking sector efficiency. Lascelles (2005) adds that a survey conducted by Pricewaterhouse Coopers found that excessive regulation was seen as the greatest risk facing the financial sector. However in contrast to this, Fernandez and Gonzalez (2005) indicate that stricter restrictions on bank activities are effective at reducing banking risk. It would appear overall that restrictions on banking activities forms as a basis of ensuring that banks do not divert from their core business and conduct sound banking practices. Basle Accord It is because of problems such as the financial crises that the Basle Accord II emphasises on the supervisory role of the regulator. In June 1999, the Basle Committee on Banking Supervision made its long anticipated announcement to introduce a new capital accord to introduce a new capital adequacy framework to replace the 1988 Accord (Ong 2005). This framework was then finalised in June 2004. Cai and Wheale (2007) note that this framework is designed to improve risk management by using models based on past performance to help set the amount of capital banks are required to hold by regulators with the purpose of improving the efficiency of the global allocation of capital. Efforts were made to initiate the new Accord as the first accord of 1988 was highly criticised for its shortcomings. risk. The new accord seeks to overcome the problems of the 1988 framework focusing on three pillars (Basel Committee 2005). Pillar 1 sets out the minimum regulatory capital requirement that is the amount of capital banks must hold against risks. This is intended to cover market risk, credit risk and operational risk. Pillar 2 defines the process for supervisory review of an institutions risk management framework and, ultimately, its capital adequacy. This pillar points out responsibilities for the board and senior management, emphasising on internal control corporate governance practices established by regulatory bodies in various countries worldwide. Sironi and Zazzara (2003) argue that this pillar gives regulators the right to inspect and supervise the activities of banks to ensure that they are adhering to the requirements of the framework Pillar 3 focuses on market discipline. In order to improve the transparency of banks to counterparties and investors, banks will be required to disclose detailed information on their risk profile and capital adequacy (Gordy and Howells 2006). The benefits of the Basle II are noted in the three pillars, as there will be enhanced disclosure, transparency and this will improve on banks risk management processes. Cai and Wheale (2005), site that banks will need to collect and disclose new information and face the implications of increased transparency. Cai and Wheale (2005) add that more information will help enable banks to improve overall risk management which in turn is expected to prompt improvements in corporate governance, transparency and the value of disclosure. Ong (2005), supports this and says that Basle II is very important and it is about improving risk management within the financial industry by providing the correct incentives for better corporate governance and fostering greater transparency. The Basle accord on the other hand is criticised for some of its shortfalls. For example the fact that the costs of Basle II are significantly high in terms of implementation and continuing basis in the long run (Gordon 2004). Banks lose their flexibility, innovation and development are interrupted. Due to the fact that limited resources are available, many risk managers will spend a long period of time on interpreting regulations, implementing the solutions and then justifying the output to supervisors (Smith and Walter 2003). Hence little time will be available for innovation and development. The compliance with laws and regulations is not able to help banks avoiding all risks. Zimbabwean Financial Regulation The Reserve Bank of Zimbabwe is responsible for the formulation; implementation and monitoring of the monetary policy directed at ensuring low and stable inflation levels (Reserve Bank Act). The RBZ does not, however have the operational independence in carrying out this responsibility, as it is required by statute to consult the Ministry of Finance (Dore 2008). This has resulted in the RBZ operating from the executive arm of the government instead of adhering to a binding legal mandate (World Bank 2007). Bade and Parkin (1982) note that political independence is defined essentially as the ability of the central bank to select its policy objectives without the influence from the government. A central bank is said to be independent of its monetary policy if it is not influenced by political cycles or by the preferences of politicians (Eljffinger and de Haan 1996). The RBZ„Â ¢s policies have been influenced by Zimbabwean political authorities therefore the bank has been lacking central bank independence. Another core function of the RBZ is to maintain stable banking system through its supervision and lender of last resort functions. Post 2003 monetary polices and regulation The turning point in Zimbabwean financial services sector was marked by the appointment of the new central bank governor in 2003. During this period the governor issued a monetary policy and financial regulations which sought to minimise non-core banking activities practiced by banking institutions (Dore 2008). The other objectives were to instil market discipline and improve corporate governance and risk management systems. As a result of the RBZ„Â ¢s severe supervisory efforts, various banking institutions experienced liquidity and solvency challenges. Consequently, nine financial institutions were placed under curatorship whilst 3 were liquidated. Banks currently face risk management challenges, economic and political uncertainties and new regulatory requirements emanating from the RBZ regulations and unstable political environment (Muponda 2008). The RBZ governor, notes in the 2009 monetary policy (Government of Zimbabwe 2009) that prior to 2003, an adverse macroeconomic environment, weak supervisory approaches, and regulatory forbearance gave rise to a number of fundamental flaws in the operations of banks. These included; 1) a shift from core banking business to speculative transactions, 2) abuse of bank holding company structures to evade regulation, 3) poor corporate governance, risk management practices and insider dealing, 4) rapid local and regional expansion with no proper internal controls, and adequate capacity and 5) disregard of prudential laws and regulations. Smith and Walter (2003) suggest that the fundamental objective of regulators is to develop frameworks and guidelines that will further strengthen the stability of banking system. This objective is achieved in promoting the adoption of these frameworks in banks. To enhance the supervisory process, the RBZ has developed and issued guidelines for the banking s ector in order to address operational and structural deficiencies prevailing in the financial sector, (Government of Zimbabwe 2009). These guidelines are shown below in table 1. Basel II implementation The Basel II implementation in Zimbabwean banking industry is still in its preliminary stages. A survey by Ernest and Young in 2005 (Lescellos 2005) shows that many banks in developed countries have come up with implementation programmes of Basle II whilst in developing countries implementation is still at the initial stages. This survey is confirmed by evidence of the current implementation status in Zimbabwe. The current guidelines setup by regulators in Zimbabwe is that all banking institutions must fully adopt standardised approaches for allocation of capital for risk (credit, market and operational). However a technical guidance on Basle II implementation in Zimbabwe will be issued in due course to provide a road map and expert guidance on full Basle II implementation in the country, (Monetary Policy 2009).This shows how slow the progress has been in the full implementation of the framework in Zimbabwe, and could be the cause of the major problems faced by country„Â ¢s th e banking industry. Cai and Wheale (2005) however report that awareness and preparation for Basel II in the emerging markets and developing countries has increased significantly over the past two years. Banking Sector It is widely accepted that the banking system has a unique position in the national economy (Heffernan 2005). A banking system that is able to operate efficiently is of crucial importance to any economy (Quagliariello 2002). The banking system must not only be efficient in carrying its role as an intermediary in the financial market but it must also be economically robust to withstand adverse shocks such as a major policy change to economic downturn. Traditional functions of banks include lending money to borrowers and taking deposits. They play a financial intermediary role of providing loans to borrowers and collecting deposits from savers (Casu et al, 2006). Poorly operating banking systems can impede economic growth, intensify poverty and destabilise the economy. These poor operations can be due to banks with inadequate risk management processes (Stiglitz 2000). Banking Risks The nature of banking activities eposes banks to the following risks Due to the nature of banking activities, they are exposed to various risks. These credit risk, market risk, liquidity risk, operational and foreign exchange risk. Credit risk The Basle Committee on Banking Supervision (2000) define credit risk as the potential that a borrower or counterparty will fail to meet its obligations in accordance with greater terms. Credit risk is associated with the traditional lending activity of banks and it is simply described as the risk of a loan being repaid in part or full (Casu et al, 2006). Liquidity risk This is the possibility that a bank will be unable to meet its liquid liabilities because of unexpected withdrawals of deposits. An unexpected liquidity shortage means that the bank is not only unable to meet its liability obligations but also unable to fund its illiquid asset (Matthews and Thompson 2008) Interest rate risk Financial intermediaries are potentially exposed to interest rate risk because of the mismatch between the maturity, or time to repricing of their assets and liabilities (Faff and Howard, 1999). The interest rate sensitivity exhibited by a financial institution will depend, in part, on the approach which its management adopts to controlling risk. Operational risk The Basel Committee on Banking Supervision in 2003, recommended the correct determination of the risks to which a banking organization is subject. This concerns, in particular, operational risks, which are all those management events that may determine unexpected losses (Cornalba and Guidici 2005). The New Basle Accord (2000) defines operational risks as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events (such as political and economic factors), including legal risk but not strategic and reputation risk. Market risk According to Matthews and Thompson (2008), market risk is the possibility of loss over a given period of time related to uncertain movement in market risk factors such as interest rates, currencies equities and commodities. Foreign exchange risk Exchange rates may change rapidly which exposes firms to foreign exchange rate risk, which is the risk that losses may arise from rises or falls in the value of a currency in terms of the domestic currency. Eichenbam and Evans (1995) suggest that there is a link between monetary policies and foreign exchange rates. Contractionary shocks to monetary policies are followed by sharp persistent increases in exchange rates, which ultimately results in foreign exchange rate risk. Other risks that affect banks include strategic, regulatory and legal and compliance risk There is a clear sense that risk exposure of the financial system has increased by changes that have taken place (Hellwig 1995). Casu et al (2006) notes that changes such as deregulation, conglomeration, and globalisation have posed serious risk challenges. Calomiris and Maso (2003) emphasise that the risk taking behaviour of banks affects financial and economic fragility. In turn regulators have undertaken greater efforts of regulation to impose new risk management standards to shape bank risk (Elsinger et al 2002). In compliance to this banks have improved their risk management systems. Examples of other regulatory reforms advocating for risk management frameworks are the Sarbanes Oxely Act of 2002, the Basle Accord II and the Committee of Sponsoring Organisations of the Treadway Commissions (COSO) Enterprise Risk Management of 2004. Zimbabwe banking sector The Zimbabwe financial sector consists of the Reserve bank, discount houses, commercial banks, merchant banks, finance houses, building societies, a development bank and the Post office savings bank, insurance companies, pension funds and a stock exchange, (Dore 2008). There are currently twenty-eight banking institutions in Zimbabwe,fifteen commercial banks, six merchant banks, three discount houses,4 discount houses and one development bank. All banks are licensed by the RBZ and regulated under the Zimbabwe Banking Act of 1999. Zimbabwe„Â ¢s financial services sector has witnessed phenomenal growth since economic deregulation in 1991 (Muranda 2006). During the period of 1991 to 2003 new domestic banks entered, financial sector. New Innovations and development have been witnessed with the introduction of new products and services within the sector. Table 1.2 below shows the banking sectors growth trend from 19992 to 2004 of financial. However the banking sector has been gripped with many challenges, which began to surface during the period of the land seizures in 2000. These policies created extremely difficult economic and political challenges for the banking industry. The IMF (2006) argues that events in the banking sector have been concurrently influenced by political factors.. The situation was heightened in 2003 by the new regulations set by the appointed RBZ governor. It was reported by Voice of America (2004) that at least six of Zimbabwe„Â ¢s new commercial banks are were in trouble. It linked this distress to the governments new monetary policy announced in December 2003, in which the central bank vowed to stop speculation in the Zimbabwe dollar and related instruments. Biti (2009) in the Zimbabwean fiscal policy points out that between 2000 and 2008, the financial sector has severely been undermined by inconsistent macro-economic policies, negative real interest rates, massive capital flight and erosion of deposits. Overall, the financial sectors balance sheets were reduced to less than 25% of their 2004 value, reflecting an erosion of the real value of financial assets and liabilities in Zimbabwe dollars (World Bank 2005). In order to remain afloat, most banks have had to downsize their operations by closing some branches, especially those in the outlying service centres, leaving about 65% of the population without access to banking services. The rural areas were particularly affected by this. Factors that have influenced liquidity risks include frequent ad hoc changes in interest rates by the RBZ, lengthening of maturity of treasury bills at highly negative interest rates (IMF 2008). Foreign exchange risk in the banking sector has increased becau se of the dominance of foreign currency transactions (Hanke 2008). Dhiwayo (2004) reports that, prior to the introduction of the new monetary policy in December 2003, the Zimbabwean banking sector was characterised by poor corporate governance and risk management systems, high levels of insider abuse through assessed loans to related parties (often relatives and friends), overindulgence in speculative non-core banking activities, inadequate capitalisation, lax prudential supervision and regulatory forbearance. This report highlights that three financial institutions were placed under liquidation whilst nine were placed under the administration of a curator. In light of this the central bank adopted a framework known as the Troubled Bank Resolution Framework (RBZ 2004) to effectively deal with banks experiencing problems. They key objectives of this framework were to: 1) restore stability of the financial sector, 2) strengthen the banking system and promote sound banking practices, 3) develop permanent solutions for troubled banking institutions and 4) promote economic development and growth.The Zimbabwe Allied Banking group was formed in 2005 which was amalgamation of the some of the troubled banks. Dollarisation of the economy Over the years the financial sector has been experiencing various challenges such as, cash shortage, foreign currency black markets, abolition of notes and coins and the use of bearer cheques, loss of confidence in the banking system by depositors and the most influential factor which is inflation. Many depositors have lost their savings. Prior to 2009, the Zimbabwean economy had been unofficially dollarised. Unofficial dollarisation occurs when people hold much of their financial wealth in foreign assets even though foreign currency is not a legal tender. It can include the holding of foreign bonds and other non-monetary assets, foreign-currency deposits (either abroad or domestically), and foreign notes (paper money) in wallets, under mattresses, and in safe-deposit boxes, (Hanke, 2008). However in the January 2009 monetary policy, the RBZ governor approved that all sectors in the economy can operate in foreign currency and that lending will be two tier, that is in local currency and foreign currency. Dollarisation has the effect of moderating the adverse effects of inflation on financial intermediaries„Â ¢ balance sheets (Ize et al 2004). This It could be argued that this two tier market system exposes banks to credit risk (in the form of settlement risk and default risk). Minimum capital requirements A capital verification exercise conducted by the Reserve Bank in January 2009 indicated that of the twenty eight (28) banking institutions operating in the country, fifteen were found to be in compliance with the minimum capital requirements whilst three are marginally below, with the remaining ten being undercapitalised. Capital regulation is motivated principally by the concerns that a bank may hold less capital than is socially optimal to its riskiness and negative externalties (Rime 2001). Chiuri et al (2002) considers that the enforcement of capital requirements has had a negative effect on the supply of bank loan over a period of time and the effect tends to be stronger for initially less capitalised banks. The adverse impact of more stringent minimum capital requirements has been somewhat smaller on foreign owned banks than it has on domestic banks (Clarke et al 1999). Enterprise Risk Management A recent trend in risk management has been the development of an integrated, enterprise wide approach to assessing the business risks that can impact an organisation to achieve its objectives and to develop programmes for managing those risks (Miccolis et al 2001). In contrast to the traditional silo approach to managing risk, the ERM approach requires that a company-wide approach be taken in identifying, assessing, and managing risk, (Liebenberg and Hoyt, 2003). ERM enables firms to benefit from an integrated approach to managing risk that shifts the focus of the risk management function from primarily defensive to increasingly offensive and strategic (Bies 2004). Various risk management bodies have been influenced by the proposals of ERM.COSO (2004), defines ERM as: A process, effected by an entitys board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives. The common method of risk management has been known to treat risks separately. Under this approach according to Lam (1997), Cumming and Hirtle (2001), various categories of risk are managed separately in individual risk silos. Liebenberg and Hoyt, (2003) also criticise the traditional risk management approach as a highly disaggregated method of managing firm risks. An enterprise-wide approach to risk management treats each of these risk classes as part of the firms overall risk portfolio that is managed holistically. Kleffner et al (2003) observes that financial institutions often manage risks in individual risk silos. To manage risk on an enterprise wide basis, banks must expand their focus beyond traditional concepts to include economic and political factors along with risks related to reputation, ethics and data integrity (Pricewaterhouse Coopers 2002). It is therefore important in this research to examine how banks have adopted their risk management framework having considered political and economic factors affecting Zimbabwean bank s. Although ERM is increasing, not as many institutions have implemented it (Walker et al 2002). This may be due to lack of knowledge on its benefits, lack of commitment from board of directors, lack of experienced and qualified risk personnel , a corporate culture that discourages ERM and inadequate systems and technology (COSO 2004). Lam (2007) encourages banks to adopt an ERM programme regardless of their level of sophistication in risk management. He identifies three reasons why banks should adopt ERM: 1.) banks face complex risks that are highly interdependent, and an ERM framework enables a bank to manage all major risks and their interdependencies, 2) an ERM framework provides the overall architecture for a banks risk management programme and 3) empirical research and industry surveys have indicated that there are clear business benefits for adopting an ERM programme. Liebenberg and Hoyt, (2003) observe that ERM benefits firms by decreasing earnings and stock-price volatility, reducing external capital costs, increasing capital efficiency, and creating synergies between different risk management activities. It would appear that ERM helps an organisation to function as a whole or one system as various units dependant on each other. This enables risk management to be implemented fully as risks are consolidated and not treated separately. Influencers of ERM The trend toward the adoption of ERM programs is usually attributed to a combination of external and internal factors. The major exter

Direct and Indirect Representation :: essays research papers

Direct and Indirect Representation   Ã‚  Ã‚  Ã‚  Ã‚  Living in a democratic society, we as Americans have the right to vote on just about all aspects of our lives. The votes that we cast either have a direct or an indirect representation of our beliefs. In cases such as city and statewide laws, our beliefs are directly represented; in all national and organizational matters our votes have an indirect impact. The decisions are made by elected officials who we vote into office to represent our beliefs. One example of this indirect representation can be found in any citywide school board where the elected members make decisions on everything ranging from teacher employment to class curriculum. It is debatable whether, on situations as sensitive as class curriculum, we should be directly involved in such decisions or have them made for us by our elected officials. As we will find, however, class curriculum is something that must continue to be an indirect representation of the public’s beliefs, rather than the di rect result of a democratic vote. The people we have voted onto the school board were elected because they have the education and experience to make the decisions that the public is not qualified to make. They try, to the best of their abilities, to represent us with their decisions, but no matter what there will always be people who are not satisfied. In some instances the school board must make a decision which the majority of people will not agree with, but nonetheless will benefit our children. Our representatives have done the research and the public has not, which is why the public should not make judgement calls on the importance and relevance of certain materials and subjects within our school systems. An example of what happens when the public is allowed to decide can be found in the case of evolution vs. creationism. Some states have, in the past, outlawed the teaching of evolution because the public didn’t agree with it, even though almost all scientists had accepted it. The children in school at th at time were deprived of important information. There is no reason why a scientifically recognized subject should be banned from schools simply because the public doesn’t â€Å"agree† with it. Our society is obligated to keep our citizens informed. A direct vote on class curriculum only perpetuates the older generation’s perspective, as their children grow up to take their place.

Island of the Sequined Love Nun Chapter 62~64

62 Like Clockwork Spies Malink found the old cannibal in a small clearing in the jungle, urinating on a young banana tree. â€Å"I brought you food.† Malink dropped the basket and sat down under a tree. Sarapul seemed to be taking a long time at his task. â€Å"Sometimes it's hard,† Malink said. â€Å"Sometimes I can't go at all,† Sarapul said. â€Å"It hurts.† He shuddered and turned around with a grin, smoothing down his thu. â€Å"But not today.† He sat down next to Malink and reached into the basket for a hunk of fish. â€Å"I heard the music last night,† Sarapul said. â€Å"The white bitch comes more often now.† He offered Malink a piece of fish and the chief took it. â€Å"There are three chosen in only ten days. I think they won't come back sometimes. Vincent says that she is not the Sky Priestess. The pilot said she will kill us.† â€Å"Then we must fight.† â€Å"Knives against guns? You remember the war.† â€Å"I remember. Come.† He got up and led Malink through the underbrush to a hollow log. He reached in and pulled out a long bundle wrapped in oiled sharkskin. â€Å"A man must take the strength of his enemies. If he cannot eat him and take his strength, he must take his weapon.† Sarapul unwrapped the bundle to reveal a World War II vintage Japanese bolt-action rifle. He had obviously been visiting this spot because the rifle was covered with a thin coat of fish oil and gleamed like new. â€Å"I cut off his head and took his gun.† Malink remembered the wrath of the Japanese on his people after the solider disappeared. â€Å"You did that? You were the one?† â€Å"It was a long time ago,† Sarapul said. He reached into the bundle again and pulled out three shining cartridges. â€Å"But I saved these.† â€Å"They have machine guns,† Malink said. â€Å"She doesn't.† The call came a little after midnight. Tuck had slept since he got to the hotel, stuffing toilet paper in his ears to block out the noise of the television and Sepie talking back to it. â€Å"Take a cab to general aviation at the airport,† Jake said. â€Å"The hangar you want says Island Adventures on the side. I'll be waiting.† Tuck climbed out of bed and turned off the television. â€Å"Hey,† Sepie said. She was sitting cross-legged on the floor about a foot from the screen. Tuck crouched and took her face in his hands. â€Å"Tomorrow at six you take the tickets and go downstairs. Tell the man at the desk you want to go to the airport. The bus will take you.† â€Å"I know this,† she said. â€Å"Just listen. A tall man with long hair will be there.† â€Å"Right. Jake,† Sepie said. â€Å"I know this.† â€Å"If he's not there, go to one of the men in the blue hats and tell him you need help getting on your plane. He'll help you. When you get to Houston, go into the airport and call this number. Tell the woman who answers that I told you to call. She'll help you.† â€Å"And you will come and get me soon, right?† â€Å"I'll try.† â€Å"What about Roberto?† They hadn't seen the fruit bat since the mascara bombing. â€Å"Roberto will be fine. He'll live here, but I have to go.† He kissed her on the forehead and before he could pull away she wrapped her arms around his neck and kissed him on the lips so hard he thought he might have cut his lip. â€Å"You come get me.† â€Å"I will.† He stood and went out the door. A few seconds later he heard Sepie call to him from down the hall. â€Å"Hey!† Tuck turned. â€Å"How come you don't try to sex me?† â€Å"I will.† â€Å"Okay,† she said, and she went back into the room. Jake was waiting for him at the Island Adventures hangar. A Hughes 500 helicopter with its doors removed sat on a pad by the hangar. â€Å"I rented it for an hour. I fuck it up and we owe Mary Jean five grand for the deposit.† Tuck looked at the helicopter sitting on the pad like a huge black dragonfly and he began to get a very bad feeling. â€Å"You don't want me to do what I think you want me to do, do you?† â€Å"I'll put the skid right over the hatch. You just step out of one aircraft onto another. No problem. It can't be half as bad as what I had to do to get the hatch left open.† Tuck began to protest, but Jake was already walking to the helicopter. Tuck climbed into the helicopter and slipped on the headset. Jake threw the switches and the turbine began to whine. In a few seconds the blades slowly began to rotate. Tuck keyed the intercom mike on his headset so Jake could hear him over the blades. â€Å"You'll never get past the tower.† â€Å"I've done it before,† Jake said. â€Å"I had to repo a Jet Ranger for a guy once.† â€Å"They'll never clear you.† â€Å"There's no traffic. Besides, you think they're going to clear you? It's Captain Midnight's rock ‘n' roll express from here on out, big guy.† Jake pulled the collective lever by the side of his seat and the helicopter lifted into the air. Within seconds, Tuck heard the tower jabbering over the radio, warning the Hughes 500 to wait for clearance. Jake brought the helicopter up just high enough to clear the top of the hangar and flew in a low wide circle around the airport, then began his own jabber. â€Å"Honolulu Tower, this is Helicopter One, approaching from the west on Runway Two. I have a problem with my tail rotor. Requesting emergency landing.† The tower came back: â€Å"Helicopter One, didn't you just take off without clearance?† â€Å"Negative, Tower. I'm in from Maui. Request emergency clearance.† Of course, Tuck thought. Jake flew the circle below the radar and without the running lights. They have no idea whether this is the same helicopter that just took off. Jake sent the helicopter into a horizontal spin that moved it closer to the planes by the hangars with every rotation, just as it moved Tuck closer to throwing up. Jake stopped the spin for a second and nodded toward a United 747. â€Å"That's your baby. Get out of your harness and get ready. They won't know you're there. Get inside and wait two hours before you start your taxi. I don't want them to connect the helicopter with the jet. By the way, how're you going to get your natives on board?† â€Å"They've got ladders,† Tuck said. â€Å"I hope.† Tuck hung his headset behind the seat and unsnapped his harness just as Jake resumed his spin. Tuck grabbed on to the seat to keep from being thrown out the open door. What looked like an out-of-control aircraft was, in fact, a pretty elementary move called a pedal turn. Tuck found no comfort in that knowledge as he watched the tarmac spin below. Jake pulled the helicopter up just in time to miss the tail of the 747, then leveled it off and crept forward along the length of the huge aircraft. The tail would obscure the view from the tower. â€Å"You ready?† he shouted. Tuck shook his head violently. He could see the line of the hatch he was supposed to go through. He stepped out on the skid. Jake brought the helicopter down and the skid touched the top of the jet. â€Å"Now!† Tuck stepped off onto the plane and ducked instinctively below the blades. He looked back at Jake, shrugged, and shouted, â€Å"That was easy.† â€Å"I told you,† Jake shouted. He pulled the helicopter into the sky and started his spin toward the Island Adventures pad. Tuck got on his knees, dug his fingers into the seal around the hatch, and pulled it open. He jumped into the dark plane, sealed the hatch behind him, then sat in the pilot's seat and began to study the controls. He clicked on the nav computer and punched in the longitude and latitude for Alualu, which he knew by heart, then pulled a piece of paper from his pocket and put in the coordinates for his second destination. He put on a headset and turned on the radios. The frequency was already set for the Honolulu tower. Jake was receiving the official FAA ass-chewing of the century, but there wasn't a word about anyone dropping to the top of a United jet. He had just taken off the headset to settle down for the wait when he heard a scratching sound outside the escape hatch. He opened it and Roberto plopped inside. 63 No Frills The Sky Priestess was drunk. She and the Sorcerer had made two million dollars in the last ten days and she couldn't even buy a pair of shoes. The new pilot, Nomura, was a heavily tattooed, taciturn prick who spoke marginal English and looked at her like he'd rape her in a second, not for the pleasure of the violence, but to put her in her place. Since his arrival, even the ninjas had started to get cocky, joking in Japanese and laughing raucously when her back was turned. Even the Shark People seemed to be losing their fear of her. The last time she had appeared to them the children were left in the village. So the Sky Priestess was watching television in a torn T-shirt and some sweatpants and she was drunk. The intercom beeped and she let it. If it hadn't run on batteries, she would have unplugged it. Instead, she threw it through the french doors, where it beeped the beach for two more minutes, then stopped. The next time she saw it Sebastian was standing in the door holding it like a prosecutor exhibiting a murder weapon to the jury. â€Å"I suppose you think this is funny.† â€Å"Not particularly. Now if it had hit you in the head, that would be funny.† â€Å"We have an order, Beth. A Kidney.† â€Å"Oh, good. I'm in great shape to assist a surgery. Let's do both kidneys. Give the buyer a bonus. What do you say?† She sloshed her tumbler of vodka. Sebastian picked up the empty Absolut bottle from the end table. â€Å"This isn't going to work, Beth. You can't appear as the Sky Priestess like that.† He seemed more afraid than angry. â€Å"You are absolutely correct, ‘Bastian. The goddess has taken the night off.† Sebastian paced back and forth in front of her, rubbing his chin. â€Å"We could stall. We could put you on some oxygen and amphetamines and you could be ready in an hour.† She laughed. â€Å"And ruin this buzz? I don't think so. Tell them to find another source for this one.† He shook his head. â€Å"I don't think I can do that. Nomura's been on the phone with them. He told them we could deliver in six hours.† She hissed. â€Å"Nomura's a fucking grunt. He does what we say. This is our operation.† â€Å"I'm not so sure, Beth. I really don't want to tell him no. Please take a shower and make some coffee. I'll be back in a minute with an oxygen cylinder.† â€Å"No, ‘Bastian,† she whined. â€Å"I don't want to spend six hours in a plane with that asshole.† â€Å"You won't have to, Beth. They've requested that we send him alone this time.† She sat up. â€Å"Alone? Who's going to watch him?† Suddenly she felt very sober. â€Å"No one needs to watch him, Beth. He works for them, remember? You were right. We shouldn't have gotten a pilot from them.† An hour and forty minutes after he dropped through the hatch, Tuck started the procedure to power up the 747. He'd never actually flown anything this big – or anything nearly this big – but he had done twenty hours in a simulator in Dallas and only crashed twice. All planes fly the same, he told himself and he started the first engine. Once it had spooled up, he had the power to start the other three. He put on the headset and looked out the side window to make sure he had room to turn the plane and taxi it to the runway. As soon as it started moving, the tower began to chatter, trying first to get him to identify himself, then to stop. Roberto, who was hanging from the straps on the flight officer's seat beside Tuck, barked twice and let loose a high-pitched squeal. â€Å"You're cookin' with gas, buddy,† came over the radio. Jake was close enough to see the big jet. â€Å"Where are you, Jake?† â€Å"Out of the way, buddy, but thanks for using my name on the radio. Just thought you ought to know that you're going to need fifty-one hundred feet of runway to get that thing off the ground at your destination – and that's with full flaps, so save your fuel now. You'd better tell them what you're doing unless you've got collision insurance on that thing.† Tuck keyed the mike button on the steering yoke. â€Å"Honolulu Tower, this is United Flight One requesting immediate clearance for emergency takeoff on Runway Two.† â€Å"There's no such thing as an emergency takeoff,† the controller said. Tuck could tell he was close to losing it. â€Å"Well, Tower, I'm taking off on Two, and if you've got anything headed that way, I'd say you've got an emergency on your hands, wouldn't you?† The tower guy was almost screaming now. â€Å"Negative on the clearance! Clearance denied, United jet. Return to the terminal. We have no flight plan for a United Flight One.† â€Å"Tower, United Flight One requesting you chill and be a professional about this. Clear to ten thousand. I am starting my takeoff.† â€Å"Negative, negative. Identify yourself†¦Ã¢â‚¬  â€Å"This is Captain Roberto T. Fruitbat signing off, Honolulu Tower.† Tuck clicked off the radio, pushed the throttles up, and watched the jet exhaust pressure gauges. When they got to 80 percent of maximum thrust, he re-leased the ground brakes and one hundred and seventy thousand pounds of aircraft rolled down the runway and swept into the sky. At ten thousand feet he began his turn toward Alualu. The fighters joined him a hundred miles north of Guam. Evidently, they had found out that United did not employ a Captain Fruitbat. One of the F-18 fighters came in close and Tuck waved to him. The pilot signaled for Tuck to put on his headset. Why not? Tuck assumed they would be broadcasting across a number of frequencies. â€Å"Yo, good morning, gents,† Tuck said. â€Å"United 747, change your course and land at Guam Airport or we will force you down.† Tuck looked out the window at the sidewinder air to air missiles hanging menacingly under the wings of the fighter. â€Å"And how, exactly, do you propose to do that, gentlemen?† â€Å"Repeat, change your course and land in Guam immediately or we will force you down.† â€Å"That would be fine,† Tuck said. â€Å"Go ahead, force me and my hundred and fifteen passengers down.† Tuck let off the mike button and turned to Roberto. â€Å"Okay, you go in the back and pretend to be a hundred and fifteen people.† As Tuck had calculated, the fighters backed off while they waited for instructions. They were not about to shoot down an American passenger jet without very specific orders, whether it was stolen or not. He believed his biggest advantage was that the FAA and United would insist that no one could steal a 747. That sort of thing just didn't happen. Nice of them to give him an escort, though. He punched some buttons and the nav computer told him he was only half an hour from Alualu. He started his descent. He checked the position of the fighters and hit the mike button. â€Å"This is the UFO calling the F-18s.† â€Å"Go ahead, United.† â€Å"Are you guys both listening?† â€Å"Go ahead.† Tuck affected a singsong teasing tone: â€Å"Neener, neener, neener, you can't get me.† Then he locked the microphone in the on position and began singing an off-key version of â€Å"Fly Me to the Moon.† Malink, I hope you built those ladders, he thought. Malink had been awakened early by the Sorcerer's jet taking off and he was on his way to the beach for his morning bowel movement when Vincent appeared to him. â€Å"Morning, squirt,† the flyer said. Malink stopped on the path and fought to catch his breath. â€Å"Vincent. I build the ladders.† â€Å"You did good, kid. Now get everyone together – and I mean everyone – and tell them to go to the airstrip. Take the ladders. I'm sending a plane for you.† Malink shook his head. â€Å"You send cargo?† Vincent laughed. â€Å"No, kid, I'm taking the Shark People to the cargo. You'll need the ladders to get on the plane. Don't be afraid. Just get everyone.† â€Å"The Sky Priestess has three who have been chosen. One has just come back to the village.† Vincent looked at his feet. â€Å"I'm sorry, kid. You'll have to leave them. Go now. You don't have very long. I'll see you again.† And he disappeared. 64 Deliverance Beth and Sebastian Curtis were cleaning the operating room and sterilizing instruments when they first heard the jet. â€Å"That sounds low,† Sebastian said casually. Then the fighters, running ahead of the 747, passed over the island. â€Å"What in the hell was that?† Beth said. She dropped a pan of instruments and headed for the door. â€Å"Probably just military exercises, Beth,† Sebastian called after her. â€Å"It's nothing to be concerned about.† He was glad to have help cleaning up and didn't want to lose it. Usually, at this point, she was on the plane heading for Japan. â€Å"‘Bastian, come here!† she called. â€Å"Something's up!† Sebastian shoved the last of the surgical draperies into a canvas bag and hurried outside. The sound of jet engines seemed to be everywhere. Outside he found Beth staring at some coconut palms. The guards were standing outside their quarters, looking in the same direction. â€Å"Look.† Beth pointed to the north. â€Å"What? I don't see†¦Ã¢â‚¬  Then he saw movement behind the palms and a 747 coming toward the island at entirely too low an angle. â€Å"It's landing,† Beth said. Sebastian's gaze was caught by more movement in his peripheral vision. He looked across the runway. The Shark People were coming out of the jungle. All of the Shark People. From the 747 the airstrip looked smaller than he had remembered. To conserve runway Tuck wanted to touch down as close to the near end as possible. He pulled full flaps and checked his descent rate. The Shark People were moving toward the plane in a wave. Some of the men carried long ladders. As all sixteen tires hit the runway, Tuck slammed the levers that reversed the engines and they screamed in protest. Immediately, he hit the ground brakes and watched the brake temperature gauge zoom into the red as the jet screamed toward the ocean at the far end of the runway at a hundred and fifty miles per hour. â€Å"Did you see the ladders?† Roberto said, but this time it was Vincent's voice coming from the bat. â€Å"Ya fuckin' mook, I told you they were makin' ladders.† â€Å"You must come,† Malink said. He crouched at the edge of the jungle where the old cannibal was hiding. â€Å"Vincent said all of our people must go.† Sarapul watched as the huge jet slowly turned at the end of the runway. â€Å"No. I am too old. This is my home. They don't want me where you are going.† â€Å"We don't know where we are going.† â€Å"Your people didn't want me here. Would they want me in this new place? I will stay.† Malink looked to the runway. â€Å"I have to go now.† Sarapul waved him off with a bony hand. â€Å"Go. You go.† He turned and walked into the jungle. Malink ran into the open and began shouting orders to the men with the ladders. The Shark People poured onto the runway and surrounded the jet like termites serving their swollen queen. Beth Curtis saw the first of the doors on the 747 open and immediately recognized Tuck. A tall ladder was thrown against the plane and the Shark People started climbing. â€Å"He's taking them away!† she screamed. Sebastian Curtis stood stupefied. Beth shouted to the guards, â€Å"Stop them, you idiots!† The guards had been spellbound by the landing of the jet as well, but her harpylike scream brought them to action. They were in and out of their quarters in seconds, running toward the airstrip with their Uzis. Beth Curtis ran behind them, screeching like a tortured siren. All six doors of the 747 were open now, and the Shark People were streaming up the ladders, mothers carrying children, the strongest men helping the old. The other guards piled up behind Mato while he unlocked the gate. He fumbled with the key, then finally sent it home and pulled the chain from around the bars. Beth Curtis hit the chain-link and curled her fingers though it like claws as she watched her fortune piling into the plane. â€Å"Shoot!† she screamed. â€Å"Shoot that son of a bitch!† The guards had no idea who she meant, but they understood the command to shoot. The first one through the gate pulled up and pointed his Uzi at the crowd of natives waiting to get up the ladder. There was a fat one who seemed to be giving orders. He aimed for the center of his back. A bullet took the guard high in the chest, knocking him back off his feet. His Uzi clattered on the runway. The other guards pulled up, looking for the source of the shot.. â€Å"Kill them all, you fucking cowards!† Beth Curtis yelled. â€Å"Shoot!† The guards crouched to make themselves into smaller targets as they scanned the edge of the jungle for movement. There was a roar and the guards looked up to see two fighter jets coming in low over the runway. Their decision was made. They ran for the cover of the compound as Beth Curtis screamed at their backs. She ran out to the dead guard, picked up his Uzi, and pointed it at the 747. A gunshot came from the jungle and a bullet ricocheted off the concrete next to her. She turned the Uzi toward the trees and pulled the trigger. It roared for three seconds, the recoil pulling her sideways as the bullets chopped a pattern in the vegetation like a remotecontrol Cuisinart. She brought the gun back around on the plane and pulled the trigger, but the clip was empty. She threw the gun to the ground and stood shaking as the last of the ladders was thrown away from the plane and the doors were pulled shut.

Marketing Strategy 4. Recruiting Foster Carers Essays

Marketing Strategy 4. Recruiting Foster Carers Essays Marketing Strategy 4. Recruiting Foster Carers Essay Marketing Strategy 4. Recruiting Foster Carers Essay More surrogate carers are needed in the UK today. Official statistics from the Fostering Network indicate that over 10,000 surrogate households are needed. Another research by Fostering Network found 82 % of local governments saw a rise in the figure of kids coming into attention and necessitating surrogate places in 2009-10. Family surrogate attention provides replacement planned household attention for kids who can non be adequately cared at the ain place due to assorted grounds. 4.1 Foster kids: The figure of kids coming into Foster attention has become overpowering over the old ages. But the fact is that it has become really hard to happen the households who are ready to run into the challenges of increasing complex behavioural, emotional needs these kids experience. Deficit OF FOSTER HOMES England: 8,200 Scotland: 1,700 Cymrus: 750 Region Deficit England 8200 Scotland 1700 Cymrus 750 Beginning: Fostering Network Website Chart 1a: National Breakdown: Deficit of Foster Homes in England, Scotland and Wales Deficit OF FOSTER HOMES IN ENGLAND North West: 1700 North East: 1300 Easts: 650 South West: 600 South East: 850 London: 2000 West Midlands: 650 East Midlands: 450 Region Deficit North Cymrus 1700 North East 1300 East 650 South West 600 South East 850 London 2000 West Midlands 650 East Midlands 450 Beginning: Fostering Network Website Chart 1b: Regional Breakdown: Deficit of Foster Homes in England 4.2 Motivations for surrogate carers: Much research has been conducted on this issue as what motivates people to further. It is really of import to understand this cardinal constituent because this may assist to understand their demands and can be used as a tool in the selling mix to enroll more carer. In 1996, Denby A ; Rindfleisch conducted a research on kids and young person services. The research was conducted in order to understand what motivates a individual to go a surrogate carer. Some of the findings were, carry throughing the demand for surrogate places in the community, basking and desiring to assist kids, supplying a comrade for an lone kid and for oneself, increasing household size, obtaining replacement for a kid who has died or who has grown and left place, spiritual grounds and supplementing household income ( Denby A ; Rindfleisch, 1996 ) . Based on the findings of this research it is really clear that there are assorted factors that are involved for a individual to go a surrogate parent. 4.3 Foster carer enlisting: In the recent old ages, there has been a diminution in the figure of households able to supply foster attention. When a kid is identified in demand of surrogate attention, the job of happening arrangement places still remains really high. Some of the factors that are related to the deficit of surrogate carers may be due to the undermentioned grounds: Greater trouble in run intoing the increasing complexness needs to go a surrogate carer Lack of public consciousness The hapless public image of faster carer. With these issues, it has become hard to enroll surrogate carer and has become an of import and yet a challenging undertaking. Recruitment of quality Foster carer in an ongoing demand for the bureau. 4.4 Productive attacks 2008 boulder clay day of the month: For the past 2 old ages, the questions generated by furthering solutions utilizing the current selling scheme have increased. Fostering solutions uses different methods of advertisement to pull possible carers. These include measure board, coach, community attention, exhibition, circular, cyberspace, occupation Centres, occupations fair, local community brochure, national magazine, newspaper advertizement, passed office, station office, wireless, television, recruitment event, cab, web site, word of oral cavity, yallow pages etc ( Fostering solutions ) . Over the past few old ages, the enlisting focal point was on the undermentioned factors: To recruit carers through utilizing fees, and other allowances. Using messages such as show you care to make the carers. 4.5 Recruitment result: Table 3: FOSTER CARE RECRUITMENT ENQUIRIES Beginning OF INTEREST BETWEEN 01/09/2009 AND 04/08/2010 Beginning Entire ENQUIRIES Advan 4 Fostering Network 2 Banner 1 Bill board 1 Bus 38 Current carer 8 Circular 41 Internet 10 Job Centre 3 Jobs carnival 1 Local community brochure 30 National magazine 2 Newspaper Advertisement 761 Not specified 1 Passed office 78 Radio/TV 28 Recommended 156 Recruitment event 419 Recruitment posting 102 Samarium 13 Avant-garde 1 Website 1071 Word of oral cavity 494 Yellow pages 22 Sum 3289 Beginning: FSDocument Out of these, the most successful advertizement medium for furthering solutions has been website with a sum of 1071 questions followed by newspaper advertizement with a entire question of 761, followed by word of oral cavity with 494 questions between 01/09/2209 and 31/08/2010. From the above tabular array it is apparent that the entire figure of questions during the period 2009-2010 is 3289, but the no. Of blessing are merely 126 out of 3289 questions. This is merely 3.82 % of the entire question. It is apparent that 3289 people are interested to cognize about the fosterage attention. But the blessing rate is really low. Table 4: FOSTER CARE RECRUITMENT ENQUIRIES Beginning OF INTEREST BETWEEN 01/09/2008 AND 31/08/2009 Beginning Entire ENQUIRIES Fostering Network 3 Bill board 4 Current carer 1 E-invite 1 Circular 19 Internet 1 Local community brochure 47 Newspaper Advertisement 591 Not specified 13 Passed office 108 Radio/TV 32 Recommended 173 Recruitment event 168 Recruitment posting 130 Cab 1 Avant-garde 4 Website 1347 Word of oral cavity 535 Yellow pages 106 Sum 3284 Beginning: FS papers The entire no. Approval between 01/09/2008 and 31/08.2009 was 163 and entire questions received during that period was 3284. When Comparing the current twelvemonth questions and blessing rate with the old twelvemonth ( i.e. ) enlisting question between 2008 2009 which was 4.96 % of the entire question, it is clearly apparent that there is a lessening in the blessing rate when compared with that of the old twelvemonth. But we merely can non come to a decision that there is a lessening in the blessing rate because some of the questions may still be in the blessing procedure. Table 5: Conversion rate Year Questions Approved Conversion Rate % 2008-2009 3284 163 4.96 2009-2010 3289 126 3.83 Beginning: FS Document Over the past two old ages, the transition rate is found to be moderately changeless with 4.96 % in the twelvemonth 2008-2009 and 3.83 % in the 2009-2010. Chart 2: Questions in different part From the above chart it can be seen that the figure of questions received from each part varies to a greater extent. For illustration the highest figure of questions was received from the Midlands with a sum of 396 questions. Where as on the contradictory there were lower questions from assorted other parts. The ground for so many questions in the Midlands is because of the strong advertizement run with extra newspaper advertizement. Fostering solutions should concentrate on all the parts every bit. This will assist to increase the question from different part. The major job which is to be considered right now is that the blessing rate is really low despite there was 3289 questions between 2009-2010. This may be due to assorted grounds. Advertisement i? Enquiries i? ROI i? Approval With mention to the above given tabular array, when an advertizement is made and when it is able to pull 3343 inquirers who have even the slightest thought of fosterage has enquired the bureau, it is clear that people are interested to cognize more about fosterage. But someplace as they move further in the procedure ( i.e. ) from question to the following phase, the figure gets reduced to a greater extent. This can be viewed as a consequence due to 2 grounds. There may be a job in the procedure from the question phase until the following phase which is the enrollment of involvement. Or The bureau is non aiming the right people. In order to place the job in the procedure from the question phase until the ROI, a survey possibly conducted as what is traveling incorrect in that procedure. It is really of import to concentrate on this issue right now because the clip and cost involved in selling is really high. Sing that fact, the selling scheme possibly of good type, but due to some constriction in the procedure, the selling scheme may look to be unsuccessful. 4.6 Scheme Aims: To successfully enroll the carers, the undermentioned aims must be considered to run into the challenges that are associated with the enlisting activities. They are, To enroll carers for different age group To enroll carers for kids with disablement To enroll a diverse scope of carers to put the kids to run into their best demands. Recruit carers based on classs long, medium and short term carers. In add-on to these aims to enroll the carer, the fostering solutions should be the best pick for carers. In order to accomplish such a place, the undermentioned factors plays of import function Benefit bundles for carer- what furthering solutions can offer for both carer and immature people. Competitor consciousness versus trade name consciousness of the bureau. Servicess provided before and after blessing. Raising consciousness through advertizement that carers are still needed, that furthering solutions values the carers, and to make a sense of experiencing that they have made the right determination in choosing fostering solutions. 4.6.1 Plan of action: In order to make both regional and national audiences, the bureau should go on to publicize a multi-layered attack of selling. The message which the bureau tends to convey to its audience must be clear and focused. The bureau may utilize tools runing from traditional to set uping its ain selling scheme through assorted chances that are available to raise the consciousness of the people. The traditional method includes the regular media advertisement which the bureau is presently involved and it has delivered consequences. It is now the right clip to believe of new chances of marketing through utilizing the internet media such as web tools like Linked-in, Facebook, chirrup, etc. By utilizing both the traditional and new methods, the bureau can make and cover a broad scope of people from different parts, which will assist to educate the people about the basic consciousness and understanding about the demand for furthering. This besides helps to make the mark audience by giving them the information which they require. 4.6.2 Factors act uponing the determination devising: There are several factors that influence the determination devising of the selling scheme. These factors help the bureau to be alert by maintaining them informed about the determinations of the possible carer and the manner they react to the enlisting schemes and attacks that are used by the bureau. A research possibly conducted in this country so as to happen out the followers: What finally actuated the possible carer to pick up the phone and enquire about the services that are offered by the bureau. This can be done through presenting selling inquiries in the initial place visits. Checking closely the effectivity of all the resources that are used in selling and doing certain it is being efficient. Look into the cardinal countries where the possible carers drop out of the procedure. It is really of import to understand this because, this will give an thought as the grounds why they drop out. This will in bend aid to act upon the possible carers to place the bead out points. Through placing the bead out points clip and cost that are involved in retaining the possible carers can be kept under good control. 4.6.3 A alteration in the current communicating tools The information that are offered by the current communicating tools are limited. That is the current communicating tools which is paper based ( information battalion ) gives thought from where the information is obtained. Chart 3: communicating path Question Information Follow Up Resultant Website Telephone Information Battalion Phone Call A ; Postcards Drop Out Continue This is the normal path through which the information flows from the bureau to the prospective carers. This path does non offer flexibleness for the carer. Which means the carers contact type penchant, single determination procedure are non considered in this path. Furthermore, the individual doing a call to the bureau possibly rather intimidating. There should be a alteration in the current communicating paths and channels whereby the paths are unfastened up through which the prospective carer can garner information and be informed about the followup and the application procedure right from enrollment of involvement until the blessing. Information Search Question Informed Decision Follow up Resultant Recruitment Stands Newspaper Word of oral cavity Circular Website Face to Face contact at event Telephone Website Information Battalion ( Delayed determination ) Direct phone and post card Drop Out Continue Un-persuaded Un-persuaded Prospecting Proceed or Informed Influencer Participants or Informed Influencer 4.6.4 ENGAGING THE Community: To aim the right carer, I suggest increasing the opportunities of happening successful Foster carer through planing a planned scheme to prosecute the communities in surrogate attention. By affecting with the community there is more range to make consciousness and enroll many carers. To come up with such a scheme, it is really of import to cognize the bureau s demands and lay down its precedences, pollex regulations on how to come up with a specific message for the general populace. By prosecuting with the communities, it helps to inform the populace and the possible Foster carers about the demand for surrogate attention. The ultimate end of the bureau is to increase the figure of qualified Foster carers. In any concern construct, planing an effectual selling scheme is a agency of test and mistake. For a scheme to be successful, it has to be analyzed from assorted positions before it can be implemented. In such a manner, before making a community for aid in enrolling the Foster carer, we have to cognize in peculiar the demands of the bureau and the ways in which the populace might be of aid to the bureau. By demands of the bureau here refers to the large inquiry who is our mark client? . To kick get down this procedure of happening the mark client the undermentioned appraisal possibly done by the bureau. Identifying the Foster attention population in a community How many surrogate kids are at that place in the community? Their age group Age group under one twelvemonth No. Of kids ( between 1-12 ) No. Of adolescent ( between 13-18 ) No. Of childs ( over 18 ) Based on the bureaus past experience say for illustration old 2-3 old ages, how many kids does the bureau expect will necessitate surrogate attention during the following twelvemonth? The racial composing White Assorted race Asiatic Black Other Identifying the Foster carer population in a community How many qualified Foster carers are at that place in the community Identifying the kids in the community Up to what extent the undermentioned elements contributed to arrangement of kids in Foster attention Low Moderate High Substance maltreatment Poverty Mental unwellness of parent ( s ) Poor parenting accomplishments Captivity of parents Children s emotional or behavioural wellness demands Knowing the demands: After the above mentioned needs appraisal is reviewed by the staff, the bureau can come to a specific needs decision. The following measure may be to rank the demands. The rankings should be based on their precedences as shown below Example demands Ranks To supply more equal support for surrogate households. 3 To enroll surrogate parents for adolescents. 1 To supply better preparation for surrogate parents so they can manage kids s particular demands. To enroll surrogate parents for adolescents. 2 To educate the populace about the impact of public assistance reform on kids in surrogate attention. Once the demands are prioritized, the following measure is to develop a community action program. This can be done through the undermentioned ways 4.6.5 Prosecuting the wider populace: At the national degree, the Foster attention fortnight event is conducted by the Fostering webs helps to prosecute the wider populace and to distribute the consciousness about the demand for furthering and the immature people at attention. However, this may assist to prosecute the wider populace, the major drawbacks in these sorts of events is that the bureau does non acquire the opportunity to prosecute straight with the wider populace on the premises and positions to inform how we move in front to distribute the consciousness. In order to get the better of this job the bureau may sooner prosecute with the occupants from the communities to inform them about the messages and the promotional attacks of the bureau through which the consciousness of the demand for surrogate attention can be increased. This can be done through prosecuting services in a county broad humanistic disciplines and picture taking competition. This helps the bureau to happen out more ways to prosecute with the communities and promote them to take portion in furthering. The picture taking competition can be conducted through roll uping images from different age group categories immature people in attention, people who have experienced surrogate attention. The competition must be judged by the bureau ; the winning picture taking must tour around the county and be seeable in libraries and other common topographic points for short period. A separate budget possibly required for this competition. 4.6.6 Working with the mass media: Mass media is the most common and effectual medium of advertisement. However, for an advertizement to be effectual through mass media, it is really indispensable for the bureau to cognize what sort of information or message should be conveyed to the populace. For illustration in the instance of targeted enlisting, the focal point is on the households where they can suit kids and teens with specific demands. In this instance community based enlisting would be really effectual instead than a general media run. However, media run may be really effectual and most suited for general outreach. Schemes for acquiring the message out to the populace and spurring the community to take action. 4.6.7 Invite community leaders to assist you acquire the message out: Prosecuting with community leaders to distribute the consciousness is one of the best ways to make the people in a peculiar community. This is due to the fact that the leaders may near the populace with a message which would be really effectual instead than the bureau conveying the message by itself. The community leaders may non hold the particular cognition about the system of surrogate attention as that of a societal worker. However, what they do hold is the ability to pull the populace and imperativeness. It is really advantageous for the bureau to organize a nexus of web with the community leaders for they be really sympathetic the cause and would come frontward to assist the bureau. These leaders may be invited to talk at the run events and they may be requested to advert about Fostering Solutions in their ain events. In such a manner the community becomes cognizant and batch of people might come frontward to further. The chief advantage is that a minimum support from one commu nity council member or a child advocator can rapidly raise the position of the issue. 4.6.8 Using the aid of current surrogate parents: The most effectual agencies of advertisement is to acquire aid from the current Foster carers to enroll more new Foster carers. Gratified Foster attention parents are the better tool for enlisting and keeping. The advantage of Working in with surrogate parents to increase enlisting will assist to better the keeping every bit good. Foster parents can be of great aid in the undermentioned ways: Through sharing their personal experiences, the current Foster carer may assist the new Foster carers to explicate as what takes to be a good Foster carer. This will besides give an chance for the new Foster carers to run into the kids in attention even before they get placed with a kid. The current Foster attention parents may assist the new carers to finish the applications by manner of supplying pre-service anf preparation in coaction with the bureau. The current Foster carer may move as a in-between adult male between the bureau and the prospective Foster carer by manner of following-up with a phone call or a personal visit. Through prosecuting with the current Foster carers, the new carers may acquire individualised mentoring and it may in bend be a great motive for both the new and the current Foster carers. 4.6.9 Carer benefit bundle: Carer benefit bundle may assist to pull more carers. It is great manner to communicating through which the consciousness can be increased. A elaborate list of benefits and chances possibly listed, this will in bend help the prospective Foster carers to take up furthering. The fact is that the more we offer and promote ourselves as the bureau, the satisfied and happier will be our carers and are more likely to remain with us. This possibly one of the keeping scheme. This scheme helps to derive competitory advantage over the viing bureaus because, the carers are really happy with the benefit bundle. Regardless of whether the benefits are being used by the Foster carers or non, the list of available benefits on the website possibly seem existent and more touchable. 4.7 Resources In order to implement the above mentioned schemes efficaciously, resources are really of import keys. 4.7.1 Human Resources: In the current organisational construction, the selling section is really centralised. With the aspiration of developing the selling schemes for both the national and regional degree, it is really of import to increase the hierarchy degree as shown in the above chart. In order to beef up the regional selling scheme a new station viz. marketing helper may be appointed part wise. The chief work of this occupation will be to distribute the consciousness of furthering in their part and pull more carers. They will be describing straight to the Marketing and public dealingss director. The chief ground to implement this alteration in the organisation construction is because merely holding a selling section at the caput office will non work. Division of work is really indispensable in such instances. But for clip being with limited resources, the chief challenge is to remain focused in the precedences of the service that are provided by the bureau. Chart 4: Organizational Structure Selling Department. 4.7.2 Fiscal Resources: To confirm the current degree of questions and transition, it is indispensable to go on to put financess in enrolling advertisement. A sustainable budget allotment will assist the bureau to be efficient and efficaciously be after the clip and resources which are really valuable. This will besides assist to better response rate, and to make all communities every bit good as efficaciously plan the response resources. For long term planning, a planned one-year budgeting will assist to put the bureau in a better place to get by up with the increasing discriminatory rates and spends of the promotional activity. There is besides a demand for the bureau to put in high profiled activities such as web advertisement, web site development and so on in order to keep the profile of Fostering Solutions as the bureau of pick for the carers. Presently, Fostering solutions uses all executable media which will enable the bureau to touch the Black Marias and heads of many possible carers and do them aware about the demand for furthering. More financess should be invested in the countries of community publications, editorial media and enlisting runs. 4.8 Recommendations: Sing the above discussed schemes the undermentioned possibly summarized as the strategic recommendations 4.8.1 Short term recommendations: Maintain twelvemonth unit of ammunition consciousness for the demand Foster carers across England, Scotland, Wales and in communities. As discussed in the scheme utilizing the current carers and their positive narratives of kids will assist to pull more carers and it besides helps to retain the bing carers. ( mention 4.6.8 ) -Work with the community leaders to distribute the consciousness ( mention 4.6.7 ) With mention to the transition rate issue raised in this study, it is indispensable for the bureau to carry on a survey on the effectual processs that are implemented by the bureau in the procedure of reacting to questions and enrollment of involvement with prospective Foster carers. Because, this is where batch of people drop out. So it is indispensable for the bureau to carry on a research and happen out the grounds as why the transition rate is really low. ( refer table 5 ) As discussed in the resources, it is indispensable for the bureau to hold dedicated selling staff at each regional office to do advertisement more effectual. ( mention 4.7.1 ) With the aid of the demographic information and analysis of the community appraisal by the bureau a better targeting of enlisting and advertisement can be achieved. 4.8.2 Long term recommendations: As discussed in the short term recommendations, statistical informations on surrogate carers possibly collected utilizing the community appraisal in order to do better enlisting determinations. This will assist the bureau to hold a continued sustainable investing at national and regional degree in the enlisting of surrogate carers. Have ongoing high quality runs across England, Scotland and Wales on both national and local degree to pull more Foster carers which will assist to keep adequate carers to run into altering demands The bureau should set as much attempt in order to retain the Foster carers as in enlisting. The bureau should work on the factors such as carer benefit bundle, and other benefits that can better the keeping of surrogate carers. ( mention 4.6.9 ) Develop a comprehensive Foster attention recruitment web site to advance consciousness and involvement in furthering and lasting attention -Focus should be to better local capacity through working in close relation with the communities in order to enroll locally