Tag Archives: Management

Finance

Kirloskar Institute of Advanced Management Studies Hires Professor Ashok Patil for Corporate Finance

 

From a management student to associate professor at the Global Business School, Hubli to an associate professor at KIAMS, it has been a natural progression for Prof. Ashok Patil who joined the KIAMS team last month. Prof. Patil excels in the field of corporate finance, a subject he is teaching at KIAMS.

“Being a management student myself – I am pursuing my PhD as well – I know my subject and also the importance of imparting education the right way,” he says. On being asked how he makes his classes more interesting and engaging, he says: “I involve the students in group discussions in order to bring out new ideas, encourage role-play to practice real-time market scenarios and conduct question-answer sessions wherein I clarify their doubts. All these elements are an integral part of my classroom sessions to help the students pick up things easily.”

To create a better understanding of the various aspects of management, Prof. Patil says he picks up live examples. All the management workshops he has attended, he says, come in handy as he incorporates all those teaching methods in his own sessions.

As far as prerequisites for a good manager are concerned, Prof. Patil says, a manager should be able to analyze a situation appropriately before making any decision. “He must be a quick decision-maker and result-oriented,” he adds. “Managers should be dynamic and keep themselves abreast of the latest in their field,” he says, confident KIAMS will be able to help the students achieve this objective. “They should be up-to-date and should be analytical in decision making.”

Prof. Patil has been an achiever in his own right. His passion for teaching has helped him bag a number of prizes including second prize at the National Conference on Entrepreneurship and Business Development in India. He was also chosen for having the best paper in the technical seminar Track C-101. One of his papers, ‘Role of Trust and Control in Financial Services Outsourcing: An Empirical Study’ has been accepted in a peer reviewed journal. Another paper, ‘A Critical Review of Outsourcing, Off shoring and Offshore Outsourcing of Financial Services’ has been submitted for approval at the Institute of Management Education and Research, Belgium.

KIAMS is happy to welcome Prof. Patil on board and looks forward to this high value addition to the PGDM course.

For more information on MBA colleges Pune, check out the info available online; these will help you learn to find the MBA colleges Bangalore!

Finance

Finance Management Analyzing and improving Management performance at Help With Assignment

 Finance Management Analyzing and improving Management performance

Companies must be able to measure managerial performance if they are to control operations and achieve organizational goals. As companies grow or their activities become more complex, they often attempt to decentralize decision making as much as possible by restructuring into several divisions and treating each as an independent business. The managers of these subunits or segments are evaluated on the basis of the effectiveness with which they use the assets entrusted to them.

Perhaps the most widely used single measure of success of an organization and its subunits is the rate of return on investment (ROI). A related measure is the return to stockholders, known as the return on equity (ROE).

Return On Investment

ROI, which relates net income to invested capital (total assets), provides a standard for evaluating how efficiently management employs the average dollar invested in a business’s assets. An increase in ROI can translate directly into a higher return on the stockholders’ equity. ROI is calculated as

ROI = Net profit after taxes/ Total assets

Example: Consider the following financial data

If Total assets = $ 100000 and net profit after taxes = $ 18000

Then, ROI = Net profit after taxes / Total assets = 18000/100000 = 18%.

Improving Return To Stockholders Through Financial Leverage

Generally, a high level of management performance, defined as a high or above-average ROI, produces a high return to equity shareholders. However, even a poorly managed company that suffers from a below average performance can generate an above-average return on the stockholder’s equity, or return on equity (ROE). It can do this through the use of borrowed funds that can magnify the returns paid to stockholders.

A variant on the Du Pont formula, called the modified Du Pont formula, reflects this effect. The formula ties together the company’s ROI and its degree of financial leverage, that is, it use of borrowed funds. Financial leverage is measured by the equity investment or stated another way, dollars of assets held per dollar of stockholders’ equity. This ratio, which is calculated by dividing total assets by stockholders’ equity, gives an indication of the extent to which a company’s assets are financed by stockholders’ equity and borrowed funds.

The return on equity (ROE) is calculated as

ROI = Net profit after taxes/ stockholder’s equity

= (Net profit after taxes / total assets) × (Total assets / Stockholders’ equity)

ROI × Equity multiplier

ROE measures the returns earned on both preferred and common stockholders’ investments. The use of the equity multiplier to convert the ROI to the ROE reflects the impact of the leverage on the stockholders’ return.

Albert Frank is a Phd holder from an Ivy League university and has been with www.HelpWIthAssignment.com for the last seven years. He is engaged in providing Online tutoring and assignment help services to students from K-12, college and University.

Finance

Lease Management – The Simple Yet Effective Solution to Finance Vehicles

With the intensive knowledge gained throughout the years, Lease Management has been able to sustain its stand for distributing vehicles of all type for all business and private individuals with different demands on variety of situations. They have been able to maintain extreme competitive price and measure up to a remarkable standard for 30 years. Among the acclaimed quality and services, of Lease Management is the finance, which has been known for the adaptable, consistent and reasonable solution to ones exceptional needs.

Lease management offers solutions of all kind so that everyone can enjoy financing their own vehicle. There are various options like contract hire, personal contract hire, maintenance, contract purchase and personal contract purchase.

With contract hire the company allows their vehicles to be rented with a fixed monthly rate for an amount of time planned beforehand. The company holds the right of possession the entire time period, reducing administrative burden. The same goes for personal contract hire which is designed to provide enjoyment and usage of the vehicle without the usual issues of ownership, however unfortunately, being a private individual this is a cost which has to be paid, but it’s not reclaimable.

The contract purchase on the other hand includes all the stress free benefits to that of the contract hire with the exception of the fact that at the end of the contract lease the company compromises a deal for selling it. Whereas the personal contract purchase includes all the benefits of personal contract hire but the difference is individuals are provided with a guaranteed future value.  

Moreover, these renowned preferences have tax of exclusive fixed fee which does not also take account of the maintenance charge. This is another option of whether the individual wants to keep their vehicles in check with the routine service. The fee would be added naturally to the contract.

Lease management allows the Nationwide Vehicle Leasing help with the budgeting and cash fund estimation. Improving financial balance and bringing flexibility to ones business needs, encourages many towards this solution.

Finance

Shaw Capital Management Headlines : Korean finance firms stumble overseas

http://joongangdaily.joins.com/article/view.asp?aid=2928475 By Jung Jae-yoon [jyj222@joongang.co.kr] November 17, 2010 Korean banks operating in New York City have a noticeable lack of customers. Domestic banks operating in other countries have mostly failed to localize their businesses. By the Korea JoongAng Daily While it is common to find a man in New York driving a Hyundai or a woman in London talking on her Samsung cell phone, it is a much harder task to find someone overseas employing the services of a Korean financial company. And even if foreigners are aware of a particular Korean financial firm that operates in their country, chances are they have never visited it. “Compared to our manufacturing industry that has already advanced onto the global stage, the domestic financial sector is far behind. The real definition of ‘localization’ is not just the establishment of a subsidiary overseas, but is the sale of [Korean] financial products to local investors,” said Lee Kyung-young, chief executive officer of Mirae Asset Securities in Hong Kong. “Samsung Electronics and LG Electronics have been dominating the world market,” Lee added, noting that the financial industry has huge growth potential in overseas markets, but Korean companies have stumbled in trying to tap that potential. And while it is full steam ahead for electronics exports – Korea had leaped to the seventh largest exporting country in the world as of the first half of this year – domestic financial firms have barely made a ripple in most overseas markets. According to the Financial Supervisory Service, all of Korea’s finance firms operated just 319 branches and subsidiaries in 34 countries as of June, which is an insignificant number when compared to the overall size of Korea’s economy. Almost 80 percent of the branches are in just eight countries. China is home to the most number of Korean financial firms with 57, followed by the United States with 49. That is followed by Vietnam, which has 38 Korean firms, Hong Kong with 38, Japan with 25, the United Kingdom with 22, Singapore with 14 and Indonesia with nine. Consequently, Asia accounts for 60 percent of domestic financial firms’ global coverage. About a decade ago, Korean finance companies led the charge into the U.S. market, but after mediocre results, they have turned to more familiar markets in Asia. For example, over the past decade, the number of branches and subsidiaries of domestic banks, securities firms, insurers, asset management firms and loan companies grew in China from 24 in 1999 to 57 this year. As Asia’s economic importance grows, more and more Western financial firms are exploiting economic gains in emerging countries. The U.K.-based financial firm Standard Chartered is the poster boy for financial companies operating outside of their own country. In the case of SC Group, its management has put a tremendous amount of its focus on Asia and 90 percent of total sales are being generated outside the U.K. Korean firms’ biggest shortfall, say experts, is a lack of strategic planning when aggressively entering emerging countries. In fact, domestic financial firms’ overseas subsidiaries and branches have not turned in encouraging results when it comes to profit generation and localization. Exemplifying their general failure, even Korean manufacturing firms use foreign banks when doing business abroad. “Korean banks couldn’t even afford to stand [on their own] when the country won a nuclear power plant deal from the United Arab Emirates,” Euh Yoon-dae, chairman of KB Financial Group, pointed out during his inaugural speech in July this year. Most Korean banking leaders agree that local financial firms’ advancement overseas would be a boon for Korean exporters looking to make inroads abroad. “The domestic manufacturing industry will see a boost once [Korean finance firms] advance overseas,” said Park Hyeon-joo, chairman and founder of Mirae Asset Financial Group, at the Emerging Markets Expert Forum 2010 on Nov. 3. “If domestic financial companies are not being aggressive enough about overseas investments with domestic capital, local manufacturers will eventually lose their competitiveness due to a rise in the value of the [Korean] currency.” Park claimed that more domestic capital should be invested in overseas markets to mitigate the rising won. He also said the latest round of quantitative easing in the U.S. will direct foreign capital into emerging markets, which in the short-term will be another factor driving up the value of the won. “Beyond an investment banking management strategy, financial firms should advance into overseas markets and increase their international asset holdings to find stability in the foreign exchange market,” explained Kim Hyong-tae, the president of Korea Capital Market Institute. Most industry experts said that for Korean financial firms to develop into global banking giants, they need to improve their investment banking businesses. “Domestic financial companies should focus more on improving the operation of their investment banking businesses in the Asian market, rather than thoughtlessly advancing into [international] markets,” said an official employed in the local financial industry, adding that there is a need to recruit professional talent and form strategic partnerships with investment banks globally. Korea lacks large financial firms with strong global capabilities, also known as systemically important financial institutions, or SIFIs. A financial reform measure discussed at the G-20 Summit in Seoul last week would regulate SIFIs, but a high-ranking official at the Financial Services Commission said that no domestic financial firms are big enough to be affected by any new regulations, which he characterized as both good and regretful. Another strategy, other than nurturing the investment banking sector, is to pursue mergers and acquisitions with foreign financial companies. An industry expert explained that financial companies should carefully mull over M&A plans, especially considering the importance of localization. Through strategic M&As, Korean financial firms would be able to recruit local talent who are familiar with their financial investment environment. In the wake of the global financial crisis, Korean banks’ aggressive drive into overseas markets have been stalled for the time being. However, as the global economy enters a recovery phase, local banks are resuming their overseas expansion. During the G-20 Summit, chief executives of domestic banking giants met with CEOs of foreign financial firms to seek partners to advance abroad. Among them were KB Financial Group chairman Euh and Woori Financial Group chairman Lee Pal-seung. After meetings with CEOs of foreign banks, an official at Woori Financial Group proudly said that “the biggest outcome was the establishment of networks that are needed to advance into Asian markets including India and China.” Hurdles to expansion Korean finance firms face many restrictions in operating businesses in emerging countries. “There are many hurdles, not only in promoting our brand, but there are also high barriers to entry – especially in developing countries such as China and Vietnam,” said an official at Mirae Asset Securities, who requested for anonymity. “Subsidiaries and branches trying to generate operating profits are failing because of a lack of global brand recognition and an absence of differentiated strategies,” said Park Jae-heung, who is head of the FSS’ Financial Hub Korea center. “Competition among domestic financial firms in overseas markets can become fierce … [and domestic] companies can face insolvency if the conditions in the country where they are operating businesses deteriorate,” Park explained. Suh Byeong-ho, researcher at the Korea Institute of Finance, said that regulations in Korea have been eased to encourage banks to advance into overseas markets, but because of that, side effects can occur such as deterioration of profitability. In fact, a number of finance-related incidents have occurred at domestic banks’ overseas branches this year. Earlier this year, Korea Exchange Bank was slapped with an “institutional warning” from the Financial Supervisory Service after the bank’s branches in Australia and Los Angeles, California were accused of embezzlement and were found to have violated foreign currency loan-limits. Both of its branches in Tokyo and Osaka violated the money laundering protection law. While Korea’s economic status was upgraded with the successful hosting of the G-20 Summit last week, experts said the onus is on the domestic financial sector to take advantage of international growth potential in overseas markets.

The Shaw Group Inc. was founded in 1987 as a fabrication shop in Baton Rouge, La., by Chairman, President and Chief Executive Officer J.M. Bernhard Jr. and two colleagues. Driven by leaders with bold vision and a strong entrepreneurial spirit, the company has evolved into a diverse engineering, construction, technology, fabrication, environmental and industrial services organization with 27,000 employees in strategic locations around the world.

Money

Teach Your Child Money Management

Some parents may disagree that giving a child an allowance can help them prepare for the day when they will be managing their own finances, but, if done right, an allowance will help them understand the concept of finances.

The wrong way to give an allowance.

My friend Lisa works hard. She gives her seven year old daughter five dollars a week. In return, she expects her child to keep her room clean and help around the house. I’ve never heard Lisa talk to her child about money. I have heard her berate her young daughter for mishandling money. This technique simply won’t work. Her child needs to be taught – not admonished.

An allowance can be a great way to teach discipline and responsibility.

Teach your kids how to count money before starting an allowance. Make it a game. Spend a few minutes each week. Maybe you can dump your change out onto the counter while you are cooking dinner and have your child count it. If they get it right, tell them they did a good job. If they have trouble counting your change, encourage them. Assure them that they tried hard, and soon they will be able to do it. Encouragement goes a long way to building the confidence your child needs. A child with confidence tends to work harder to meet their goals.

End the whining in the store.

I hate shopping with my friend Lisa and her daughter. Invariably, the daughter sees something she wants and demands it. Lisa says “no”, and a fight breaks out. The daughter ends up whining and crying and occasionally treating us to a full blown temper tantrum. We all end up miserable. I once suggested to Lisa that she teach her daughter money management. If she allowed her daughter to bring her allowance to the store, her daughter could learn how to spend her own money. Lisa just snorted and said that her daughter would never learn.

Lisa’s right. Her daughter won’t learn until someone takes the time to teach her – or until she grows up, moves out of the house and is forced to learn the hard way how to save and budget and understand how to make buying decisions. I would much rather have my child make wrong choices in spending a five or ten dollar allowance than have her grow up unable to resist spending simply because no one took the time to show her and encourage her.

Help Them Learn.

When my son was in high school, his allowance was enough to buy lunch at school and have spending money left over for other things. There were many Friday’s that he went hungry because he had spent his allowance and didn’t have enough left for Friday’s lunch. Occasionally he missed lunch on Thursdays too. The good news is: he didn’t starve to death. And he learned the value of money. He learned that if he didn’t pay attention to what he was spending, he would have to make a sacrifice. As much as it bothered me at the time to let him go hungry when he spent his money, I am now proud that he handles money better than I do.

Let Them Earn Extra Money.

I always found ways for my son to earn extra money. Snow needed to be shoveled in the winter; grass needed to be mowed in the summer. Either chore would earn him an extra $ 10. I also gave him incentives for saving. If he wanted a new bike, we would price it. Then I would tell him that if he saved 2/3 of the price, I would pay the balance. He became very conservative in his spending habits when he found that his goal was achievable and I was willing to help.

Let Them in on Family Budgeting.

As soon as they reach their teens, kids are able to understand and help with planning. A trip to the grocery store can involve them in making lists and shopping within a budget. The biggest lesson they can learn here is “avoiding impulse buying.” For new appliances, teenagers can do the research and read reviews. Let them watch you negotiate with salesmen on the price.

Watch Them Save.

When you take the time to teach your child financial awareness, they will show you how well they catch on. Don’t be surprised if you raise kids who manage their money better than you ever did.

Di Stalter is a certified parenting class instructor. She volunteers her time to teach internet safety to senior citizens. She also is a content provider for The Busy Saver http://www.thebusysaver.com.
For more everyday advise, visit http://www.thebusysaver.com.

Banking

Document Software, A Path To An Ecological Banking Document Management

Banks were among the early adopters of implementing document software in their banking document management processes.

One of the biggest changes that society has experienced in recent years is the awakening to the importance of the environment. Although there is still a long way to go, no one is indifferent to the effects of climatic change. Warnings that before were dismissed as apocalyptic hysteria are now being taken more seriously and there isn’t a citizen or company that isn’t adopting ecologically sustainable measures in their daily activities.

Proof of this is found in corporate social responsibility programs that are being announced by organizations of all kinds, new developments that have led to the rise of the technology known as Green IT and policies in which many companies are obligating their employees to adopt related to reducing printing and paper consumption.

In Spain more than 270,000 tons of paper were consumed last year and a large portion of this was devoted to printing and copying business documents. Many organizations from all sectors are now turning to technology to minimize this practice, while others have already been relying on document software for this for some time.

Banks profitability resulting from innovation

Banks and other financial businesses have been standard bearers in adopting emerging technologies and document software is no exception. Twenty years ago it was common to use pre-printed banking forms, static forms that didn’t allow hardly any modification and that consumed large amounts of resources in banking offices.

The most innovative banks opted for document software to resolve this issue. This technology allowed them to eliminate their use of pre-printed banking forms with applications that made it possible to easily design of any kind of form. Thus, thanks to the implementation of banking document management solutions, when customers requested bank statements, invoices or contracts, their data could automatically be merged with the appropriate forms and much more professional looking documents could be delivered.

This method of producing documents not only improved the image that customers had of the financial institutions with which they worked, but it also served to reduce the paper consumption and costs dedicated to these tasks.

It could be said that the banking sector was one of the first to implement ‘green technology’ to establish ecologically sustainable operating policies, banking document management policies which also increased employee productivity and profits.

Endless options for implementing software solutions in the banking sector

With the passage of time and given the positive results, the banking industry continues to consider Information Technology as an integral motor of its business. Hence, it has initiated projects including the most modern technologies. Server virtualization, adoption of service oriented architecture or opting for business intelligence initiatives are clear examples of the innovation that this sector is advocating.

In most cases, these innovations have not only meant optimization of internal processes in bank offices or increased profits, they have also led to adopting more environmental policies that reduce CO2 emissions and energy consumption.

The adoption of banking document software solutions perhaps have contributed the most to banks maintaining environmentally friendly policies, not only for eliminating pre-printed forms, but also for the evolution of recent years that the banking sector has welcomed with open arms.

Banking document management software – A global solution

Financial organizations interact with their customers with printed documentation in their office networks, mass mailing and mass emailing information and using Internet portals. In everyone of these processes, quality document software can make a difference in making organizations more competitive and considerably reducing their costs.

If documentation is mostly printed at different delegations of a banking organization, a printing control system that can be installed locally or as a central server, can be a determining factor in fully optimizing the organization’s printing system. With the printing control software solution that modern document software provides, print quotas can be assigned to users and departments and detailed reports can be generated with which an organization can control the amount of resources it consumes in terms of hardware and supplies.

It’s only logical that being able to control the number of prints and copies will also encourage employees to personally adopt more responsible consumption habits, and as a consequence, the printing costs for the organization will be even further reduced.

Electronic banking and environmentally friendly storage

The Web also offers many possibilities and banks should take advantage of them to increase their productivity. It is much more efficient to send a mass emailing than to print hundreds of pages, batch them, stuff them in envelopes and mail them to their respective recipients.

Real-time document generation on the Internet is another advantage that document software provides. Previously, customers had to go to an office to get bank statements, where in the best scenarios they were printed and delivered in a few minutes. Now, they only have to access a bank portal to make their requests. And in a matter of a few seconds, they can see them on their computer screens, all in a manner that is environmentally friendly and profitable for the organization.

Once documents are generated and distributed, financial institutions must store them in the event that they have to be retrieved in the future. Storage has always been an authentic headache for any organization, especially for those that manage large volumes of documents.

Digitalization reduces the space formerly required for archiving paper. Combined with document management software enabling easy search and retrieval of the electronically stored information, an essential process is gained for achieving authentic ecologically sustainable and profitable banking.

By implementing document software the banking and insurance companies have given multiple examples for how document management solutions help saving costs and at the same time improve customer satisfaction, employee efficiency and being more responsible with our environment.

Julio Olivares, DocPath President; DocPath is an international Spanish document software technology company. Solutions covered: Banking Document Management Solutions, Print Control Software Solution, Real-time Internet Document Generation

Money

Money Management for Kids

Enabling your child to work with money will build a foundation for managing money through their teens and into adulthood.  When your child asks for something, they will choose to put some thought into it if they are using their own money. They will start to understand the value of money, and the fact that it does not grow on trees. It is never too late to start an allowance concept with your child, but it is recommended that the concept is taught during Kinder Garden years. If you want the “I wanna have” to stop; this system will work and it does make shopping less stressful for both you and your children.

Starting an allowance for the start of the School Year is a great idea. Starting an allowance is often a difficult thing to create when you have to figure out what is acceptable for both parent and child, and in putting an amount to what is fair – all the while making sure it fits with into the home budget as well. Clearly detailing what is normally expected in School and at home is a good place to start, then you can go from there in acknowledging what they want and a clear achievable way for them to obtain their goal in working towards it.

Take a poll of your child’s friends and other families you know asking what range and scope they’re using with their child. This will ensure you are familiar with the comparison’s your child will make once you have started up an allowance. In the early years sticker charts and favourite foods are a great means to reward good work and achieved goals. Moving forward there will always be requests for more. How you both learn from this situation will leave them with great negotiating skills for future raises at work.

Starting a savings account is also a great idea once they get a little older, and helping them choose how to manage it is one of the best qualities you can help them cultivate. Even the act of going to the bank and opening up an account (take a look at the transaction fees and your homework prior) is reward enough in making that first deposit. You may wish to match their contribution depending on what the account is set up for. If the purpose of the account is to be used only for larger purchase items they need to save up for, then at least the details of how it is used is predetermined.

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Banking

Certificate Course in Financial Management ? Careers in Banking

EduKart.com’s Certificate Course in Financial Management is a versatile course to learn, and it includes various topics across different sectors like Banking, Stock Markets, Financial services, wealth management, Charatered Financial Analyst, Financial Risk Managers etc.

There are a lot of options available to get these positions by earning the relevant knowledge.

One can join short term certificate courses as well. Also, because of the technology advancement these courses can be pursued without any hassle while working or studying simultaneously at the comfort of your home on the laptop or computer.
Banks are considered the backbone of a country’s economy. Banking sector is therefore the fastest growing sector as well. Talking of facts, at present 7 lac employees are working under Banking sector. Out of these, a large number is going to retire in the next 5-6 years. That implies employment generation. And to validate this, more than 40,000 vacancies have been announced in this sector recently.

The growth in Banking sector is an overall growth which indicates emergence in other industrial sectors as well.

There are different positions available in every bank. Lets discuss some of them. We will start off with entry level jobs.

1.Probationary Officer / Assistant Branch Manager : These are the most available entry level jobs in a bank. The proper job description of a PO would be administrative work, general banking operations and any other work assigned by the bank. After probation period, a PO is promoted to an Assistant Branch Manager.
2. Relationship Manager : A Relationship Manager takes care of people’s money. He/She directs the customer to make the right choices, right investments and make their money work for them.
He/She gives advice to customers on different financial services and the one that suits the customer’s needs. He/She also leverages existing customers for upselling and cross-selling.
3.Branch Manager : For the few who are fresh out of college yet exceptionally talented, the position of a Branch Manager may also be up for grabs. The Branch Manager is responsible for the administration and efficient daily operations of full service branch office.

This includes administration, operations, product sales, customer service, security measures etc. He also provides supervision, leadership, guidance, training etc to fellow employees.

Advanced Level Jobs :
Pre requisites : CFA, FRM, MBA in Finance etc

1.Investment banking : Investment bankers generate funds for corporations by structuring their investment requirements such as bonds & stocks. It is a very fast paced, pressure packed job with long working hours. At the same time, it rewards you with money and more!
2. Project Finance Manager : The key role is to examine a project from a financial perspective. A Project Finance Manager is responsible for a detailed financial risk analysis of a project using financial models with calculations, tax computation, working capital requirement assumptions etc.
3. Risk Management : Risk Managers support and advice an organisation about the potential financial risks in both the inflow as well as outflow of funds. They help an organization act proactively to reduce the effect of any unforeseen financial or economic event.
4. Equity Analyst : An Equity Analyst analyses financial information to forecast business, industry and economic outlook for use in making investment decisions. There are two main kinds of profiles here – Technical Analysis and Fundamental Analysis.
5. Treasury Management : It includes management of an enterprise’s cash with the only goal of maximizing the firm’s liquidity and makes the operational, financial & reputational risk less severe.

We will talk in more detail about these advanced level jobs in our upcoming posts.

About EduKart.com –
EduKart.com, India’s leading online education portal, delivers industry relevant courses in the areas of Retail Management, Financial Management Course, Digital Marketing, Programming Languages and Project Management. The online courses are ideal for students and working professionals who want to upgrade their educational qualifications and make advancements in their careers. Launched in 2011 by graduates of Stanford University and the Indian Institute of Management, EduKart.com has gone to become one of the most visited online education portals of the country aiming to create a difference in the lives of those who aspire to move ahead. Check out the courses at http://www.edukart.com

Tanvi Wadhwa is the community manager at EduKart.com. She is excited about engaging with the EduKart.com community and provide the latest updates. She can be reached at contact@edukart.com .

Banking

Enterprise Risk Management in the Banking Industry

After the financial collapse in 2008 that was marked by the demise of some of the oldest financial firms in the banking industry, enterprise risk management has become a regulatory concern as well as a business concern. Assuring that the institutions which form the backbone of the country’s economic infrastructure are observing proper operation risk management practices is seen as benefiting all citizens, not just customers and shareholders. Regulatory form, which has been the subject of press coverage and congressional inquiry, will certainly take a central role in the upcoming presidential race. As such, understanding critical factors is an important part of being well informed.

The Terms

Enterprise risk management refers to practices that are specifically designed to protect the very existence of the business, or enterprise, for which they are implemented. Within the banking industry, this can refer to an ever-changing group of risks. In recent years, these have focused on practices that protect against allowing a financial institution from becoming over-leveraged.

The meltdown in 2008 was largely precipitated by banks over-extending credit which in turn impacted the real estate market as well as the very viability of the institutions which had issued that credit. When defaults began to occur, a cascading effect took place and the entire economy was put in jeopardy. Operational risk management refers to managing those risks which are directly related to the operation of the business in question. In most cases, these risks represent enterprise risks as well, but the overlap between the two terms is not absolute.

Regulatory Developments

Over the past several years, there have been a variety of developments that have had a significant impact on the market. The Dodd-Frank legislation, changes in margin requirements and alteration to reserve requirements are just a few of the regulatory changes that have been enacted and targeted at forcing sound enterprise risk management practices. The Federal Reserve, the Securities and Exchange Commission and others have all worked towards reforming Wall Street for the overall protection of the economy and tax payers in general.

An example of one of the operational risk management changes that has been imposed on the banking industry is the practice of regularly conducting stress tests to be sure that the assets of any financial institution that is deemed “too large to fail” are not over-encumbered. The specifics of each test are highly complex, but the purpose of the exercise is to assure regulators that the institution in question can manage its exposure. Practices like requiring any lender to keep a certain percentage of the loans they make on their own balance sheet also help to protect the long-term viability of the institution by trying to force good judgement.

The Big Picture

The issue that is likely to be debated going into the presidential race is the cost of imposing operational risk management practices on free enterprise. While it is hard to argue that protecting the economy as a whole is in the best interest of all citizens, any time the free market is restricted, there is a cost. Some argue that the cost is too high and has unseen consequences that cannot be risked, while others defend these practices as a balance to natural greed. In any event, the discussion is an important one that will have a deep impact on the global economy for the foreseeable future.

Enterprise risk management refers to practices that are specifically designed to protect the very existence of the business, or enterprise and which has seen operational risk management changes that has been imposed on the banking industry is the practice of regularly conducting stress tests.

Finance

Leasing companies want Masters in Finance and Management

If we look around, we will come across a fact that in the today’s world, there are a number of leasing companies operating in the world and no doubt, they are growing rapidly in every part of the world. All these companies are looking for people, who have their degrees in Masters in Finance and Management. Most of the times, candidates with degree in marketing are easily available but these companies hire Masters in Finance and Management professionals. They pay them high salaries. It is due to the fact that this course is closely related to the accounts, along with simple math. This course is not at all difficult and anyone who is interested in accounts can do this course, successfully in every sense and manner.  

In case, one is interested in such a course then he must look for the Masters in Finance and Management Programs. He must seek for the institutes that offer these programs. Usually, graduates are eligible to apply for these Masters in Finance and Management Programs. All one has to do is to contact the management of the institutes and know all the details that what are the requirements of these programs and how they should apply for. No doubts, there will be enough seats for anyone to join these programs, get it done and then get hired in a well reputed international company to earn your living successfully.  

At the same time, it is also a fact that accounts is not a simple subject. One needs to have little background in this area, before getting admission in the Masters in Accounting and Management. One can take a diploma course in accounting, before joining this course of Masters in Accounting and Management.  It is no doubt, an important subject and it is due to this fact that we see that even in schools subject of accounting is given high significance. People know that future is in accounts field and thus, they want their next generation to be well taught at accounts and finance. It is so that when they leave their school, they must have strong background and basics in the accounting field. Thus, it enables them to join this field of accounting and they feel no hesitations, in doing so.

After reading the above piece of writings, one can easily judge the importance of accounts subjects. Thus, one should and one must complete ones graduation in this subject and even after graduation continuing this subject will earn one permanent livelihood, for many years. Once you will be done with the course, you will come across the fact that your demand has reached sky high. Leading companies will wish to recruit you and they will pay you high salaries for rendering them, your services. Few years back, people were only concentrating on Information Technology field. But, today they know that field of accounting and finance is also of great significance.  Thus, studying accounts and finance is also a good idea and attractive way of earning livelihood, in every sense and manner.    

 

Justin Hyden is an author of mim-compass.com, One of the best management course provider. He is writing articles on Masters in Accounting and Management, from past five years.