Provide a critical review of the current risk management activities of Essay

Provide a critical review of the current risk management activities of any one (large, international) financial institution of y - Essay Example The organization has intensified their cost disciplines while investing in some selective growth areas that support the priorities of execution. Risk management is the process through which potential risks of the organization is identified, analysis is done and then precautionary steps are taken in order to reduce or cut down the risk. In the world of finance this practice is a very common one and is followed by almost every financial institution. Whenever an entity goes with some investment decision they are exposed to a large number of financial risks. The degree of risk involved depends on the type of financial instrument involved in the investment. These financial risks can be of various forms like recession, volatility in the capital market, high inflation and bankruptcy. Therefore, in order to control and minimize the exposure of the investment to such risks, the investors and the fund managers are seen to practice risk management. If adequate attention is not given to the risk management while making important investment decisions then disastrous situation may result during the financial turmoil in the economy (Webster, 2010; The Economic Times, 2013). Different categories of asset classes are attached to different levels of risk. Risk management is a vital function within Barclay, which is operating globally and enjoys great visibility. The risk team formed with the organization plays a significant role by aiding the senior management to incorporate informed decision taking the implications into account. The risk management team of Barclays operates across the organization protects the reputation of the organization by ensuring and securing the financial performance of the organization. The organization has dedicated team of experts who carries out valuable work in managing the issues that causes significant impact on the business (Barclays, 2013a). This study focuses on the risk management of Barclays bank, measures it risk appetite and discusses wheth er corporate governance supports these risk management activities. Figure 1 Source: (Youngberg, 2010) Risk Appetite Good risk management does not signify avoid all types of risk at any cost. It indicates the various types of informed choices that the organization makes related to the risk in pursuit of its measures and objectives that lead to mitigation of risk. Defining the risk appetite of an organization is an integral part of risk management. Best-of-class companies does not design or discuss their risk management as an isolated add-on process but it is viewed as an important part of their strategy execution and design. The new strategic initiative taken by the organization may open attractive opportunities for the organization but the rewards should be balanced properly with the risk that is generated. In order to integrate risk dimensions fully in the strategy design the company needs to be aware of how much risk it is willing to take and how it is planning to balance between opportunities and risks. Foe enterprise risk management defining the risk appetite is very essential (Barfield, R., n.d.). While deciding on the risk appetite of the organization the board of directors should categorize the different types of risk and decides on the capacity. This includes the type and amount of risk the organization is capable of supporting in pursuit to the business objectives and taking into account the access to the

Organic Revolution Essay Example | Topics and Well Written Essays - 1250 words

Organic Revolution - Essay Example Here is the concept of organic food, a new revolutionary wave that characterizes modern farming and ranching. Inasmuch as the climate change campaigners, policy advisors and politicians continue to drag their feet on such a fundamental issue, it is imperative to acknowledge the bare fact that business is not as usual at all. Not at a time when organic revolution continues to spread its tentacles and roots into the tissues that define our posterity. Across the world, thousands of organic farmers and conservationists are on a constant plea to inform the world that we can indeed create a very safe and healthy alternative to the conventional industrial agriculture (Ableman 89). The whole trouble however lies in convincing the masses and the skeptics out there that this is a very real and feasible process devoid of any harm hitherto known. Well, the cynics will normally have their way and their say but the fundamental realization to acknowledge is that as the world’s population sur ges amid diminishing resources, it is imperative that radical measures be put in place to ensure that this generation and the posterity will have food to eat and resources to use. That, in essence, is the fundamental issue that has to be addressed. It is in light of such emerging realities that the concept of organic revolution continues to take shape and be accepted as a solution to the food crisis in the world (Avery 78). However, this should never be accepted with doubts and skepticism. It should be after an understanding of the facts, realities and the imperatives of such a revolution. On the positive aspect, the goal in the organic revolution process is not only limited to feeding the world’s population. It is also about reversing the effects of global warming which is indeed a nightmare in the world. Organic farming helps in capturing millions of the greenhouse gasses that destabilize the ecosystem (Gettelman 45-8). This is enhanced through a combination of activities s uch as reforestation, composting, photosynthesis and the preservation of wetlands all which contribute positively toward reversing the effects of global warming. Indeed, climate change in a global concern that continues to elicit hot debates both on its causes and effects amid the thoughts that certain countries should be more responsible for addressing its consequences given that they contribute more toward the challenge. On that account, any positive process that can effectively curb the effects of global warming should be a welcome story by all and sundry. At least for those concerned with environmental issues. The conventional farming methods practiced across the world are basically energy intensive and involves the application of a lot of chemicals in the farmlands (Guthman 109). The deliberating effects of such industrial agriculture include a release of millions of tons of carbon dioxide gas into the environment. All this becomes a foregone story with the adoption of organic farming. In this case, healthy soils can be nurtured, while plants and trees that are resistant to drought and pests can flourish effectively. Indeed, nothing is better than that. Not at a time when hunger and famines continue to consume millions across the world. Moreover, organic farming produces food that is basically more nutritious with more vitamins and minerals to address the malnutrition that is also a concern in most parts of the