Developing a Professional Identity as a Teacher

Developing a Professional Identity as a TeacherTo me, motivation is the first and fore nearly driven force for a instructor to develop professional individualism. If a person does not engender the ambition for a profession, it is easy to drop the struggle in vein. pauperization lot persist in form of altruistic, intrinsic, extrinsic reasons or conspiracy of all among teachers to choose pedagogy as a profession. In an explanatory direction, altruistic reasons deal with seeing teaching as a socially worthwhile and important job, a desire to help children succeed and a desire to help society improve (Coulthard, 2000, p. 117, as cited in Thomson, Turner, Nietfeld, 2011). On another hand, intrinsic motivation is doing an activity for its inherent satisfaction benignanta than for some separable consequences. In contrast, extrinsic motivation is defined as doing an activity for the attainment of a separable outcome (Deci Ryan, 2000, p. 56, as cited in Thomson, Turner, Nietfeld, 2011). genus Vanessa, Early Childhood Teacher concluded that, passion to work with children and rapture from teachers with whom she had worked or who baffled her educational degrees are the reasons to build an aspiration in her to choose teaching. To build a different bonding with the children and their parents along with an signal to keep the children the way they are have become the eternal visions to pip a different difference in teaching sector, according to Vanessa (Vanessa, February,2015). On another note, Christine, Secondary School Teacher argued that, even though teaching was never a chosen profession beforehand, gradual fundamental interaction with learners in special education sector triggered herself to join teaching later on. Even though initially teaching was a platform to scotch own creativity through make lesson plans or cloy structure, on the long way to journey, teaching had become synonymous of love for the schoolchilds. To her, it is the outflank to b ecome a mentor to show guidance being with them kinda of having a superior position over them and this is how a teachers professional identity operator must develop by providing a sense of belongingness (Christine,February, 2015). So, visibly through the lens of shared experiences, for Vanessa, altruistic and intrinsic motivation have interplayed successfully where she held a desire to benefit children alongside the self-less affection for teaching, as a profession whereas in Christine, Intrinsic motivation made her heart set into teaching.However, followed by motivation in the row second comes experience which is kind of an aspect, never to devalue in anyway. Experience which emends the professional identity of a teacher over time through increased knowledge and practice. It is the estimable journey which enacts professionalism of a person over others in a row. As a result of experience, teachers seem to have developed rich, well-organized knowledge bases that enable them to dr aw readily on their past experiences (Calderhead, 1996, as cited in Beijaard, Verloop, Vermunt, 1999 ). In this regard, arising frequent questions, taking risks, listening to the unheard sayings of children, and most importantly growth a relationship with colleagues to learn better are few stairs to brighten as a pre-service teacher Christine (February, 2015). And these precious responses cannot be retrieved from anyone save having a profound professional identity enriched with experiences of trials and errors. This are experiences which help the teacher to realize which teaching methods will be useful or what content should be modified to feed the learners motivating efficiently. And also, the perk of experience lies in the fact that anyone can use experiences related to other aspects of life in teaching whenever needed and it is visible when Christine concluded that she had used problem solving skills of another course into her English teaching lessons. Another finding reveal s that the experiences the participants had and the deal they met during the teaching practice period were vital in shaping the way they valued themselves, including their commitment, motivation and the satisfaction of becoming a trainee teacher(Khalid, 2014).Learning theories shape the nature of larn, hence comes teaching. Teachers need to try, practice, and amend different theories of learning to nail down which suits the best for puritanical learning of the students since profound teaching is theory driven. Vanessa(February,2015) argues that sociocultural frame of learning theory has made difference in her teaching because of which she turned out to be much accessible to childrens families than before such(prenominal) theory complied her understanding of learning which is relational to the background of a student along with several other factors and materials of teaching itself. It had become easier for her to teach when her learners became more aware of their social and cu ltural liveence where they belong to. Likewise, different learning theories may tailor the classroom teaching for another teacher. For example, Christine(February,2015) points out that Vygotskys theory has helped her to recognize her students individual goals to assess where they are at present and where they need to be by moving forward. It has given her a wisdom of evaluating her learners along with summative and formative assessment of having personal conversations with them to recognize their skill levels. On a beneficial note, it helped to compare between where the students thought they were and where she thought they were and making further changes accordingly.Pedagogy is an umbrella term under which factors of different paradigms exist each of which are equally a necessity to develop a professional identity of an educator. It is the quality of pedagogy that most directly and most powerfully affects the quality of learning (Department of Education and Training NSW 2003, p. 4, as cited in Moss, 2016, p. 38). It vastly is a combination of how to teach and what to teach to the learners which determines the professional identity of a learner severely. It variably also includes physical and emotional surroundings in the class, class rules and discourse of the class, structure of groups works or working(a) as groups (Nirenjan, 2017). In this regard, collaborative pedagogy helps to determine class rules which can lead to consistent discipline by providing dignity and respect to everyone to experience social environment of a class by assuring proper class culture.

General Environment Facing Under Armour Marketing Essay

General Environment Facing chthonic come across erupt Marketing EssayTarget in men, women and youth. ( to a lower place armours diverse w are task for men, women, and youth is complex, but the message is simple wear HeatGear when its hot, ColdGear when its cold, and AllSeasonGear between the extremes.) pagan differences. (Product transcends cultural differences and it is appealing to many athletes, regardless of nationality below fit is puisuing a adult malewide scope via regionalization.)EconomicIncrease economic condition by improving the gross sales balance and reducing the seasonal worker variability in sales, inventory efforts and distribution.Economic risk. (The degree of economic risk associated with the premium determine and low fit is feeling the effects of the current declining retail consumer food marketplace that is affecting the broader economy.)Current economic downturn challenges chthonic armor to contend against major rivals.Political/ LegalThe tele phoner full treatment with multiple licensees now by and throughout the harvest-festival development process to tick that the products atomic number 18 reorient with its brand and quality expectations. on a lower floor armor does not endure a patent on any of the materials use in its products. Therefore, it needs to be cautious in its licensing agreements so companies do not steal its know-how and bestowuce their own versions. chthonic fit signed a five- year confederation agreement in April 2009 with Cal Ripken, Jr.The intellectual quality rights laws and regulations of countries in the international market vary dramatically.Sociocultural low fit out missions is to enhance the make got for all athletes by reserveing passion, skill, and the relentless pursuit of innovation to create robes with temperature control, comfort, and flexibility. chthonic Armour has reached weak athletes, active outdoor enthusiasts, elite tactical professionals, and active lifestyle consumers.Planks shirt truly did regulate athletes body temperatures, im theatrical role to improved performance. downstairs Armour had five lines of clothing do for every climate. footwear product line visualizeed for high performance through a highly breath equal to(p) and lightweight design.Global low Armour is able to successfully penetrate the sports app bel market by apply the go out and influence of domestic and international professional teams, collegiate teams, Olympians, and individuals. under Armours products are sold worldwide, with the fraternitys headquarters located in the join States and support pipices in Hong Kong and Guangzhou, China.Under Armour sells products in 13 countries, including in-house distribution in the unite Kingdom, Germany, and France. Sales in an separate(prenominal) Western European and Asian countries are done through partnerships and third-party distributors.Under Armour do not turn over to contend with the challenges associated wit h establishing manufacturing plants in foreign countries.engineeringPlank created a man-made shirt made of high-tech material that had a snug fit designed to feel like a second skin.Products are offered through the companion website.For the first ten long time of its existence, the company was able to entertain trading operations by using off the shelf software programs.Under Armour invested in a raw(a) SAP system. This system is a key to the companys ability to extend products to list of offerings, as it allows Under Armour to manage a much diverse inventory and to ship at one time to distributors.Physical EnvironmentWhen Plank was a football game player he grew tired of having to change his damp, rotund t-shirt down the stairs his jersey, so he set out to create a unique product that would fancy the needs of all athletes.Though the materials and technology employ to create its products are not exclusive, by implementing an effective corporate strategy Under Armour ha s been able to fashion itself as a profi circuit card business and last out a key player among competitors.Use Porters Five Forces Model to kittyvass the set, footwear, and equipment sedulousness in the US. Given this analytic thinking, is the industry attractive or subfusc?Porters Five Forces ModelMedium threat to new entryUnder Armour operates in a highly competitive industry where the prevalent competitors have significant breadth of market coverage that is difficult to father an entry point. The main competitors have been publicise and establishing distribution channels, marketing agreements, and designation for many years.High threats of substitute productsUnder Armours major competitors are Nike and Adidas with comparable or competing product offerings.Under Armour does not have a patent on any of the materials employ in its products.High effectiveness of rivalry among competitorsThere is stiff competition in the athletic robes industry with companies of various sizes employing different strategies in install to attract consumers to their product and brand. The outstandingr companies continuously increase competition by spending peachy amounts of money on product innovations, advertising, and sponsorship.High bargaining power of suppliersUnder Armours customers is willing to pay the price for its products because their products have value in it. somewhat of it suppliers are commodities and thus are subject to price fluctuations for example, petroleum-based materials are used in Under Armous products and the petroleum industry has experienced significant swings in price and relative availability in recent months and years.Under Armour relies heavily on suppliers and manufacturers outside of the United States. Seventy to 75 per centum of the textile used in its products comes from only six suppliers, lending to Under Armours weak position relative to its suppliers.Low bargaining power of buyersUnder Armour has developed unique products that consumers value.The customer is willing to pay the price because the Under Armour product has value in it.Who are Under Armours main competitors? How do they measure up against these competitors? Classify the competition under the 3 Is framework agile competition, be competition, invisible competition.Competitor analysisCompetitorsNike.Adidas combined with Reebok.Columbia Sportwear.SportHill.Immediate competitionThe immediate competitor is Nike. Nike is the leader in athletic shoes and captured half of the athletic shoe market. Footwear is new product line that was launched by Under Armour in fourth quarter of 2006. Under Armour is likely to introduce other athletic shoe like basketball shoe in future. It is a challenge of Under Armour to drive into athletic shoe market because Nike has already captured most of the market share in footwear.Another immediate competitor is Adidas. Adidas, who is the second largest athletic dress up manufacturer in the world by and by mergi ng with Reebok. The apparel is major revenue of Under Armour. In year 2007, the apparel dominated 84% total sales of Under Armour. Reebok second largest manufactured in athletic apparel manufactured, so the union between Adidas and Reebok become the immediate competitors for Under Armour.Impending competitionThe impending competitor of Under Armour is SportHill. SportHill utilizes the expertise of elite athletes to perfect its design and innovative new products. It is well known for quality, comfort and reliability. Their clothing can be found globally in most major retailer stores and can be purchased online. Therefore SportHill poses a threat to Under Armour. covert competitionThe invisible competitor of Under Armour is its suppliers. The intellectual place rights in technology, fabrics and processes used to manufacturer Under Armour products are principally owned by their suppliers and not unique to Under Armour.The lack of patented product rights, intellectual property right s in foreign countries, and a heavy reliance on comparatively few third-party suppliers and manufacturers could adversely affect the commodious-term sustainability of the profligate. comport a SWOT analysis to bring in Under Armours strengths and weaknesses. employ the table below, conduct a SWOT analysis identifying the firms strengths, weaknesses, opportunities and threats in the table below.SWOT AnalysisStrengthsEmployees work as one team. Plank manages his company with a unique team-driven style. Under Armour is one team and my frolic is to help ensure we operate and actualize as one team. whole leadership. Planks drive to keep trying even during difficult times when it seemed the company might never flourish is what made it possible. He knows every construction of it because at one time he actually did the work himself.Under Armour sells products in 13 countries, including in-house distribution in the United Kingdom, Germany, and France.Under Armours accessories categor y is developed and managed directly by Under Armour.Under Armour possesses an efficient operations and distribution network. SAP system has the ability to annex products to its list of offerings, as it allows Under Armour to manage a more than diverse inventory and to ship directly to distributors.WeaknessesLow level diversification. 84% of its revenue comes from athletic apparel and gear.Highly dependent upon premium priced products that are closely related.OpportunitiesUtilizing broad-based, frequently free endorsements and well-received publicity, Under Armour has also reached regular athletes, active outdoor enthusiasts, elite tactical professionals, and active lifestyle consumers. triumph was initially slow in coming, but once Plank made his first big sale to Georgia Tech University, Under Armour grew rapidly.During 2007, Under Armour increased its marketing initiatives by opening self-owned retail and outlet stores.By leveraging its licensing partners (JR286, Inc. and USG), Under Armour can earmark a wider range of brand products to its customers.Under Armour signed a five-year partnership agreement in April 2009 with Cal Ripken, Jr., a retired professional baseball game player, to be their official uniform representative. Under Armour feels this is a great probability because Ripken previously was partnered with Nike.ThreatsThe main competitors have been advertising and establishing distribution channels, marketing agreements, and cite for many years.There is stiff competition in the athletic apparel industry with companies of various sizes employing different strategies in order to attract consumers to their product and brand. The larger companies continuously increase competition by spending large amounts of money on product innovations, advertising, and sponsorship.Under Armour faces several issues and challenges. These challenges entangle the current economic downturn, competing against major rivals such as Nike and Adidas/Reebok, and mainta ining a affirmatory brand image despite setbacks, such as the recent back out of its mens protective athletic gear.The lack of proprietary product rights, intellectual property rights in foreign countries.A heavy reliance on relatively few third-party suppliers and manufacturers. Under Armour relies heavily on suppliers and manufacturers outside of the United States. 75% of the fabric used in its products comes from only six suppliers.Conduct a Value mountain chain analysis to identify value-creating activities.Value Chain AnalysisFirm infrastructureThe companys operations from Planks grandmothers basement moved out into a manufacturing warehouse in Maryland.Human resource managementHaving been part of a sports team, Plank manages his company with a unique team-driven style. Under Armour is one team and my job is to help ensure we operate and execute as one team.Many of his first employees were his college classmates and teammates. Most of them are stillness with Under Armour and play important roles in management.In order to facilitate its international expansion, Under Armour hired several new executives with experience in international business, most notably Peter Mahrer.Technology developmentAt the end of Under Armour first year of operations, Under Armour had five lines of clothing made for every climate, and the companys operations were moved out of Planks grandmothers basement into a manufacturing warehouse in Maryland. after(prenominal) Under Armour went public in 2006, Under Armour invested in a new SAP system. This system is the key to the companys ability to add products to its list of offerings, as it allows Under Armour to manage a more diverse inventory and to ship directly to distributors.ProcurementUnder Armour relies heavily on suppliers and manufacturers outside of the United States. 75% of the fabric used in its products comes from only six suppliers.Inbound logisticsFor the first ten years of its existence, the company was able to sustai n operations by using off the shelf software programs.OperationsUnder Armour licenses its brand found to independent manufacturers for other miscellaneous products such as bags, socks, headwear, eyewear and watches. The company works with multiple licenses directly throughout the product development process to ensure that the products are aligned with its brand and quality expectations.Outbound logisticsAfter Under Armour went public in 2006, Under Armour invested in a new SAP system. This system is a key to the companys ability to add products to its list of offerings, as it allows Under Armour to manage a more diverse inventory and to ship directly to distributors.Products are offered through the company website and retailers, and the company stores in the United States, Europe, Japan, Canada, southern Africa, Australia and New Zealand.Marketing and salesProducts are offered through the company website and retailers, and company stores in the United States, Europe, Japan, Canada , South Africa, Australia and New Zealand.ServiceWhen customers would request products that Plank had not created, he would respond, Of running we make that and then immediately go to work with suppliers and contractors to deliver on his promise.What is Under Armours business-level strategy? Is the strategy appropriate to offset the forces in the industry? Conduct an analysis of Under Armours business strategy by using the 4 Ps Framework. The 4 Ps Framework is used to understand a companys strategy based on itsPosition (Mission, Values, and Vision)Priorities (what is important to the firm in the dead and long terms)Payments (what it will spend its money on to reach those priorities)Performance (how it will measure success)PositionThe task at hand was to simply make a superior T-shirt and nobody more.Under Armours mission is to enhance the experience for all athletes by applying passion, science and the relentless pursuit of innovation to create clothing with temperature control, comfort and flexibility.Under Armours stated goal is to be a leading developer, marketer, and distributor of branded performance products.Ever since its inception in 1996, Under Armours leaders have strived to achieve the companys vision of becoming the worlds leading performance athletic apparel brand by employing a differentiation strategy through innovation.PrioritiesFor misfortunate term, there appears to be a trend that sales are higher(prenominal) in the third and fourth quarters of each year, aligning with the football and basketball seasons and the traditional holiday gift-giving season in the United States.For long term, Under Armour has been able to quickly earn loyalty after a customer has had one or two good experiences with their purchase.PaymentsFor short term, Under Armour has contemplated putting more emphasis on its baseball product line to improve the sales balance and reduce the seasonal variability in sales, inventory efforts and distribution.For long term, they have the technology in the fabric and the design and the features satisfy what the athlete needs. Their model is getting to the athletes-supplying them with great product that helps them perform better.PerformanceThis is further evidenced by a 133 percent compound annual growth rate and an equally immense increase in operating income from $5.7 million to $52.5 million between the years 2003 and 2007. As of 2007, Under Armour had $606 million in sales revenue, far-off surpassing its first years revenue in 1996 of $17 thousand.Do you recommend any changes to its strategy and/or foresee any challenges? dependableness on suppliers. Under Armour relies heavily on few third-party suppliers and manufacturers. Under Armour should try to find more suppliers for their fabric. Even if the price of fabric rises or suppliers stop supplying the company, Under Armour still has other suppliers to carry on its business.Strategies for competition. There is a stiff competition in the athletic appar el industry. Under Armour should do more advertising to bring awareness to people about the companys brand. This way, Under Armour could have more competitive advantages in the market.Lack of patents. Under Armour should apply for patents for its products innovations to prevent other competitors from duplicating its products.

Entrepreneurs Typically Learn From Failure Business Essay

Entrepreneurs Typic eachy Learn From ill Business EssayIn the literature, at that place is no specific definition of reverse. Every author that testament be discussed in this essay has described adversity victimization different parameters. Therefore, it is non possible to use a particular authors definition be stupefy their work is ground on their different definitions. To begin with, one and only(a) of the widely accepted definitions of bumpure is the termination of a crinkle that has f tout ensembleen short of its goals, on that pointby weakness to satisfy principal sh atomic number 18holder expectations (Beaver and Jennings, 1996 mentioned in cover, 2011, pp 605). This differs from the definition of Cochran, 1981, mentioned in Cope (2011, pp 605 Carter and Evans 2012, pp 181) who suggests calamity as bankruptcy or liquidation as the sack of heavy(p) and an inability to make a go of it. However, a correspondent view is shared by shepherd (2003 pp. 318), who opi nions that melody ill luck occurs when a fall in r pointues and/or a rise in expenses are of such(prenominal) that the firm bewilders insolvent and is unable to attract new debt or equity funding leading to the inability of operating under the occurrent giveership and care. Oxford dictionary places typical as having the distinctive qualities or characteristics of a particular type of mortal or thing or unceremonialshowing the characteristics expected of or popularly associated with a particular person or thing. It is typically expected that enterprisers will get wind from ill luck. This essay will discuss the reasons the why entrepreneurs fail, the factors that increase the chance of affliction, how and what entrepreneurs learn from trouble. In the essay, all the theories or literature that has been mentioned is in context to small firms. The reasons they have been targeted is because in that location is higher incidence of faillure in small firms and are more in a ll likelihood to close than larger ones (Blackburn and Stokes, 2002).To understand achiever, it is serious to understand failure (Carter and Evans 2012). Sitkin (1992) as cited in shepherd (2003 pp. 318) argues that failure is more valuable than success for reading. Sir mob Dyson, the readyer of Dyson Compevery (Entrepreneur 2012) to a fault believes that a person neer learns from success, provided they do learn from failure.The causes that lead to business failure have been shared into two categories internal and outside(a) failures. The following table shows the internal and impertinent factors add to failure of a businessInternal and external factors contributing to failure cited in Carter and Evans (2012, pp.184)One of the major internal cause of failure is poor management an event that occurs as a lack of entrepreneurial or managerial attention or focus (Carter and Evans, 2012 pp.184-184).Beaver (2003 mentioned in the Carter and Evans. 2012 pp. 184) refers to a r esearch done by Dun and Bradstreet in 1991 which proves that the primary cause of business failure in the USA is due to management incompetence of the business owner. This view is confirmed by Thornhill and Amit (2003 as mentioned in Cope, 2011) who excessively consider lack of management and fiscal formulation skills as the nigh common causes of firm mortality.Authors like Brough (1970) Stanford (1982) Hall (1992) Beaver and Jennings (1995) as mentioned in Beaver (2003 pp. 117) consider finance, demand forecasting, management, marketing, capitalization at start-up and st ordaingy and planning as the main causes if business failure in small firms. other view by Beaver (2003 pp. 117) is that if business start-ups are a expansive response to unemployment, rather than based on sound principles and the committed fashioning and management of competitive advantage, it is inevitable that many firms will fail.The external factors of failure are those that are beyond the control of ev en the most overt entrepreneurs and will trigger problems in new firms (Osborne, 1993 as mentioned in Carter and Evans, 2012 pp. 184). Entrepreneurs take to the woods to attribute failure to external causes, such as market conditions and financial problems finished a bear on k this instantn as attribution hypothesis (Carter and Evans, 2012 pp.184). Rosa, Carter and Hamilton (1996 as mentioned in Carter and Evans, 2012 pp.185) interviewed 600 UK small business owner-managers and found that most of the business people tend to blame external factors to their possible shortcomings. The reason why entrepreneurs dont want to be associated with failure is due to the potential danger to their vanity (Cannon and Edmondson, 2005 Carter and Evans, 2012, pp. 185). This view has been encouraged due to the social norm of failure creation regarded as a blackball event and the stigmatization (Cope, 2011). One of the external causes of failure mentioned in Carter and Evans (2012) is bankrupt cy of main customer or supplier. Len Rainford, M.D., Sameday UK went through the same problem with his business of warehousing when his biggest customer had gone bust. However, with the overhaul of his banks and accountants, he was able to recover losses and make profits indoors 3 years. A similar problem was alike faced by Vikram Talwar, founder of EXL Service, one of Indias largest BPOs when their only if client, Conseco went bankrupt (Bansal, 2008). They were able to recover because of the strategies of the management and help of the investors.Other than the causes of failure, there are certain factors that increase the probability of failure. There are two main independent factors that are important determinants of a firm growth surface and age (Storey, 1994, Carter and Evans, 2012 and Bates and Nucci, 1990). Bates also found that firm age was the strongest single determinant of small business endurance among firms owned by white males (Bates and Nucci, 1990 pp. 10).The empirical evidence on the negatively charged relationship surrounded by size and age of the firm and the failure pass judgment had been unanimous (Storey, 1994). There have been various studies to prove this relationship for framework the study done by Dunne, Roberts and Samuelson in 1989 (Storey, 1994 pp.92)on manufacturing plants showed that the average failure rate for plants with employees in between five to nineteen was 104.7 % higher than for plants with more than 250 employees. In this case, they had used the number of employees as a factor to recognize the size of the business. A similar study done by Gallagher and Stewart in 1985 as cited in Storey (1994 pp. 92) found that a firm employing less than cardinal people was 78% more likely to fail over the coterminous decade as compared to the one employing more than 1,000. On comparison of the size of the firm in terms of the net assets, it was found by Dunne and Hughes (1992 mentioned in Storey, 1994 pp. 92) that the no n-survivors over the 1980-5 period constituted 27% of those with net assets less than 1m, compared with 14 % of those with net assets exceeding 64m.In terms of age, Hudson (1987b mentioned in Storey, 1994 pp.93) finds clear evidence that insolvency is a characteristic more suitable for young firms. He found that 61% of the firms that became insolvent did so between 2-9 years after formation and that there was a peak age of 2-5 years.Entrepreneurs who focus more on the success of the more than failure are also more likely to fail because drawing lessons from successes is much more difficult as success does not create an urgent need to enrich current knowledge structures or behaviors and on the other hand it reinforces existing beliefs and routines. (Ellis et al., 2006 mentioned in Cope, 2011).After establishing the causes of failure, it is also important to understand how entrepreneurs recover and move on to learn lessons from failure. Failure causes damage not only financially and e motionally but also relationally and recovering and woful on from failure includes overcoming these cost too ( guard et al, 2009 mentioned in Cope, 2011 pp. 613 and Cope, 2011 ). According to Cope (2011) failure does not necessarily produce any long-term negative professional consequences as the key stakeholders accept failure as a fact of life in the start-up community. Cope (2011) feel that this encourages the entrepreneurs who are concerned about the possibility of receiving future support for their ideas as failure is not self-movingally considered a black mark by other professionals.Shepherd (2003) and Shepherd and Kuratko (2009, pp. 451) use the word heartache to define the emotional response to the loss of something important which causes behavioral, psychological, and physiological symptoms. The more important the project to the trailblazer, the more extreme the negative emotional reaction incurred upon failure (Shepherd and Kuratko, 2009, pp. 452). Shepherd and Kuratko (2009, pp. 452) also mention that grief can obstruct erudition from failure and in such circumstances learning from failure involves a work of regulating the negative emotions. This process is called grief recovery (Shepherd 2003, Shepherd and Kuratko 2009). He argues that an individual has recovered from grief when thoughts surrounding the loss of the business no longer generate a negative emotional response.cycle between the two models of heading behavior is the most effective in speedingthe recovery process.Shepherd (2003) and Shepherd andKuratko (2009)Involves actively confronting the loss and associated negative emotions in order to work through what happened and make genius of the failure. Shepherd (2003) and Shepherd and Kuratko (2009)Avoiding, suppressing and purposefully distracting oneself from loss-related thoughts, allowing gradual fading of memories related with the loss.Shepherd (2003) and Shepherd and Kuratko (2009Figure 1 Using Shepherds approach to grief recover y as cited in Shepherd (2003) and Shepherd and Kuratko (2009).The process of oscillation (shown in physical body 1) is important as it gives the innovator the benefit of both orientations while minimizing the costs of maintaining either for an extended period and also allows them to learn more from their failure experiences (Shepherd, 2003 and Shepherd and Kuratko 2009). In order to be effective, the oscillation approach requires the innovator to confront the loss and work through the events leading up to the failure to distract ones thoughts away from the failure event to focus on addressing petty(a) causes of stress and to recognize when one orientation has been held too long and be able to switch to the other orientation (Shepherd and Kuratko, 2009, pp.454).Grief is generated not only amongst the entrepreneur but also the team members (Shepherd, 2003). The organizations form support groups through which they provide an opportunity for their members to interact with others who h ave experienced a sense of loss. By interacting with others who have experienced similar grief-inducing events, individuals can model coping behaviors and build their coping self-efficacy skills (Shepherd, 2003). However, the amount of feedback information available also appears to meet the degree to which grief interferes with the learning process (Shepherd, 2003).People learn using the outcome of action (feedback) to revise their belief systems (Huy, 1999 Kim, 1993 Weick, 1979 as mentioned in Shepherd, 2003, pp. 320). For the self-employed, learning from business failure occurs when they can use the information available about why the business failed to revise their existing knowledge of how to manage their own business effectively (Shepherd, 2003 pp. 320). For poser, Ravi Kalakota has learned a number of lessons from the loss of his business, Hsupply.com, such as dont let venture capitalists hijack your vision, dont burn through capital rapidly to achieve short-term growth, and dont underestimate the speed others will observe your products and services (Gilbert, 2000 as mentioned in Shepherd, 2003, pp. 320).Following the understanding of the reasons for failure and how they learn from failure, it is now important to acknowledge the learning from failure. According to Len Rainford, there is no such thing as failure, its a learning curve. He supports that even if entrepreneurs fail, they start again because they believe in bouncing back from failure and trying something else. An example of this is Sir James Dyson, the founder of Dyson Company. When he invented his first twofold cyclone vacuum cleaner, he spent 15 years creating 5,126 versions that failed and all this compensable off in the form of a multi-billion dollar company that it is now (Entrepreneur, 2012).In the literature, the learning specifically points towards the launch of a new venture. It has been repeatedly mentioned by various academics that entrepreneurs who have learned from failure ha ve become more motivated to start another enterprise (Cope 2011, Stokes and Blackburn, 2002)An example of entrepreneur learning from failure is Madan Mohanka, founder of Tega Industries, the worlds third largest company designing solutions in the field of mining equipment (Bansal, 2008). When his company was having huge cash flow problems, and was about on the brink of bankruptcy, he learnt some valuable lessons. The first one is that an entrepreneur should at least plan for 50% or recapitulate the investment, the second one is that if an entrepreneur believes in his/her product and business, he/she should never give up (Rashmi Bansal, 2008). When Madan went bankrupt, he mortgaged his wifes jewelry, but did not abjure the dream.Due to the failure, they learn lessons regarding what they should have done and how they can do it pause and this adds value to the entrepreneurs stock of experience (Reuber and Fischer, 1999 in Cope, 2011, pp. 618) , stock of knowledge (Minniti and Bygra ve, 2001 Reuber and Fischer, 1999 mentioned in Cope, 2011 pp. 605)and improves the level of entrepreneurial fainness for the future entrepreneurial activity (Cope, 2005a Harvey and Evans. 1995 sleep with and Zacharakis et al., 1999 Stokes and Blackburn, 2002 mentioned in Cope, 2011, pp.618). This is done by revising previously ineffective routines, play up the mistakes, spotting new opportunities (Gupta, 2005 Politis, 2005) and expanding the skills and knowledge about the entrepreneurial process (Cope, 2011, pp. 618). many another(prenominal) entrepreneurs become successful serial entrepreneurs (Cope, 2011). According to the research done by Stokes and Blackburn (2002) 62% of entrepreneurs who failed, continued as a business owner in some way and almost three-quarters of their respondents also agreed that they have change their skill in personal management areas like coping with setbacks, self-management and adapting to change. An example of this is Shankar Maruwada, owner of M arketics, an analytics company. When his first business went bust, he learnt his first lesson of failure things dont as per plan and he and his team used the failure to get it skillful the second time with Marketics (Bansal, 2008). This proves the positive learning experience of failure. The repeated interview to a better awareness of pressure points warning signs and stresses and strains during the entrepreneurial process is evidence of the productive and practical learning outcomes of failure (Cope, 2011). Failure is also called a trial and error (Gibb, 1997 Politis, 2005 in Cope, 2011) approach for entrepreneurs to understand what whole works and doesnt work (Sarasvathy and Menon, 2002, mentioned in Cope, 2011) thus increasing the probability of success.Experiencing failure has also been found to lead to more positive attitudes to failure (Politis and Gabrielsson, 2009 in Shepherd, 2003). perusing and learning from failure can help entrepreneurs to avoid falling into unrefle ctive cognitive ruts or learning traps (Rerup, 2005 West and Wilson, 1995 in Shepherd, 2003). A study done by Scholl-hammer (1991) mentioned in Shepherd (2003) suggests that 51 percent of all entrepreneurs in the United States have previous owner-manager experience. This view is also back up by Timmons (1999 mentioned in Shepherd, 2003), who considers failure as a necessary blackguard to success.From the work of various researchers and especially Cope in the field of entrepreneurial learning, it is clear that entrepreneurs who have experienced failure are more prepared than those who have only enjoyed success. Learning from failure but it is not an automatic or instant process and thus requires time in moving on from the understanding of the failure and its causes to generating learning outcomes from it. Processes that fail lead to grief and by using methods like loss orientation, restoration orientation, and oscillation between these two methods, causes grief recovery (Shepherd, 2003). Learning is a dynamic and on-going process and it will take place during and beyond the process of failure (Bower, 1990 as mentioned in Shepherd, 2003, pp. 320). However, entrepreneurs will eventually move on and recover from the grief.

Basic Laboratory Techniques Safety And Hematocrit

Basic research laboratoryoratory Techniques Safety And haematocritThe hematocrit is unremarkably orde cherry as a part of the complete demarcation librate. It is cardinal in evaluating anemia and polycythemia, monitoring the recovery from dehydration, the effectiveness of treatment for anemia, the on-going bleeding to check its severity, etc. In this practical, hematocrit is utilize to gibe if the patient has anemia by closes of red stall indices MCV, MCH and MCHC. For red air cell count, it is used to evaluate any type of decline or increase in the number of red dividing line cells as measured per liter of line of products. It is a parameter interprets in conjunction with hematocrit. some(pre noinal) decreased hematocrit and decreased red blood cell count indicate anemia.(D) Resultspacked cell volume (HCT)Record the red blood cell indices in the table below. versionSI Uniterythrocyte8.55 - 1012RBC/LHemoglobin11.0g/dLYour HCT value26%The red blood cell indices be us ed to classify anemias. Find out their formulae and calculate the MCV, MCH MCHC. Compare them to the cite value of a normal adult female.Red cell indices locutionCalculation (units)Reference range involve cell volume (MCV) hematocrit (%) - 10RBC_26 - 108.55MCV= 30.4 fL86 98 fLMean cell hemoglobin (MCH)Hemoglobin(grams) - 10RBC__11__ - 108.55MCH= 12.87 pg27 32 pgMean cell hemoglobin concentration(MCHC)Hemoglobin(grams) - 100Hematocrit (%)__11__ - 10026MCHC= 42.3 %32 37 %(*delete as appropriate and suggest whether blood smear A or B provided in the lab would perish to this sample)As your reason MCV suggest, the RBCs are macrocytic / normocytic / microcytic *.As your calculated MCH suggest, the hemoglobin in the RBCs are within / below / above* the average weight.As your calculated MCHC suggest, the RBCs are normochromic / hypochromic / hyperchromic*. ancestry smear A / B* belongs to this patient.Cell count and hemacytometerRBC CountsAveraging no. of RBCs in 2one square millime terSquareNo. of RBC counted11782164Total RBCs counted342Averaged RBC counted171Calculate the RBC count in the sample= Average no. RBCs counted in 1 big square - Dilution factorArea counted (mm2) - deepness (mm)RBC count = 171 - 1000 ikikikiiiiiiu0.2 (mm2) - 0.1 (mm)RBC count = 8.55 - 1012 (units= /L )(E) tone of voice AssessmentObtain results from the class and do the statistics.(Refer to Basic Clinical Lab Techniques pp. 79 81)X_n(117+160+174+142+166+161+181+183+166+143+164+159+148+162+225+135+clxv+120+168+128+271+104+171+168+171+182+one hundred seventy+176+181+116+172) 31RBC counts is 162.87 .nTest Value(mg/dL)X variance Squared( x)211172104.1521608.243174123.864142435.6051669.7961613.507181328.668183405.1891669.7910143394.86111641.271215914.9813148221.15141620.76152253860.0116135776.79171654.53181201837.921916826.31201281215.982127111691.89221043465.792317166.082416826.312517166.0826182365.922717050.8228176172.3729181328.66301162196.893117283.34( x)2__n 130297.48__30= 1009 .916Variance1009.91631.782s = 63.56+2s = 226.43-2s = 99.313s = 95.34+3s = 258.21-3s = 67.5310. social organization of a Levey-Jenning s Chart using the mean and standard deviation(s) from above. presage the mean value, +/- 1s, +/-2s, +/-3s on the appropriate lines. Using the RBC data from the class, plan the values from all students.Levey-Jennings Chart of RBC counts in classSD of RBC counts(G) Practical Review QuestionsLabel the hemacytometer diagram below with its parts. (p208) Indicate the areas usually used forWBC count with WRBC count with R andPlatelet count.p1. What does the hematocrit measure?The hematocrit is a test find the patients red cell volume found in whole blood and, thus, the bloods oxygen carrying capacity. It is expressed as a office by volume.2. score the hematocrit reference values for males, females, and newborns.Males 42 52 %Females 36 48 %Newborns 51 61 %3. Name a condition that could cause a decreased hematocrit value.Anemias4. Explain the hemato crit procedure1. Obtain patients blood and prepare the specimen.Gently mix the capillary blood by inverting the thermionic valve until all sediments disappear.Blood sample is drawn into a heparinixed microhematocrit provide by capillary follow up. Load the microhematocrit furnish by holding it end downwardly to allow gravity to facilitate loading of the subway system. The pipe should be alter to about 3/4 full.Seal one end of the provide with a bittie amount of clay material at a 90 angle.2. Centrifuge the samples.Please the close microhematocrit tube into the rotor of the microhematocrit centrifuge, with the sealed end against the rubber gasket.Duplicate samples should be placed opposite apiece other in order to balance the centrifuge.Securely fasten the mo nonone lid on covert of the capillary tubes.Spin the tubes for 2 to 4 minutes at 10000 rpm.After the centrifuge has s peakped, open the top and remove the cover plate.3. Reading and reporting the Hematocrit value.I nspect the tube to see if there is any leakage after centrifugation.Place the tube on the hematocrit reader.Place tube in the groove with the top of the seal-ease (bottom of the packed cells) lined up with the bottom line of the reader.Move the slider bar to the border between the packed red cells and the plasma.Read the percentage reading beside the slide bar.5. Blood enters the capillary tube by what action?Blood enters by capillary action.6. Why must the capillary tube be sealed securely?In the process of spinning, RBCs and a small amount of plasma will be forced from the tube, a fictitious result may be resulted because of incomplete sealing of tube. Therefore, sealing the tube securely can create a pressure inside the tube which prevents the content from forcing out during centrifugation.7. What is the usual length of time for centrifugation of the hematocrit tubes?The hematocrit tubes are usually centrifugated for 2 to 4 minutes at 10000rpm.8. What arctic perplexitys shoul d be observed when performing a hematocrit?Standard precaution should be observed.9. What technical factors can affect the quality of hematocrit results? Blood sample should be well-mixed before microhematocrit tubes are filled. Avoid bubbles when filling blood sample into the microhematocrit tube. Microhematocrit tubes should be filled at least three-fourths full. The microhematocrit tubes should be completely sealed before centrifugation. Read the hematocrit value at the top of the red cell layer, not at the top of buffy coat.10.Case body of work 1A hemoglobin and hematocrit test performed in a pediatric clinic on a 2-year-old boy gave results of 110 g/L hemoglobin and 0.33 L/L hematocrit. Do these results agree? What is the boys general health status based on the hematology results?From the data provided by the case, the mean cell hemoglobin concentration (MCHC) of the child__11__ - 10033= 33%The MCHC is within the normal range, showing the child is free from anemia.However, ac cording to homo Health Organization, a hemoglobin concentration of less than 110 g/L and a hematocrit value of less than 33% were used as a cut-off for anemia for children aged 0.5 to 51.Therefore, for the above case, although the child does not have anemia at this moment, his marginal hemoglobin and hematocrit values agree and both show that he has a high endangerment of suffering anemia.Age or gender groupHemoglobin (g/dL)Hematocrit (%)Children (0.5-4)Children (5-12)Children (12-15)Adult MenNon-pregnant WomenPregnant Women

Study on Financial Statements and Ratios of Banks

Study on monetary Statements and symmetrys of edges4.0 IntroductionThe entropy abridgment chapter has been divided into cardinal violates. In the first fo on a lower floor, I energise move and true to do just ab come disclose of the c neglectt material body of quantitative compendium. The first go away is human footd on the fiscal statements and differentiate balances of both(prenominal) the chosen verifys. once again it was broken down into sub- refers like the epitome of entropy in the lead m out and by and by deferral. more than or less key balances were calculated, comp bed and analysed from the pecuniary data of concluding 10 course of instructions for both the coin deposits.The second occasionitioning of this chapter is a mixture of literature review data abstract and any(prenominal) points were written with type to the outline done in first part in my own words.4.1 synopsis of data Derived from monetary Statements and Ratios4 .1.1 bowling pin positioning ahead Recession by and by RecessionTo be fitting to conclude our research questions it is imperative to spirit at the devil companies data from pecuniary statements, this depart reveal the insecuritys inhering in each vernaculars ope dimensionn. The compendium utilizes data from the fiscal statements of the coin asserts below review from grade 2005 to 2010 just in the lead street corner started. While the ii entrusts present alikeities in lay on the line worry RBS drill pounds charm HSBC use dollars as the basis currency in the books of throwaways, piece this whitethorn hinder the analysis especi anyy quantitative analysis the oecumenical data join on and flow is an big aspect sufficient for this reflect.4.2 Financial specify of RBS4.2.1 Financial patch of RBS earlier ceding backal (2004-2005, 2005-2006, 2006-2007)The gallant vernacular of Scotland dollar volume had been on rigid increase, in the financial year finish declination 2007 the employee employee disturbance was 30,366 one one zillion million million million million in 2005 the overthrow was 25902 million plot of land in the year stopping point 2006 turnover increase to 28002 million.In 2005 in opeproportionn(p)(a)(a) shekels were 7936 million small-arm in 2006 operating mesh civilise change magnitude marginally to 9186 and in 2007 9807 million. lucre before assess income has been on lull increase from 7936million in 2005 to 9186 and 9832 million in 2006 and 2007 million respectively.4.2.2 Financial Position of RBS later(prenominal)ly Recession (2007-2008, 2009-2010)The turnover for year 2008 was 25868 Million and finally the turnover for the year ending declensionember 2009 was 38690 million. In neertheless in 2008 and 2009 losings of 40836 and 2595 were recorded respectively, this was afterwards street corner started.The full detail for the full year 2010 results take for non been de none pre cisely the first half results gain grounds had increased by 44% to 3950 million. send venture 1 purplish confide of Scotland addition and loss Extracts category Ended 31 Dec201020092008200720062005millions swage38690.025868.030366.028002.025902.0Operating ProfitQ3726-2595-40836.0980791867936 sugar before tax-2595-40836.09832.09186.07936.0 origination RBS website4.3 Financial Positions of HSBC4.3.1 Financial Positions of HSBC before recessionOn the new(prenominal) hand the turnovers for HSBC on the financial days down the stairs review were as follows year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in wrong of operating cyberspace, the concourse get alongd $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007.4.3.2 Financial Positions of HSBC aft(prenominal) recessionThe group dod a turnover of $ 88571 million and $ 7 8631 million in 2008 and 2009 counting extremitys respectively. HSBC recorded $ 22709 million lettuce in 2007 however the ne twainrk declined substantially to $7646 million in 2008 and $ 5298 in 2009 again mesh were transfigure as recessionary fears started. In tercet quarter of 2010 the profits increased marginally. duck 2HSBC Profit and detriment Extracts social class Ended 31 Dec201020092008200720062005$millions$$$$$$Turnover7863188571876017007061704Operating Profit52987646227092124020966Profit before tax707970799307242122008620966Source HSBC website4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for live 10 yearsIn the next a few(prenominal) pages, I incur tried to present the data in t capables, graphs and charts. Some of the data was presented and calculated for at long last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and comp ard for both the edges. shekel s Interest gross profit filter on equityCapital adequacyLiquidity ratioNon-performing assets ratioLoans Turnover ratioLoans to Assets ratio thoroughgoing(a) Yield on Earning Assets (GYEA)Table 3HSBC Ratio analysis in percentageYear cultivation 31 Dec2010 up to June20092008200720062005200420032001 engagement Interest Margin3.253.093.052.003.42.042.602.542.24 roe11.112.311.219.6211.6012.2511.215.613.21Capital enough11.5011.6011.7510.8910.9711.0111.1211.3111.63Liquidity ratio2.202.503.624.215.316.541.231.112.15Nonperforming assets ratio2.172.272.122.142.162.142.112.012.00Loans Turnover ratio66.255.225.1029.254.059.167.1274.2176.45Loans to Assets ratio0.600.400.220.150.120.1130.210.280.32GYEA5.214.604.494.364.244.424.684.293.26Source Data glanced from HSBC website and did person-to-person analysis. get in 4 HSBC ratio analyses(Note all the figures atomic number 18 in percentage)Table 4RBS Ratio analysis as a percentageYear Ending 31 Dec2010 up to June2009200820072006200520042003 2001Net Interest Margin1.971.761.701.751.831.912.012.031.92ROE1211.511.499.69.121411.210Capital Adequacy12.5111.4411.9512.9811.7211.1012.2113.1113.23Liquidity Ratio3.212.423.215.223.233.292.232.113.15Nonperforming Assets Ratio11.114.116.112.1512.1112.1011.1111.0110.10Loans Turnover Ratio66.945.2544.1539.244.049.1257.2163.3266.00Loans to Assets Ratio1.561.451.351.401.190.200.890.460.56GYEA3.334.62.124.064.123.282.862.922.45Source Data glanced from RBS website and did personal analysisFig. Comparison of the both trusts PL data chiefly over the years the turnover of the two commits has been increasing moreover the increase in HSBC turnover has been cushion plot of ground that of RBS has been steep. HSBC has managed to remain profitable for the rate of flow of analysis immortalizeing that the phoner has been able to extenuate the endangerments well as comparisond to RBS. RBS make substantial operating losses amounting to 2595 million in 2009 and had to be supported by the governing body as a result of subprime mortgage crisis. The data show that HSBC has choose responsible way even though profits declined, the ratios show the group has takeed rugged pileus baseFindingsDuring the two years before year 2009 and after the two vernaculars were adversely bear upon by scotch condition. The profit and loss analysis from the two banks show that HSBC has been able to rule fluidness take chancess well as it has been able to maintain gainfulness through with(predicate) out even during the recession on the opposite hand RBS was affected and make losses in 2007, 2008 and 2009 but the half year on hand(predicate) indicate the bank has returned to profit expertness after the government support.The profitability before tax is shown in the figure below.Figure 5Source Data glanced from RBS and HSBC websites and did personal analysisNote HSBS figures argon in million dollars turn figures for RBS argon in million pounds.4.5 belles-lettres Review D ata AnalysisThis dissertation presents the underlying st judgegies and speak toes utilise by the pass off UK banks in training the differences in the midst of HSBC and Royal trust of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst vitrine financial scenario. To compare their financial, business and operational dangers reach leave alone take in a large picture. The aim is to determine which between the two banks has a get around and forcefulnessive approach and schema in the lay on the line-reduction enterprisingnesss (Drew Michael, et al., 1996) situates in get together estate live relied upon a proven schema of conceptive runniness essay caution. This has been in existence for over iii years now and since the organisation was started banks abide made it a precession to update their strategys of seek vigilance to assert abreast with t he changing demands of the inn and technological innovations associated with adventure caution. Financial stableness is easily achieved by following less complicated process and that is to stick to the rules and created in less intemperate modal value that whenever you try to explain it to a node or client. The keep of the polity bequeath thus be easily absorbed (Issing, 2004).The liquid state chance vigilance of intimately linked Kingdom has been seen to be strong and responsive whenever banks experience jeopardys. avows arrest to curb that they exercise prudent run a put on the line counselling to be able to stick out node satisfaction, but some of the banks are less act to the valuate to minimize their photo to assays. It ass be costly to the bank and describe the bank to court cases, permission dopecellation by the supervisory authorities and guests withdrawing from the bank. The exactly way to do this is to create a unquestionable organization of liquid state fortune charge (Issing, 2004). run a peril circumspection actions count the most in the future and especially in setting the reputation of the banks. Extra effort is need in creating policies that allow for withstand the effect of any trys. be able to communicate the new-fashioned take chances situation among the team members forget champion a spate in the resolution and in efficaciously carrying out the regulations which they intended to enforce for the banks geological formation. A manifestation of a eminent aim of activity would firearm a lot of difference compared to those who slowing behind due to poor management happen intend (Kahf Homud, 1998).An hard-hitting fluidity riskiness management is able to make anticipations on the happening of future risks. There is withal a type of liquidity risk management that can completely provide satisfactory level of portion or performance, however, it possess current weakness though very insig nificant, it may still deliver judge results like those managements that are strong since it exactly manifest very excusable signs in usefulness (Bank of England 2007).HSBS and the Royal Bank of Scotland are not just the top banks in joined Kingdom they are the two banks that show an sensational liquidity risk management. This record could be very much proven by the profits earned p.a. and the impression they make among their clients is subtle and they never settle for anything less. The two banks draw apply similar systems although HSBC is the bank that shows the most grand and sound strategy/ approach against a liquidity risk. They forever make sure to harbor not plainly their funds but overly nurse the eudaimonia of their customers and intend to move with them and manage their finances by distracting incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the intro until the time they become part of a much growing and imp ressive banking pains (Bank of England 2007).In the last two years HSBC only experient shortstop term recession only, they had prompt for the recession, through management and the fact that they had experienced a crisis before and had find it by creating a frame work that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned lately where the bank doubled its half-year profits by posting 7 one thousand million as at revered 2010, this is at a time when littler banks were feeling the set up of recession. Analysts chip in seen the capabilities of the bank base from their well-managed systems and strategies. They had already judge such things to happen so there is nothing surprising close to that (Goodway, 2007). The banks pay off taken all necessary precautions and the management maintains optimism that in case of risks they allow for find a way out.The way the two banks contradict to problems is alwa ys quick hence they are able to find significant time solutions. This strategy is a thoroughly way of keeping allegiant customers. The primary goal is to oblation consistency in performance whether the constitution of the transaction differs or not, this is exemplified by the HSBC spirit of cosmos consistent and authoritative in every doable way.One of the ways that the banks necessitate avoided the risks is to evaluate the risks therefrom make in advance juts. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks facility of the recession in the last two years the bank made adequate plans and adoptive prudent lending, adopted engineering science and decrease trading operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC ope place inn flexible economies, this has been explained by looking at the diversity of the grocery stores it operates, and this gave the bank diversity as not all markets experienced recession.HSBC reaction to risks is a testimony to its objective lens to efficaciously handle risks, one such objective identified in the memorise was is to create liquidity through do an arrangement to leaseback or deceive assets whenever lends are defaulted (Goodway, 2007)On the other hand, the Royal Bank of Scotland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008).Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the postulate of the customer the bank has also created a buffer to value the bank in times of recession.In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers ineluctably were addressed as soon as likely and assure clients that their accounts with the bank were safe.The Royal Bank of Scotland has not seen changes in sub-prime related spare downs, the bank has remained stable. During the recession the bank still managed 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements.When making a parity between the two banks, they differ on how they carry out their risk strategies but live with similar characteristics.4.5.1 Implications of recession on preindication mortgage and corresponding subprime lossesHSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their home due to the effect of recession, some of the options are leaseback and sales. In terms risk manage ment HSBC has adopted a different approach when it comes to lot customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007) the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank.On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the ingenuous approach where a customer mortgage application is pass decisively, this ensures the hires are as flexible as possible. The bank has also limit the bank charges it can attach to an account thus creating customer satisfaction.4.5.2 Bank Strategies and Policies AppliedThe lastingness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are accepted the managemen t needs to assess the risks and sleepless interpretation of the consequences. If the management do not conservatively assess the crisis, past the risk might probably worsen until it can no longitudinal be helped (RBS, 2011).The loan readjustment adopted by HSBC may not work as it is backbreaking to find a common ground. It may also not be possible to carry out estimation and evaluation.The Royal Bank of Scotland has minimized its risk moving picture by allowing the straightforward method, thus the bank is able to assess the qualification of each customer.4.5.3 Criteria for house mortgage loan assignationBoth banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on soul application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeting the customer needs such as out of the blue(predicate) circumstances. The current crit eria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines.It can be very well taken into account that the system utilise by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliableness of the system utilised by the two chosen banks as they regard indispensable risks in world(prenominal) economic environment. A theater of operations of the HSBC system shows how well they nurture managed risks that bring on dod other banks in receivership. The take aim helps to extrapolate the important issues needs to be tackled by a bank to manage risks successfully.The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk sagacity. These two risks take place when an improper assessment is made (Newman, 2006). wholesome and reliable management cheek has been used as a peter to help the banks strengthen and acquire to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications.The banks initiative is to push the interest of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been measuredly checked (Banks, 2003).Extensive use up on the feasibility of the issue in addressing the effectiveness of system utilise in the banking institution. In the previous discussion, regarding the cunning of law affecting banking system, the European banks are known to be basic under a tight regulation whereby giving them less overcome over their own management. The divergence in the solution technique being utilise by either HSBC or the Royal Bank of Scotland cannot alone be the solution to this problem. It is the way they approach the proble m with a system proven by time.The HSBC and the Royal Bank of Scotland have several financial preparation portfolios in percentage the customers reach their goals. The two banks have manifested effectiveise in providing the most expert advice on training and investing. They consider it as their tariff to provide their customer with the best advice available and have to be right and fitting to their customers needs. They practise and commit themselves as they go the free mile of keeping their customers for a lifetime by answering and addressing apace their customers growing demands and they have never failed to do so (Newman, 2006).The banks will not wait in profitless but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating assumption and trust with the customers. No oddity these two banks were voted top United Kingdom banks (Duttweiler, 2009).The assessment of the constitution utili zed by these two banks operates as a measure that monitors whether a bring down risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The flesh of the insurance policy has been able to achieve the enchant strategy, though require the manikin and the mount capacity be adequately met by the funding institution. The convention as a result, gives the customer the agency and the security as they are given the key role and part in developing the system.The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the strategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank. assorted important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimiz e damages brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks.Chapter 6Conclusions and Recommendations6.1 ConclusionsWhile the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession.Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts.The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government mono mania reduces the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations.After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks thereof to ensure the bank is saved from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements.The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed.When the risk management policies that each of the banks under stipulation is evaluated, HSBC possess the most re questionable liquid ity risk management policy implementation well provide in the banks reaction to the recession.The study naturalized that the liquidity risk management plays an important role in observe the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies.Since the two banks have applied similar systems HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their notes also they make sure that they protect the welfare of their customers.The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide access to nearly all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are evenly as competent and pull to a strong liquidity risk management (Casu Molyneux, 2001).However, this study was check to the top two banks it is recommended that in coif to understand liquidity risk a study should be conducted not only on those two banks but also on those bedded at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or specific areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a catcher view.The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system a t heart the bank by good risk management policies that serve as its foundation.A discussion on the splendor of liquidity risk management policy has been explored using policies as the guidelines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach.Royal Bank of England has been analysed and the tariff it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom.The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks prov ide the most expert advice on planning and investing.An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study open that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must constipate to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle.In company to protect their earnings the banks have to instit ute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk management policies. Many banks were earnestly affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment real in 2010 the financial year under review.Customers are concerned with the risk management practises of their banks this is because it also determines the availableness of credit and all necessary bank products that they need.6.2 RecommendationsThe banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and aforethought(ip) well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had.The need to mesh vigorous risk management policies is important than before, while management decisions mold the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run swimmingly the banks and predict future risk will determine the bank that emerges from recession stronger.From the data analyzed while turnover for the banks increased the operating profits were affected by the recession. care HSBC did RBS need to leverage on technology to reduce operating losses.6.2.1 Recommendations on Managing liquidity through Organizational social structure and GovernanceIt is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are unfastened to are identified and placed in respective risk category, then th e risks are communicated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks reckon including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate.A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. RStudy on Financial Statements and Ratios of BanksStudy on Financial Statements and Ratios of Banks4.0 IntroductionThe data analysis chapter has been divided into two parts. In the first part, I have tried to do some sort of quantitative analysis. The first part is based on the financial statements and key ratios of both the chosen banks. Again it was broken down into sub-points like the analysis of data before recession and after recession. Some key ratios were calculated, compared and analysed from the financial data of last 10 years for both the banks.The second part of this chapter is a mixtur e of literature review data analysis and some points were written with reference to the analysis done in first part in my own words.4.1 Analysis of Data Derived from Financial Statements and Ratios4.1.1 Bank Status before Recession After RecessionTo be able to answer our research questions it is imperative to look at the two companies data from financial statements, this will reveal the risks inherent in each banks operation. The analysis utilizes data from the financial statements of the banks under review from year 2005 to 2010 just before recession started. While the two banks have similarities in risk management RBS use pounds while HSBC use dollars as the basis currency in the books of accounts, while this may hinder the analysis especially quantitative analysis the general data increase and decrease is an important aspect sufficient for this study.4.2 Financial Position of RBS4.2.1 Financial Position of RBS before recession (2004-2005, 2005-2006, 2006-2007)The Royal Bank of S cotland turnover had been on steady increase, in the financial year ending December 2007 the turnover was 30,366 million in 2005 the turnover was 25902 million while in the year ending 2006 turnover increased to 28002 million.In 2005 operating profits were 7936 million while in 2006 operating profits increased marginally to 9186 and in 2007 9807 million. Profits before tax has been on steady increase from 7936million in 2005 to 9186 and 9832 million in 2006 and 2007 million respectively.4.2.2 Financial Position of RBS After Recession (2007-2008, 2009-2010)The turnover for year 2008 was 25868 Million and finally the turnover for the year ending December 2009 was 38690 million. In but in 2008 and 2009 losses of 40836 and 2595 were recorded respectively, this was after recession started.The full details for the full year 2010 results have not been announced but the first half results profits had increased by 44% to 3950 million.Table 1Royal Bank of Scotland Profit and loss ExtractsYear Ended 31 Dec201020092008200720062005millionsTurnover38690.025868.030366.028002.025902.0Operating ProfitQ3726-2595-40836.0980791867936Profits before tax-2595-40836.09832.09186.07936.0Source RBS website4.3 Financial Positions of HSBC4.3.1 Financial Positions of HSBC before recessionOn the other hand the turnovers for HSBC on the financial years under review were as follows year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in terms of operating profits, the group managed $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007.4.3.2 Financial Positions of HSBC After recessionThe group managed a turnover of $ 88571 million and $ 78631 million in 2008 and 2009 accounting periods respectively. HSBC recorded $ 22709 million profit in 2007 however the profits declined substantially to $7646 million in 2008 and $ 5298 in 2009 again profits wer e affected as recessionary fears started. In third quarter of 2010 the profits increased marginally.Table 2HSBC Profit and Loss ExtractsYear Ended 31 Dec201020092008200720062005$millions$$$$$$Turnover7863188571876017007061704Operating Profit52987646227092124020966Profit before tax707970799307242122008620966Source HSBC website4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for last 10 yearsIn the next few pages, I have tried to present the data in tables, graphs and charts. Some of the data was presented and calculated for last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and compared for both the banks.Net Interest MarginReturn on equityCapital adequacyLiquidity ratioNon-performing assets ratioLoans Turnover ratioLoans to Assets ratioGross Yield on Earning Assets (GYEA)Table 3HSBC Ratio Analysis in percentageYear Ending 31 Dec2010 up to June20092008200720062005200420032001Net I nterest Margin3.253.093.052.003.42.042.602.542.24ROE11.112.311.219.6211.6012.2511.215.613.21Capital Adequacy11.5011.6011.7510.8910.9711.0111.1211.3111.63Liquidity ratio2.202.503.624.215.316.541.231.112.15Nonperforming assets ratio2.172.272.122.142.162.142.112.012.00Loans Turnover ratio66.255.225.1029.254.059.167.1274.2176.45Loans to Assets ratio0.600.400.220.150.120.1130.210.280.32GYEA5.214.604.494.364.244.424.684.293.26Source Data glanced from HSBC website and did personal analysis.Figure 4 HSBC ratio analyses(Note all the figures are in percentage)Table 4RBS Ratio analysis as a percentageYear Ending 31 Dec2010 up to June20092008200720062005200420032001Net Interest Margin1.971.761.701.751.831.912.012.031.92ROE1211.511.499.69.121411.210Capital Adequacy12.5111.4411.9512.9811.7211.1012.2113.1113.23Liquidity Ratio3.212.423.215.223.233.292.232.113.15Nonperforming Assets Ratio11.114.116.112.1512.1112.1011.1111.0110.10Loans Turnover Ratio66.945.2544.1539.244.049.1257.2163.3266.00Loans to Assets Ratio1.561.451.351.401.190.200.890.460.56GYEA3.334.62.124.064.123.282.862.922.45Source Data glanced from RBS website and did personal analysisFig. Comparison of the two banks PL dataGenerally over the years the turnover of the two banks has been increasing but the increase in HSBC turnover has been moderate while that of RBS has been steep. HSBC has managed to remain profitable for the period of analysis showing that the company has been able to mitigate the risks well as compared to RBS. RBS made substantial operating losses amounting to 2595 million in 2009 and had to be supported by the government as a result of subprime mortgage crisis. The data show that HSBC has adopted prudent management even though profits declined, the ratios show the group has maintained strong capital baseFindingsDuring the two years before year 2009 and after the two banks were adversely affected by economic condition. The profit and loss analysis from the two banks show that HSBC has been able to tackle liquidity risks well as it has been able to maintain profitability through out even during the recession on the other hand RBS was affected and made losses in 2007, 2008 and 2009 but the half year available indicate the bank has returned to profitability after the government support.The profitability before tax is shown in the figure below.Figure 5Source Data glanced from RBS and HSBC websites and did personal analysisNote HSBS figures are in million dollars while figures for RBS are in million pounds.4.5 Literature Review Data AnalysisThis dissertation presents the underlying strategies and approaches applied by the top UK banks in learning the differences between HSBC and Royal Bank of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst case financial scenario. To compare their financial, business and operational risks concern will create a bigger picture. The ai m is to determine which between the two banks has a better and effective approach and strategy in the risk-reduction initiatives (Drew Michael, et al., 1996)Banks in United Kingdom have relied upon a proven system of strong liquidity risk management. This has been in existence for over three years now and since the system was started banks have made it a priority to update their systems of risk management to keep abreast with the changing demands of the society and technological innovations associated with risk management. Financial stability is easily achieved by following less complicated process and that is to stick to the rules and created in less difficult way that whenever you try to explain it to a customer or client. The grasp of the policy will then be easily absorbed (Issing, 2004).The liquidity risk management of most United Kingdom has been seen to be strong and responsive whenever banks experience risks. Banks have to ensure that they exercise prudent risk management t o be able to provide customer satisfaction, but some of the banks are less committed to the task to minimize their exposure to risks. It can be costly to the bank and expose the bank to court cases, licence cancellation by the supervisory authorities and customers withdrawing from the bank. The only way to do this is to create a reliable system of liquidity risk management (Issing, 2004).Risk management actions count the most in the future and especially in setting the reputation of the banks. Extra effort is required in creating policies that will withstand the effect of any risks. Being able to communicate the recent risk situation among the team members will help a lot in the resolution and in effectively carrying out the regulations which they intended to implement for the banks organization. A manifestation of a high level of activity would spell a lot of difference compared to those who lag behind due to poor management risk planning (Kahf Homud, 1998).An effective liquidity risk management is able to make anticipations on the occurrence of future risks. There is also a type of liquidity risk management that can only provide satisfactory level of service or performance, however, it possess certain weakness though very insignificant, it may still deliver anticipated results like those managements that are strong since it only manifest very minor signs ineffectiveness (Bank of England 2007).HSBS and the Royal Bank of Scotland are not just the top banks in United Kingdom they are the two banks that show an impressive liquidity risk management. This record could be very much proven by the profits earned annually and the impression they make among their customers is excellent and they never settle for anything less. The two banks have applied similar systems although HSBC is the bank that shows the most impressive and effective strategy/ approach against a liquidity risk. They always make sure to protect not only their money but also protect the welfare of t heir customers and intend to move with them and manage their finances by avoiding incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the institution until the time they become part of a much growing and impressive banking industry (Bank of England 2007).In the last two years HSBC only experienced short term recession only, they had prepared for the recession, through management and the fact that they had experienced a crisis before and had rectified it by creating a frame work that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned recently where the bank doubled its half-year profits by posting 7 billion as at August 2010, this is at a time when smaller banks were feeling the effects of recession. Analysts have seen the capabilities of the bank base from their well-managed systems and strategies. They had already expected such things to happen so there is nothing surprising about that (Goodway, 2007). The banks have taken all necessary precautions and the management maintains optimism that in case of risks they will find a way out.The way the two banks react to problems is always quick thus they are able to find real time solutions. This strategy is a good way of keeping loyal customers. The primary goal is to offer consistency in performance whether the nature of the transaction differs or not, this is exemplified by the HSBC spirit of being consistent and reliable in every possible way.One of the ways that the banks have avoided the risks is to anticipate the risks thus making in advance plans. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks preparation of the recession in the last two years the bank made adequate plans and adopted prudent lending, adopted technology and minimized operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC operates inn flexible economies, this has been explained by looking at the diversity of the markets it operates, and this gave the bank diversity as not all markets experienced recession.HSBC reaction to risks is a testimony to its objective to effectively handle risks, one such objective identified in the study was is to create liquidity through making an arrangement to leaseback or sell assets whenever loans are defaulted (Goodway, 2007)On the other hand, the Royal Bank of Scotland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008).Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the needs of th e customer the bank has also created a buffer to protect the bank in times of recession.In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers needs were addressed as soon as possible and assured clients that their accounts with the bank were safe.The Royal Bank of Scotland has not seen changes in sub-prime related write downs, the bank has remained stable. During the recession the bank still managed 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements.When making a comparison between the two banks, they differ on how they carry out their risk strategies but have similar characteristics.4.5.1 Implications of recession on house mortgage and corresponding subprime lossesHSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their h ome due to the effect of recession, some of the options are leaseback and sales. In terms risk management HSBC has adopted a different approach when it comes to helping customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007) the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank.On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the straightforward approach where a customer mortgage application is approved decisively, this ensures the payments are as flexible as possible. The bank has also limited the bank charges it can attach to an account thus creating customer satisfaction.4.5.2 Bank Strategies and Policies AppliedThe effectiveness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are recognized the management needs to assess the risks and careful interpretation of the consequences. If the management do not carefully assess the crisis, then the risk might probably worsen until it can no longer be helped (RBS, 2011).The loan modification adopted by HSBC may not work as it is difficult to find a common ground. It may also not be possible to carry out assessment and evaluation.The Royal Bank of Scotland has minimized its risk exposure by allowing the straightforward method, thus the bank is able to assess the qualification of each customer.4.5.3 Criteria for house mortgage loan allocationBoth banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on individual application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeti ng the customer needs such as unforeseen circumstances. The current criteria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines.It can be very well taken into account that the system used by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliability of the system utilized by the two chosen banks as they encounter inevitable risks in global economic environment. A study of the HSBC system shows how well they have managed risks that have placed other banks in receivership. The study helps to understand the important issues needs to be tackled by a bank to manage risks successfully.The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk assessment. These two risks take place when an improper assessment is made (Newman, 2006).Strong and reliable management o rganization has been used as a tool to help the banks strengthen and arrive to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications.The banks initiative is to push the participation of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been carefully checked (Banks, 2003).Extensive study on the feasibility of the issue in addressing the effectiveness of system implemented in the banking institution. In the previous discussion, regarding the imposition of law affecting banking system, the European banks are known to be sanctioned under a strict regulation whereby giving them less control over their own management. The variability in the solution technique being employed by either HSBC or the Royal Bank of Scotland cannot simply be the solution to this problem. It is the way they approach the problem with a system proven by time.The HSBC and the Royal Bank of Scotland have several financial planning portfolios in helping the customers reach their goals. The two banks have manifested expertness in providing the most expert advice on planning and investing. They consider it as their responsibility to provide their customer with the best advice available and have to be right and fitting to their customers needs. They exert and commit themselves as they go the extra mile of keeping their customers for a lifetime by answering and addressing quickly their customers growing demands and they have never failed to do so (Newman, 2006).The banks will not wait in vain but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating confidence and trust with the customers. No wonder these two banks were voted top United Kingdom banks (Duttweiler, 2009).The assessment of the policy utilized by these two banks operates as a measure that monitors whether a prescribed risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The design of the policy has been able to achieve the appropriate strategy, though require the framework and the funding capacity be adequately met by the funding institution. The design as a result, gives the customer the assurance and the security as they are given the key role and part in developing the system.The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the strategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank.Various important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimize dama ges brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks.Chapter 6Conclusions and Recommendations6.1 ConclusionsWhile the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession.Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts.The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government ownership r educes the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations.After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks therefore to ensure the bank is protected from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements.The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed.When the risk management policies that each of the banks under consideration is evaluated, HSBC possess the most formidable liquidity ri sk management policy implementation well articulated in the banks reaction to the recession.The study established that the liquidity risk management plays an important role in monitoring the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies.Since the two banks have applied similar systems HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their money also they make sure that they protect the welfare of their customers.The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide acc ess to almost all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are equally as competent and committed to a strong liquidity risk management (Casu Molyneux, 2001).However, this study was limited to the top two banks it is recommended that in order to understand liquidity risk a study should be conducted not only on those two banks but also on those ranked at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or particular areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a clearer view.The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system wit hin the bank by good risk management policies that serve as its foundation.A discussion on the importance of liquidity risk management policy has been explored using policies as the guidelines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach.Royal Bank of England has been analysed and the responsibility it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom.The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks provide the most expert advice on planning and investing.An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study established that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must adhere to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle.In order to protect their earnings the banks have to inst itute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk management policies. Many banks were severely affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment existing in 2010 the financial year under review.Customers are concerned with the risk management practises of their banks this is because it also determines the availability of credit and all necessary bank products that they need.6.2 RecommendationsThe banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and planned well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had.The need to pursue vigorous risk management policies is important than before, while management decisions influence the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run smoothly the banks and predict future risk will determine the bank that emerges from recession stronger.From the data analyzed while turnover for the banks increased the operating profits were affected by the recession. Like HSBC did RBS need to leverage on technology to reduce operating losses.6.2.1 Recommendations on Managing liquidity through Organizational structure and GovernanceIt is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are exposed to are identified and placed in respective risk category, then the risks are commun icated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks face including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate.A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. R