Nobody downloaded yet

Reform in the Financial Services Industry - Coursework Example

Comments (0) Cite this document
Summary
This paper "Reform in the Financial Services Industry" highlights that today’s world is full of risks and their management has become a complex issue. Since, the two world wars and a lot of scientific inventions, risk has been defined in many ways…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.2% of users find it useful
Reform in the Financial Services Industry
Read TextPreview

Extract of sample "Reform in the Financial Services Industry"

Download file to see previous pages In ancient times, risk-taking cavemen lived with an abundance of food and risk-averse starved to death. In terms of financial theories and practice, the risk management is equating risks with hedging. Organizations prosper not by avoiding risks but by managing risks to their own advantage. Ancient trade across the continents flourished because of risk-taking and management. The key reason for Europe’s prosperity is risk management. In 1921, Frank Knight summarized the difference between risk and uncertainty with an example.
“Two individuals drawing from an urn of red and black balls; the first individual is ignorant of the numbers of each color whereas the second individual is aware that there are three red balls for each black ball. The second individual estimates (correctly) the probability of drawing a red ball to be 75% but the first operates under the misperception” (Knight 1921).
Holton (2004) explains two ingredients of risks: uncertainty and utility of the outcome. He explains that a man jumping out of a plane without a parachute is at no risk at all, because of the certainty of death. Risks provide opportunities for a good outcome out of a bad situation. If the reward outmatches the hazard of disaster, people are ready to take risks. If a firm is conscious of the risks it is undertaking, it is going to formulate strategies based on the decision.
The Institute of International Finance (December 2009) has defined risk culture as “as the norms and traditions of behavior of individuals and of groups within an organization that determine the way in which they identify, understand, discuss, and act on the risks the organization confronts and the risks it takes” (2009). It is essential that the risks are challenged by the core group of decision-makers with an objective to develop a spirit of nurturing buoyancy and inculcating an environment for continuous improvement, in line with the strategic aims of the organization. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Reform in the Financial Services Industry Coursework - 1, n.d.)
Reform in the Financial Services Industry Coursework - 1. Retrieved from https://studentshare.org/finance-accounting/1748861-financial-strategy
(Reform in the Financial Services Industry Coursework - 1)
Reform in the Financial Services Industry Coursework - 1. https://studentshare.org/finance-accounting/1748861-financial-strategy.
“Reform in the Financial Services Industry Coursework - 1”, n.d. https://studentshare.org/finance-accounting/1748861-financial-strategy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Reform in the Financial Services Industry

Financial Services

...?Financial Services Table of Contents Introduction 3 Background to Basel III 5 Overview of the Key Elements of the Basel III Framework 8 Capital Ratios 8 Constituents of Capital 9 9 Leverage Ratio and Liquidity Ratios 9 Shortcomings of the Basel II That Could Not Prevent the Financial Crisis 10 Implications of the Proposals of Basel III Framework 11 The Sufficiency of Basel III Standards to Prevent a Further Financial Crisis 13 Conclusion 15 References 16 Bibliography 19 Introduction In the year 1988, the Basel Committee on Banking Supervision established a capital quantifying arrangement in banks. This system was widely known as the Basel Capital Framework. It has been...
12 Pages(3000 words)Essay

Financial services

...sector. There are over four hundred financial advisors in the UK financial services industry, guiding the clients regarding investments in the FTSE, stocks bonds, mutual funds, derivatives and other financial products. However, currently in UK the financial advisors are disappointing their clients by not providing the appropriate advice in the tough times of stock market volatility and economic slowdown. The times when people need their advice the most they are reported not fulfilling their duties promptly. “Not many people are the fans of the financial advisory industry in its current state in the UK,...
4 Pages(1000 words)Essay

Research report on Australian financial services industry

...of Australian Banks The regulatory framework for financial institutions in Australia was introduced in 1998 when a series of reform measures were introduced by the government. In accordance with the recommendations of the Wallis Committee the government of Australia set up a central supervisor named as the Australian Prudential Regulation Authority (APRA) that would act as a central monitoring authority for the banks, insurance and funds for superannuation. In addition to the APRA, the other monitoring authorities in the Australian financial services industry include the Australian Securities and Investments Commission (ASIC) which is responsible for...
8 Pages(2000 words)Essay

Marketing Environment of the Financial Services Industry

...News Portfolio Marketing Environment of the Financial Services Industry The Dubai International Finance Centre (DIFC Amending Law No. 7 The DIFC is the first UAE’S monetary free zone with determined targets to advance Dubai’s economic accretion and improve dependence on oil revenues. This is through diversifying and enhancing the expansion of banking and pecuniary sectors. It is the monetary and business entryway between regional, upcoming and global markets and contributes considerably to the UAE’s nation building objective. The new Amending Law does not alter the responsibility of the DIFC; rather its configuration is being enhanced to further the initial targets and clarify authority...
6 Pages(1500 words)Essay

Financial Services

...?Introduction This is the market where financial instruments, which includes shares, foreign currency, bonds, futures, options, derivatives contractsand other asset-backed securities are, traded (Levinson 2010). Financial markets act like a platform whereby funds are moved from those who have funds (investors) to those who needs the funds (borrowers) (Madura2010). The financial instruments traded in the financial markets reflect current information available in the market. It also reflects people and expert opinion, assessed uncertainty and any other new information that is available in the market in order to be an efficient (Leigh, Wolfers, &Zitzewitz, 2003, p.1). The...
5 Pages(1250 words)Essay

Financial services

...? Financial services Contents Derivative contracts 3 Recent examples of banks and companies making heavy losses from using derivatives 3 Evaluation of the risks and benefits of derivatives contracts 5 References 8 Derivative contracts Derivative contracts are financial instruments whose value is derived from the value of its underlying assets, security, market index, etc. The underlying factors of the market that determines the value of derivative contracts may be currency conversion rates, interest rates, equity prices, commodity prices, etc. The derivative contracts may take the form of options, swaps, futures, forwards, etc. Transactions on derivative contracts occur between two...
5 Pages(1250 words)Essay

Financial Services

...FINANCIAL SERVICES Question a) Financing is of two types, equity financing and debt financing. When you are in need of money or looking for capital, company's debt-to-equity-ratio should be considered. It is the relations between the Dollars or Euros that an entrepreneur has borrowed and Dollars or Euros invested in the business. The more the investment by the owners the more they attract the financing. When the equity to debt ratio of the firm is high then debt financing should be taken. If the proportion of the debt to equity ratio of the firm is high then it is advised that the owners should increase their equity investment, that way they cannot jeopardize firm's survival. Equity Financing Limited...
7 Pages(1750 words)Essay

Careers in the Financial Services Industry

...Macro Environment (External) Analysis of Financial and Mortgage Services Industry Introduction The Financial and Mortgage sector is the heart of all economical decisions taken by the government. It creates a base and a starting point to analyze the sector to find out any transactions, dealings or contracts affecting the life of the citizens and the economy and wealth of the nation. This industry includes the commercial banks and building societies dealing with transmission of money, loans, mortgages, pensions, insurance, trade finance, stocks and shares and a wide range of other investment and lending services amongst others. [1] The...
4 Pages(1000 words)Case Study

Financial Services

.... As the industrial activities see an upsurge on global scale, it requires more funds to sustain the upsurge together with enough money with the consumer, for being able to use those products and services from the industry. The institutions in turn are supposed to make their operations and services attractive enough for the industry and the customer. The value that is addition done by both operations management and operations strategy happens to be fundamental to any organization. The above mentioned articles have one thing in common; they underline the need for effective management of financial aspects of a business. Providing...
12 Pages(3000 words)Essay

Ethcial Issues in the Financial Services Industry

...Ethical Issues in the Financial services Industry The report deals with ethical standards that are there in the industry of financial services. It also seeks to state that ethical issues can play a significant role in the performance of financial services industry. It is considered that general people tend to consider the field of financial services as more unethical as compared to other areas of business. This is considered as such mostly because of the fact that the industry is considered to be quite large. Contents 1 Ethical Issues in the Financial services Industry 1 Abstract 2 The report deals with ethical standards that are there in the industry of financial services. It also seeks to state that ethical issues can play... a...
10 Pages(2500 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Reform in the Financial Services Industry for FREE!

Contact Us