Financial strategy Coursework Example | Topics and Well Written Essays - 1500 words

Financial strategy - Coursework Example Since, the two world wars and lot of scientific inventions, risk has been defined in many ways. When we go to the bus stand for the bus, various degree of risk is involved having different severity of accidents. Sometime risks may be voluntary or some risks may be trivial while other may be fatal. It may be argued that since the birth of civilization only risks have been responsible for any major advancement. In ancient times, risk taking cavemen lived with 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. â€Å"Two individuals drawing from an urn of red an d 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). ... 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 â€Å"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. Business risk is related to political and social environment of a country. During the war on terror and US attack on Iraq, the air travel bec ame very risky and the insurance cost and cost of flying were many times higher than the previous prevailing rates. Similarly, in today’s world condition in Afghanistan is a threat for any kind of manufacturing business. Thus, no company would like to establish a factory in Afghanistan. Therefore, we observe that a lot of trading is going on these days in this region of the world. The uncertainty of terrorism has created a status of risk in almost the entire world for the last couple of decades, more appropriately since US invasion of Iraq. As a result of risk investment has moved out from this region. Despite the fact the countries in these regions are offering business incentives to the investors but in view of the high risk for capital and life,

Assessment Assignment Example | Topics and Well Written Essays - 750 words

Assessment - Assignment Example The NAEP has ensured a variety of adjustments in schools since its inception. To increase its scope of application, the Congress has ensured that NAEP gains popularity by providing facilities required in ensuring that it is fully operational. The National Assessment tool is the preferred tool because of its universality since it can be used to compare methods of teaching alongside comparing performance in almost all parts of the world. NAEP as an assessment tool works under the principle of random selection. When it is used, students from various schools are randomly selected within each state to be part of the assessment. The assessments are often conducted in areas such as reading, science, arts and other disciplines in the United States since it is the region which uses the method mostly. NAEP has been widely used in the United States by the Education Department since 1969 (Jay 177). The major purpose of the assessment is to enable education policy makers, parents and the media to analyze students’ progress in various subjects so that deductions can be made to improve the education system or general classroom performance. During the assessment, not all the students are engaged in the process. Only selected students are chosen for participation to act as sample. The sample of students are picked from all public schools in the US and non public schools because the major aim is to enable all students demonstrate in depth knowledge and skills learnt by performing numerous scale scores. The National Assessment of Educational Progress is probably one of the best assessment tools in the world. It reports data results for the entire country hence enables the government compare results for the states against the results of the entire country. The trend of the results which is used nationally to compare academic progress of students between the ages 9 to about 17 are often reported at the state level rather than at school or individual level in order to avoid a situation where schools are competing for grades. One advantage of using this method as an assessment tool is that biasness is reduced because of the fact that random selection is used in assessment. The random selection ensures that no state school whether public or non public gain more advantage over the other. The results are not printed for the schools or individuals. This makes the assessment tool the best method and tool in conducting assessment since it avoids biasness and eliminates rivalry due to the fact that there is no competition involved (Ryan &Shepard 227). During the process of conducting the assessment, it is not just based on short and prolonged responses; rather, other methods used also include multi choice and oral method applications. The results of the assessment tool are compiled by the Education Department in states in the entire nation to compare the results of the students in both public and private schools. Such results are compiled using tables or scalab le vector graphics stored as slides in soft copy or printed in hard copy. Other than trying to compare results for each school within one academic year, it can be used to compare changes in performance of students from one year to the other. The results can be shown or reported using maps. After the release of the results, they can as well be used when doing analytical procedures that will help in improving the