The importance of managing credit risk in the market - Free Essay Example

Sample details Pages: 12 Words: 3650 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Managing Credit Risk is very important. Managing risk as well as returns is very crucial in order to sustain organization. In order to attract a large pool of customers variety of products with different options, advantages need to be offered. Don’t waste time! Our writers will create an original "The importance of managing credit risk in the market" essay for you Create order Bank must have ample amount of capital as reserves to meet sudden requirements. Risk can arise if borrowers who are not creditworthy are given loan extensions, this can also lead to liquidity problems for the bank and financial institutions. In order to avoid such situations banks need to monitor various parameters on regular basis. Risk may arise due to macroeconomic factors such as depression or recession in economy, changes in the interest rates, risk may arise due to counterparty default on terms of principal or interest payments. Managing Credit risk becomes important because in this globalized era everyone financial institution is linked to many financial firms. Decline in rating of one or delinquency by one institution may lead to catastrophe all over. Timely management of credit risk not only prevents personals associated but also helps in sustaining overall equity of the firm. 1.2. Purpose of the study: To analyze what type of risk one can face in terms of credit risk. How to asses these risks in a timely manner and how to take preventive measures when risk arises. Several Risk Mitigation techniques have been explained which showcase how one can mitigate risk after reaching a certain threshold. Different methods and models have been discussed 1.3. Significance of the study: Through this we will be able to differentiate what type of risk an organization is facing and what measures need to be taken. One understands how important it is to measure risk in timely manner. Different models have different limitations and need to be used properly so that gaps may get covered up. 2. LITERATURE REVIEW 2.1 Credit is defined as the terms, or an obligation to present resources, cash or other forms of funds (on- and off-balance sheet), secured or unsecured to a counterparty who is obliged to pay back, the amount along with the fee and interest thereon. 2.2 Credit Risk is the Financial Risk arising when counterparty is not able to meet the scheduled payments in accordance with agreed terms. Investor in such case losses on principal payments, Interest payments, reduced cashflow and incurs receivables expenses. Some examples: When a business is not able to pay an employee its wages. A consumer is not able to make interest or principal payments in case of mortgage. A firm/company declares insolvency. 2.3 Credit Risk can be broadly categorized into following three categories: Default Risk Credit Spread Risk Downgrade Risk Default Risk is when a borrower has not met his/her legal obligations as written down in the indenture. A default is when one fails or is unwilling to pay back the debt amount. It includes all debt obligations bonds, mortgages, loans, and promissory notes. Distinction from insolvency and bankruptcy Default is a condition in which one has not paid debt which he is obliged to. Insolvency incorporates legality when a debtor skips one or more scheduled payments. Bankruptcy involves supervision by court of law to proceed over any financial dealings in case of default or Insolvency. Credit Spread Risk is the difference in yield between securities arising due to different ratings assigned. It depicts the additional yield one earns from security with more credit risk as compared to a security which has lesser risk. The credit spread is often quoted with reference to the yield on a risk-free benchmark. There are several methods for measuring credit spread risk such as Z-spread and OAS. Downgrade Risk is the risk when a security/bond or any financial instrument faces down trigger of credit ratings assigned by well known and certified rating agencies such as Crisil, Moodys etc. The risk arises from declining situation of a corporation. 2.4 CREDIT RISK MANAGEMENT PROGRAMME Managing Credit Risk is of supreme importance and is properly assessed by all Financial Institutions. Good Credit Risk Mitigation techniques involve properly maintaining risk adjusted return across various dimensions such as maturity, interest rates, liquidity, currency exchanges etc. A broad credit risk management programme involves: ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Effectively identifying existing Financial Risk and promptly finding solutions. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Establish effective processes to have a good documentation, receivables and credit rating processes. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Credit Portfolio should be assessed on regular basis and regressed against various parameters in order to mitigate risk and align other parameters in sync with the environment. 2.5 CREDIT RISK ASSESSMENT Several Methods have been adopted worldwide in order to asses risk arising from various activities. 2.5.1 Credit Rating Agencies: Ratings are given by external and internal agencies. External Sources: Crisil, Fitch, SP any many such rating organizations evaluate creditworthiness of bond issuers. Ability of the debtor is assessed as to how timely he can make principal and interest payments and ratings are granted accordingly. Internal Sources give ratings which are at the point and through the cycle. Through the cycle assessment provides default probability at the worst condition in the business cycle and is useful in making lending decisions. At the point approaches assessment relate to changes in cyclical conditions and are more appropriate for capital allocation. Some basic points considered while assigning ratings by these agencies: The amount and composition of existing debt. The stability of issuers cash flow. The issuers ability to meet scheduled payments of interest and principal on its debt obligation. Asset protection Management Capability. Measures used to measure Credi t Risk are LGD (Loss Given Default), Probability of Default (PD). Traditional Measures to asses Credit risk using PD are- 2.5.2 Expert System: It is based on the opinion of experts and evaluates on the basis of 5 Cs. Character: It refers to management integrity and its commitment to repay the loans. Capital: It examines the relationship between equity and debt. Capacity: refers the ability of borrower to generate cashflow or liquidate short term assets to repay its debt obligation. Collateral: It includes the assets offered as security for the debt as well as other assets controlled by the issuer. Cycle: It considers how the current state of economy will impact exposure to credit risk. This is a subjective method. In order to minimize subjectivity we go for Neural Network which are flexible systems that include various conditions in a streamlined way in the final decision making process. Weights are updated based on the historical data input; this helps in training Neural Networks. This is very costly process and data may over fit. 2.5.3 Credit Scoring Models: These models they basically help in calculating Probability of default and Loss Given Default which is required to calculate Credit VAR. Expected Loss and Unexpected Loss are calculated by banks in order to mitigate risk arising from the counterparty. Expected Losses are covered through reserves maintained by the banks. Unexpected losses are met through economic capital. Threshold is reserved through VAR analysis at 99% confidence interval over a 1 year horizon period. VAR (Credit Risk) = Z (Value) x sigma x Value of the firm x .08 Economic Capital = VAR (at 99% Confidence Interval) Expected Loss. According to Basel 2 a minimum of 8% needed to be reserved in lieu to protect against credit risk. 1) Losses are marked in the x-axis; y-axis denotes percentage return. 2) Loss more than the Credit VAR is defined as the tail losses. They have very low probability of occurrence. Basel II IRB, area is 1-99.9% = 0.1% with 1 year horizon. 3).EC (confidence) = Credit V AR (confidence) Expected Loss (EL). EC refers to the region between EL and Credit VAR. 2.5.4 Merton Model: It showcases that value of equity is equivalent to a call option on firms assets where strike price of the assets is equal to the value of the debt. At expiration, the value of equity is equal to either zero or the difference between the value of the assets and the value of the debt, whichever is greater. The value of the equity is the function of following inputs: Market value of the assets Volatility of the market value of the assets Risk free rate The time until the option expires The exercise price As for the calculation part let us suppose the firms only debt issue is a zero coupon bond with a face value of F, due to maturity date of T. If the firm is unable to pay the principal at T, then the firm is bankrupt and the equity claimants receive nothing. Alternatively, if the firm value at T, V(t) is large enough to pay the principal amount, then the equity holders have claim to the balance, V(t) F. These two pay off possibilities are the same as the payoffs for a call option, with the firm value as the underlying asset and the principal amount as the exercise price. The value of the equity at T is: S (t) = Max (V (t) F,0) The value of debt is D (t) = F Max (F V (t), 0) Calculating Probability of Default Intensity based models assume defaults occur randomly and a hazard rate determines the probability of default. Intensity based models decompose the credit spread on debt to provide estimates of both the PD and the loss given default by utilizing the following relationship: CS = PD x LGD CS represents the credit spread, which is the difference between the yield on risky debt and the risk free rate. This is essentially a measure of expected loss since it is the spread that exceeds the risk free rate. Thus a researcher can approximate the probability of default from the credit spread and the loss given default. Recall that loss given default is equal to one minus the recovery rate. Probability of default could also be calculated using the following expression (assuming LGD = 100%) Market Price of Bond = [(Face value of bond) x (1 PD)}] / (1 + risk free rate) 2.6 Mitigating credit risk Risk-based pricing: Those borrowers who are prone to defaults are charged higher rates of interest by Lenders. Various parameters such as purpose of loan , Ratings assigned by agencies, Loan-Value ratio and yields (spreads) are evaluated. Covenants: A note in an indenture, or any agreement stating that these activities will be carried out and these will not be. Financial Analysis is done at regular intervals Due to significant change in certain Financial Ratios lender can request the borrower to repay the loan in full. Credit Insurance: Lenders can hedge counterparty risk by purchasing Insurance. This process helps in transfer of risk from Lenders to Insurance Firms (Third party) Credit Default Swap is a type of instrument in which one party makes payments to other party. The purchaser of the CDS seeks credit protection and will make fixed payments to the seller of the CDS for the life of the swap, or until a credit event occurs. Tightening: By lowering the amount of credit extended, Lenders can mitigate risk fully or partially. Say for Example, a distributor tries to lessen his credit risk by reducing payment scheme from 30 to 15 to a retailer. Diversification: Diversifying to a large number of borrowers reduces the risk plus lending it to different sectored departments further lowers the credit risk. Deposit insurance: Central Government in many countries has established a process known as Deposit Insurance so that the bank can derive some monetary benefit from the Central Bank. This scheme prevents a run on the bank situation. Credit risk mitigation (CRM) It helps in managing credit risk in an efficient and mechanized way. Offers a widespread approach so that can be used across range of institutions. Offers great amount of flexibility and is consistent with the environment. 2.7 Some of the Methods to Mitigate Credit Risk are: 2.7.1 Collaterals: An institution/Bank or any Financial Services firm has a credit exposure which is safeguard by cash or any equivalent Financial Instrument serving as Collateral. Some part of the total Loan or the full amount is collateralized in the process. No collateral requirement higher than secured issue should be posted. These reduce the risk by a larger amount as in case of adverse events these collaterals can be encashed to meet the sudden liquidity, cashflow risk arising due to counterparty risk. 2.7.2 Netting: It is a legal agreement that enables counterparties with multiple derivative contracts to net their obligations. This reduces credit and liquidity risk exposures by eliminating large fund transfers resulting from each individual transaction. Instead of large transfers, smaller net payments are made by the counterparty with the net liability. Let us consider Bank XYZ has a portfolio of N derivatives contracts with counterparty MNO, and suppose that no default value of the i th contract is equal to V (i). Furthermore, the amount recovered if default occurs is the recovery rate times the no default exposure. If netting clauses were not enforced, the financial institution would suffer losses of: LGD x (i=1 to N) SIGMA (Max (V, 0)) When the netting credit risk mitigation technique is implemented, the net loss would be: LGD x Max ( (i =1 to N ) SIGMA (V ( i ),0 ) ) 2.7.3 Guarantees and Credit Derivatives Guarantee given by certain Institutions which specializes in that particular sector. Some initial coverage or protection is provided by these institutions. 2.7.4 Downgrade Triggers: When the rating of a certain party falls below specified levels, a trigger is set and this enables the counterparty to clear off the contract at its current market value. 2.8 Credit Risk Management Process 2.8.1 Credit Processing/Appraisal In this process all the required information is gathered and screening of applicants is undertaken. The next step in line is to assess the obligors how efficiently they can make scheduled payments. These institutions should ensure that benefits are only given to those creditworthy customers who have ensured that they can timely deliver and have stability of the cashflow. These institutions generally accept collateral from borrowers so as to mitigate risk. These institutions then relax in their drilling process; they become less efficient in collecting information from borrowers. They should have in mind that securing loan through collateral does not signify that stability of cashflow from the client/counterparty will be timely. The working capital should not be derived from collaterals or guarantees. The working capital should be based on proper analysis of sales, historical background, stress testing and Scenario Analysis. Some measures should be adopted as follows: Pe riodic valuation of the collaterals should be done. Legal issues and credit downgrade issues should be tackled immediately. Regular audit of financial statements should be undertaken. 2.8.2 Credit-approval/Sanction A set of guidelines should be written down by all the institutions based on which decision will be taken. Every blueprint developed should be approved by the senior members. Regular checking should be done by board of members. Decisions such as renewal of credit ters, analysis of existing credit policies and proposition of new terms is carried out. Some points to be kept in mind: Committee/personnel handling credit approval task should be kept away from the CRM responsibility. Approval should be structurized and should consist of a well defined hierarchy; who should be responsible for screening the entire process depending on the size and nature of credit. 2.8.3 Credit Documentation This process is important and is required for every step in the credit cycle. Activities such as credit rating, monitoring, valuation etc. are documented. A standardized report regarding every step need to be drafted and should be made available to every person in the concerned department. 2.8.4 Credit Administration Following should be done to administer credit risk: Files and related documents should not be moved from their respective locations and should be kept in order; The obligor is making regular and apt payments. Collaterals are properly valued and monitored thereon. Timely and accurate information is conveyed to the top officials. Proper Role Allocation is done. Back office, front office and middle levels are in sync with each other. 2.8.5 Disbursement A letter should be delivered to the customer to make him aware of all the terms and condition. A duplicate letter should be signed by the client and should be submitted to the institution. No funds should be released prior approval by the concerned authorities. 2.8.6 Monitoring and Control of Individual Credits Funds if allotted for a particular client should only be used for his purpose and not anywhere else. Obligors should comply with bounded promises; Manage audit reports and financial statements. Budgeting and Projections 2.8.7 Monitoring the Overall Credit Portfolio (Stress Testing) Economy Downturn: Continuous evaluation of the economy is to be carried out because recession, interest rates, inflation etc have severe impact on the portfolio. Market Risk need to be evaluated because in the era of globalization various markets are inter-related and have strong dependencies. Liquidity Mismatch may arise due to cashflow instability, this needed to be tracked and projections regarding such instances should be made well in advance. Contingency plans should be developed and reviewed by senior management periodically. 2.8.8 Managing Problem Credits/Recovery Recovery Process with respect to Customers: Seniority: It determines the priority order of the claimants with respect to the assets when the firm defaults. Higher the seniority higher will be the recovery rate. Collateralization: It showcases how different assets have been assigned to different claimants in the event of default. The allocation value and liquidity of the assets will determine the recovery rate. Some of the recovery Functions used: Beta Distribution: Two input statistical parametric distribution using mean and variance. This is a very flexible process. Kernel Estimation: A non parametric technique which uses probabilistic method to assign probabilities to events. Conditional Recovery model: Parametric technique that uses multiple factors to asses recovery. Covariances, volatility, mean etc are calculated. 2.9 Credit Risk Portfolio Models: Credit Risk+: It measures risk for every obligor using a set of risk factors. It is a two outcome model; default or no default. Each obligors PD is based on its credit rating and sensitivity to each risk factor. The defaults are uncorrelated across obligors. The risk parameters are supposed to follow a definite distribution such as gamma distribution. Credit Metrics: The first step is to determine credit ratings. Then use historical transition rating matrix to determine PD. Use 1 year forward rate to get current price of zero coupon bond and then calculate VAR at a given confidence level. This method totally relies on co-relation analysis. KMV Portfolio Manager: Expected default probabilities for each obligor are calculated. This method gives us what is the firms value and volatility. This method uses current equity in the model which integrates current event to the model. There is minimal lag regarding updating of these ratings. Expected return is calculated using CAPM which factorizes the correlation structure. Credit Portfolio View: They depict macroeconomic changes using transition matrices, also economic cycle is being included in the data to be analyzed. An econometric model is used to asses the risk. Autoregressive process measurement is done. Next step is to compose sector indices for the variables. Index value is used to estimate default rates. Simulated values are regressed against historical values and results are used to make decision making process. KMV Award Approach: This model is used to determine default rates. Basic steps to be followed are: There is one issue of equity and debt, and the debt is in the form of a zero-coupon bond that matures at a given date. Default can only occur at the maturity date. The value of the firm is observable and follows a lognormal diffusion process. The risk free rate is constant through time. There is no negotiation between equity and bondholders. There is no need to adjust for li quidity. Default point is then calculated as follows: Short Term Liabilities + 0.5 x Long Term Liabilities Short Term Liabilities + (0.7 x Long Term Liabilities 0.3 x Short term Liabilities) 3. SUMMARY AND CONCLUSION This seminar paper guides us through Credit Risk and its type. We learn what credit risk is and what its scope is, also we come across different types of risk and segregate among them this helps particularly banks in setting aside reserves for each department to meet daily requirements and safeguard against adverse events. Next most important thing we have analyzed is the credit risk management technique which involves process oriented scheme to prepare data and evaluate with the help of seniors, to document the findings and properly asses that factors are in sync with the stated data. The next learning sector was the credit risk mitigation techniques such as netting. Netting is a widely used concept in which an obligor having multiple exposures to counterparty reduces his exposure by paying net amount rather than submitting full amount. Collateralization is yet another concept learnt through this seminar paper. Collaterals are posted as security by borrowers in order to safe guard investors. These collaterals should be properly valued and any change in its value should be reflected in the documents. Guarantees and promissory notes are provided in order to facilitate investor and keep him away of the potential threats. Next we learnt how actually firms/ banks and financial institutions Mitigate risk through a standardized process. Firstly risk factors are analyzed, weights are assigned and their sensitivity is analyzed. Reports are documented and presented to the senior officials. We have learnt that the entire process is error free and accurate if followed, minimal chances of fraud etc are to be seen. Every step adds value to the process and any sudden change is included using various models such as KMV, Merton. These models give an insight as to how industry officials actually asses such a widespread risk. This gives an insight as to how models relate real world risk and integrate theoretical knowledge to the sector. Various concepts such as expe cted loss, unexpected loss, economic capital, VAR were seen and understood. In the end it is enough to conclude that credit risk management is a very important process which every firm needs to carry out in order to sustain in this competitive world. Risk Mitigation is complex and requires stress testing and scenario analysis with reference to historical data side by side as well.

The 30-Second Trick for Nyu Essay Samples

The 30-Second Trick for Nyu Essay Samples Many college applicants make the error of attempting to incorporate all their accomplishments and activities in their application essays. Students might only apply to one NYU program at a moment. Since you may see, students are certain to face a number of challenges should they wish to turn into a member of the buy essay club. To receive our students started on this prompt, we tell them to consider the things that they are interested in having the college to understand about them that isn't evident from the remainder of the application package. Instead, you can begin with a past event or achievement and describe the way that it influenced the growth of your aspiration. The training course is designed to expand kids' views of science, infusing it for more social and ethical themes along with history as a way to give them greater societal context once it comes to their writing and comprehension of STEM. As NYU students will say, constructive debate of ideas is integral to life on campus and something which is emphasized in the necessary coursework students are requested to finish. It may be an intellectual challenge, a research query, an ethical dilemmaanything that's of personal significance, regardless of the scale. Indicating that you'd be prepared to attend any of the NYU campuses overseas indicates that you're looking for more than only a localized education. You will need to react in a fashion that is particular to you and specific to NYU. Instead, you wish to spend more time focusing on what NYU offers for that particular major, with a tidbit thrown in on why you wish to pursue that major if you have sufficient space. Besides offering your distinctive spin on why an NYU education is best for you, you will also need to make certain your answer ticks off a couple of specific boxes. The cost of an essay depends upon the total amount of effort the writer has to exert. The essay prompts are intended to make you believe. It is the most important part of a college appllication, see sample essays perfect for applying to schools in the US. Admission essay is just one of the most significant academic papers in your life as it determines whether you'll be in a position to put in the college you need or not. Our website is just one of the most appropriate for essay help. You can trust the ideal essay help online. In the end, think about this supplemental essay as a means to express how compatible you're with the college you're applying to. You are able to self-report your scores, but we'll also require an official report. Let's say you should purchase essay for college. This has been shown to be an extremely powerful and quick means to assist with a writing assignment and find the business done properly. The objective of the provider alone makes this one of the best essay services. The Downside Risk of Nyu Essay Samples You are going to receive unique texts, which will be finished in time. The essay that's full of bad puns or off-color jokes will often wind up in the rejection pile. We always had an excellent time with Macbeth. If it's so, then you'll be having some challenging time for a student in addition to being a writer. Citations and extracts from several sources have to be formatted properly. You will soon locate the official data about us. There are many tutorials shared on the site, from different food recipes to DIYs. In any case, we're using a wise interface. You don't need to incorporate a department code. It gives a platform to engage people in what you would like to show. An individual can follow YouTubers from all around the world and can be exposed to so many unique cultures they have yet to be in a position to experience if not for YouTube. Association of Google AdSense Account YouTube makes it possible for you to make a new Google AdSense account, in the event you don't have one and you may also associate your existing Google AdSense account by means of your channel enabling you to monetize your videos. Another benefit of our website is the quickness.

Education is Life Itself

Question: How Education is life itself. Answer: When I joined the course on education and came for attending the first class, I was very confused, as I had never attended something like this before in life, and hence did not know how far I will be able to respond to the same. When the participants were being asked for their reason behind joining the course, most of them responded saying that this course would facilitate the hike in pay scale. But I had three main objectives in mind, behind joining this course. The first and foremost one, is that I intend to nurture the inner potentiality of my students, making them not only academically strong, but socially prepared for tomorrow. Secondly, I want to provide love, support and confidence to my students, so that they can be motivated to improve their skills in future. Finally, the sense of accomplishment over the victory of my students, is too big a reward for me, to reject. I believe that on completion of the course, I will be able to know the means of fulfilling these objectives mo re fully. As a part of an activity in the course, I was really fascinated by the PowerPoint presentation, explaining the two different branches of the philosophy of knowledge- Epistemology and Ontology. While the former deals with the source of knowledge and the process of how we acquire it, the latter revolves around the concept and nature of existence and non-existence of the things surrounding us (Prawitz, 2012). Since Epistemology concerns with the nature and limits of knowledge, as a teacher, it shall help me in knowing how to design my curriculum and deliver my lecture in class. Again, from Ontological studies, I hope to learn to interpret as well as accept various perspectives of the students of a single topic. Whatever the philosophical study of knowledge be, I have realized that any form of knowledge is highly beneficial for us, and all our lives, we should be able to explore various facets of knowledge to keep learning (Turner, 2013). Reference List: Prawitz, D. (2012). Truth and proof in intuitionism. InEpistemology versus ontology(pp. 45-67). Springer Netherlands. Turner, R. B. (2013).Expert teaching: Knowledge and pedagogy to lead the profession. Routledge.

Manifest Destiny Essays (661 words) - MexicoUnited States Relations

Manifest Destiny MANIFEST DESTINY The idea of Manifest Destiny was based on the idea that America had a divine providence. It had a future that was destined by God to expand its borders, with no limit to area or country. All the traveling and expansion were part of the spirit of Manifest Destiny, a belief that it was God's will that Americans spread over the entire continent, and to control and populate the country as they see fit. Many expansionists conceived God as having the power to sustain and guide human destiny. It was white man's burden to conquer and Christianize the land Though the idea was revolutionary for the US, it was nothing new for the world. The idea of conquering other lands in the name if Christ was easily seen in Europe with the Crusades. Thousands of natives died and many countries captured by people who claimed that this was the divine work of God. Anyone who did not convert or stood in their way was killed, much like the Americans did to Native Americans while conquering the west. Manifest Destiny was the reason for the great interest in territorial expansion. With a sense of a ?holy mission,? people were encouraged to travel because of the great amounts of untouched land lying just beyond the borders of the declared territories. There was also the growing desire to develop trade with Asia. Taking over the western lands would eventually open new trade routes with China and Japan who offered rare items such as silk and unique spices. (Quick note from the student: Spices? Isn't that what started the whole thing in the first place? I guess that there is always a hungry man in the history books!) There was also a fear that the land the United States would seek might be taken by foreign invaders. - Namely Russia who was rumored to be planning to take the area of that would later be California for itself. The easiest way to keep others from encroaching on the American's divinely ?Promised Land? was to conquer the land first. Manifest Destiny also created a brutal consequences from the eagerness of the land hungry Americans. While conquering the new and untouched lands, in the process the Native Americans were either moved to other territories so that they were not in the way, or killed. Their deaths were justified by the reasoning that it was their duty to Christianize the savages. (This was all in favor of the advancement of the white civilization.) With such a divine right from God, anything that stood in the way of their right was a threat that simply had to be ridded from on the earth. The government even put their supposed justification in writing with the Manifest Destiny Doctrine, where they intended to break up all tribal governments. Even in modern times, the idea of manifest destiny still flowed through the veins of American government. The most blatant example is the United States burning urge to have Hawaii as the 50 state and a military out post. This was a prime example of Manifest Destiny when in 1898 the US military went into Hawaii and quickly, and simply, took it. The task was completed in 1959 when Hawaii was still unwillingly made the 50th state of the US. Though the idea of manifest destiny in general had been around since the beginning of religion itself, American took it in whole-heartedly and so quickly went to claim their providence from God. Though many believed that it was the holy thing to do, most of their morals were shot to the ground when their greed for land took over. Whoever started the American Manifest Destiny probably had no idea what they had begun. He probably did not have the slightest intellect of how much land there was to conquer, nor how many there were to see slaughtered in the name of God. May all God's children rest in peace? History Essays

Compare and Contrast «The Searchers» and «Dances with the Wolves»

Compare and Contrast  «The Searchers » and  «Dances with the Wolves » Introduction It seemed to be an American tradition to be fascinated by films that depict the western culture of the United States of America. During the 20th century, novels and movies that depicted the western culture of the country were widely spread and sold within the country.Advertising We will write a custom essay sample on Compare and Contrast:  «The Searchers » and  «Dances with the Wolves » specifically for you for only $16.05 $11/page Learn More Perhaps, The Searchers directed by John Ford and released in 1956 and Dances with the Wolves produced by Kevin Costner in 1990 were one of the best selling movies during the 20th century that gave an insight into the western culture and the interaction between the Native Americans and the settlers. In both of these movies, the similarities and differences between these two cultures are clearly presented. In addition, the relationships between the two nations are also exhibited in an almost exact man ner reflecting a true picture of the current state of affairs during the 19th and early 20th century. The main aim of this essay is, therefore, to compare and contrast these two films. An Analysis of the Films The film Dances with the Wolves was written by Michael Blake. It was directed and starred by Kevin Costner. The film is a western epic film that showcases the life and events of an army lieutenant named John J. Dunber (Kevin Costner) after the American Civil war of the 1860s. After finding out from the doctor that his leg is to be amputated because of the injury that he suffered in the course of the war, Dunbar sacrifices his life and leads the army against the enemy. This heroic act comes about after he saw that it was better for him to die for his country rather than to live with one leg. Ironically, his brave acts lead his people to victory over their enemies. As a result of his heroic deed, Dunber is asked to choose a place where he should be deployed after the war. In Cos tners film, Dunbar chooses Fort Sedgwick that is located in the southern part of Dakota. He says, â€Å"actually sir, am here at my own request. Ive always wanted to see the frontierbefore its gone† He is then posted to Fort Sedgwick as per his request. However, on arrival, he finds the fort abandoned. The area is also not secure since he is vulnerable to attacks from the nearby tribes. Despite the solitude, Dunbar decides to settle at the fort and rebuild it. For the first month, he spends all his time alone. It is during this time he makes friends with a wolf whom he names as Two Socks after the two white paws that it has on its fore limbs.Advertising Looking for essay on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More During this period, Dunbar encounters attacks from the members of the Sioux tribe who try to drive him out of his horse on several occasions. In response to this, he decides to go to their cam p and make peace with them. On his way, he meets with a Native American woman who is injured. Dunbar rescues her and takes her back to her village for treatment. This woman called Stand with a Fist is an adopted daughter of the chief. To show their gratitude, the members of the village accept Dunbar into their village. Due to the language barrier, they communicate using the signs with Stand with a Fist acting as a translator. After a while, Dunbar adopts the culture and lifestyle of the villagers. He even marries Stand with a Fist. Then he decides to return to the fort where he finds that American soldiers have taken over the place. He is arrested since he looks like an Indian. Since he refuses to give away the whereabouts of his tribesmen, he is taken back east for conviction. During this journey, Two Socks follows the convoy in a bid to rescue Dunbar. However, he is wounded in the process. The members of the Sioux tribe show up just in time, kill all the soldiers and rescue Dunbar . Because of the fear that he may be seen as a traitor, Dunbar abandons Stand with a Fist and the other tribesmen. On the close of the film, the American soldiers are seen searching the mountains for the Sioux but in vain. The Searchers is also a western epic film. The film is based on a 1954 novel by Alan le May and directed by John Ford. The film begins with the return of Ethan Edwards to his brothers home in Texas after the end of the Civil War in 1868. A few days after his return, he finds out that the cattle belong to his neighbour. Because of the rage that they have, they decide to retaliate by chasing after the cattle rustlers. However, this is only a diversion, and after they have left their homes, the Comanches come and steal things from their homesteads, kill the rest people, burn their houses and kidnap two underage girls; Debbie and Lucy. The whole film evolves with Ethan, Clayton and Martin searching for the girls. This pursue takes years. In the process, they manage to find the remain of Lucy in an abandoned cave. They also find Debbie who appears to be married to a local Comanche chief called Scar. After a confrontation with Ethan, Debbie refuses to leave her new life that makes Ethan want to shoot her.Advertising We will write a custom essay sample on Compare and Contrast:  «The Searchers » and  «Dances with the Wolves » specifically for you for only $16.05 $11/page Learn More However, Martin shields her with her body. In Fords film, Ethan draws his gun and points it at Debbie who says, â€Å"go Martin, go.† Ethan keeps shouting, â€Å"Stand aside,† but Martin refuses. In the end, they let Debbie go. However, near the end of the movie, they manage to rescue Debbie against her will and kill Scar, the Comanche chief. From the above description, it is evident that both these films are western epic movies that show life as it was soon after the civil war. In these two movies, the hostility that existe d between the Native Americans and the settlers is also brought out clearly. This is shown when the members of the Sioux tribe try to rob Dunbars horse and when the Comanches steal cattle and kidnap the two girls. Although these are hypothetical events, many cases of the same nature were reported to happen during this era. For instance, there were approximately 90 child kidnappings in Texas during the first half of the 20th century (Chan 512). Both of these movies are also about love and passion. This reveals in the love and affection that Ethan has for Debbie and feelings of Dunbar to Stand with a Fist. However, in Dances with the Wolves, the heroism that is normally associated with the Americans and American soldiers is not shown. As a matter of fact, the American soldiers are seen as normal individuals who are prone to error. The warriors of the Sioux tribe kill them and when the reinforcements come, they are unable to locate their camp. On one hand, Dunbar is also assimilated in to their culture. This act is viewed as inferior to most people. On the other hand, The Searchers shows that the Americans are superior beings and more intelligent over the Comanches. They are able to track them easily down and use their brilliance to rescue Debbie. This is a theme that was used in most western epic films. Conclusion Both of these two films show the way of life of the American people and their neighbours just after the civil war. These movies are important since they give us an insight into the way of life of people during that era. They show the social, political and economic status of American society, especially the community that lived next to the Native Americans. Despite their similarities and differences, these films are a good representation of the American History after the Civil War.Advertising Looking for essay on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More Chan, Rita. Directory of American Scholars: History. Boston: Sage, 1999. Print. Costner, Kevin, dir. Dances with the Wolves. Orion Pictures, 1990. Film Ford, John, Dir. The Searchers. Warner Bros. Pictures, 1956. Film

The Understanding of the Artistic Works from Cultural Viewpoint Term Paper

The Understanding of the Artistic Works from Cultural Viewpoint - Term Paper Example The ideal of social anthropology will further delve into the reason why artwork was created in a specific way and the relationship it has to society.   For instance, if a type of material was used over another, there may be an inference to what this means socially and the ability to make the material with ease of use for the artistic expressions.   These various elements make a difference in the art and the perception from anthropology.   The interpretations don’t consider the aesthetics but instead looks at the social relationship which these hold (Gell, 40).   The definition of art from the anthropological point of view is not only examined with the social and cultural aspects by most.   There is also an understanding that the artistic work is able to raise questions and reflect on a specific culture and what the meaning is behind the works that are displayed.   The basic discipline is one which is first examined by the ideology of a human activity which is constructed by various societies.   This is followed by the social sciences which are able to define the experience, which is specific to the study of anthropology.   While art is one which is constructed of experience, this is based on interpretations, relationships to the pieces, knowledge of the piece and the defining elements.   This is also dependent on the spectator and what acting agents are parts of the piece.   The approach of anthropology is one which is only dependent on defining the material culture of the art.   This doesn’t provide room for interpreta tion of the aesthetics, specifically because this is defined by experience, cultural awareness and various levels of knowledge.   Anthropology then becomes limited only to the cultural ideologies, as opposed to the aesthetics of other levels which may reflect the philosophies of art (Pinney, Thomas, 118).  Ã‚   The interpretation of anthropology through art as a limitation is one which also questions the use of aesthetics and how this is left out of the viewpoint of anthropologists.   A question which arises when looking at aesthetics is based on the cultural value which is applied and whether this provides a thorough examination of an artwork.  

International Financial Accounting Bosch 2006 annual report Essay

International Financial Accounting Bosch 2006 annual report - Essay Example Its spare parts are available for all vehicles. Under automative technology, Bosch engineers develop and test product innovations for motor vehicle manufacturers in research centers around the world. Bosch products go into serial production for new vehicles produced by many different manufacturers around the world once they have undergone extensive testing and meet its strict quality requirements. Bosch has contributed significantly towards making driving safer, cleaner and more economical being one of the largest manufacturers and suppliers of spare parts. (http://www.bosch.com/content/language2/html/3506.htm) Bosch is also a major producer and mahufacturer of home power tools, household appliances, garden tools and heating appliances. At the industry and trade Bosch provides communications services, power tools for professionals, sensors and foundry, security systems and packaging technology. The aim of this paper is analyse Bosch's 2005 annual report so as to assess the influence of institutional, cultural and external factors on the financial accounting and reporting system of Bosch. The rest of the paper is organised as follows: Section 2 provides an analysis of the the institutional, external and cultural influences on the financial reporting system, and a classification for the Accounting system, Section 3 looks at the extent to which Bosch is related to the international Accounting standards (IAS/IFRS) of the International Accounting Standards Board (IASB) and Generally Accepted Accounting Principles GAAP of the US Financial Accounting Standards Board (FASB). 2. ANALYSIS OF THE INSTITUTIONAL, EXTERNAL AND CULTURAL INFLUENCES ON THE FINANCIAL REPORTING 2.1 Institutional Influences 2.1.1 Management Structure The management structure has got an important role to play in the type of accounting system used. In the words of Hermann Scholl: "Responsible corporate management is partly about striking the right balance - a balance between result focus and values such as responsibility, openness and trust, fairness, credibility,and cultural diversity. This is fundamental to long-term success." (extracted from Bosch Group Annual Report, 2005). According to the 2005 Annual Report the supervisory council is kept informed by the board of management throughout the year and give close attention at its meetings to business developments, corporate strategy, the financial situation, and investment plans. It receives briefings on and appraises the business environment, new engineering developments, and the competitive position of the individual divisions, quality issues and cost cutting measures. This has an influence on the system on the financial reporting system. Bosch announced in its 2005 annual report that it is adapting an IFRS based internal control system as from 2006 onwards. A monthly business report will be prepared and they explain that the system gives the board management a survey of developments on corporate, business sector, and division levels. Comparison is done via an actual-target comparison, which is based on the annual business plan. The business plan has a