Value at Risk Essay Example | Topics and Well Written Essays - 3250 words

Value at Risk - Essay Example Risk management methods and nature varies from industry to industry like it can't be same for project management, industrial process and financial portfolios. From a management view point, risk management is an important tool which is used in decision making because it is systematic and well structured. For better utilization of risk management in management's decisions, risk analyst's reports must be based on the latest and best available information. The cause behind the mentioning of the Chinese proverb above is that risk management is the only tool which differentiates a good management with a bad one. From a bank's standpoint the term is usually used synonymously with specific uncertainty because the usage of statistics allows us to quantify the uncertainty which is called the measure of dispersion (Shirref, 2004). We know that every country have mostly two regulators on their heads, one for the banks and one for the companies. Usually Securities and Exchange Commission (SEC) regulates the companies while the Reserve bank regulates the financial institutions. Bank of International Settlement is the regulator of the regulators. From the same concept there is another regulator which regulates the financial institutions risk management department regarding the capital requirement and capital adequacy ratio. The name of the regulator is Basel Accord. Let's see in detail, what Basel accord has in its regulation. FROM ORIGIN OF BASEL TILL IMPLEMENTATION: Basel was an attempt to reduce the quantity of bank failures in a country, due to the insufficient capital which ties a bank's Capital Adequacy Ratio (CAR) to the risk of the loan Bank's makes. In 1988, The Basel Committee for Banking Supervision (BCBS) did the first attempt to implement such methods worldwide, which enhance the risk absorption power of the banks. Basel I was the initial or first set of capital requirement for all actively international banks because it sets charges for the credit risk which is known as crude capital charges. It instituted for the first time the requirement of minimum capital which must be held by the international banks to avoid the financial risk. In 1980, credit risk was the dominant player in risk class for banks but by the early 1990s, banks became more anxious to be a part of the capital market and for those markets which are larger and more liquid, and to play their role, and they did that. The significance and importance of risk then arose in the banks, but the Basel I merely emphasized on the credit risk. To overcome the risk of all traits, a new framework was desperately required to make the risk calculation and reporting more sophisticated. The BCBS agreed upon the market risk amendments in 1996 from there the concept of Basel II was born (Reuvid, 2008). Initially, the capital charges were based on definite standards, defined by the BCBS,

Xbox Introduction of Kinect Essay Example | Topics and Well Written Essays - 750 words

Xbox Introduction of Kinect - Essay Example It makes game controllers reduce their use of buttons and makes gaming as fast and efficient as possible. The add-on interprets voice commands and allows its users to easily play games in the absence of a game controller (Webb & Ashley, 2012). The devise also senses the movements of its user and also allow them to bark orders. Microsoft also plans to set living room chats with its Kinect product introduced in the market. Microsoft, therefore, intended to use the Kinect to face the competition from other forms of entertainment including music players, mobile phones as well as tablets. In developing the product, Microsoft used a number of methodologies. The company used the E3 convention for video games to announce its products and expansion strategies. It announced the addition of the Kinect add-on for the Xbox 360 to boost entertainment for video game players. Microsoft used social events as ways of market the product. The use of the Xbox 360 to announce events as sports was a major way of developing the product. This included the national basketball association and other events as the national hockey league. The leagues made their programming packages available to fans using the Xbox live. This increased the use of Xbox 360 and consequently the Kinect add-on for the gadget.... Microsoft also used the annual expo for electronic entertainment to market its product. The company showcased its new market entries. The announcement by Microsoft to link with Nike to launch a training program for fitness by the use of Kinect was among the ways in which Microsoft developed the product. Through the device, the fitness of a person is detectable. The company also used the international consumer electronic shows to develop their Kinect product in the market. Laying down formal rules to allow legitimate commercial use of the product was a great methodology used by Microsoft. These include the Kinect-centric experiments geared at reaching a significant share of the market for the product. The use of the product from Microsoft to enable live advertising was a significant step in developing the product. This was through the use of interactive NUads supported by Kinect. The use of Kinect in classroom also formed a significant market among students. Students could use it to l earn by collaborating in projects through the support of avatars. This supported distance learning. Through the different ways of developing the product, it garnered considerable market dominance. It was among the products of the company that made the highest sales within the fastest time after its introduction into the market (Walker, 2012). The development of the product, therefore, was successful given the high sales realized within the shortest time. The sophisticated nature of the software rendered it unbearable for hackers to interfere with the components. The fancy video cameras present in the device put off its hackers. It also had a depth sensor that was sophisticated for hackers to duplicate. Since all the properties of