New Century Financial Essay

1. Describe and evaluate New Century’s business model? New Century Financial Corporation, headed by founders Brad Morrice, Edward Gotschall, andRobert, was a firm which specialized in subprime mortgages. The company originated, sold, andserviced subprime home mortgage loans. New Century was structured as a real estate investment  trust (REIT) and was composed of two operating divisions. The Wholesale Loan Division,  known as New Century Mortgage Corporation, comprised 85% of the firm’s loan originations,  while the Retail Mortgage Loan Division operated under Home123 Corporation.  New Century Mortgage Corporation operated in 33 locations throughout 19 different states  and relied heavily on independent mortgage brokers to identify potential borrowers and assist  them through the loan process until the loans were closed by New Century. This division also  purchased funded loans from other lenders and expedited the loan underwriting process through  its web-based system known as FastQual. The Retail division was comp osed of 235 sales offices  throughout 35 states, a call center, and a web site. This division was aggressive in its approach to  seek out potential borrowers and close loans earning it the nickname â€Å"CloseMore University.†Ã‚  The company typically originated loans and used short-term loans to fund new mortgages  until they were sold within 30 to 90 days of origination. New Century’s income was generated  from the difference between the lending rate and rate at which the loans could be sold or  financed and from servicing loans. Loans were sold either as whole loan sales where mortgages  were pooled together and sold to investors or as securitizations structured as sales. The company  also carried securitizations structured as financing as assets on their books and used the bonds  to finance the securitized loans as liabilities, thereby generating income based on the difference  between interest received from borrowers and interest paid to bondhold ers. 2. What were the primary risks faced by New Century? New Century’s business model enabled the firm to grow rapidly from 2001 through 2006  as access to capital markets expanded and regulations were relaxed. Loan securitization  allowed lenders to spread credit risk over a larger number of investors creating an  environment where companies like New Century could lend to subprime borrowers at  higher rates while financing their operations with the lower interest rates provided by  the highly liquid mortgage-backed securities (MBS) markets. These factors fueled the  company’s growth, but caused the firm to be highly sensitive to risks of increasing interest  rates, declining home sales, and default by less creditworthy borrowers. New Century’s  aggressive strategies in pursuing subprime borrowers resulted in increased risk of asset  Additionally, the short-term credit the company obtained in order to finance loan  origination was contingent on New Century meeting certain debt covenants and financia l  ratios. Increases in interest rates or regulations or the inability to move new loans off its  balance sheet could cause the company to be unable to obtain financing to continue funding  loans. Likewise, a decrease in the difference between the interest rate at which it could  borrow and the interest rate at which new loans could be closed, would affect income and  may result in noncompliance with net income requirements or debt-ratios imposed by New  Finally, the loans which New Century sold were pooled together. The investment banks  which purchased the loans would perform a due diligence review on only 25 percent of  the pool before negotiating the composition and price of the mortgage pool. A â€Å"kick-out†Ã‚  clause was included to allow for buyers to reject part of the loan pool for defects such as  faulty documentation, appraisals, or underwriting issues. The buyers could also require New  Century to repurchase loans which experienced early payment default (EPD). As such, the  company was exposed to risks related to internal controls in monitoring loan processing,  underwriting, and closing which could cause a substantial loss in income due to increased  kick-outs and repurchased loans. Further aggravating these risks were the company’s  aggressive tactics in pursuing and closing subprime borrowers such as offering loans  requiring only stated income and assets as opposed to full documentation loans. 3. What were New Century’s critical performance variables? How well was New  Century performing with respect to these critical performance variables?  New Century Financial had performance variables that critically affected its business  and led to it’s eventual bankruptcy filing. These included liquidity, default rate, and forms of  The overall rate of default is critical because of its compounding increase in liabilities with  a decrease in assets. A default rate higher than the historic rate would adversely affect the  valuation of many assets in the firm’s financial statements. It is also tied to the demand for  mortgage backed securities, increased default reduces the demand for subprime securitization,  thus reducing New Century Financial’s source of income at a time of increasing obligations. 4. What were the reporting errors identified by the bankruptcy examiner? The bankruptcy examiner noted several inconsistencies with US GAAP. These included  errors in calculating the loan repurchase reserve, the lower-of-cost-or-market (LCM) valuation  of loans held for sale, and the residual interest valuation. Additionally, the methodology used  for the allowance for loan losses (ALL) was known by management to be defective as the  company’s models used poor predictors of future performance to determine the level of reserve  needed. In calculating the repurchase reserve, New Century obtained historic averages and  applied those percentages to loans sold in the last three months as EPD was defined as payment  default occurring in the first three payments. However, since the repurchases were being  processed by several different departments within the company depending on the cause of the  repurchase, there was a backlog in obtaining the data in a timely manner. As loan repurchases  became more frequent, the company continued us ing stale data causing the reserve calculation to  In addition, the company was not properly applying LCM valuation as stated in its own  company policy. Instead of pooling similar loans to determine to conduct LCM analysis, the firm  was performing the analysis on the disaggregated loans and then grouping the loans together  to conduct valuation on the group as a whole. This method resulted in gains from one loan  group offsetting the losses in another causing the LCM valuation to be significantly flawed.  The residual interest valuation methods used were also flawed as the company was using  discount rates which were lower than those used by others in the industry to compute residual  interest. New Century disregarded numerous warnings from their auditors, KPMG, regarding  the low discount rates and failed to provide documentation to justify or support the valuation  methodology used. Furthermore, prepayment rates and loss rates were estimated using historical  data related to activity occurring years prior without adjusting for changing market conditions  which resulted in an overvaluation of residual interest.  While the examiner did not consider the issues in the ALL calculation to be material, this  issue merits attention because the company had been very aggressive in closing loans, many  of which were risky stated income and assets loans to subprime borrowers. New Century  management was aware that their ALL was flawed, although they believed that they were  over-reserved and not under-reserved. As with their other accounting estimates, the company  failed to provide adequate documentation to support assumptions and knowingly relied on poor  predictors, stale data, and defective models. 5. Why did New Century fail? New Century grew rapidly through the late 1990s and early 2000s, however its business  model was not sustainable for the long term. The company relied heavily on subprime borrowers  and offered them a range of risky loan options. Those subprime loans were pooled together and  securitized in effort to reduce the riskiness of the loan pools. However, as high risk borrowers  found themselves unable to make payments on their loans, a cooling real estate market and  increase in interest rates left subprime mortgagors without little options to get out their loans  Aside from those challenges which were shared by all competitors in the industry at the  time, New Century also had several internal weaknesses. The company was strongly focused  on sales and loan production, but failed to adequately monitor and control loan quality. Internal  controls were poor and the audit committee did not sufficiently perform its duties to oversee  the internal audit department and addres s operational risks. Internal auditors identified several  issues regarding loans quality, closings, and servicing, however internal controls over financial  reporting were overlooked. Adding to the company’s gross lack of controls, was the absence  of a stated company accounting policy. The examiner pointed out that merely having a policy  in place to address the accounting methodology and estimates would have greatly affected the  company’s ability to apply appropriate accounting treatment consistent US GAAP.

Helicopter Emergency Medical Service

Helicopter Emergency Medical Service Air medical transport has only been used for the past 70 years. The first true air ambulance flight was during the Great War. A Serbian officer was transported from the battlefield to the hospital by plane. Air ambulance was being tested by different military organizations during the First World War. Schaefer Air services was the first United States air ambulance service, created in 1947. The Korean War was the big turning point for EMS helicopters. In 1950, the military was given authorization to use helicopters for medical purposes.These helicopters were used to evacuate injured patients from the battlefield during combat. The small helicopters were equipped with basket stretchers that were attached to the landing gear. The patients were transported outside of the aircraft, which did not allow for medical during transport. From January 1951 to January 1953 more than 17,000 patients were removed from the battlefield and transported to the hospita l by helicopter. The use of medical helicopter transport significantly decreased the causality/death rate among the people in combat.World War II death/causality rate was 4. 5 deaths per 100 casualties, whereas, the Korean War death/casualty rate was 2. 5 deaths per 100 casualties. The Vietnam War introduced to idea of patients receiving medical care during air transport. The Bell UH-1 also known as the Huey was the frost helicopter that was large enough to carry the patient and medical staff inside the aircraft. The state of Maryland started the nation’s first combined emergency service helicopter program, in 1969. This program was put into place by the Maryland State Police and the University of Maryland.The program joined together the state police, rescue and HEMS (helicopter emergency medical service). In 1972, St. Anthony Central Hospital in Denver Colorado was the first hospital to have civilian hospital-based helicopter transport. This hospital-based helicopter transpo rt system is still in use today and is now intergrated with Denver EMS. The attributes of helicopter transport are speed, accessibility, specialized personnel and technology. Modern medical helicopters are capable of sustain speeds in excess of 150mph. This allows for patients to be transported to a specialized care center much faster than ground transport.Using a helicopter allows for emergency medical personnel to access patients in places ground crews cannot go. A helicopter can take off and land in a vertical motion. Emergency medical helicopters are staffed with highly trained and skilled staff. EMS helicopters are equipped with highly sophisticated medical technology and can reach people across a wide geographical area. When considering the use of the EMS helicopter you should take all these attributes into consideration. If these attributes are not important, then the use of an expensive EMS helicopter should not be used.Air medical transport can pose its own stressors to pat ients, medical staff and medical equipment. These stressors are more predominant in fixed-wing operations rather than helicopter transport. Hypoxemia is the biggest threat to people who fly. However helicopters no dot exceed 1000 feet above sea level. Patients being transported by helicopter are at no significant risk of hypoxemia secondary to decreased ambient pressure. Acceleration of the aircraft is another factor that can stress the patient. Helicopter acceleration force is not that much different than that of ground transport.Acceleration is more significant in fixed-wing aircraft. Noise is a major issue when it comes to helicopter transport. The noise inside the helicopter causes problems for the medical staff. The noise may hinder the medical staff from hearing lung sounds. The staff must use headphones and an intercom system to communicate. Vibration of the aircraft is another problem for the patient and staff. The vibrations can cause fatigue and discomfort to the patient. Vibration can also cause monitoring errors and equipment malfunction. Air medical transport has a few cons but when life is on the line these issues seem minor.Each helicopter has its own transport team. The transport team may consist of a pilot, registered nurse or paramedic, and can include EMT’s and EMT-I’s. Some flight crews include a physician. Physicians on fight crews have posed a lot of controversy as to whether a physician as a crew member improves the outcome of the patient. Each crew member must undergo many education courses as well as hands on training before being employed by HEMS. Safety is the most important aspect to HEMS. Emergency medical helicopters have an alarming history of crashes.The National Transportation Safety Board conducted a study to determine the major causes of helicopter crashes. Important areas of flight risk are the pilots, the mechanics of the aircraft, crew training, maintenance, weather conditions, time of day, and landing sites. The study showed that poor weather conditions posed the greatest risk for helicopter crashes. Since, the study many improvements have been made to improve the crash rate. It has been said that the sole decision is set on the pilot as to whether it is safe enough to take the flight or not.The pilot must consider the weather conditions, aircraft maintainence, and crew readiness. Medical personnel cannot make the decision to take the call. Medical personnel should not tell the pilot the nature of the call, because this may deter the pilot’s judgment. Currently the Federal Aviation Administration is looking to make changes in the safety procedures of HEMS. Air medical transport is generally used in for two reasons, rescue and inter-hospital transfer. Helicopter transport is very expensive and is potentially dangerous.Rescue helicopters are dispatched by emergency personnel at the scene. The helicopter reports to the scene of the accident or illness. When should a EMS helicopter be dispatched? EMS helicopter should only be called out when speed, accessibility, specialized equipment and personnel are all needed to save life or limb. Inter-hospital air medical transport is generally used to transfer critically ill patients to another hospital that suites the needs of the patient. There are two types of landing sites for EMS helicopters. One type is the controlled site. The controlled site located at hospitals.These landing sites are constructed to safely accomindate the aircraft. The second type of landing site is the uncontrolled landing site. The uncontrolled landing site is landing at the scene of an accident. The landing site is selected by the ground EMS. The pilot looks at the site and determines if it is safe to land or not. Ground EMS are trained on how to chose, and mark a landing site. Ground EMS personnel are also trained on how to behave around the aircraft. When a patient is going to be transported by air the ground EMS must prepare the patient f or transport.The EMS ground crew should have the patient stabilized as much as possible before transport. Another way ground EMS can prepare the patient is to intubate a patient that has a high potential for loss of airway. Good communication is the biggest factor in a successful transport. Ground EMS typically has radio communication with the helicopter. The communication between the two should be maintained until after the helicopter takes off. Maintaining good communication allows the flight crew to inform ground EMS of any major, unexpected patient complications or malfunctions of the aircraft.EMS helicopters must have well trained, diverse flight crews. These crew members must be able to perform their duties on the scene of an accident and while in flight. The crew members are trained to handle many different types of patients such as drowning, burns, spinal cord injuries, heart attacks, pediatric and neonatal patients. The flight nurse is responsible for the patient assessment , and interventions before loading the patient on the aircraft. The flight nurse must know how to use all the equipment and know all the safety guidelines pertaining to the aircraft.There are many different requirements to becoming a flight paramedic. A person who wants to become a flight paramedic must be able to work in chaotic situations. Becoming a flight paramedic involves a lot of hard work and dedication. The person who wants to become a paramedic must have at least one year EMT experience and many different certifications such as: CPR, Basic Life Support (BLS), Basic Pediatric Life Support (BPLS), Basic Trauma Life Support (BTLS), Neo Natal Life Support (NALS), Advanced Cardiac Life Support (ACLS), and Pediatric Advanced Life Support (PALS).In order to become a flight paramedic this person would have to have at least 5 years critical care experience in a high volume progressive EMS system. Becoming a flight paramedic is no easy task.References Formm, Jr. Robert E. â€Å"Air medical transport†. Journal of Family Practice. March 1993. http://www. findarticals. com/p/articles. html . 1 Oct. 2010. Kreisher, Otto. â€Å"The Rise of the Helicopter During the Korean War†. Aviation History Magazine. History. net Jan 2007. http://www. historynet. com/the-rise-of-the -helicopter-during-the-korean-war. htm. 1 Oct. 010 Federal Aviation Administration. â€Å"Helicopter Emergency Medical Service Safety. †8 June 2010. http://www. faa. gov/news/fact_sheets/news_story. cfm? newsID+6763. 1 Oct. 2010. Lenworth M. Jacobs, MD, MPH, FACS, and Bennet, Barbra, RN, MPH. â€Å"The Critical Care Helicopter System in Trauma. † Hartford Conneticut.. http://www. ncbi. nlm. nih. gov/pmc/articles/PMC/articles. 1 Oct. 2010 Gentile. Rosanne. â€Å"How to Become a Flight Paramedic: Required Qualifications and Education. † Associated Content. 18 August 2008. http://associatedcontent. com. 1 Oct. 2010

Similarities In Cognitive Development Education Essay

Cognitive development is defined as the countries of neuroscience and psychological science surveies, concentrating on stripling development with particular concentrating on information processing, linguistic communication acquisition, conceptual resources, perceptual accomplishment, and encephalon development. Jean Piaget and Lev Semyonovich Vygotsky were two innovators in the field of cognitive development. With this essay I will compare and contrast each theoretician ‘s positions on the nature or development of intelligence. I shall besides compare their positions on the phases of development from birth through adolescence. And eventually I will integrate possible schoolroom applications of each theoretician ‘s positions. Piaget believed that all kids are born with a inclination to interact with and do sense of their environment and that they need small instructor intercession. He referred to the basic ways of forming and treating information as cognitive constructions. He defined the mental forms that guide behavior as strategies, and he theorized that we use strategies to happen out approximately and interact with the universe around us. Piaget ‘s theory consisted of stairss in the development of new strategies of cognitive development referred to as version of seting strategies in response to a new object being introduced in our environment. The first measure in version if called assimilation, or seeking to understand the new object or event in our environment from known strategy, and if the new object does non suit into an bing strategy, the person will travel into adjustment where they modify an bing strategy to suit the new state of affairs. Finally the individual will make an apprehension of the new object, this procedure of reconstructing a balance between current strategies and the integrating of the new strategies is known as equilibration. Piaget theory of rational development is a constructivism position, where persons build systems of understanding through their experiences and interaction with in their environment, proposing that development came before acquisition, that specific cognitive constructions need to be developed before certain types of acquisition can take topographic point. Like Piaget, Lev Vygotsky believed that cognitive development takes topographic point in stairss that are the same for all persons. Vygotsky theorized the first measure in rational development is larning that action and sounds have intending. Second, that measure in cognitive development was practising the new action or sound. And eventually, utilizing the actions and sounds to believe and work out jobs without the aid of others, referred to by Vygotsky as self-regulation.Differences in Cognitive DevelopmentWhile Piaget believed that rational development was extremely personal, and that persons learned from experiences instead than the instruction of constructs and idea procedures, Vygotsky believed that larning development was a societal procedure straight linked to the instruction of information, and that larning proceeded development. Vygotsky theorized that linguistic communication was the key to cognitive development, and acquisition was influenced by the civilization of the per son. He believed that a kid foremost incorporated the address on others into their personal cognition and patterns it, known as private address, and subsequently they used this â€Å" private address † in attempts to work out undertakings. Vygotsky redefined this theory into what we now know as The Zone of Proximal Development. ( ZDP ) defines rational development as the ability to utilize thought to command our ain actions, but first we must get the hang cultural communicating systems, and so utilize these to systems to modulate our idea processes. Children larning with in the ( ZPD ) work on undertakings that they could non finish entirely, but were able to complete with the aid of and competent teacher. These docile minutes demonstrate Vygotsky theory that larning proceeded development, and that concerted acquisition promotes advance larning. His theory defined linguistic communication as a manner to go through on cultural values and that learning linguistic communication was the medium needed to develop cognitive idea procedures.Similarities of the Stages of DevelopmentBoth Piaget and Vygotsky were stage theoretician, intending they both believe that development takes topographic point in discernible phases. Piaget ‘s theory was that development took topographic point in four phases. -The first phase for Piaget ‘s theory was the sensorimotor phase ( from birth – age 2 ) where the kid explores the universe utilizing their 5 senses and motor accomplishments. Children are born with what is described as automatic motor accomplishments, suction, appreciation, ECT. During early development, the kid uses these accomplishments to pull strings the universe and develops strategies from these experiences in a patterned advance toward purposive behaviour approaching the terminal of this phase of development. -Piaget ‘s 2nd phase is Preoperational phase ( 2yrs-7yrs ) He believed that kids in this phase of development would n't hold mastered the ability of more complex mental operations ; kids do non hold the ability to ground through their actions. They are considered egoistic, and presume others agree with their points of position. During this phase kids lack preservation accomplishments ; they do non understand that the sum of something remains the same when the visual aspect has been rearranged. And they have non developed reversible thought or taking a job back to its get downing point. -Developmental phase three is the Concrete Operational Stage ( 7-11 ) In this phase the kid is get downing to accomplish comprehension of abstract constructs. The kid is get downing to understand preservation, position and contrary thought. The kid is capable of systematic ordination and able to group objects consequently. The kid is get downing to multitask in their idea procedures. -And Finally, The Formal Operational phase Age ( 11 to early-adult ) By this phase the individual has accomplished abstract think procedures. They have developed conjectural and deductive logical thinking. They have the ability to conceive of state of affairss and ground best solution rules. They are now capable of meta-cognition or able to believe about thought. Vygotsky ‘s phase theory of development was known as Scaffolding. In Scaffolding, First a wise man starts with supplying the kid with a high degree of support, such as one-on-one direction, leting the kid clip to develop an apprehension of the constructs being presented. Next the wise man starts to scale back the support leting the kid to take on more of the duty of the undertaking. And eventually, when the kid understands the aim of the undertaking the wise man stairss aside leting the kid to execute the undertaking on their ain, showing the comprehension of the cognition set gained.Differences in Stages of DevelopmentPiaget ‘s theory of the phases of development, focal point on development is necessary before larning can take topographic point, and that interaction with one ‘s environment is more of import to development than mentored direction. This position is really age oriented and ridged in its lineation and expatiations of kid development. Where Vygotsky vie ws acquisition as the processor to development. That linguistic communication, civilization and mentoring are all of import facets of the acquisition procedure that will assist the single develop successfully.Similarities in Classroom ApplicationPiaget ‘s and Vygotsky theories have similar applications for the schoolroom scene ; first Piaget wants the teacher must concentrate on the procedure of kid believing seeking to understand how the kid can up with the reply, and non merely the merchandise or solution to the job, deemphasize patterns aimed at doing kids make grownup like determinations, and have the teacher acknowledge the differences in single developmental advancement. Vygotsky ‘s theory in a similar manner, topographic points accent on the kid ‘s thought procedure, with the teacher understanding the kids ‘s single developmental advancement. As a instructor I can utilize these theories to develop category room techniques that focus on the pupils as pe rsons, and I ‘ll seek to understand their degree of development so that I do non coerce the pupil to run into criterions that are non sensible given their province of apprehension and cognitive development.Differences In schoolroom ApplicationPiaget ‘s theory wants the teacher to promote the pupil ‘s into self-initiation and active acquisition activities which take the accent away structured cognition and encourages the pupil to research and construct on current degrees on cognitive cognition. This differs from Vygotsky theory, which advises the instructor to supply planned activities, and promote pupils to take part in planned group activities, which encourage them to larn in construction environments which encourage high degrees of mentored direction. With an option of the two theories, I think I ‘ll lodge to a more Vygotsky signifier of lesson planning. I believe that pupils can make good with manus on actives, yet I believe that if the Instructor does non supply the pupil with construction the pupils do non develop at a rate that allow them to command themselves in a schoolroom scene, and that construction gives the pupil counsel and sets outlooks for the pupils, that give the pupils ends to endeavor for.

Financial management Essay Example | Topics and Well Written Essays - 250 words - 1

Financial management - Essay Example The Return on Equity, ROE, measures how much profit a company earned in comparison to the money shareholders have invested. Generally, the higher it is the more promising a company is. Potential investors rely on ROE when deciding whether or not to invest their money in a company. Furthermore, financial institutions use the ROE to assess capability of a company meeting its loan repayment obligations (Bull, p.29). Net profit margin is the ratio of net profits to net sales of a company.   This ratio reflects companys efficiency especially within its industry.   Investors are attracted to stocks of companies with high net profit margin (Moyer, James and William, p.70) It is the ratio of company market share price to Earnings per share and is mostly used as a valuation of investments indicator. P/E reflects the premium paid for a share and thus growth investors look for higher P/E ratios in contrast to value investors. It reflects future earnings growth of a company and consequently implying it has no debt risk to banks. . It is important for investors and financial institutions to note that financial ratios are subject to weakness in accounting methods. In addition, some ratios on their own are meaningless and thus need to be combined with others to draw a conclusive financial decision. Thus, in my opinion financial ratios should be used as indicators and not as complete evidence of company financial position (Beyer,

3d character modeling Research Proposal Example | Topics and Well Written Essays - 4000 words

3d character modeling - Research Proposal Example These animated fictional characters impress a considerable size of audience and they want more! Some of the recent movies which are known for their attractive animation are Shrek (Part 1 to 3), Happy Feet, Lion King, and Star Wars, Madagascar: Escape 2 Africa - and the list goes on and on. People enjoy watching animation but what they might not know is that a lot of work is involved to create that animation. This research paper is concerned with 3D Modeling, its definition, features, and the industry in the past and at present. The aim of the research is to use 3D modeling to create fictional characters which can later be taken and usable for different purposes, and to gain knowledge of creating high quality 3D characters. The paper also speaks about the analysis of the production stages, character development, the methodology used and the research tools. 3D modeling refers to the creation of three-dimensional objects that are defined mathematically and geometrically (i.e. a circle extruded to a certain value to create a cylinder defined by its location, radius and length). 3D modeling can be aided by the use of scan data. (n.d Common 3D Scanning Industry Terms) The classic hand-animated Disney film ‘Snow White’ was released in the year 1937. This year was called the beginning of the ‘golden age’ for animation. Since then Disney has released a lot of hand- animated films that are enjoyed by people of all ages, right from small children to adults. However, today, with the advancement of 3D technology, everything is done with the computer. All you need to have is an eye for art and creativity. The computer takes care of the rest! (The 3D Debate, n.d) The multimedia industry has seen tremendous growth in the past few years. Today, the 3D technology is used in a lot of areas like education, entertainment, and so on. Lessons are taught in schools and colleges using 3D animated

Prudential Insurence Case Assignment Example | Topics and Well Written Essays - 1500 words

Prudential Insurence Case - Assignment Example The company’s tangible resources are financial, human and physical resources. It had in its possession several physical resources that she managed; they include equipment and buildings. The strong financial position of the company ensured that it had very stable financial resources for conducting its duties or operations without substantial problems in terms of shortages of money. This considerably put it in a position of avoiding unnecessary debt financing. Nevertheless, the company also ensured that it maintained a workforce that is highly motivated; which has been a major driving force in ensuring that it achieves its intended goals of service delivery to its clients. Furthermore, the company invested heavily in the development and training of its employees as this is a critical factor in making sure the employees that are fully involved or fully engaged in the service provision deliver work or services of high quality, and those that deal with matters marketing or promotio n make sure that the potential clients are made aware.On the other hand, the intangible resources of the company included, goodwill, intellectual and technical (Hopkin, 2012). The company had for a very long time enjoyed the technical resources that greatly facilitated its goals. Events identified by the management The most critical events that were identified by the management were fraudulent practices on the side of the sales agents. This was reported by the internal auditors of the company in the year 1982. A failure by the management of the company to ensure that consumer protection regulations and laws are enforced was also detailed during the early 1990s by the internal audits of the regional offices and individual divisions. At first, we can say that the management did not take the events seriously, which means that they considered them as opportunities to continue their fraudulent practices until when matters got out of hand as the reputation of the company started going dow n significantly, when they were again seen as risks that called for drastic actions or solutions. Management’s primary risk response The management cannot be commended wholly for identifying the risks that were facing the company as they were revealed but no drastic measures were taken, instead they were viewed as opportunities; this can be said so as it failed to enforced the consumer protection laws and regularities, meaning that there was no goodwill to seal the loopholes. The management did not react immediately when it was realized that there were serious fraudulent activities on the side of the agents, which was turning out to be the biggest undoing or problem of the company. When a report was released by the internal auditors to the board of directors of the company, they continually insisted that the management was aware of the problems and was taking the necessary measures in ensuring that they were solved amicably and completely (Hopkin, 2012). When matters got wors e, the board of directors found it necessary to ensure that there is a change of guard, whereby a new manager in the name of Ryan was brought in to try his part even though he was largely untested. However, when Ryan came in, he deemed it necessary to overhaul some of the company’s structures by first changing the business approach of the company

Systems management Essay Example | Topics and Well Written Essays - 2000 words

Systems management - Essay Example It shows how information technology can help educational institutions develop strategies to survive and grow in this modern world. Second section of this report covers specific discussion on the role of IT in the education sector. It offers suggestions and recommendations to improve the education and training sector. In this scenario, it suggests how an information system (web based platform) can help education institutions offer facilities and services to the students and teaching staff. Education and training is one of the most important concerns of today’s world. After the emergence of web, this area has comprehensively evolved and attained a greater performance. In addition, by making use of new and advanced learning tools and web based information systems institutions are presently gaining a lot of benefits. This section will outline some important aspects of information requirements and management decision-making at different levels within the education and training industry. According to Psarras (2006), the society is going towards the new era where the future fundamentally will be determined through peoples capability to intelligently utilize information, a valuable global resource that is the personification of human intellectual technology and capital. The new information-based business and economy offers a great deal worth on the distribution of information and knowledge, and its creation. In this new economy, companies and individuals are required to pay attention on enhancing and maintaining their information capital in order to remain competitive, since their capability to adapt learn and change became a core competency for survival. It is apparent that in this new information-based financial system need for training and education will increase. In case of effective establishment of economic system, new economy offers the transformation in companies