Risk Management Overview Essay Example | Topics and Well Written Essays - 750 words

Risk Management Overview - Essay Example A business may not be able to run without all these basic activities and it is also likely to collapse. Business risks are usually categorized into two groups; systematic and unsystematic business risks. Systematic risk is where the economy generally experiences a downfall due to natural calamities floods and drought, political instability, recessions, inflation or even fluctuation in currencies. Any business operating under the same economy is bound to fail or make more losses than profits (Akhter, 2010). Unsystematic risk is where a specific section of the economy or industry fails unlike systematic where it’s the overall market (Sensarma and Jayadev, 2009). The common way of counter attacking this is to employ diversification. Business risks are further categorized into strategic, compliance, financial and operational. Strategic is where there is new competition in the market, compliance is where a certain business is responding to new terms and regulations that have been n ewly put in place to run businesses. Additionally financial business risk is where for instance several customers are unable to pay back to the business and operational business risk is when for example there is burglary to the business (Akhter, 2010). The banking as an industry has risks associated with it. One of them is aggressive and almost philanthropic lending of loans to clients and selling the loans to other financial institutions and hoping to run entirely on the interest generated from it, usually with an aim of maximizing profit (Akhter, 2010). This becomes a risk when the economy collapses, experiences inflation or recession because with that, comes an automatic delay in loan servicing and sometimes the money given out looses its value with time because of currency fluctuation. Most banks are involved in lending. This involves a bank client giving a security pledge to a bank that they are able to pay back or service their loans fully. It is usually called collateral. It can be land, car or a house (Sensarma and Jayadev, 2009). In order to maximize their profit and returns, banks have increased their interest rates. This poses such a risk to the banking system because with increased interest rates comes with an exponential reduction in lending activities. This is because not so many clients are wiling or able to pay for a higher than normal interest rates, so they don’t take loans all the same. This creates a financial confusion which the bank has to solve lest it collapses completely (Devine, 2006). To solve this, banks have to lower their lending standards and attracting more clients by using new in the market methods. Liquidity risk is a type of risk that results from the unavailability of a proper market for an investment that cannot be sold fast enough in order to counter attack a foreseen loss (Akhter, 2010). Banks have severally taken houses or antiques as collateral from clients. When the clients are not able to service these loans on time the banks decide to sell these collateral. Antique is one of the hardest items to sell in the markets because not so many people know their value and there is never ready market for them (Breeden and Whisker, 2010). Many banks suffer loss before recovery before selling such products and may never sell it completely leading a major loss. Liquidity risk therefore leads to a situation where the banking institution is unable to meet it objectives or profit

Topic Essay Example | Topics and Well Written Essays - 1000 words

Topic - Essay Example The paradigm can be categorized into two functional parts: information retrieval and information dissemination or exposure. CCN directly routes and delivers pieces of content at the packet level of the network, allowing automatic and application-neutral caching in memory wherever situated in the network (Karl, and Andreas 331). This yields to efficient and effective delivery of content when required. Given that the architecture allows caching effects as an automatic consequence of packet delivery, memory can be utilized without building costly application-level caching services. Why do we need content-centric networking (CCN)? CCN’s security model centers on explicitly securing the content itself rather than endpoints, whereby packets travelling across the network content can be safeguarded against from alteration, damage, or snooping from unauthorized parties. Name data networking or content-centric networking represents an alternative approach to the architecture of computer networks. CCN draws from the principle that a communication network ought to allow a user to focus on the data that one needs instead of having to reference an explicit, physical location where the data is to be retrieved (Wang, Chen, Zhou, and Qin 93). The modern internet architecture centers on a host-based conversation model generated to enable geographically distributed users to utilize a number of significant, immobile computers. The content-centric networking pursues to adapt the network architecture to match the present network usage patterns. Content-centric networking presents a broad range of benefits such as content caching to minimize congestion and enhance delivery speed. CCN also allows simpler configuration of network devices, besides building security into the network at the data level; nevertheless, the change of communication paradigm may present challenges for network activities such as real-time multimedia applications (Karl, and Andreas 332). Recent research ha s demonstrated that such applications may be feasible. Moreover, building content routers that back content-centric networking at high speed remains an open problem to crack. How it works Application-layer designs forms the basis of content-centric interface. This presents benefits such as easier deployment, improved flexible delivery, and effortless backwards compatibility. The present internet establishment features a tree of physical equipment to link streams of packets from any leaf to another. The present system can be regarded as efficient for communication, but not for distribution. The overall proposal of content-specific networking appreciates that a significant amount of information produced once, and then repeated numerous times. Hence, it is sensible to distribute the copying of any correlated activities into the networks’ tree of equipment. In most of the instances, significant storage exist, and could be utilized more efficiently in the event that it could recog nize certain content and only remain with one copy of it. The structure of the network equipment (tree shape) scales content delivery to match the size of the audience and minimize up-stream equipment to the minimum required to generate the content. CCN utilizes a practical data storage cache at every level of the network, which in turn, dramatically minimizes the transmission traffic,