Risk Management Research Paper Example | Topics and Well Written Essays - 2500 words

Risk Management - Research Paper Example Traditionally, the financial function was seen in respect to financial reporting and control. The modern theory of risk management reflects on the financial function in respect of financial policy and financial decision making. This comprises an organizations operational, business and economic risks. There are various risks that are unacceptable which includes insurance risks, capital market risks, a market for replacing and equalizing such risks has been developed (Adams, FÃ ¼ss & Gropp, 2014). The paper identifies the issues in the risk management and its significant impact to the financial decisions of the manager of an organization. The paper also identifies the relevance and approaches to the risk management practices. Additionally, the impact of the new risk management regulations is critically evaluated. There are mainly two types of risk in finance namely, systematic and unsystematic risks. Systematic risks are the one which are uncontrollable by the organization and unsystematic risks are the ones which are controllable by the organization. Interest risks, market risk and inflationary risks come under systematic risks and liquidity risks, credit risks and operational risks fall under unsystematic risks (Edgar financial market analysis, 2015). Various risks faced by managers of the organizations are descried under in details. Market Risk- This type of risk deals with unfavorable price or instability that affects the assets contained in an organizations portfolio (Edgar financial market analysis, 2015). It can be explained as the doubt of a financial institution’s earnings which arises from changes in the market conditions like the price of an asset, interest rates and market liquidity. Credit risk- This kind of risk takes place when one falls short to realize their commitments towards their counter parties. Sovereign risk and settlement risks are types of credit risk (Federal Reserve financial market analysis, 2014). Sovereign risk

Phoenix air pollution Essay Example | Topics and Well Written Essays - 1500 words

Phoenix air pollution - Essay Example I am very convinced that we are all after the same goal, which is to have a pollution free air. We now have to find a common ground to thread. I believe I have a proposal that will bring everyone on board. To solve this problem, we first have to accept that a problem does indeed exist. The most noticeable constant in the skies of Phoenix is the blanket of smog hovering up there. This smog extends to the wider regions of Maricopa County. The sky that is constantly heavy with cloudy dense smog that sometimes results in poor visibility. To put this into perspective, we have to look at statistics on the pollution levels. A survey on the quality of air in Phoenix done The American Lung Association found that the Air Quotient Index is at a staggering high at 57%(areavibes.com).The Air Quotient Index (AQI) refers to an average value that considers harmful pollutants in relation to its impact on the health of the people. This is way above the national index by 172.9 % ( arevibes.com). EPA us es this AQI when enforcing the Clean Air Act. EPA has classified these results into five major categories in relation to the pollutants. These are: nitrogen dioxide, sulfur dioxide, ground level ozone, particulate matter and carbon. With these as guidelines, EPA in conjunction with ALA has made great strides in relation to the air quality in Phoenix. Another parameter used in the determination of the quality of air is the pollution index. This is the sum of all harmful and hazardous pollutants shown in pounds. The pollution index of Phoenix Arizona is at 46.6%. The main pollutants here are arsenic, benzene, lead, mercury and carbon tetrachloride. These pollutants have long term health implications for the inhabitants of this area. Consequently, Phoenix and the regions of the greater Maricopa County lie in a valley. Winds blowing across this area are mostly too weak to blow away the pollutant. This creates a scenario where all polluted air produced is trapped within the valley and pu t back into circulation. The smoke from factories, vehicles and other emissions accumulate and deplete the ozone layer. The ozone layer shields us from the unsafe rays of the sun. When depleted, the protection reduces and this increases chances of developing cancer. The accumulation of these toxins leads to the formation of the dense cloud of smog, which is synonymous with Phoenix. Another thing, which worsens the pollution levels, is the type of weather experienced in the Arizona area. The hot desert climate of Arizona increases the rate at which the smog is formed leading to even more hazy skies (Gulbinas 4). Air pollutants are grouped into two categories: primary pollution brought about by carbon monoxide, etc. Its pollution is direct in nature. Secondary air pollution occurs when some particles react with other particles to cause pollution. A good example will be rain and sulfur which form sulfurous acid. (Gulbinas 1). In depth analysis shows that hydrocarbons are a major source of cancer especially lung cancer. Ground level ozone forms when nitrogen in the atmosphere reacts with rainwater. (Gulbinas 7) .As earlier stated