Risk compensation

information amongst themselves more frequently, and they are more aggressive with the enforcement of the regulations and also adamant about their expectation of business conduct accountability all over the world. Managing the bribery and corruption risk is mainly about trust as well as the corporate behavior (Wu, 2005). Corruption and…

Article Write-Ups De Mesa Graziano (2005) research titled “Revenue Recognition: A Perennial Problem” about the topic of revenue recognition being the regulators and standard-setter’s, as well as financial statement users and preparers major priority (p.28). De Mesa Graziano mentioned Colleen Cunningham, FEI president and CEO identification of revenue recognition being the 2005 third of top 10 financial reporting issues, Financial Accounting Standards Advisory Council (FASAC, 2004) member’s…

QUESTION 1 Regulatory Framework of the Financial Planning Industry 1) “If a financial adviser is to give appropriate advice, they require a good knowledge of Corporate Law.” Discuss. Answer: There are a couple of aspects that require a financial planner to know about corporate law in detail. Firstly, as financial planners are running a business they have a responsibility to follow and comply with the rules and regulation under Corporations act to ensure that the firms are fulfilling its duties…

AIGFP decided to write credit default swaps (CDS) which paid to the buyer if there happened to be a triggered credit risk event. The problem is that CDS were not considered insurance so they could not be regulated by the states. Additionally, few other major carriers were involved in this space which led to the government bailout of AIG in late 2008. This is an example of how systemic risk is caused by insurers getting involved in coverages outside the realm of…

The Dodd-Frank Act was a piece of legislature passed by the Obama administration in 2010. This act is formally known as the Dodd-Frank Act Wall Street Reform and Consumer Protection Act. This piece of legislature was a response to the financial crisis of 2008. The Dodd-Frank Act at the time of passing consisted of 2,307 pages, 16 titles and 540 sections of law. This piece of legislation was named after Senator Christopher J. Dodd and Representative Barney Frank who had endorsed this act. This…

today’s world, every job pursued comes with a certain level of risk. Whether it be a financial risk or risk of a physical injury, one must be prepared to face anything. Electricians are at an extremely high risk of causing physical harm to themselves while on the job. As the number of electricians who enter the work force continues to rise each year, the risk of on-the-job injuries doubles. Some of the most common, yet dangerous risks electricians face every day include: fatal electric shock,…

issues Corruption could be defined as the dishonest and unethical behavior in order to access personal profit or exclusive power from political authorities instead of conducting corresponding laws, which could be an important indicator of political risk. In this case, corruption perception index will be used to estimate the scale of corruption. According to the Transparency International (2016), Sweden scores 89 in corruption perception index, which is the third highest within the 168 countries…

diversification. At the same time, it may increase the cost of additional promotional products, and the import-export government for import and export tariff control and restrictions, as well as complex export licensing documents and uncertain financial risks (Brentwood, 2016). Export can promote sales volume, increase revenue and market development , and accelerate the diversification of company business . At the same time , it may increase the cost of additional promotional products , result…

liquidity risk since they cannot be easily converted to cash at a time of need. Liquidity risk may lower the value of certain assets or businesses due to the increased potential of capital loss. Therefore, high liquidity risk could cause TCL suffer huge lose. Operational risk. Operational risk summarizes the risks a company undertakes when it attempts to operate within a given field or industry. Operational risk is the risk not inherent in financial, systematic or market-wide risk. It is the…

Technology is increasingly growing in every Direction, Example includes Medicine, Transportation, Education, Defense, etc. In First Article “Self-Driving Technology and Autonomous Vehicles: A whole new world for production liability Discussion” Author Roy Alan Cohen Analyzes the how Production liability will work, and how the People’s claim will increase the issues regarding it. Transportation as we know it would be impossible without the quantum leaps in technology that have taken place over…