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Putting the ‘person’ in personnel Shalini Shukla 18 Oct 2012 With a history of more than 80 years in Singapore, OCBC is a bank centred on people. The Bank has come a long way from its first days of helping rice merchants continue to trade times of war. This is evident in its sterling performance in recent years. In May this year, Bloomberg Markets magazine announced OCBC as the world’s strongest bank. Also, one in two businesses currently operating in Singapore has an account with the Bank. The success of the bank is built on the back of sound business policies and active talent management and development.For instance, within the first three days of a company being incorporated, OCBC will contact them about opening a corporate account with the bank. â€Å"The Bank practises the same proactivity when it comes to managing and developing its people,† says Eric Ong, Head of Emerging Business, Global Enterprise Banking, OCBC Bank. Career framework OCBC takes tra ining and development seriously as human capital is the Bank’s key differentiator. Investment in this area helps to build the capabilities of employees to deliver superior performance. Learning is part of the Bank’s ongoing business strategy and helps to create a win-win situation for us and our staff,† says Ong. â€Å"By aligning employees’ learning objectives with business goals, we help employees succeed in building a career and not just a job with OCBC. † OCBC encourages its employees to take charge of their own careers through the Bank’s ‘Career Best’ programme, launched in 2002. This programme involves helping employees evaluate their strengths and career orientation, and finding the best fit between their talents and OCBC’s needs.The Bank also introduced the ‘OCBC Learning-3’ programme in 2007. A structured three-year development programme for employees, OCBC Learning-3 clearly delineates learning roadm aps for individual employees during their first three years of service with the Bank. â€Å"Underscoring our commitment to training, we have created the OCBC Learning Academy and also dedicated an entire floor at the OCBC Centre, called The Learning Space @ OCBC, for the sole purpose of learning and development,† says Ong.In addition to the typical classroom training, the Bank has also tapped on learning technologies like eLearning and virtual classrooms. Through the use of Web 2. 0 and video conferencing technology the training programmes are now able to reach out to employees in different geographies. Employees are given the first opportunity to learn of and apply for job-openings within the OCBC group through the Internal Job-Application Programme, in which after 18 to 24 months, an employee has the open to move into another role. We want to encourage employees to continually acquire new experiences, knowledge, skills and competencies, and allow individuals to fulfil their career aspirations at different stages of their careers,† Ong explains. This is especially so for Gen Y staff who constantly seek change and want progression – something to look forward to. They need to feel challenged and recognised for the work they do. If they are ‘stuck in a rut’, performance dips. â€Å"In banking, employees need foundation,† says Ong. â€Å"I was once a bank teller. I then moved on to typing bank drafts and the like. Leaders walk the talk too. â€Å"In my business review, one part is financial numbers and business initiatives, while a large part (50%-60%) is based on the human resources,† says Ong. Hi-po attention A mentor to even people who’ve left the business, Ong believes in developing his people’s potential to the fullest. â€Å"I meet with business heads and see if there are vacancies in which we can slot the high potential candidate in,† he says. â€Å"This makes sure these people are given opportunities within the bank before they start looking elsewhere for them. It’s a proactive measure of staff retention. Senior management constantly works to push high-potential talent out of their current roles or comfort zones. This exists at all levels, be it ground sales people to middle and senior management level staff. â€Å"We don’t want staff to be ‘too comfortable’ in their roles. They are not stretching their potential,† says Ong. â€Å"We assign them to other departments for three to six months. My sales folks, for instance, might be posted to risk management or operations. † While there is risk of losing talent to another department due to this job rotation, the advantages outweigh those risks. After coming back from their short job rotation stint, they come back with fresh insights and they can come up with new business ideas leading to increased productivity and business success,† says Ong. Ong cited an example of an em ployee who moved to the operations unit two years ago. When he came back to the Emerging Business department, he gave a new idea which was piloted and resulted in business growth of five times. Hi-potential staff are also given opportunities to travel and explore new markets. Young staff are accompanied by their senior leaders on these trips. ————————————————- There has to be a little risk-taking, be it with the business or with our people,† says Ong. â€Å"Being senior in management, we can give that gentle push, allowing our staff to soar. † ————————————————- You are required to : 1. Find out the strengths of OCBC Bank. Marks:- 2. 5 2. ——————————————â €”—- What do you learn from this case? Marks:-2. 5 ————————————————- Mail me back to abdullah. [email  protected] com By 4:00pm of 17. 04. 13 Write â€Å"Case study – HRM† on the subject line of your mail. All the best

How to Break Up with Your Boyfriend

How to cope with being dumped by your boyfriend â€Å"I pray your brakes go out running down a hill, I pray a flower pot falls from a window sill, and knocks you in the head like I'd like to.. † Pray for you-Jaron and the long road to love. When you have a boyfriend whose cheating on you, you need to take certain steps to ensure that you make him as miserable as he made you. You will need to show him that the break up didn't hurt you (even if it really did), delete his phone number from his contacts and delete him off of facebook, and flirt with other boys and have fun!To show him that you didn't care about the break up call him up some day and ask him to go to lunch or a movie, when he says yes make sure you have enough time to get yourself looking super good before your date. Show up a few minutes late so you can make an entrance and just go in and sit down, after a few minutes of awkward silence say ‘I'm so glad we broke up, I've been seeing this other guy and I think it's going to work out really well, my family loves him. Don't explain any more and get up and walk away. He will be sitting there wondering what the heck he just threw out the window, and you being so happy about it will really hit him where it hurts. When you delete his phone number and delete him from facebook he will no longer be able to ‘check up' on you, which will drive him insane. Go out and have fun with your girls and show him that you're having the time of your life, and he's really missing out on it.If he texts you just reply with a simple â€Å"hey, who is this? † and nothing more, he'll wonder why you deleted his number out of your phone and realize you really are done with him.. Which will really hurt his ego. Flirt alot! if you ever see him out or around school act really playful with all of the guys around you, even his friends, if you have enough courage to do so.If he sits a couple seats behind you in class make a plan with one of your friends to tal k about this new mysterious guy you've been seeing and really make him wonder who it could be, and who could be so much better than he was? â€Å"I pray your birthday comes and nobody calls, I pray you're flying high when your engine stalls, I pray all your dreams, never come true.. † Pray for you -Jaron and the long road to love. So when you get broken up with the next time, and it's really hurting you, try these three easy steps in making it look easy, in the process!

Communication Satellite Corporation Essay

The following judgment on the appropriate economic regulations of the Communications Satellite Corporation (Comsat) has been arrived at after considering the due deliberations presented before the Commissioners by the two parties; namely Comsat and FCC. Central to this judgment is the premise that â€Å"the return to the equity owner should be commensurate with returns on investments in other enterprises having corresponding risks.† Also, the fair rate of return should be actually that required (or expected) by a firm’s investors. The Commissioners are also of the view that the interests of the ratepayers should be safeguarded. The ratepayers should not be penalized for any change in circumstances (e.g. excess liquid cash due to change of technological needs) resulting in inefficiency at Comsat. Such risk should be borne by the Shareholders alone. The judgment covers the fair rate of return awarded to Comsat (commensurate to its risks), the rate base and the price structure to be followed by Comsat. At the onset, we concur with Comsat’s argument that their risk profile cannot be compared to that of AT&T due to the following: 1. Even though AT&T is in the same business of providing communication channels, yet the equipment used is vastly different i.e. satellites versus data cables. 2. AT&T is a well-established utility while Comsat is a new venture. Their risk profiles are not similar. 3. Considering the testimony of Dr. Myers, the beta found for AT&T and Comsat are different thus implying that the investors view the inherent risk of the companies differently. Next, we look into the various risk factors discussed before us in order to reasonably estimate the risk inherent in Comsat. Operating Risks 1. Technological Risk: The trial staff established low technological risk by considering in hindsight the fact that Comsat’s evolution was relatively trouble-free. In our opinion, this is unjustifiable as when the company was started there was no way of knowing this and the technological risks were immense. 2. Business Risk: There was no government guarantee for Comsat. Also, considering the fact that disclosing information in a prospectus in no way changes the risk associated with the business. 3. Demand Risk: The arguments put forward by the trial staff in this case are sound but do not present a case for comparison with AT&T. 4. Competitive Risk: We think that competitive risk is medium, thus deviating from both the trial staff and Comsat’s stand. This is because although high risk was created due to Comsat’s competitors being its customers, it was also mitigated to some extent by FCC’s support. 5. Regulatory Uncertainty: Again this uncertainty of prospective regulation is reduced by expected support from FCC. 6. Political/International Risk: We agree here with the trial staff’s response. The risk faced by Comsat is probably just a little greater than that faced by other international organizations operating in those countries during that time. From the above discussion, we conclude that the company faces more operational risk than that touted by the trial staff albeit it is not as high as Comsat claims. Financial Risk The trial staff wants to impute the implications of a 45% debt structure to calculate the cost of capital. This is incorrect since firstly, there were no assets that could be used as security till 1972 and secondly, this is a hypothetical situation of which there can be many. However, we are of the opinion that the debt should be imputed at a rate of 45% post-1972 as a miscalculation on part of the management should not result in unjustified price structure for the ratepayers. Rate Base The appropriate rate base should now be calculated based on the above decision to impute debt post-1972. Pre-1972, the rate base will be the entire capital of the company. Evaluation of Cost of Capital We disagree with the first two witnesses, namely Dr Brigham and Dr Carleton and their estimation of Comsat’s cost of capital. Dr Brigham’s method takes into account 602 industrial firms and 56 utilities. These two categories of companies are not comparable for the purposes of this analysis. Also, the Andersen study using four utilities and its results is not worth considering since these utilities had a different capital structure and consequently, a completely different risk profile from that of Comsat. Dr Carleton has arrived at a risk premium of 2-4% but has provided no reasonable justification or methodology followed for calculating this. Also, we have no indication whatsoever about the nature of this premium, whether it is the risk premium for Comsat or the utilities sector or the market or the country as a whole. We concur with Dr Myers’ methodology of using the CAPM for calculating the risk premium. This study further simplifies matters as the cost of equity and the cost of capital is the same for this firm pre-1972 and incorporate the cost of debt post-1972. Also that the beta in this case would be calculated on the basis of market data. Assuming the markets to be efficient  implies that the appropriate risks have been implicitly factored into the prices and the beta. Based upon these estimates we will state the cost of capital to be 14%, which is the mid point found for the various risk estimates over time, taking into account a beta range from 1.4 – 1.7 as recommended by Dr. Myers. Pricing Structure The commissioners are of the view that Comsat was injudicious in charging the maximum rates the markets could bear. Instead, Comsat should have charged rate of return that is sufficient for it to maintain: a) to cover cost of capital already committed to the enterprise over and above the operating expenses incurred; and b) to attract additional capital as needed in competitive money markets at reasonable costs. We instruct FCC and Comsat to calculate the appropriate revenues for Comsat in line with the preceding judgment. Comsat should be penalized 50% of the excess revenue, if any, and FCC should use this money to further infrastructure development in Communication systems.

Built facilities Essay Example | Topics and Well Written Essays - 2000 words

Built facilities - Essay Example The specificity of this new technology is bound to influence design, construction and maintenance of the building process. The following sections illustrate how information technology is dominating over this process and going to dominate in the coming years. Architectural Design Architecture is an art of modeling of the human environment, and designing of behavior of people from the same environment, through a functional organization of space and form of elements of objects and system via creative composition and color. Inspiration plays an important role in architectural art of modeling. An architectural design seeks for newer and amazing forms and shapes of the objects. Shape and form are part of architectural style. It is a set of core features and attributes of the specific time and place. It reveals specific detail of its functional, constructive, and the artistic form of a particular period of human civilization. The foundation of architectural design is the shape and form. Unt il the advent of digital technology architects could only use Euclidean geometrical figures to develop the shape and form of the facility. Digital technology helped architects go beyond the Euclidean geometry. Architectural design process uses the latest technical achievements as tools. It happened during the industrial revolution, and it is happening now. ... Standardization gave birth to mass customization, which is now getting replaced by mass production with non-standard complex designs based on non-Euclidean geometries. In architecture, digital age has brought a new design approach and it is called parametric design approach. This new approach is going to influence architectural design process for coming years. Only advent of digital technology made architects possible to implement parametric design method. Various programs used as tools for parametric design method are developed using the concept of disciplines like mathematics, topological geometry, and curvilinearity, morphogenetic, and biomorphic. The concept of parametric design approach is embedded in creating a model of geometric elements describing and controlling their relationship in such a way that any change in one element brings changes to all other elements. Parametric design method uses geometric model whose geometry is a function of a finite number of parameters. Param eters of the elements and their spatial relationships constitute the model. It helps architects to generate a variety of building shapes within a short term and exclude basic mistakes. The essence of parametric design constitutes in creating a mathematical model for structurally homogeneous products, and then with the help of a defined set of dimensional parameters, the structural configuration and spatial arrangement of elements of the system are changed through an algorithm. This new advances in design process are reshaping today’s architecture laying foundation of architectural design of coming years. The architect can incorporate the geometrical design data numerically with the environment and study

A Tale of Two Stories Essay Example | Topics and Well Written Essays - 500 words

A Tale of Two Stories - Essay Example What motivated me to speak up was that it wasnt really much difficulty to get the teachers to sign for themselves. It would be different if there was no way to contact them. Although it did take a while to visit each teacher, it was worth it in the end. I was satisfied with my response because I avoided a potentially dangerous situation and I resolved the problem all by myself. Since I was the one that objected to the forging of signatures, then it was only right that I went and got all the teachers to sign off on an important part of our project. What made is easy for me to speak out was that I had known most of my group members for some time and I was good friends with a couple of them. I was sure that they would react positively to my suggestion, so I did not fear for my standing within the group. A couple of summers ago I worked at a job where I was required to handle the phones during the lunch break while most of my fellow employees were out of the office. There was one time when my direct boss was with me in the office and we were talking about how my internship was going. Before he left, he told me that he wasnt supposed to be at work today and if anyone should call asking to speak with him then I should tell them that he was not here. A few minutes after he had left the office, the phone rang and I answered it; the person on the other end of the line wanted to speak to my boss. I hesitated because I was unsure of what to do. I eventually told the caller that my boss was not at work that day and I would take a message for

Produce a report elaborating on the key strategic and operational Case Study

Produce a report elaborating on the key strategic and operational issues faced by the operations manager(s) in SPICE VILLAGE RES - Case Study Example In addition, the problems of the case will be addressed and recommendations will be also provided. Finally the report will conclude highlighting the important findings of the study. Table of Contents Introduction 4 Customers 5 Markets Supplied 5 Market-Order Winners and Order Qualifiers 6 PART II 8 Manufacturing Process and Service Delivery 9 Infrastructure to manage the delivery System 9 Conclusion 10 Bibliography 11 Introduction Spice Village is a Pakistani restaurant which is located in Upper Tooting Road in London. The restaurant is considered as one of the most authentic Tandoori restaurants of UK. The restaurant was opened in the year 2004 and has its branches in Southall and Tooting (Spicevillageltd, n.d. (a)). Initially, the restaurant was operated from a small shop, but the rising popularity and demand of the customers has allowed the company to expand its branches in 2008. It is known for offering unique dining experiences to the consumers. Some of the noteworthy dishes of Spice Village are Kebabs, Nihari, Chops, Biriyanis, Karahi and few other dishes from fish. Apart from these dishes, the restaurant also sells chicken dishes, vegetable dishes, soft drinks and deserts, and some other special dishes. From the time of its inception, the company has witnessed tremendous successes. Based on high success rate, the company has also carried out expansions to the other parts of London. The particular area where the restaurant is situated comprises many other restaurants. Spice Villages has almost 25 competitors. Nevertheless, Spice Village is the largest among the existing players of the market in which it operates. With stylish and elegant setting and astonishing store ambience, the company has been able to attract many customers. It has a seating capacity of 220, which acts as a competitive advantage to the firm (Spicevillageltd, n.d. (b)). Spice Village has also achieved various other credentials to its name. For example, the restaurant has won Tiffin Cup award and was also declared as ‘the top nosh† restaurant by The Guardian (Khan, n.d.). Such achievements and good market reputation have helped the company gain substantial market share. The next half of the report will shed light on the strategic context of the company. PART I Customers Spice Village sells a wide range of products to the customers. The primary rationale behind adopting a differentiation strategy is to cater to a large customer base. The special dishes include Kebabs, Nihari, Chops, Biriyanis, Karahi and dishes made of fish. In addition, the restaurant also sells chicken dishes, vegetable dishes, soft drinks and deserts, and some other special customized menus. Thus, from the strategy it is clear that the company tries to cater to a diversified group of customer. Nonetheless, as the menu is basically Pakistani, the restaurant mainly targets Pakistani population and other Asians. The company does not prefer catering to the Chinese, Scandinavians and Afri can customers for some specified reasons. For example, the Chinese people are not targeted as the employees, and the owners of the restaurants do not understand the Chinese language. On the other hand, the restaurant owners think that Scandinavians eat extremely slow and can block the places of other potential customers. Finally, regarding the Africans, the restaurant owner perceives that Africans want the food to be served as soon as possible and cheap. The restaurant also does not sell any sort of alcoholic products, which restricts them to

Adidas Research Paper Example | Topics and Well Written Essays - 500 words

Adidas - Research Paper Example For instance in 2005, Adidas was the market leader in sports goods in Japan because of its strong brand image and diverse product launches in the region. Since the soccer world cup in Japan and South Korea, Adidas embarked on advertising campaigns with popular sports representatives and celebrities. The brand strengthens its image through different brand evaluation that focus on customer expectations (Berger, 2008). Adidas claim its employees are essential to the company’s success since achieving the goal of being a global leader in the sporting industry relies on the engagement and talents of its employees. As an employer, Adidas is liable to the health and safety of its employees; besides, revenue for the corporation in 2009 was about â‚ ¬10.38 billion compared to 2008 figure of â‚ ¬10.80 billion. The company targets leading positions in markets it competes and has 180 subsidiaries worldwide that are investment prioritised in accordance with the markets on the basis of best medium to long-term growth and profitable opportunities (Vicki, 2010). The Adidas group has been part of the sporting world by providing sportswear, apparel as well as accessories; thus, becoming a global leader in the sporting industry offering broad categories of products like bags, eyewear, watches and other assorted sporting and clothing goods.

A new product launch in a 1 higher income country and 1 lower or Essay

A new product launch in a 1 higher income country and 1 lower or middle income country-business - Essay Example An explanation of how each country was eliminated will be given in the report. Throughout the report many different sources have been used to collate the different types of data and external reading surrounding the different types of vehicles which are required for this report. Introduction 1.1 Product Description Montar Vehicles is a fleet of vehicles that will range from 2 door coupes to 4 door saloons, in terms of the vehicles itself it will be fitted with the latest technology to ensure both the driver and the passengers have a luxury traveling experience. Such technology for the driver would include rear and front camera, automatic aid reversing whilst the passenger are able to watch movies in surround sound whilst drinking their preferred beverage ‘ice cold’ from the drinks cooler provided. Executive options can be added for chauffeur driven styles like the hand stitched leather upholstery, wooden oak glazed interior, making it a direct competitor to the existing h igh end luxury car vehicles that are well established. The price range for these vehicles will be between ?100,000- ?350,000 depending on the car chosen, with the lower boundary competing with car brands Mercedes-Benz, BMW & Audi whilst the upper price boundaries will compete with the likes of Bentley, Maybach and Rolls Royce. 1.2 Target Group To appreciate the high-price, high-end range of Montar vehicles, the customer must have a certain sensibility and regard for finer things. The customer will typically belong to the affluent class of society and will have a taste for exclusive, expensive things. He will also understand that driving a certain vehicle bespeaks a lot about a person’s individuality, preferences and personality. The Montar 2 door coupe and the 4 door saloon is a vehicle that would be aimed at the high net worth individuals that have the purchasing power to enjoy such vehicle. The coupe is aimed at the younger members of the affluent class, aged between 18 and 35, who are looking for the classier driving experience. They have great-looking possessions, successful and happening lives and similar social circles to move in. On the other hand, the more prudent saloon is seen more as a chauffeur driven vehicle for the extremely wealthy, senior level professionals and businessmen. The classy exterior would appease their aesthetic sensibilities and the comfortable, first-class interior would allow the passengers to travel in comfort. The target audience comprises of individuals who already own chauffeur driven vehicles like the Rolls Royce Phantom. The positioning will be such that owning a Montar will display the individual’s financial standing and robustness. Along the same lines, industrialists, media moguls and celebrities would be another important target audience of the Montar due to the fact that many people would become aware of the vehicle through the publicity. Domestic and Global Market for Luxury Vehicles UK Market for Luxury Vehicles. With the onset of the global recession in 2007, almost every industry was faced with tighter cash flows and faltering sales figures. The auto industry saw very similar circumstances with key consumers having tighter finances and reluctance to put large amounts of money into buying luxury vehicles. This trend continued well through the next two years. There was a staggering 59% fall in sales from the previous year, which stressed the direness of the recession. Fig:

The E-Trade Baby Essay Example | Topics and Well Written Essays - 500 words

The E-Trade Baby - Essay Example In order to identify the rhetorical strengths and weaknesses of the E-Trade Baby commercials, their ethos, logos, and pathos should be examined. Ethos implies the personality and trustworthiness of the speaker associated with the argument. Ethos raises issues of ethics and confidence between the speaker and the audience. In terms of ethos, the E-Trade Baby ads are quite effective in drawing out the interest of the audience by using an ‘infantile’ personality that normally appeals to the emotion of audiences. In terms of integrity, the ads are also successful since the babies’ ‘voices’ are from trusted people in the finance and investment industry. The E-Trade Baby simply used the attractive and adorable personalities of the babies to convey its reliable messages about financing and investing. The ads successfully identified with their audiences and their argument. They also appeal to the sense of necessity of the audiences by building a whole new real m of investing, or also referred to as electronic trading. Logos denotes the application of numbers, statistics, reason, and logic. Quite frequently, logos appears concrete and material, far more tangible and ‘real’ compared to other rhetorical techniques that it does not appear an advertisement approach at all. In terms of logos, the E-Trade Baby ads are quite illogical since it is commonsensical knowledge that babies cannot talk in the way they are portrayed in the ads making the entire endeavor weak within the domain of logos. But in terms of the presentation of statistics and facts, the ads have been concise and straight to the point. Pathos appeals to the emotions of audiences. The E-Trade Baby ads try to appeal to the emotions of love, compassion, affection, sympathy, and happiness. They successfully used an emotional appeal by identifying with the sense of their audience. The ads did not abuse any ethical or emotional appeal since

Japan's ODA in China Research Paper Example | Topics and Well Written Essays - 1500 words

Japan's ODA in China - Research Paper Example It is strange; however, that Japan has not completely ended its ODA efforts in China despite the problems that it is facing. It seems that Japan has a more well thought plan about ODA to China, a plan that is not affected by the short run but concentrates on objectives that could work out well for Japan as the Asia region become more stable. My hypothesis is that Japan wants to provide ODA to China because it seeks to create an atmosphere where it can prosper economically and politically. It is true that there have been instances where there was a chance of the removal of the assistance for example after the Tiananmen Square incident and during the war. However it seems that Japan is moving beyond an economic-centred foreign policy programme. Rather my hypothesis is that Japan is trying to play a tit for tat game here. It seeks to give additional aid to China so that China is willing to abide the international laws and norms. This would lead to the creation of both a political and an economic environment that may be helpful in the development of trade and foreign direct investment and may also be lead to the institutionalization of democracy. Japan’s ODA in China is a topic which has attracted a lot of attention. A lot of scholars have searched about the issue out of the curiosity of Japan’s actions. For many, Japan’s actions are an attempt to contribute towards world peace. For others, however, the acceptance of the giving of trade is a part of the strategic policy of Japan that aims to paint a rosy picture of Japan in international relations. Many scholars have studied the trends in the periods of Japan-China assistance. Wu, for example, divides them into three time periods, the development time, the adjustment time and the conversion time (Wu, 2008). The development time was from the year 1979 to 1989 when Japan was

Film Lost in Translation Movie Review Example | Topics and Well Written Essays - 1000 words

Film Lost in Translation - Movie Review Example In fact, the movie clearly traffics in stereotypes, but it does depart from the Hollywood's tradition of Orientalism. However, in the narration film, there is not much complexity as According to several critics, Sofia Coppola’s Oscar-winning film Lost in Translation seems to depict the Japanese culture in an American way and there is essential distortion to several aspects of the modern Japanese culture all through the film. While the vast majority of critics give their thumbs up for this national hit, few critics of essential consideration voice interesting opinions to the contrary and criticize the film’s version of the Japanese culture. Whereas there is no question about the quality of the production, all the controversy concerning the film results from the way the Japanese culture is presented in the film. It is truly a very significant modern illustration of the concept of ‘Orientalism’ which Said held decades before. Thus, the two lead characters of t he movie are criticized as exemplifying the Americans abroad with a sense of superiority and shameless ignorance. There are some important critics of the movie who strongly argue that the movie is racist in some ways and many scenes in the film support such an argument. â€Å"Many of the jokes rely heavily on the stereotypes of Japanese, and seem to parade modern Japanese culture as something ridiculous†¦ Many scenes in the film do support this argument [i.e. the movie as racist]. For instance, Bob and Charlotte make fun of the inability of the Japanese people to distinguish R's and L's. If you consider the situation in reverse, you could perhaps see how offensive this might be to some Another scene at a Japanese restaurant, Bob takes advantage of the fact that the Japanese chef cannot understand English. He not only tells Charlotte to take one of her shoes off, but also yells condescendingly at the chef" (Suematsu). Therefore, one identifies, all through the film, several ins tances of the American way of viewing the Eastern culture, specifically the Japanese culture. Said's notion of 'Orientalism' helps one in understanding the American view of the Japanese culture and supports the important argument that the movie is racist in some ways. The ideas, cultures, and histories of the East are understood or studied in the West through configurations of power and there was an essential Western endeavor through which the Orient was created - or it caused, in the words of Said, the "Orientalized" concepts of the East. "The relationship between Occident and Orient is a relationship of power, of domination, of varying degrees of a complex hegemony" (Said 1978, P. 5). Lost in Translation can be significantly comprehended as making a major

There Are No Children Here Essay Example for Free

There Are No Children Here Essay Children are great imitators. So give them something great to imitate. (Anonymous)† In the 1980 Chicago slums this quote couldn’t be truer. The slums were/are a terrible place for not just children, but everyone to live. The Henry Horner homes in particular are full of death, drugs, and poverty. This may not seem like the greatest place for children to be raised, but for some, they know nothing different. The constant gang trouble, drug trafficking, and hiding from stray bullets are an everyday occurrence for people living in these government housing complexes. The devastation is a never-ending cycle. The parents get into drugs and violence, and the children have no choice but to imitate their parents and everyone around them as they grow up. The end of the cycle is unseen for most, but for some, such as Lajoe Rivers that cycle will end with her youngest five children. â€Å"But you know, there are no children here. They’ve seen too much to be children. (Lajoe)† The plot begins in the summer of 1987, the boys, Lafeyette and Pharoah Rivers are enjoying their time near the tracks searching for snakes. Here, the boys could be children. They could let their imaginations run wild and they could just take a break from the horrible life they have waiting at home. Lafeyette and Pharoah are a part of large family living in the Chicago projects. Their mother, Lajoe, has eight children; the three older ones have slowly fallen off the deep end, but the five younger have a chance to do good. Lajoe takes great pride in her children and does everything she can to raise them to be upstanding citizens and stay out of trouble. She is greatly disappointed in the way her first three turned out, so she makes it a point to keep the younger kids under strict supervision. Because of the absence of their drug addicted father, Lafeyette, a child himself, takes the role of man of the house. He looks out for his siblings and takes care of his mother. Even when Lajoe loses her welfare check, her Lafeyette stands strong and reassures her it will all be ok. During the course of their lives, the children face everything from drugs, violence, rape, imprisonment, and worse of all, death. They learn quickly that they must grow up fast to overcome the despair that shadows their everyday lives. Lajoe tries hard to preserve the youth of Pharoah and the triplets. Because of this, most of the responsibility gets put on Lafeyette and his childhood is quickly taken from him. Throughout the boy’s lives, there are significant events that shape the way they grow up and how they learn to cope with their surroundings. For Lafeyette, losing several close friends to violent deaths results in him hating gangs, and also resenting police officers. Pharoah eventually finds himself having bad feelings towards the white people that just offer ridicule and never help, to the worthless black boys. Racism plays a huge role in the boy’s lives, and the older they get the more they can see and understand it. But, in the end, Lajoe is successful in what she dreamed and hoped for. Lafeyette, Pharoah, and the triplets all turn out to be good kids and for the most part, stay out of trouble. The housing complex is fixed up with the arrival of Vincent Lane, and news of Terence getting his GED warms his mother’s heart. Among the main characters is a young boy, Pharoah Rivers. Pharoah, around nine years old in the beginning of the book is the fifth child born of Lajoe Rivers. Life in the projects takes a great toll on poor young Pharoah. He is old enough to know what is going on, but still young enough that he hides behind his youth to shield himself from the terrifying experiences of most children living in the Henry Horner homes. Throughout the story, Pharoah’s character changes on an up and down roller coaster. In the beginning he is a very shy, innocent, youthful young boy who tends to keep to himself. He spends most of his days daydreaming to escape his scary life. He thinks about the trees, the dog, the snakes, all the smaller things in life and it makes him happy. He is often ridiculed for being small for his age, but his drive for knowledge makes up for his size and he excels in school. Although Pharoah struggles with a stutter and it seems to get worse throughout most of his childhood, he manages to overcome it and takes great pleasure in answering questions and speaking out in class. His mother relished in the fact that her son was so brilliant for his age, and often bragged about the young boy. Pharoah is Pharoah. He’s going to be something,† she would tell friends. â€Å"When he was a baby, I held him up and asked him if he’d be the one. I’ve always wanted to see one of my kids graduate from high school. I asked him if he’d be the one to get me a diploma. † (Lajoe, 116) I feel that out of all the characters in the book, I relate most to Pharoah. Although I am not a small black boy living in the projects, nor do I have any similar life experiences; our personalities parallel in several different ways. Growing up I was the small stick girl that everyone else would make fun of. Because of my bony figure I was often teased and thought to be younger than I really was. And like Pharoah, I learned to look past how small I was and build all my strength and power with my mind. I excelled in school every year of my life. Through elementary school I was awarded certificates for my achievements and enrolled into the â€Å"Talented and Gifted† program at my school. I was smart for my age, almost a couple years ahead in some subjects. This persisted through middle school, high school, and even through college. I strive to do my best, just as Pharoah does. I can imagine that Pharoah’s mind looks somewhat like mine did when I was his age. I had the biggest imagination and often used it as an escape from normal life. No, normal life for me was not drugs, gangs, and street violence; but I still had a sometimes empty and scary reality. My military family and I lived overseas all of my childhood and my father was often absent due to fighting for our country. Every day he was gone my siblings and I would wonder if we would ever get to see him again, or if he would be killed doing his job and never return. That was my scary reality, and the constant absence of my father caused me to daydream and life in a fantasy world most of my days. Because of this, I can understand why Pharoah tries so hard to hold onto his childhood and how he can life every day in a daydream to escape the harsh reality of his life. â€Å"As the young children pursued each other from one end of the parking lot to the other, Pharoah stood by himself on the building’s back stoop. He leaned on the black metal bannister. Chin in hand, and stared into space, paying little attention to the shrieking children just a few yards away. (Kotlowitz, 61) Poverty, the state or condition of having little or no money, goods, or means of support; condition of being poor (Webster Dictionary). Poverty is a constant issue for not only the America, but all over the world. This theme runs the course of the books narrative, and is clearly shown in the lives of Project inhabitants. Throughout the story the cycle of poverty is clea rly shown. The living conditions and dependence on welfare is a definite example of what poverty looks like. Gangs run the streets, drugs run the gangs; and with both of these comes violence. For most in the Projects, the only way to live is through illegal activity. Often it is easier to get into and faster to make money. And for most, it is nearly impossible to escape. In the book there is mention of â€Å"The Other America†, referring to the projects. Because America strives to be the greatest country citizens often try to hide the poverty that runs our inner city streets. For the wealthy it is easier to just turn away and pretend this â€Å"other America† doesn’t exist. â€Å"Horner sat so close to the city’s business district that from the Sears Tower observation deck, tourists could have watched Lafeyette duck gunfire on his birthday. (Kotlowitz, 13) Poverty is a reality for many Americans. The constant reliance on food stamps, welfare, and government housing is what these people live like. The sad thing is that Americans would rather pretend this doesn’t go on in our country than do anything to fix it. For me, this doesn’t make any sense. Because my mother works for First Steps; a government funded program for underprivileged families with children with disabilities, I have seen firsthand what poverty in America looks like. When I help my mother on her job and we enter the run down unsubsidized houses or the broken down trailers and shacks it gives me the overwhelming feeling of hate and anger towards our government and people. There is no reason there should be so much poverty in our country. I feel if American citizens would stop worrying about everyone else in the world and just try to fix our country; a majority of poverty could be eliminated. â€Å"Many times, American citizens talk about helping abroad in underdeveloped countries. As an international student, I appreciate that. However, if there is poverty right across the street, why not help those of where you live? † (Molina, 1) Exactly! Why are we sending so much money out of our nation? In the end all that is going to do is hurt us. America is not the only country to have problems with sending money away; a British writer states that it would be immoral to withdraw their funds to lesser countries, but the rich should also be more generous in the sense that they give more to their own country, not everyone else (Glennie). A little generosity is all it takes. Ther are many people in America that have millions of dollars. It doesn’t take much to feed a needy family, so why do they hoard the money? Due to the governmental changes, and the economy failing, the American Government is putting more and more of its people into poverty. The numbers of jobless, homeless, starving families is reaching new heights and isn’t going to stop until people help each other out (Shaft). The first step to fixing poverty in America is to look and realize it’s here. There should not be people growing up in the â€Å"Other America†, this should not exist. Americans need to come together and get the country straight. I know it is easier said than done, but nothing will get done until someone first says something about it. People like Lajoe and her family don’t need to live in fear, not in the greatest country in the world.

Improving Quality of Care Through Pain Management

Improving Quality of Care Through Pain Management Patrick Bobst A Qualitative Study Quantitative research involves testing hypotheses, making predictions, studying specific variables, collecting numbers and statistics, identifying statistical relationships, and making observations under controlled conditions (Johnson Christensen, 2008). None of the aforementioned attributes appear in chapter 17 â€Å"Improving the quality of care through pain assessment and management†. Hence. this chapter written byWells, Pasero, McCaffery, (2008) is a detailed deductive qualitative analysis which aims to increase opportunities to develop empirically supported ideas and theories with applicable relevance in the field of pain management for healthcare practitioners. Unlike inductive analysis, applied when not enough former knowledge about a phenomenon is known, deductive content analysis is used when the structure of analysis is initiated based on previous knowledge and with the intent to test a theory(Elos Helvi, 2008). The authors of chapter 17 provided qualitative resea rch by studying the issue of pain control as a whole without immersion into variables. They defined the purpose of the study by subjectively understanding and interpreting interactions with words, identifying patterns and themes, and making observations of occurrences in a natural environment(Johnson Christensen, 2008). Qualitative research is more concerned with describing social meaning and therefore provides the flexibility to follow ideas and explore processes(McGonigle Mastrian, 2012). Research Problem The level of pain a patient experiences is emerging as the fifth vital sign in health assessments statuses (Ju-Ling Wen-Chu, 2013). Pain is a common occurrence and an expectation in hospitalized patients especially during the postoperative period; yet despite the availability of analgesics along with national guidelines to manage pain a disconnect remains in in proper pain management resulting in undertreatment for about 50% of patients with moderate to severe pain(Wells et al., 2008). Inadequately managed pain can lead to an arsenal of negative adverse physical and psychological outcomes including immune system suppression resulting in infections and poor healing, sympathetic activation causing cardiac ischemia and ileus, reducing mobility resulting in deep vein thrombosis, as well as pulmonary embolus, or pneumonia(Nwachukwu, 2012). All mentioned adverse conditions carry along the potential consequence of extending a patient’s length of stay in the hospital decreasing patie nt satisfaction and increasing organizational costs(Nwachukwu, 2012). The Affordable Care Act of 2010 has established changes in the way hospitals are reimbursed for services. Value-based purchasing has come to the forefront in the healthcare industry with the centers for Medicare and Medicaid services (CMS) withholding full reimbursements for poor quality care or even nonpayment for patients readmitted within 30 days. Low patient satisfaction score indicators being tracked by CMS will not only affect an organization’s bottom line but also stand to lose its reputation(Wells et al., 2008). When pain is not managed properly through an organization’s pain management policy and procedure guideline the entire collaborative team responsible for managing a patient’s pain may be liable for legal action(Wells et al., 2008). Research Translated Into Practice The Agency for Healthcare Research and Quality (AHRQ) focuses on current issues, patient safety and quality of healthcare providing practitioners the best research for optimal patient outcomes. AHRQ is an active participant in pushing evidence forward into practice with its Translating Research Into Practice (TRIP) initiative to generate knowledge about evidence-based care and with the TRIP-II initiative the focus is on utilizing information technology to affect translational research and health policy (McGonigle Mastrian, 2012). The TRIP database is a clinical search engine designed to identify high-quality clinical evidence for clinical practice that utilizes contextual issues such as the magnitude of the health issue, economic costs of the problem, the reliability, relevance, and validity of the data along with the quality and consistency of the evidence (Glasgow Emmons, 2007). The authors in the pain assessment and pain management research study utilized the TRIP database probi ng for the terms â€Å"pain assessment† and â€Å"pain management† in the literature search, filtered only the English language and publications dated within the last 10 years, meta-analysis, practice guidelines, literature reviews, clinical trials, and random clinical trials (RCT). To use evidence in practice, the validity of research is evaluated on an evidential hierarchy that is defined and the value is assigned to the information source on a scale from 1 to 6, one being the highest evidence from a systemic review and six being the evidence from the opinion of experts(McGonigle Mastrian, 2012). The evidence table provided by the authors in the pain assessment and pain management study exhibits excellent research validity with multiple design types rating high on the evidential hierarchy scale listing. The authors utilized evidence from a meta-analysis study (Level 1), twelve RCT studies (Level 2), seven systematic literature reviews (Level 5), three literature rev iews (Level 6), and one qualitative massage study (Level 7)(Melnyk Fineout-Overholt, 2011). The RCT is considered the most reliable source of evidence in the hierarchy and the meta-analysis is the best quality evidence because it uses a multiple individual research studies to come to a consensus (McGonigle Mastrian, 2012). Practice Implications The implications of this TRIP intervention designed to increase the use of evidence-based practice (EBP) in pain assessment and management highlights scientific evidence for practitioners to augment their clinical decision-making. Recommendations for successful implementation of pain assessment and management include education, the utilization of appropriate tools in pain assessment, a multimodal analgesic approach, continuous evaluation, and an established organizational pain management guideline. Patient and family education has been a central recommendation regarding pain management prior to any surgical procedure in that comprehensive pain evaluations can uncover patient’s attitudes, beliefs, level of knowledge, and unrealistic expectations that can be addressed(Wells et al., 2008). Wells et al. (2008) found that frequent communication, shared goals, and shared knowledge in education contributed to better pain outcomes. The most critical aspect of proper pain management is assessing pain levels on a regular basis using a standard format, and in order to meet the patient’s needs pain should be reassessed after each intervention evaluating the effects and determining whether modification is needed(Wells et al., 2008). Based upon systematic reviews of pain quality improvement studies the emphasis has shifted from processes to outcomes where clinicians recognize and treat pain promptly, involve patients and families in pain management plans, adjust pain management plans as needed, and monitor processes and outcomes(Wells et al., 2008). Utilizing a multimodal approach for pain management is recommended which includes opioids, and non-opioids such as nonsteroidal anti-inflammatory drugs, and adjunct medications such as anticonvulsants can improve the safety of the therapy (Wells et al., 2008). With safety issues regarding the use of morphine, hydromorphone, and fentyal clinicians need to be educated about safe pain management to help prevent undertr eatment of pain and the resulting harmful effects. A series of systematic reviews indicate poor results and outcomes using the intramuscular route (IM) administering of an opioid analgesic (Wells et al., 2008). The IM route is painful, has an unreliable absorption time and can be dangerous since patients are often alone at the time of peak affect and can become excessively sedated, vomit, and aspiratenevertheless produces the poorest outcomes (Wells et al., 2008). Unfortunately,Wells et al. (2008) describe the evidence for nondrug techniques of pain management including relaxation, music, massage, heat and cold therapies are neither supportive nor consistent, are considered weak in reducing acute pain, and may not improve outcomes. Ample evidence revealed the appropriate use of analgesics with the proper drug at the correct interval can provide good pain relief for the majority of patients, and organizations should place their emphasis on improving assessments and administration tec hniques (Wells et al., 2008). The psychological, emotional, and financial toll of uncontrolled pain is monumental and everyone experiencing discomfort because of pain justly expects and needs to receive appropriate pain management. Research Implications The research provided supports the evidence-based treatments with analgesics in the management of pain, and appears to be effective in controlling acute pain. However, the undertreatment of acute pain remains prevalent due to the clinician’ behaviors, which includes inadequate pain knowledge, assessment skills and administration of analgesics (Wells et al., 2008). Krenzischek, Wilson, Newhouse, Mamaril, Kane (2004) also assert a lack of pain management knowledge and the reduced usage of clinical practice guidelines is a high contributor in poor pain management. Research is needed for effective strategies in changing clinician attitudes and behaviors that will result in better pain management for patients as well as non-drug therapies (Wells et al., 2008). Wells et al. (2008) asserts, â€Å"Lack of standardization of nondrug therapies is one of the drawbacks of the current literature† (p. 11). Integration of Informatics The authors of this study integrated informatics through data, information and knowledge to support clinicians and patients in their decision-making regarding the best practices in accomplishing favorable outcomes and to improve the quality of care through pain assessment and management. Wells et al. (2008) utilized the informatics infrastructure to seek and manage validated studies from various sources, capture proper demographic, treatment and outcome information, and the AHRQ to share project information, results, and insights. The informatics infrastructure is critical to EBP and promotes the use of clinical judgment and knowledge with procedures and protocols to what is scientifically proven rather than what is customary(McGonigle Mastrian, 2012). The paradigm of â€Å"this is the way I’ve done it for years â€Å"is no longer acceptable and it is upon clinicians to apply the aforementioned viable knowledge, experience, understanding, and insight derived from EBP throug h informatics to gain and synthesize the effervescent wisdom needed for high quality patient care and optimal outcomes. References Elos, S., Helvi, K. (2008). The qualitative content analysis process. Journal of Advanced Nursing, 62(1), 107-115. http://dx.doi.org/10.1111/j.1365-2648.2007.04569.x Glasgow, R., Emmons, K. (2007). How can we increase translation of research and to practice? Types of evidence needed. Annual Review of Public Health, 28, 413-433. http://dx.doi.org/10.1146/annurev.publhealth.28.021406.144145 Johnson, B., Christensen, L. (2008). Educational research: quantitative, qualitative, and mixed approaches. Thousand Oaks, CA: Sage Publications. Ju-Ling, H., Wen-Chu, W. (2013). Factors of accepting pain management decision support systems by nurse anesthetists. BMC Medical Informatics and Decision Making, 13(16), 1-13. http://dx.doi.org/10.1186/1472-6947-13-16 Krenzischek, D. A., Wilson, L., Newhouse, R., Mamaril, M., Kane, H. L. (2004). Clinical evaluation of the ASPAN pain and comfort clinical guideline. Journal of PeriAnesthesia Nursing, 19(3), 150-159. http://dx.doi.org/10.1016/j.jopan.2004.03.003 McGonigle, D., Mastrian, K. G. (2012). Nursing informatics and the foundation of knowledge (2nd ed.). Burlington, MA: Jones and Bartlett. Melnyk, B. M., Fineout-Overholt, E. (2011). Evidence-based practice in nursing and healthcare: A guide to best practice (2nd ed.). Philadelphia, PA: Lippincott, Williams and Wilkins. Nwachukwu, C. N. (2012). Decreasing pain and length of stay in the post anesthesia care unit (PACU) by implementing the ASPAN pain and comfort guidelines (Doctoral dissertation, The Catholic University of America). Retrieved from http://aladinrc.wrlc.org/bitstream/handle/1961/10269/Nwachukwu_cua_0043A_10311display.pdf?sequence=1 Wells, N., Pasero, C., McCaffery, M. (2008). Improving the quality of care through pain assessment and management. Rockville, MD: Agency for Healthcare Research and Quality.

Risk Management of Commercial Bank in Malaysia

Risk Management of Commercial Bank in Malaysia Introduction 1.0 Introduction According to Bank Negara Malaysia, Malaysia banking system is divided into 3 main groups which are; 1) monetary institution comprising the Central Bank (Bank Negara), commercial and Islamic financial institutions; 2) non- monetary institutions namely merchant banks, credit and insurance companies, and development banks; and 3) foreign banks representative offices and offshore banks. Prior to the 1997 financial crisis, Malaysia had thirty seven commercial banks, forty finance companies and twelve merchant banks. However, after the financial crisis 1997, most of the banks has consolidation through mergers and acquisitions to strengthening of these financial institutions has result in thirty – five licensed commercial banks, thirty – one finance banks and twelve merchant banks. As to date, there are only twenty – two licensed commercial banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (Table 1) However, among the twenty two licensed commercial banks only nine of the commercial banks are local bank and the rest of thirteen commercial banks are foreign banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are: Malayan Banking Berhad, Hong Long Bank Berhad, Public Bank Berhad, Affin Bank Berhad (under Affin Holding Group), Alliance Bank Berhad (under Alliance Financial Group Berhad), Ambank Berhad ( under AMMB Holding Berhad), Eon Bank Berhad (under Eon Capital Berhad) and lastly CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) while Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2) Table 2: List of Local Commercial Banks in Malaysia After the financial crisis 1997, significant numbers of bank had bankrupt or were merged with other financial institutions, which proven that, the failure of bank is due to their failure in managing their liquidity risk properly. In other words, during the financial crisis a lot of banks were incapable to provided sufficient amount of money to meet the current need of their investors. As thus, banks had said as to failure to managing their risk properly because do not have enough money liquidity in banks to meet the demand of their investors. From another perspective, big bank may not always be better because increase in organisation may present more problems than it. Bank have found that to survive it is more necessary to have a leading market share in a variety of businesses rather than just having a lot of assets or a huge capital. Thus, proper management of risk related to assets and capital market among bank is crucial. If the bank was able to assess the risk at an early stage, then the bank may be able to plan for appropriate action to be taken to reduce risk before it occurred. 1.1 Risk Management in Banking Sector Driven by the increasing complexity of doing business, risk management has become an important and integral part of the company’s internal control and governance in order to achieve its plans and objectives. In other words, risk management refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ( Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Risk management in general involves identifying; assessing, responding, prioritizing then risk followed by minimization of risk and control the probability of risk. Risk management is entering into many aspects of banking business such as increased attention and concern must be given to ensure the risk under control. Ideally, risk management in the banking sector is to reduce the risk to the minimum. For example, credit approval, the officer can reduce this risk through measure the ability to pay back by customer before approved the credit. In facing the challenge of global financial environment, banking sector is required to implement integrated risk management systems. (Rajna, 1999) They are required to identify their current risk exposure such as market risk. It is a necessary risk-reducing tool to promote long-term profitability and stability of the banks and enhance the competitive advantage of banks. If a bank has right risk management systems that can effectively capture the risk exposures, there is an opportunity for them to lower their capital charges. As a result, proper risk management practice is essential for banks to maintain competitiveness over the long run. Lastly, to manage the risk in banking sector, first the banks need to identify the risk. The risk related to banking consists of credit risk, market risk; interest rate risk, foreign risk, liquidity risk and operation risk. Risk identification is the first stage of risk management. This mean that, banks need to correctly identify the risk such as market risk of the risk expose because it helps to develop basis for next steps analysis and control of risk management. (Lubka Tchankova, 2002) 1.2 Risk Management Disclosure in Banking Sector The purpose of risk management disclosure is to allow financial analysts, shareholders, creditors, clients and any interested parties to rely on minimal standards of quality and consistency in the risk management policies of financial firms. Greater promote transparency of risk management could benefit investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the willingness of firms to voluntarily disclosure complete and timely information. This is said to be benefit investors as they need comprehensive risk information if they are to completely understand the bank’s risk profile. Risk is an unavoidable element of any business venture, especially for banking sector. In addition to financial risk, a company is also susceptible to business risk or changes in the overall economic climate that can adversely affect the price of its securities. Hence, it is in the stakeholders’ best interest that risk be disclosed in a timely manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Disclosure of risk management is to promote a more robust financial system. Moreover, can help to promote and maintain a sound financial system by strengthening the incentives for sound risk management within financial institutions and by improving the information which financial institutions use to make credit allocation decisions to the corporate sector. (Rajna Gibson, 1999) Normally, those banks with better disclosure will tend to attract more investor to invest, or clients more willing to place their money in the bank. Besides that, the disclosure of risk management helps to reduces information asymmetry. Investors and shareholder would be able to justify the risk position of the bank through the disclosure of respective financial information. This also can help them to justify whether the manager is acting on the interests of the company. Besides that, disclosure of risk facilitates supervision and reduces monitoring costs. Public disclosures of risk in banks annual report enable the management to foresee the potential problems; therefore can plan to reduce risk in advance, thus it save the monitoring cost indirectly. (Philip, 2005) It is argued that banks that disclose greater amounts of useful risk information would benefit from a reduction in their cost of finance as the providers of funds will be in better position to judge the bank’s risk level and this will remove the need for them to incorporate a risk premium within the cost of capital. (Linsey and Shrives, 2005) 1.3 Types of Risk in Banking Sector Risk of the banking sector can be varied and widely difference across the banking institution. Generally the risk for banks business can classified into five popular categories: credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk. 1. Credit risk Credit risks the most important risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in accordance with agreed terms and conditions. The aim of credit risk management is to maximize a bank’s risk- adjusted rate of return by maintaining credit risk exposure within acceptable boundary. (Catherine Soke Fun Ho, 2009) Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institution’s loan portfolio is typically the largest asset and the major source of revenue. 2. Interest rate risk Interest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest rates may lead to higher profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rates has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the bank’s profitability by increasing its cost of funds, lowering its returns on earning assets, and reducing the value of the owners’ investment. 3. Foreign exchange risk (Forex) Risk associate with the loss in the exchange of the currency. Foreign exchange risk is the loss being incurred because of being party to a foreign currency transaction or holding a foreign currency changes. For extreme cases, it may involve blocking of convertibility. 4. Liquidity risk Liquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities conducted by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the individual bank, since a liquidity shortfall at a single institution can have system-wide repercussions. (Basel, Feb 2000) 5. Operating risk This is refers to the risk of losses or unexpected expenses associated with fraud, check kiting, and litigation. According to Bank Negara 2009, large corporate experience of the failures due to fraud and lapses in internal controls has focused greater attention on improving operational risk management in banking institutions. 1.4 Problem Statements Driven by increase competitive in business environment today, risk management is required to be disclosed in financial statements of the companies in complying with FRS 132. However, there is an issue where a lot of companies are not willing to disclose additional voluntary information in the financial statements. As they worry valuable information is available to their rivals and creates competitive disadvantages. Radiah Otman (2009), firm may not like to disclose extensive information that might have future repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or others interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he also said that interest rate disclosure was favored as compared to credit risk among the market risks categories. 1.5 Research Question The purpose of this study is to determine the extent to which commercial banks are providing risk management disclosure (qualitative information) suggested under FRS 132. Thus, the specific research questions are: Research question 1: Which type of risk more likely to be disclosed by commercial banks in Malaysia? Research question 2: Do commercial banks provided additional voluntary disclosure? Research question 3: Do the commercial banks in Malaysia disclose financial risk management objectives and policies? 1.5 Objective of the Study The general objective of this study is to examine whether the commercial bank in Malaysia complying with the general risk management guideline that provide by the FRS 132. However, the objective is broken down as below; a) To examine which type of risks are more likely to disclosed by the commercial banks in Malaysia. b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information disclosed is voluntary information or mandatory information. c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies. d) To examine whether the commercial banks in Malaysia comply with Financial Reporting Standards in Malaysian. 1.6 Conclusion After the financial crisis 1997 and also Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important role in the global financial sector. Banking sector is inherently involved in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly exposed to this risk, as so the effective risk management is crucial. It is important for banks to release risk information to the marketplace that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better understanding on how firm value is affect by risk exposure, this also can help to reduce information asymmetry between banks, investors and other stakeholders. One of the major problems here is that some companies are not willing to disclose more extensive information in their annual reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to undertake which type of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional information. This study also evaluates the level of compliance among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies. 2.0 Introduction Prior to British colonial in Malaysia, accounting in Malaysia more emphasis on the recognize expenditure and revenue rather than recognize income. As after the British colonial and the accounting development and structure change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This mean they tend to alter the reports to the amount of income at which their shareholder desired in order to attract more investors. Therefore, sometime the annual reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting standards play important roles to ensure that the annual report of the company is complying with the standard that are required. Companies registered in Malaysia must comply with the Company Act 1965. The Act prescribes the preparation of general purpose financial reports by certain categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision maker such as investors, creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies Commission of Malaysia; Central Bank; Securities Commission, and Malaysia Accounting Standards board (MASB). 2.1.0 Companies Commission of Malaysia All companies that incorporated under Company Act 1965 are regulated by Companies Commission of Malaysia. The Act requires certain companies, such as public listed companies or private limited companies, to prepare financial statements in accordance with approved accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company Act 1965. This involves investigating companies that do not comply with accounting standards. The function CCM includes: * enhancement and promotion of the supply of business and corporate information; * acting as agent of the Government and providing services in collecting and enforcing payment of prescribed fees; * regulating matters relating to corporations, companies and business. * encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporation The Companies Commission has played an active role in the accounting profession and the Malaysian Accounting Standards Board (MASB). Coordinated efforts are undertaken by the profession together with the Companies Commission and the MASB to identify issues that impact the financial and reporting environment. 2.1.1 Central Bank Bank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency; Act as a banker and financial adviser to the Government; promote monetary stability and a sound financial structure; and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also responsible for regulates and supervise the financial system in Malaysia. 2. 1.2 Banking and Financial Institutions Act 1989 (BAFIA) Banking and Financial Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house and money-broking business, for the regulation of institutions carrying on certain other financial businesses, and for the matters incidental thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the power to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime. 2.1.3 Securities Commission (SC) Securities commission was set up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983. SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detailed annual reports with the Commission. The period of the financial report date and the issue date must not exceed six months. The annual reports must be audited. The public companies are required to maintain a high standard of financial disclosure in order to provide the public with the information that is necessary to make informed investment decisions. The SC played a significant role in the establishment of the Financial Reporting Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB). The function of the SC included: * supervising exchanges, clearing houses and central depositories; * regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies; * encouraging self – regulation; * approving authority for corporate bond issues; * licensing and supervising all licensed persons; * ensuring proper conduct of market institutions and licensed persons. The SC has since 1996 embarked on three phase shift towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due diligence and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the business and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst taking into account the interests of other stakeholders. 2.1.4 Malaysia Accounting Standards Board (MASB) The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing arrangements for the operations of the MASB, and review the MASB performance. MASB is an independent authority to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to: * issue new accounting standards as approved accounting standards; * review, revise or adopt as approved accounting standards existing accounting standards; * issue statements of principles for financial reporting; * sponsor or undertake development of possible accounting standards; * conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards; * develop conceptual framework for the purpose of evaluating proposed accounting standards; * make such changes to the form and content of proposed accounting standards as it considers necessary. The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia. 2.2.0 FRS132 Disclosure Requirements In Malaysia, Bank Negara Malaysia’s and Financial Reporting Standards’ requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments – Disclosure and Presentation shall apply for annual periods beginning on or after 1January 2006. FRS 132 should be read in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this study, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed. According to paragraph 56 of FRS132 Financial Instruments – Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its policy for hedging each main type of forecast transaction for which hedge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a description of hedge; nature of risk being hedged, and a description of the financial instruments designated as hedging instruments and their fair values at the balance sheet date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall disclose the amount that best represents its maximum credit risk exposure as at balance sheet date, without taking into account of the fair value of any collateral, in the event of other parties failing to perform their obligations under financial instruments, and significant concentration of credit risk. 2.2.1 Foreign Exchange Risk Disclosure Format When hedging instruments held or issued by an entity, either individually or as a class, creates a potentially significant exposure to the foreign exchange, commodity and interest rate risks. Their terms and conditions that warrant disclosure are: the principal, stated face value, for derivative such as IRS, forwards and future contracts; date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the conversion or exchange ratio. 2.2.2 Interest Rate Risk Disclosure Format The carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contracted to mature or be re-priced in the following periods after the balance sheet date. It can be one year or less; in more than one year but not more than two years; in more than two years but not more than three years; in more than three years but not more than four years; in more than fours but not more than five years; and more than five years. Interest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument. 2.2.3 Credit risk Disclosure Format The disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the maximum exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of replacing the swap in the event of default. Besides that, a financial asset subject to legally enforceable right of set-off against a financial liability shall be disclosed. It is intriguing to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date. 2. 3.0 Definition of commercial banks In the early days, commercial banks were commonly known as exchange banks because their business was concentrated mainly in the financing of external trade. This involved primary transactions in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are defined as â€Å"any person who carries on bank business†, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or paid by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the Finance Minister, may prescribe. However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as â€Å"individual or organizations† whom operates the business of banking such as receiving deposits for current account, saving account, making payment and receiving customers’ checks and other financing. Today, all the operations in the banking industry are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as well as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions. 2.2.1 History of Commercial Banks Commercial banks worldwide are mostly owned by private sectors. They are formed as a business organization with the objective to make profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of sending and receiving money to and from other countries) and also financing in the short- term markets. The main focus on external transaction was due to the development of economy sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The bank’s head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional practice of the banking industry in Malaysia has progressed. An important feature in the development of banking is the growing of locally incorporated foreign and domestic banks. BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provision requiring them to incorporate locally. The growth of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970’s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been restricted from opening new branches in Malaysia in line with the policy to encourage the growth and development of domestic banks, particularly the expansion of the branch network into the rural areas. As at December 1996, there are a total of 37 commercial banks with a total branch network of 15 Risk Management of Commercial Bank in Malaysia Risk Management of Commercial Bank in Malaysia Introduction 1.0 Introduction According to Bank Negara Malaysia, Malaysia banking system is divided into 3 main groups which are; 1) monetary institution comprising the Central Bank (Bank Negara), commercial and Islamic financial institutions; 2) non- monetary institutions namely merchant banks, credit and insurance companies, and development banks; and 3) foreign banks representative offices and offshore banks. Prior to the 1997 financial crisis, Malaysia had thirty seven commercial banks, forty finance companies and twelve merchant banks. However, after the financial crisis 1997, most of the banks has consolidation through mergers and acquisitions to strengthening of these financial institutions has result in thirty – five licensed commercial banks, thirty – one finance banks and twelve merchant banks. As to date, there are only twenty – two licensed commercial banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (Table 1) However, among the twenty two licensed commercial banks only nine of the commercial banks are local bank and the rest of thirteen commercial banks are foreign banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are: Malayan Banking Berhad, Hong Long Bank Berhad, Public Bank Berhad, Affin Bank Berhad (under Affin Holding Group), Alliance Bank Berhad (under Alliance Financial Group Berhad), Ambank Berhad ( under AMMB Holding Berhad), Eon Bank Berhad (under Eon Capital Berhad) and lastly CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) while Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2) Table 2: List of Local Commercial Banks in Malaysia After the financial crisis 1997, significant numbers of bank had bankrupt or were merged with other financial institutions, which proven that, the failure of bank is due to their failure in managing their liquidity risk properly. In other words, during the financial crisis a lot of banks were incapable to provided sufficient amount of money to meet the current need of their investors. As thus, banks had said as to failure to managing their risk properly because do not have enough money liquidity in banks to meet the demand of their investors. From another perspective, big bank may not always be better because increase in organisation may present more problems than it. Bank have found that to survive it is more necessary to have a leading market share in a variety of businesses rather than just having a lot of assets or a huge capital. Thus, proper management of risk related to assets and capital market among bank is crucial. If the bank was able to assess the risk at an early stage, then the bank may be able to plan for appropriate action to be taken to reduce risk before it occurred. 1.1 Risk Management in Banking Sector Driven by the increasing complexity of doing business, risk management has become an important and integral part of the company’s internal control and governance in order to achieve its plans and objectives. In other words, risk management refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ( Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Risk management in general involves identifying; assessing, responding, prioritizing then risk followed by minimization of risk and control the probability of risk. Risk management is entering into many aspects of banking business such as increased attention and concern must be given to ensure the risk under control. Ideally, risk management in the banking sector is to reduce the risk to the minimum. For example, credit approval, the officer can reduce this risk through measure the ability to pay back by customer before approved the credit. In facing the challenge of global financial environment, banking sector is required to implement integrated risk management systems. (Rajna, 1999) They are required to identify their current risk exposure such as market risk. It is a necessary risk-reducing tool to promote long-term profitability and stability of the banks and enhance the competitive advantage of banks. If a bank has right risk management systems that can effectively capture the risk exposures, there is an opportunity for them to lower their capital charges. As a result, proper risk management practice is essential for banks to maintain competitiveness over the long run. Lastly, to manage the risk in banking sector, first the banks need to identify the risk. The risk related to banking consists of credit risk, market risk; interest rate risk, foreign risk, liquidity risk and operation risk. Risk identification is the first stage of risk management. This mean that, banks need to correctly identify the risk such as market risk of the risk expose because it helps to develop basis for next steps analysis and control of risk management. (Lubka Tchankova, 2002) 1.2 Risk Management Disclosure in Banking Sector The purpose of risk management disclosure is to allow financial analysts, shareholders, creditors, clients and any interested parties to rely on minimal standards of quality and consistency in the risk management policies of financial firms. Greater promote transparency of risk management could benefit investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the willingness of firms to voluntarily disclosure complete and timely information. This is said to be benefit investors as they need comprehensive risk information if they are to completely understand the bank’s risk profile. Risk is an unavoidable element of any business venture, especially for banking sector. In addition to financial risk, a company is also susceptible to business risk or changes in the overall economic climate that can adversely affect the price of its securities. Hence, it is in the stakeholders’ best interest that risk be disclosed in a timely manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) Disclosure of risk management is to promote a more robust financial system. Moreover, can help to promote and maintain a sound financial system by strengthening the incentives for sound risk management within financial institutions and by improving the information which financial institutions use to make credit allocation decisions to the corporate sector. (Rajna Gibson, 1999) Normally, those banks with better disclosure will tend to attract more investor to invest, or clients more willing to place their money in the bank. Besides that, the disclosure of risk management helps to reduces information asymmetry. Investors and shareholder would be able to justify the risk position of the bank through the disclosure of respective financial information. This also can help them to justify whether the manager is acting on the interests of the company. Besides that, disclosure of risk facilitates supervision and reduces monitoring costs. Public disclosures of risk in banks annual report enable the management to foresee the potential problems; therefore can plan to reduce risk in advance, thus it save the monitoring cost indirectly. (Philip, 2005) It is argued that banks that disclose greater amounts of useful risk information would benefit from a reduction in their cost of finance as the providers of funds will be in better position to judge the bank’s risk level and this will remove the need for them to incorporate a risk premium within the cost of capital. (Linsey and Shrives, 2005) 1.3 Types of Risk in Banking Sector Risk of the banking sector can be varied and widely difference across the banking institution. Generally the risk for banks business can classified into five popular categories: credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk. 1. Credit risk Credit risks the most important risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in accordance with agreed terms and conditions. The aim of credit risk management is to maximize a bank’s risk- adjusted rate of return by maintaining credit risk exposure within acceptable boundary. (Catherine Soke Fun Ho, 2009) Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institution’s loan portfolio is typically the largest asset and the major source of revenue. 2. Interest rate risk Interest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest rates may lead to higher profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rates has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the bank’s profitability by increasing its cost of funds, lowering its returns on earning assets, and reducing the value of the owners’ investment. 3. Foreign exchange risk (Forex) Risk associate with the loss in the exchange of the currency. Foreign exchange risk is the loss being incurred because of being party to a foreign currency transaction or holding a foreign currency changes. For extreme cases, it may involve blocking of convertibility. 4. Liquidity risk Liquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities conducted by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the individual bank, since a liquidity shortfall at a single institution can have system-wide repercussions. (Basel, Feb 2000) 5. Operating risk This is refers to the risk of losses or unexpected expenses associated with fraud, check kiting, and litigation. According to Bank Negara 2009, large corporate experience of the failures due to fraud and lapses in internal controls has focused greater attention on improving operational risk management in banking institutions. 1.4 Problem Statements Driven by increase competitive in business environment today, risk management is required to be disclosed in financial statements of the companies in complying with FRS 132. However, there is an issue where a lot of companies are not willing to disclose additional voluntary information in the financial statements. As they worry valuable information is available to their rivals and creates competitive disadvantages. Radiah Otman (2009), firm may not like to disclose extensive information that might have future repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or others interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he also said that interest rate disclosure was favored as compared to credit risk among the market risks categories. 1.5 Research Question The purpose of this study is to determine the extent to which commercial banks are providing risk management disclosure (qualitative information) suggested under FRS 132. Thus, the specific research questions are: Research question 1: Which type of risk more likely to be disclosed by commercial banks in Malaysia? Research question 2: Do commercial banks provided additional voluntary disclosure? Research question 3: Do the commercial banks in Malaysia disclose financial risk management objectives and policies? 1.5 Objective of the Study The general objective of this study is to examine whether the commercial bank in Malaysia complying with the general risk management guideline that provide by the FRS 132. However, the objective is broken down as below; a) To examine which type of risks are more likely to disclosed by the commercial banks in Malaysia. b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information disclosed is voluntary information or mandatory information. c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies. d) To examine whether the commercial banks in Malaysia comply with Financial Reporting Standards in Malaysian. 1.6 Conclusion After the financial crisis 1997 and also Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important role in the global financial sector. Banking sector is inherently involved in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly exposed to this risk, as so the effective risk management is crucial. It is important for banks to release risk information to the marketplace that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better understanding on how firm value is affect by risk exposure, this also can help to reduce information asymmetry between banks, investors and other stakeholders. One of the major problems here is that some companies are not willing to disclose more extensive information in their annual reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to undertake which type of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional information. This study also evaluates the level of compliance among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies. 2.0 Introduction Prior to British colonial in Malaysia, accounting in Malaysia more emphasis on the recognize expenditure and revenue rather than recognize income. As after the British colonial and the accounting development and structure change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This mean they tend to alter the reports to the amount of income at which their shareholder desired in order to attract more investors. Therefore, sometime the annual reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting standards play important roles to ensure that the annual report of the company is complying with the standard that are required. Companies registered in Malaysia must comply with the Company Act 1965. The Act prescribes the preparation of general purpose financial reports by certain categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision maker such as investors, creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies Commission of Malaysia; Central Bank; Securities Commission, and Malaysia Accounting Standards board (MASB). 2.1.0 Companies Commission of Malaysia All companies that incorporated under Company Act 1965 are regulated by Companies Commission of Malaysia. The Act requires certain companies, such as public listed companies or private limited companies, to prepare financial statements in accordance with approved accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company Act 1965. This involves investigating companies that do not comply with accounting standards. The function CCM includes: * enhancement and promotion of the supply of business and corporate information; * acting as agent of the Government and providing services in collecting and enforcing payment of prescribed fees; * regulating matters relating to corporations, companies and business. * encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporation The Companies Commission has played an active role in the accounting profession and the Malaysian Accounting Standards Board (MASB). Coordinated efforts are undertaken by the profession together with the Companies Commission and the MASB to identify issues that impact the financial and reporting environment. 2.1.1 Central Bank Bank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency; Act as a banker and financial adviser to the Government; promote monetary stability and a sound financial structure; and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also responsible for regulates and supervise the financial system in Malaysia. 2. 1.2 Banking and Financial Institutions Act 1989 (BAFIA) Banking and Financial Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house and money-broking business, for the regulation of institutions carrying on certain other financial businesses, and for the matters incidental thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the power to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime. 2.1.3 Securities Commission (SC) Securities commission was set up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983. SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detailed annual reports with the Commission. The period of the financial report date and the issue date must not exceed six months. The annual reports must be audited. The public companies are required to maintain a high standard of financial disclosure in order to provide the public with the information that is necessary to make informed investment decisions. The SC played a significant role in the establishment of the Financial Reporting Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB). The function of the SC included: * supervising exchanges, clearing houses and central depositories; * regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies; * encouraging self – regulation; * approving authority for corporate bond issues; * licensing and supervising all licensed persons; * ensuring proper conduct of market institutions and licensed persons. The SC has since 1996 embarked on three phase shift towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due diligence and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the business and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst taking into account the interests of other stakeholders. 2.1.4 Malaysia Accounting Standards Board (MASB) The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing arrangements for the operations of the MASB, and review the MASB performance. MASB is an independent authority to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to: * issue new accounting standards as approved accounting standards; * review, revise or adopt as approved accounting standards existing accounting standards; * issue statements of principles for financial reporting; * sponsor or undertake development of possible accounting standards; * conduct such public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards; * develop conceptual framework for the purpose of evaluating proposed accounting standards; * make such changes to the form and content of proposed accounting standards as it considers necessary. The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia. 2.2.0 FRS132 Disclosure Requirements In Malaysia, Bank Negara Malaysia’s and Financial Reporting Standards’ requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments – Disclosure and Presentation shall apply for annual periods beginning on or after 1January 2006. FRS 132 should be read in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this study, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed. According to paragraph 56 of FRS132 Financial Instruments – Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its policy for hedging each main type of forecast transaction for which hedge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a description of hedge; nature of risk being hedged, and a description of the financial instruments designated as hedging instruments and their fair values at the balance sheet date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall disclose the amount that best represents its maximum credit risk exposure as at balance sheet date, without taking into account of the fair value of any collateral, in the event of other parties failing to perform their obligations under financial instruments, and significant concentration of credit risk. 2.2.1 Foreign Exchange Risk Disclosure Format When hedging instruments held or issued by an entity, either individually or as a class, creates a potentially significant exposure to the foreign exchange, commodity and interest rate risks. Their terms and conditions that warrant disclosure are: the principal, stated face value, for derivative such as IRS, forwards and future contracts; date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the conversion or exchange ratio. 2.2.2 Interest Rate Risk Disclosure Format The carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contracted to mature or be re-priced in the following periods after the balance sheet date. It can be one year or less; in more than one year but not more than two years; in more than two years but not more than three years; in more than three years but not more than four years; in more than fours but not more than five years; and more than five years. Interest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument. 2.2.3 Credit risk Disclosure Format The disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the maximum exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of replacing the swap in the event of default. Besides that, a financial asset subject to legally enforceable right of set-off against a financial liability shall be disclosed. It is intriguing to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date. 2. 3.0 Definition of commercial banks In the early days, commercial banks were commonly known as exchange banks because their business was concentrated mainly in the financing of external trade. This involved primary transactions in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are defined as â€Å"any person who carries on bank business†, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or paid by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the Finance Minister, may prescribe. However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as â€Å"individual or organizations† whom operates the business of banking such as receiving deposits for current account, saving account, making payment and receiving customers’ checks and other financing. Today, all the operations in the banking industry are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as well as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions. 2.2.1 History of Commercial Banks Commercial banks worldwide are mostly owned by private sectors. They are formed as a business organization with the objective to make profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of sending and receiving money to and from other countries) and also financing in the short- term markets. The main focus on external transaction was due to the development of economy sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The bank’s head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional practice of the banking industry in Malaysia has progressed. An important feature in the development of banking is the growing of locally incorporated foreign and domestic banks. BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provision requiring them to incorporate locally. The growth of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970’s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been restricted from opening new branches in Malaysia in line with the policy to encourage the growth and development of domestic banks, particularly the expansion of the branch network into the rural areas. As at December 1996, there are a total of 37 commercial banks with a total branch network of 15