The After math of WW1 Essay Example | Topics and Well Written Essays - 750 words

The After math of WW1 - Essay Example Concerning the impact on minorities of Europe after the First World War as indicated by Spielvogel (2011) there are various negative ramifications for these different gatherings. After the war various domains were separated, in which different people groups that had lived together in relative harmony presently were accusing each other for the monetary burdens welcomed on in the post war period. For instance, in the Austro-Hungarian Empire there were countless Czechs, Germans, Italians Hungarians, Poles, Serbs, and Slovenes (Amongst others) with this dissemination of individuals there is no doubt that there would be a noteworthy number of engagements between networks commanded by one gathering against their minorities. Because of this various respective minority arrangements which compared with the League of Nations Mandates. A few models were the Polish Minority Treaty, or in the Austrian setting, the Treaty of St. Germain-en Laye (Australasian Legal Information Institute, 1999). Non etheless, it the negative consequences for minorities in post WWI Europe would have been conspicuously felt in Germany (Especially once the country started to be overwhelmed by the National Socialists). When the gathering came into power various clearing laws became effective that had cut off ramifications for minority gatherings. A few models would be the Law for the Prevention of Hereditary Diseased Offspring (Facing History Campus, 2011) which constrained necessary cleansing of individuals experiencing innate infected and later offspring of blended parentage. This just speaks to a small amount of the general arrangements that adversely influenced minorities during the post-war period. The following issue to be tended to is the punishments that should have been paid by the Germans as per the Treaty of Versailles. As indicated by The Discovery Channel (2011) there were various money related and political ramifications from the bargain. For instance there was critical loss of German domain. Germany was to surrender the Alsace-Lorraine district to France, Northern Schleswig was surrendered to Denmark, and West Prussia was given to Poland eventually adding up to roughly 65 thousand square kilometers lost to outside countries in Europe. There were additionally noteworthy abroad regions, for example, Namibia, Cameroon and various island domains in Oceania that must be surrendered. Regarding military ramifications from the settlement of Versailles, Germany had to keep the size of its military to less than 100,000 warriors, genuine limitations were set on where the country could assemble fortresses, flying corps were totally prohibited and the naval force was confined to little ships. Besides, as indicated by the Discovery Channel (2011) one extra result was that the Kaiser Wilhelm II should be attempted as a war criminal, however attributable to the way that he had fled to the Netherlands (Who wouldn't remove him) no preliminary at any point occurred. The last sign ificant outcome was the money related ramifications from the contention implied that Germany was requested to pay war reparations to the partnered powers to help balance the costs that the united countries had caused as a component of the war exertion however Germany was likewise considered answerable for the harms to non military personnel foundation also. Preceding the flare-up of the Second World War, Germany had not taken care of the aggregate of their war reparations. Be that as it may, as indicated by ‘The Local’ (2010) the all out cost was 132 billion Reichmarks which is around â‚ ¬

Criminal Justice Trends Paper

For as far back as 50 years, America’s criminal equity framework has experienced a few critical changes managing courts and policing. As per Marion and Oliver (2006), the chronicled Supreme Court decisions like Mapp v. Ohio and Miranda v. Arizona form the manner in which courts and law requirement handle people accused of carrying out wrongdoings. This paper will talk about the development of courts and law implementation mirrors the different and changing requirement for today’s populace which is first significance, the earnestness for participation and correspondence among criminal equity organizations and law authorization inside the country.Individuals must know the significance for courts and police to team up intently together for the objective of guaranteeing all laws are applied reasonable and similarly, ensure the general population, and forestall wrongdoings for all people. Police History Before the thirteenth century the essential capacity of equity during th is century was seeking retribution in different pieces of the world around the same time made endeavors to set up peace in nations, for example, Greece, Rome, and Egypt (NCWC, 2004). From 1066-1285 the Frankpledge of this time was the main arrangement of equity in the English-talking world (NCWC, 2004).The Frankpledge framework passed by another name too its name was the tithing framework, which was equivalent to tithing in chapel. This framework was to take 10% of family profit each Sunday, and a network of 10 separate families had the commitment to control its own peace. In the event that any man knew about a wrongdoing it was his commitment to partake in things and participating in the inquiry of the culprit (NCWC, 2004). In time the tithing framework world develop into another framework and its name was known as the ward constable-watch framework (NCWC, 2004).The new framework had an alternate technique; the network would select one individual of the tithing framework to serve f or one-year as the constable. One obligation of the constable was to utilize other men in the network to perform obligations around evening time; the name of this position was guardian (NCWC, 2004). These gatekeepers needed to work in provincial areas, which made up 10 things that were otherwise called one or 100ths would make up the shire (NCWC, 2004). Every shire network would delegate what was known as a shire-reeve or sheriff. In England around 1326 judges of the harmony turned into the new title to supplant the name shire-reeve (NCWC, 2004).One appropriation of the American provinces was discount English policing and the resurrection of the sheriff’s position. A considerable lot of the early police offices had just two positions day and night staff, and in 1845 numerous urban communities in American police offices were controlled by police boss (NCWC, 2004). Duplicating a significant number of England’s changes and developments were strategies the Americans would adjust for its own utilization. Of the numerous adjustments, the one to see most (NCWC, 2004) is the Bowe Street Runner or known as the production of the investigator position in 1748 (NCWC, 2004).In 1829 Sir Robert Peel of England composed the main arrangement of policing standards for the Metropolitan police branch of London England. One guideline was to turn out to be increasingly proactive rather than receptive this brought forth the watch official a rule American police would receive (NCWC, 2004). Law authorization has had numerous preliminary and mistakes (NCWC, 2004) in creating wrongdoing anticipation programs. The best framework to date is the formation of network policing, which started during the 1990s. The History of CourtsIn 1781 America turned into a country with George Washington vanquishing Lord Cornwallis in Yorktown. One change managing pilgrim times, the United States courts has built up their own specific manner to manage social soul and requirements from the new country. As indicated by Currie (1992), the Sixth Amendment ensures an open and fast preliminary and educates all accuses of a jury preliminary. From the beginning of time residents were called to settle questions, today’s juries are viewed as the cross breeds of European, Roman, Greek, and Egyptian jury practices.The jury framework in America is additionally impact by the English jury framework. Another of America’s sacred right is fair treatment which is the essential for decency that is significant in the legal framework which permits our framework to work with respect and uprightness. As indicated by Currie (1992), the components of fair treatment include the United States Constitution; Amendments V, and XIV and in 1970 Illinois State Constitution embraced a few rights for fair treatment. For as far back as seven and half hundreds of years fair treatment was the strategic men determined to make equity in the government.The administrative courts for quite a long ti me utilized a strategy for suspended condemning as a type of probation which in 1916; the Supreme Court administered this was illegal. President Coolidge in 1925 marked the Probation Act that gives the court’s consent to toss out inconvenience condemning and give the litigant probation. The Speedy Trial Act was established by congress in1974 at the point the United States Courts began the office of Pretrial Service. The strategic this was to diminish wrongdoing by permitting people to be discharge into the network anticipating preliminary to diminish pretrial punishment.In 1982 the Pretrial Services Act was marked by President Reagan. The stretching out utilization of Pretrial Services to every single government court began a particular achievement that we currently know as Pretrial Service and Federal Probation framework. Starting today, officials are engaged with the criminal methodology one the individual is captured until the individual completion network guidelines. Exam ination of Courts and Policing Past and Present Law authorization has experienced numerous difficulties and changes since its initiation in the thirteenth century.In the previous 50 years to the current law requirement has developed from only a couple of law implementation organizations to numerous upwards of 18, 760 offices with staff storing up 940, 275, and a financial plan of $51 billion dollars these offices share (NCWC, 2004). This is an assortment of information taken in 2000 by various police divisions in the United States (NCWC, 2004). This assortment of information reports that the Justice and Treasury divisions has 60 government police offices, thruway watch has 26 offices, 23 state police offices, and Hawaii is the main state without a police office, however has an open security office (NCWC, 2004).In expansion 35 states have different offices with unique insightful forces, which have its cutoff points (NCWC, 2004). All through the United States (NCWC, 2004) Sheriff divi sions have well more than 3, 000 office, and districts with well more than 15, 000 police offices. The United States is the main nation with numerous law implementation offices, and nobody organization works or has a similar sort of departmental structure (NCWC, 2004). A significant part of things to come of policing relies generally upon the instruction of its personnel.The training of newcomers is fundamental for the manner in which police will perform. Improving human relations and building up a solid feeling of new innovation is of incomparable significance for policing later on to turn into a triumph. Contemporary Opportunity Analysis With more than 18,000 contemporary Law Enforcement organizations today assigned more titles, jobs, and obligations among its work force contingent upon the ward basically nearby and state police operated.Law enforcement’s keeps up a main job in controlling wrongdoing yet polished methodology and guaranteeing fair treatment for each individu al blamed for a wrongdoing paying little heed to socioeconomics however in today’s criminal equity framework: race, age, sex, mental status, and jail over-limit are factors influencing strategy making. As (Smith, 1990) announced (â€Å"The most noteworthy legal weight for police change and professionalization accompanied the dubious choices characterizing criminal litigants' privileges during the Warren period. â€Å").Rehabilitation programs turned into a significant asset and option in contrast to imprisonment in numerous criminal cases which concur with network policing. In correlation, law implementation and the courts have the chance to make changes to approaches; both are strategy creators inside the framework with a lot of rules for settling on choices in which is typically the focal point of a solitary issue (Marlon and Oliver, 2006). The new laws put in to put by the high court’s influences all players including police examinations through courts and parole in the criminal equity framework since arrangements can be in composed or verbal structure and not all strategies are effective.According to (Yackle, the Court's approach choices influencing criminal equity are created by the votes of the nine judges who select, hear, choose, and issue assessments in cases. With the requests from the open gauging substantial on the backs of the higher courts to change, upgrade, square, or expel incapable approaches influences the criminal equity framework as an immediate consequence of clashing issues or maltreatment of intensity by those in power. Openings and Missed Opportunities for CooperationThe courts and the police have an incredible chance to work with respondents in the process from capture to the preliminary if the episode goes to preliminary. From the grown-up respondents down to the adolescent litigants and with the court framework down to the criminal equity framework can assume a significant job in the process for the respondents. Ther e are open doors for the two sides to enhance the investigation of the difficult what causes the respondent to do what the individual does over and over to wind up in the criminal equity framework, I. e. social standing or condition (Williams, 2013).When it goes to the courts and the police there ought to be clear objectives, targets and needs with regards to the procedure from capture to preliminary and the correspondences between the two sides ought to be clear. There ought to be improved projects and administrations to help the person in question, the victim’s family and the litigant by the police and the courts. The primary objective of the courts and the police is communicat

Java - The Most Popular and Widely Used Language

Java - The Most Popular and Widely Used Language Make Money Online Queries? Struggling To Get Traffic To Your Blog? Sign Up On (HBB) Forum Now!Java The Most Popular and Widely Used LanguageUpdated On 10/07/2019Author : Ram kumarTopic : TechnologyShort URL : https://hbb.me/2Sb2v3m CONNECT WITH HBB ON SOCIAL MEDIA Follow @HellBoundBlogOne of the most popular languages that is still widely used today, Java has been growing ever since its introduction back in 1995. Because of the numerous features and advantages, Java found its uses in almost every software development fieldThere are many ways in which Java differs from other languages which helped it reach its popularity.Why Its PopularWidely Compatible and Platform IndependentOne of the main ways with which Java acquired its reputation is platform independence. This means that Java programs can run on pretty much all different types of environments and computers, including Mac, Linux and Windows. The java download for windows 10 32 bit can give you the opportunity to discover diff erent features of this awesome piece of software.This wide compatibility is what caused almost 3 billion devices to run Java, as claimed by Oracle, its developer. Some of the biggest organizations in the world are using it from different banks and retailers to massive companies like Amazon, Netflix and even NASA. Even today, there is no sign of declining use of Java among the technology world.PracticalJava is an object-oriented language designed with simplicity and clean code in mind. Its user friendly with an easy-to-understand syntax. It contains all the necessary tools to create anything from simple apps consisting of a couple of lines, all the way to programs designed to help with space-landing. Alongside that, its secure and robust.ScalableBecause of its scalability, many enterprises switched to using Java, including Twitter and Facebook. This means that it can perform up to standards even in the most crowded platforms without slowing down or causing problems. Since its been i n development for over 20 years, Java had time to mature as a language and solve some of the problems. It provides the best performance while being simple to understand.Where Its UsedDesktop programs, mobile apps, web servers and numerous other software pieces have been written entirely in Java. In fact, there is a high chance that the device youre reading this on has at least one app/program that is Java based. These are just some examples of its widespread use.READBest Time Management Tips for ProfessionalsScientific ApplicationsMany scientists require precise and powerful mathematical calculations, Java uses powerful algorithms to offer just that. With its multi-platform support, it can provide consistent results quickly with minimal errors. Even programs such as MATLAB (software made for complex computing problems) are partially created in Java.Embedded SystemsOriginally created with the use for embedded systems in mind, these are components that have a specific function in a la rger, more complex system. They can range in size from tiny chips to much bigger computers. Most of the blu-ray players, SIM cards and more than 125 million TV devices use Java embedded systems. These systems are so sophisticated that they require only 130 KB of memory to be able to use Java.Enterprise ApplicationsEnterprises require both top-notch security and good performing software to be able to function properly. Java is capable of organizing and working with extremely large amounts of data. Since its highly scalable, there is no fear of compromising that information in case of a sudden increase of users. Many front-end and back-end banking systems have been built on it including their relevant web services.Mobile AppsMore than 90% of all apps on Android phones are written in a Java environment. This had a big impact on the amount of downloads and revenue generated from the Androids Play Store, so much so that it even surpassed iOSs App Store.Java has been used ever since the e arly days of mobile phones, being at one point the most popular software for creating mobile-based games. Some of the most popular classics came with the use of it, including the original Snake and Sudoku games.ConclusionAccording to the statistics, Java is an extremely popular and important language even in this day and age. The vast amount of frameworks built around it for numerous different uses in all branches of technology serve as an indicator to its glory. Many books have been written on how Java got to where it is today, along with its troubles along the way. Today, its an invisible force that powers many of our everyday devices.

The Ten Attributes Of The University Of Queensland

The purpose of this assignment is to analyse and discuss one of the seventeen attributes of the University of Queensland that was demonstrated during the management of the particular case study. Although all seventeen attributes should correlate and in fact are interrelated, this assignment will analyse and focus on one attribute: â€Å"The ability to interact effectively with others in order to work towards a common outcome†. To present this case study various technologies were used such as: records of the medical practice that included medical history, pathophysiology, nursing plans, diagnosis, related treatment, nursing intervention, evaluation and recommendation of health care professionals or other health care providers. Despite the fact†¦show more content†¦Lung cancer is one of the most common causes of cancer related death. The most common cause of lung cancer is active and passive cigarette smoking (Lemone Burke, 2011). Additionally, environmental and occupa tional risk factors associated with lung cancer are: benzopyrene and radon particles related to uranium mining, radiation and nuclear bombs, air pollution, diesel exhaust at cetera (Port, 2011). The age-adjusted occurrence for 2007 in Australia discloses that lung cancer is the fourth most commonly diagnosed cancer in males and females aged sixty and over (Australian Institute of Health and Welfare [AIHW] 2011). Both cytological and histopathological samples are used to make an analysis of lung cancer so that the appropriate treatment can be done. In 2014, about 11,550 Australians, mostly men, were diagnosed with lung cancer (Australian Bureau of Statistics [ABS], 2008). Lung cancer, or pleuro pulmonary neoplasm, is an aggressive class of malignancies originating in the bronchial passageways or alveoli. These cancers affect the epithelial cells, line conducting passageways, mucous glands, or alveoli (Berman, Snyder, Levett Jones, Dwyer, Hales Harvey, 2012). Symptoms generally do no t appear until the condition has progressed to the point at which the tumour masses are restricting airflow or compressing adjacent structures. Chest pain, shortness of breath, a cough or a

Essay on My Philosophy of Education and Those with...

There are 50 million people in the United States who have some kind of disability. People with disabilities are discriminated against in the United States. It is not a discrimination that is talked about like race, or gender. This discrimination usually takes the form of avoidance. People to do understand, or know how to act around a person with a disability, so they ignore the person. This is not right because people should not be defined by a disability; instead they need to be recognized as a person, just like any one else. We need to provide awareness about people with disabilities. Students and adults with disabilities can be hidden away in the world and are not always given a chance to spend time with people without disabilities.†¦show more content†¦In to many cases people with a disability a judged and underestimated. Hopefully when people spend time with them they will understand that a person with a disability can do anything anyone else can just in a different way. I want people to understand that judging people is never right. Be A Friend is the way we propose to address this problem. The intent of Be A Friend is simple: educate people about people with disabilities, and give people with disabilities a chance to expand their friendships. It takes one person to start the change. The way to do this is by making friends. Have people with and without disabilities spend time with each other. By doing this, people may understand that someone with a disability is just a person. It will also, expand the knowledge of a person with a disability on the idea of what friend is. The goal is to make friends. The outcome is expanding the worlds knowledge of people with disabilities. Be a Friend is a new organization that is currently focused in the Saint Cloud area. The mission of this organization is to give people with disabilities a chance to grow, explore and have fun with people who are there because they want to be. By doing this, the organization also hopes to expand awareness to the community about people with disabilities. The organization hopes that in a few years, once it has made progressShow MoreRelatedMy Personal Philosophy of Special Education Essay1034 Words   |  5 PagesMy personal philosophy of special education drives not from teaching in the field, but from, observations, and personal experience, and the workshops I attended. I have had the opportunity to work with individuals with special needs in many different settings, all this help cultivate my knowledge in handling the needs of the special needed student. Special needs students have the ability to learn, to function, to grow, and most importantly to succeed. The difference comes i nto how they learn orRead MoreExploring Inquiry Based Spatial Sense Activities1236 Words   |  5 PagesDevelopmental Disabilities to Improve Number Sense Development In 1983, President Reagan’s administration released the publication, A Nation at Risk: The Imperative for Educational Reform. Since then, the American educational system has been undergoing an all-encompassing paradigm shift. Subsequently, our political leaders have championed two initiatives, No Child Left Behind and Common Core State Standards. Both are designed to hold school districts and teachers accountable for the education of America’sRead MoreMy Personal Philosophy Of Education1027 Words   |  5 PagesEvery school teacher has their own set of related beliefs--a philosophy of education--that influences what and how students are taught. A philosophy of education represents answers to questions about the purpose of schooling, a teachers role, and what should be taught and by what methods. I truly believe that every student can learn when given the right tools to do so. There is much more to it than just giving them the opportunity. Students need to be given a n environment where they are free toRead MoreMy Philosophy Of Education As A Education864 Words   |  4 Pagesdifferent philosophy of education, and what purpose education serves in a child’s life. The five philosophies of education that we recognize are: Essentialism, Perennialism, Progressivism, Social Reconstructionism, and Existentialism. I would most recognize my philosophy of education as Essentialism. Essentialism has been a dominant influence in American education since World War II. It focuses on core curriculum of traditional academic topics. I believe that the purpose of education is teachingRead More The Importance of Inclusive Education in Australia Essay808 Words   |  4 PagesAs a child It was constantly stated to me by my family and teachers â€Å"If everyone was the same, what a boring place the world would be† a famous quote by an unknown author about celebrating individual differences. Difference is defined by Ashman and Elkins; as varying levels of social, emotional, physical and intellectual qualities that make us all different from other people (Ashman Elkins, 2009). In today’s world this is viewed as society’s version of normality (Ashman Elkins, 2009). InclusionRead MoreEvery Individual Has Goals Whether It Be Personal Or Career1628 Words   |  7 Pagesagree with the reason why people pursue such their goal. However, I think that my mos t important goal is quite far from such goal which ordinary people pursue. I said that because recently I had to evaluate myself on what I really wanted to accomplish and why? Then I realized that my most important goal is attaining my Master degree. I know am on the right path to carry out my goal on becoming a better teacher and education coordinator. I plan to achieve this goal through academics and work experienceRead MoreBenefits Of The Inclusive Classroom Model1287 Words   |  6 PagesInclusive classrooms are general education classroom in which students with and without disabilities learn together. It is essentially the opposite of an isolated special education classroom, where students with disabilities learn only with other students with disabilities. Inclusion represents the philosophy that students with disabilities should be integrated into regular education classrooms whether they can meet traditional curricular standards or not. This philosophy brings diverse stud ents, familiesRead MoreSpecial Education Reflection1329 Words   |  6 PagesWang Lehigh University Special Education 332 (Education and Inclusion of Individuals with Special Needs) has been enlightening for me as a secondary mathematics educator. In the beginning of the semester, my feelings towards special education were those of apathy and insensitivity. I now understand that my feelings were due to my lack of knowledge and my judgment based on stereotypes. I always knew that making fun of students with learning disabilities was wrong. However, I never felt thatRead MoreThe Teaching Philosophy of Exceptional Children1379 Words   |  6 PagesThe teaching philosophy of exceptional children: My teaching career has been spent learning how to provide appropriate support, guidance, patience, understanding, as well as to enhance academic growth success, for all students. My purpose as a teacher is to enrich and inspire the lives of young students with moderate/intensive needs by providing access to information instead of functioning as the primary source of information for students to flourish. My teaching methods will be to createRead MoreEssay on Special Education Reflection1336 Words   |  6 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;Special Education 332 (Education and Inclusion of Individuals with Special Needs) has been enlightening for me as a secondary mathematics educator. In the beginning of the semester, my feelings towards special education were those of apathy and insensitivity. I now understand that my feelings were due to my lack of knowledge and my judgment based on stereotypes. I always knew that making fun of students with learning disabilities was wrong. However, I never felt that inclusion of special education students

The Other Wes Moore - 1029 Words

â€Å"This is a story of two boys living in Baltimore with similar histories and an identical name: Wes Moore. One of us is free†¦ The other will spend every day until his death behind bars...† (Moore, XI) In The Other Wes Moore, the author, Wes Moore, and the other Wes Moore both grew up in similar, yet different, circumstances and had completely different outcomes. This captivating narrative demonstrates how the choices you make, make you. In the introduction, the author Wes Moore validates this statement by saying, â€Å"The chilling truth is that his story could have been mine. The tragedy is that my story could have been his.† (Moore XI) The author, Wes Moore, shows the readers that a person’s environment, circumstances, education (or lack†¦show more content†¦The other Wes Moore is also considered to be deviant by his poor decision-making and careless choices. He dropped out of school, sold drugs, participated in a robbery of a jewelry store, and was a convicted murderer with a life sentence. There was many sociological factors that led to the other Wes Moore’s deviant behavior; the absence of his father being an important factor. Although both the author Wes Moore and the other Wes Moore grew up without a father, it affected the other Wes Moore a little more considering the fact that his father chose not to be in his life. Also, Tony had a big impact on the decision he made for himself. Throughout the story, Wes would remember what Tony told him about demanding respect. â€Å"Send a message,† And Wes would do as Tony said. The problem with the other Wes Moore was that he lacked positive influences in his life and he had no motivation to live a better life until it was too late. Sociological imagination played a part in this story because the author Wes Moore made connections on how personal experiences relates to public issues. He grew up in poverty and maintained ambition to receive proper education. Thus this tells readers not to let where you came from or your downfalls hinder you from being successful. The Author Wes Moore displayed that education was the key to all future success. He also showed that there should always be a backup plan in case the funding runs out. In the book it wasn’t luck that determined the fates inShow MoreRelatedThe Other Wes Moore 1716 Words   |  7 PagesPresence of Parents There are about 7.5 billion people on Earth and out of all those people, no two are the same. This is due to many factors, some of which include geography, culture, and religion. In the book, The Other Wes Moore by Wes Moore, the author gives us an insight to his life and the life of another person who shares the same name. Not only do they share the same name, but they both also grew up in Baltimore around the same time. The author’s goal or purpose in writing this book wasRead MoreThe Other Wes Moore 1691 Words   |  7 PagesThe Other Wes Moore In the book, The Other Wes Moore by Wes Moore is about two kids with the same name that live two different backgrounds. Wes Moore is the author and tells his story of how successful he became, and the other Wes Moore is the antagonist in the book, which tells how his life went down the wrong path. The book shows the different phases of their lives, which have made them the people they are today. Wes Moore the author states, â€Å"The chilling truth is that his story could have beenRead MoreThe Other The Wes Moore1254 Words   |  6 Pagesdestiny. In â€Å"The Other Wes Moore† there are two boys which share the same name, but do not quite share the same story. Both of the boys grew up without fathers and in a neighborhood financially struggling. Both mothers working and relying on their parents to watch their children. The author Wes Moore ended up turning into a scholar while the Other Wes Moore ended up being convicted and sentenced to prison. In the end both men made very different choices. The way the author Wes moore grew up andRead MoreThe Other Wes Moore 1676 Words   |  7 PagesThe autobiography The Other Wes Moore was written by a man who was comparing the lives of two men, the author himself and another man who, coincidentally, had the same name. In an attempt to eliminate any confusion, I need to clarify to which Wes Moore I am referring, so, I will refer to the author as Wes 1 and the other Wes Moore will be referred to as Wes 2. It took me a few minutes to decide what to call them since my initial reaction was to say Good Wes and Bad Wes. However, if this course onRead MoreThe Other Wes Moore1128 Words   |  5 Pageshard sometimes to distinguish between second chances and last chances† (Moore 67). This is a powerfully central theme to the book The Other Wes Moore, written by Wes Moore. For the two men this book is about, it all begins with a wide-open future. The mothers that gave birth to them and the influences they had, along with their o wn powerful choices, sealed their fate . People don’t ever stop growing or improving and the two Wes Moore’s are no different. Throughout their lives, they are constantly changingRead MoreThe Other Wes Moore 1668 Words   |  7 PagesThe book, The Other Wes Moore, by Wes Moore tells a story about two men with the same name and last name but with different outcomes. The author tells his story and the other Wes Moore’s story, how they started off in the same neighborhood and made similar choices but one ended up in prison for life and the other with his freedom. There are several reasons that the two Wes Moores ended up in different situations such as the way their mothers raised them and the different choices that were made byRead MoreThe Other Wes Moore Analysis1088 Words   |  5 Pages In the memoir, The Other Wes Moore, Wes Moore, Moore unfolds several events that happened in his own life, along with another man named Wes Moore. The two men were both born i n Baltimore, and faced similar obstacles because of the circumstances they were raised in. With the use of flashbacks, imagery, description, and other literary devices, Moore explains the life of him as a person who grows up to achieve what he wants, while the other Wes Moore spends most of his life in prison as he came toRead MoreAnalysis Of The Other Wes Moore1240 Words   |  5 Pagesmisfortunes and injustices. The Other Wes Moore perfectly exemplifies these exact afflictions that a multitude of people face in the United States, partially due to ethnicity or cultural background. The instances of poverty, economic injustice, drugs, and family influence in The Other Wes Moore contribute to significant findings in socioeconomic structure that relate to considerable matters in the present day. An in-depth analysis on the story of both Wes and Moore in the eyes of a student of NationalRead MoreAnalysis on The Other Wes Moore701 Words   |  3 Pages The Other Wes Moore The Other Wes Moore is a book about two children with similar lifestyles when they were growing up and the same names, but ending up in different places in their lives. The story is about the other Wes Moore, who was convicted of first degree murder and sentenced to life imprisonment and Wes Moore, the author, who faces poverty and has an ambition of receiving proper education (Moore, 2012). Wes Moore grew up in poor conditions, where he and his small family barely made endsRead MoreThe Other Wes Moore Essay751 Words   |  4 Pagesauthor, Wes Moore, begins life in a tough Baltimore neighborhood and ends up a Rhodes Scholar, Wall Streeter, White House Fellow, etc. The other Wes Moore starts in the same place in Baltimore but ends up in prison FOR LIFE. The parallels in their stories arent quite as compelling as they may appear initially. For example, the other Wes Moore spends a number of his developmental years living in the Bronx, NY, whereas his namesake never leaves Baltimore and its suburbs. Though Wes Moore

Marketing Analysis of Ecostore Marketing Mix

Question: Describe about the Marketing Analysis of Ecostore for Marketing Mix. Answer: Introduction This report discusses about one of the eco environment based company i.e. Ecostore. Ecostore is New Zealand based organization which and operates in health care and skin industry. In this report, analyses of marketing mix or marketing plan has been undertaken. Marketing mix is the plan that undertakes different aspects of marketing strategies of the business organisation. In this report, Ecostore is the companys marketing mix strategy has been analysed and results have been concluded. Main components of marketing mix strategy are product, pricing, promotion and distribution or place of the business organisation. Marketing mix of Ecostore has been compared with Johansson and Johansson. Recommendation has been provided to Ecostore regarding improvement of marketing mix for product to become more competitive in the market place. Marketing background of Ecostore About company Ecostore is the leading company and has implemented eco friendly practices in its production and other aspects of business operations. Ecostore started their business with some limited product line and now they had reached to sky with their USP i.e. eco friendly material being used in products. Ecostore is engaged in different types of product and services that they provide to their customer. Product and service line of Ecostore includes; laundry products, skin care, dish products, hair products and services, home care and ultra sensitive products and services. In 1997, Ecostore has moved to Auckland them their first retail store and back. Marketing background of Ecostore is its customer loyalty that they had achieved through green marketing and eco friendly business operations. Since Ecostore is involve in health care and skin care business operations, this makes it more responsible towards not using dangerous chemicals and toxic substances. In their product promotion activities they use their USP i.e. being eco friendly, support green revolution and take care of health of their customers (Dobbs, 2014). In health and skin care industry Ecostore has positioned themselves as different business organization from others in terms of its USP. Sustainable practices had been adopted by Ecostore in their business operations. Sustainable practices can be defined as the practices that are undertaken in a manner and with special care that protects global and domestic resource. Ecostore has been involved in such practices that support eco friendly and healthier practices while undertaking production process. They use optimum resources for their business operations and addresses issues that society faces from using skin care products (Nakhchian et al., 2012). Marketing strategies Marketing strategy is the strategy that is made by the business organization for its effective development of marketing plan. In marketing strategy or marketing plan there are four main elements i.e. product, price, promotion and place (Brei et al,, 2011). Marketing manager of organization is required to address issues related to these four elements and able to develop effective marketing plan. In case of Ecostore following is its marketing strategy: Products / services Products are made or manufactured by eco friendly material and without using dangerous chemical and toxics which causes many skin problems (Standardized marketing mix 2016,). Following are some products and services of Ecostore: Laundry- Wool and delicates, soaker and stain remover, laundry liquid, etc. all these products are made up of organic material and do not include any dangerous substances. Skin care- this product line includes body lotion, body butter and hand cream. This product line requires special packing and distribution materials so that it reaches safely to the customers. Hair products- Shampoo and conditioner are two main product lines under this product category. On the basis of positioning strategy, Ecostore has developed this product since hair products are widely used product therefore this requires better analysis of how to create differentiation. Ecostore has achieved differentiation advantage under its positioning strategy by making its product safer and healthier by adopting sustainable practices. Home Products- One more product line of Ecostore is home care products which involves many product that is required for cleansing home. This product line of Ecostore has sprayers, liquid scourer, multi-purpose concentrate, etc. As a producer of sustainable product maker, Ecostore has to consider sustainability in term of material procurement, what ingredients have been used in product and process of manufacturing the product (Londhe, 2014). In production process, Ecostore uses organic material; procure material from local market, reducing carbon footprint has been achieved from distribution method of Ecostore. Pricing Price of the product is the monetary consideration that business organization receives from its customers. Pricing of product is based on product attributes, its usefulness and on the basis of worth of product. Pricing strategy under marketing mix plays important role as price is the first element of product that customer seeks (Kaye, 2013). For business organization like Ecostore and other, pricing has always been issue for the management and management accountant of Ecostore. Ecostore has been involved in the manufacturing of organic products, sustainable products and green products. Therefore it is very much difficult for Ecostore to keep product price at lower side (Nazari-Shirkouhi et al., 2013). Most of ingredients and material that is used in the production process are grown by themselves. These materials are organic, chemical free and no use of toxic substances therefore price of these materials is at higher side. It creates gap between normal skin care product and green or s ustainable product and this price gap is known as green pricing gap (Niraj and Siddarth, 2014). Material cost, labor cost, overhead cost, factory overheads and other fixed cost are some price attributes of Ecostore products. Price skimming is the pricing strategy of products that Ecostore uses to determine price of product. Under price skimming strategy, product will be set at higher price range so as to cover all cost involved including desired profit margin. It has been observed that customer is willing to pay more price of product because of its high quality (Cruz et al., 2010). Promotion Promotion is most important element of marketing mix because under promotion strategy business organisation will be able to introduce its products and its advantages to prospective customers. Promotion element of market mix can be defined as the communication link or tool between business organisation and its customer base. In case of Ecostore, promotion has become most important aspect for its business products. As Ecostore has been selling products with some unique features and some peculiar attributes, therefore it became most important factor for them to communicate advantages with its customers. Branding and brand development is the major outcome of promotion that Ecostore or other company undertakes (Haughton et al., 2015). In case of Ecostore, management tries to develop brand positioning strategy as healthy food keeps people healthy and use of organic materials and chemical free substance. Personal selling and sales promotion are two major factors for the promotion strategy. Face to face and over the counter selling stagey were adopted by Ecostore (Luca and Suggs, 2010). They offer seasonal discounts, free sample of first products, online promotion campaign for discounts, etc. Distribution Place of promotion or setting distribution channels is most important aspect for Ecostore as this will establishes contact point with customers (Talpau, 2014). Ecostore has established some retail stores so that customers can find it easy to purchase their products. Apart from physical retail store, Ecostore has established online interaction system or online ordering system for their customers. As an eco friendly or sustainable practices, Ecostore has build energy efficient retail stores, using solar panels in their stores and many other practices has been adopted by Ecostore. Ecostore has been involved many intermediaries in their distribution channel (Pralea, 2011). Apart from selling products, Ecostore has also some marketing agents and first level and second level distributors within its distribution list. Distribution element of marketing mix also requires consideration of packing and moving of products. Ecostore is engaged in manufacturing and selling organic (free from chemic al and toxic substances), therefore packing and distribution become important aspect of same. Environmental packing has been introduced and used by Ecostore, under which they are using Carbon Captured Pak. Carbon Captured Pak are made up of renewal material that can be used for multiple times. Management has put more focus on packing material that can be 100 % reusable and are used for more convenience of customers (Moser and Wohlfarth, 2009). Comparison of marketing mix with competitors There are different aspects of marketing mix or marketing plan that each and every business organisation undertaken according to its business operations. In case of Ecostore involved in health and skin care industry, there are many competitors at market place. There are some giant businesses organisations like Johnson and Johnson, Pfizer and AstraZeneca are some competitors that Ecostore has. Different business organisation or competitor has different marketing mix or marketing plan that supports their business products and other business operations. Company Product Price Promotion Place / Distribution Ecostore Organic products with suitability characteristics. Ecostore is involved in much product line and it almost covers each and every aspect of skin care and health industry. Pricing of Ecostore is at higher side because of quality material and end product quality is of premium. Ecostore has adopted personal selling and sales promotion as promotion strategy for its product line. There is less intermediaries involve in Ecostore distribution system. Marketing agent is the key person that undertakes many activities for Ecostore. Johnson and Johnson Johnson and Johnson is one of the leading brands in term of health and skin care. It offers wide range of products and services to customers. But these are not organic in nature. As Johnson and Johnson is developed brand in the market place, therefore it enjoys premium pricing strategy in the market. Customers are ready to pay any amount for product of Johnson and Johnson. Johnson and Johnson undertake aggressive promotion tools into account. They use more of media for their promotional activities. TV advertisements, hoarding advertisements, etc are some promotional strategy elements of Johnson and Johnson (Ranjbar et al., 2012). Distribution channel of Johnson and Johnson is quite huge since it covers majority of market share. Recommendations for improvement of marketing mix In order to improve marketing plan Ecostore is required to make certain changes to it. Ecostore has some limitations in terms of its products and its prising strategies. Although products of Ecostore is very popular but are limited in terms of its attributes. Main element of Ecostores product is its use of organic material and organic nature. This has created some limitation in terms of useability and moveability of its products (Brooks and Simkin, 2012). On the other hand, pricing of its products is at higher side, which makes it unattractive to certain section of market. In terms of promotional strategy, Ecostore is required to undertaken some aggressive and vast coverage promotional tools. At present, promotional tools of Ecostore is not good enough to accommodate or attract vast section of society. In order to improve marketing mix or marketing plan of Ecostore in term of its product, following are some strategies shall be adopted: Product Modification- Ecostore can modify some attributes of its products so as make it more easy to use and increase usability. Changing characteristics or features of product can be treated as modification of product. Product characteristics or features can be modified only on three basis and they are; quality, appearance and functions (Luan and Sudhir, 2010). Ecostore has to rearrange some features of products so that they are able to attract more and more customers toward their products. Systematic or careful changes shall be undertaken by the management of Ecostore so that it does not hamper requirement of customers from the product. Change in functionality of the product may improve its functionality; product will became more convenient for its user and safer in terms of its usability. Product Mix Decision Modifying Mix Changing Mix Width- Changing mix width is process of changing wide verity of product line that business organisation has. Since Ecostore offers different types of products or involves different product line therefore they can change their product line as per the requirement of changing market and of its customers. They are producing many products of same product line, in this way they can shorter or increase their products in particular product line (Voina, 2004). Modifying Mix Consistency- Another measure that can be undertaken by Ecostore is to modify their mix consistency. Mix consistency in the product line can be defined as the situation of having different products with close usability or close functionality with each other. In case of Ecostore, they are involve in different product line having many different products in it and has close functionality level. Therefore Ecostore can change their or modify their products of particular product line (Sriram et al., 2006). Product Mix Decision- Another way to manage product mix or product in marketing mix or plan is to take decisions related to increase or decrease products in product line. Product mix is the decision that is taken on the systematic analysis of market or product performance of Ecostore. Product mix decision can also be taken on the basis of performance of product in the market and if that particular product is nor performing well using more resources of business organisation (Shen, 2014). Then in this case, product production shall be close to an end. In this manner, Ecostore has to shut down some its products so that perform better in the market. Conclusion From the above report it can be concluded that marketing mix is the most important element for business effectiveness. It can be concluded that Ecostore has been enjoying product differentiation strategy in terms of sits products. Ecostore has been involved in production and distribution of organic products, chemical and toxication free health and skin products. This unique feature of Ecostores products has made them different among other. After analysis of their marketing mix it can be analysed that pricing policy and promotion activities needs to be modified bit so as to attract vast population. It can be concluded that product mix decision, modifying mix consistency and changing mix width are some methods that shall be adopted by Ecostore to make changes in its product category. References Brei, V.A., D'Avila, L., Camargo, L.F. Engels, J. 2011, "The influence of adaptation and standardization of the marketing mix on performance: a meta-analysis", BAR - Brazilian Administration Review, vol. 8, no. 3, pp. 266-287. Brooks, N. Simkin, L. 2012, "Judging marketing mix effectiveness", Marketing Intelligence Planning, vol. 30, no. 5, pp. 494-514. Cruz, T.B., Wright, L.T. Crawford, G. 2010, "The menthol marketing mix: targeted promotions for focus communities in the United States", Nicotine tobacco research : official journal of the Society for Research on Nicotine and Tobacco, vol. 12 Suppl 2, no. Supplement 2, pp. S147-S153. Dobbs, M. 2014, "Guidelines for applying Porter's five forces framework: a set of industry analysis templates", Competitiveness Review, vol. 24, no. 1, pp. 32-45. Haughton, D., Hua, G., Jin, D., Lin, J., Wei, Q. Zhang, C. 2015, "Optimization of the promotion mix in the healthcare industry", International Journal of Pharmaceutical and Healthcare Marketing, vol. 9, no. 4, pp. 289-305. Kaye, K. 2013, "THE CASE OF THE MISSING BOBBLEHEADS; The Cleveland Indians' marketing-mix modeling revealed that the team needed more giveaway nights but fewer giveaways--so it's off with some bobbleheads", Advertising Age, vol. 84, no. 11, pp. 24. Londhe, B.R. 2014, "Marketing Mix for Next Generation Marketing", Procedia Economics and Finance, vol. 11, pp. 335-340. LUAN, Y.J. SUDHIR, K. 2010, "Forecasting Marketing-Mix Responsiveness for New Products", Journal of Marketing Research, vol. 47, no. 3, pp. 444-457. Luca, N.R. Suggs, L.S. 2010, "Strategies for the Social Marketing Mix: A Systematic Review", Social Marketing Quarterly, vol. 16, no. 4, pp. 122-149. Moser, R. Wohlfarth, S. 2009, "Supplier Base Management in the Indian Automotive Industry: Conceptual Framework and Empirical Analysis", South Asian Journal of Management, vol. 16, no. 1, pp. 63. Nakhchian, A., Ome Kolsom Zeraatgar Boorani Gorji, N. 2012, "Overall profitability of companies depending on optimal use of the marketing mix (4Ps) (McDonald's case study)", Interdisciplinary Journal of Contemporary Research In Business, vol. 4, no. 7, pp. 876. Nazari-Shirkouhi, S., Keramati, A. Rezaie, K. 2013, "Improvement of customers satisfaction with new product design using an adaptive neuro-fuzzy inference systems approach", Neural Computing and Applications, vol. 23, no. S1, pp. 333-343. Niraj, R. Siddarth, S. 2014, "Price customization and within-chain data do not mix", European Journal of Marketing, vol. 48, no. 1/2, pp. 360-379. Pralea, A. 2011, "THE HEALTH MARKETING MIX", Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, vol. 4, no. 1, pp. 43-50. Ranjbar, A., Iranzadeh, S. poursadegh, n. 2012, "The effects of marketing mix elements on Brand equity", New Marketing Research Journal, vol. 2, no. 3, pp. 155-172. Shen, A. 2014, "Recommendations as personalized marketing: insights from customer experiences", Journal of Services Marketing, vol. 28, no. 5, pp. 414-427. Sriram, S., Chintagunta, P.K. Neelamegham, R. 2006, "Effects of Brand Preference, Product Attributes, and Marketing Mix Variables in Technology Product Markets", Marketing Science, vol. 25, no. 5, pp. 440-456. standardized marketing mix 2016, , 6th edn, Oxford University Press. Talpau, A. 2014, "THE MARKETING MIX IN THE ONLINE ENVIRONMENT", Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, vol. 7, no. 2, pp. 53-58. Voina, A.A. 2004, "Optimal Dynamic Strategies for Stochastic Models of Marketing Promotion Mix", Cybernetics and Systems Analysis, vol. 40, no. 2, pp. 270-276.

Epsom salts Essay Example

Epsom salts Paper We can see clearly from these graphs that as the concentration increases so does the rate of reaction. From the relatively straight lines of best fit we can tell that the rate of reaction is continuous with each different concentration. Scientific Model: From these results we can tell that as the concentration of H2SO4; when increased in the solution of 20ml H2SO4 and H20 (Sulphuric acid and water -a neutral chemical in this experiment-) the higher the rate of impact between H2SO4 and Mg; and so higher the rate of reaction. Proving the prediction on the basis that the higher the concentration of a reactant is the higher the rate of reaction (Increase in H2SO4 concentration = Increase in the rate of reaction), by literally increasing the ratio of the reactant substance the rate of reaction is increased dramatically and the faster the products are released. Test of scientific model: The proof of this scientific model is seen in the way that the lines of best fit are straight showing that the concentration of a reactant is equally relational to the rate of reaction. We can also prove this by seeing that the higher the concentration of H2SO4 the higher the overall rate of reaction is (see the mean average graph). This shows us that the scientific model is accurate. Evaluations: The results from my experiment were a relative success, although there were some major anomalies, the individual concentration graphs and the mean average graph gave me enough information to come to some sort of a conclusion on whether my chosen factor has a bearing on the rate of reaction of magnesium and sulphuric acid to produce Epsom salts. The evidence I can give this can prove my prediction and the scientific model. We will write a custom essay sample on Epsom salts specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Epsom salts specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Epsom salts specifically for you FOR ONLY $16.38 $13.9/page Hire Writer On the whole the experiment was a success and mostly encountered anomalies that although quite large are not on such a large scale to stop me from reaching a good accurate conclusion. The worst anomaly in the whole experiment was on the 40% concentration experiment, although this anomaly can only be seen to its full extent in its individual graph: The large difference between Run-3 and the other runs is vast, this is lightly to be the result of human error like many of the other anomalies, most lightly reason being that the concentration of H2SO4 or the mass of Mg used in that run. This highlights that there is problems with the procedure and the accuracy of me and my groups experiment. The anomalies that are present in the experiment are overall minor but the reasons for there occurrence are relatively small in most cases apart from the result shown in run-3 of the 40% test. The main reasons can be split up into two main categories, procedure failure and equipment failure. I will not highlight the main problems: Procedure failure: 1. Considering that the levels of hydrogen being released where measured by eye via the measuring cylinder, leaving huge space for human error, there could have been some serious cases of misjudgment. This would make the results and the graphs slightly inaccurate. 2. The results may have been written or copied down inaccurately, giving a false set, resulting from minor to severe anomalies. 3. The magnesium may and lightly to of been weighted incorrectly, creating a higher or lower rate of reaction compared to the amount being tested. (this could have been the cause of the large anomalous results in the 40% concentration test) 4. The sulphuric acid was measured out in a rush and some confusion could have been caused and the wrong ration of H2SO4 and H20 may have been put into the measuring cylinder, resulting in anomalies. 5. The measurement of hydrogen might not have been accurate to the time intervals. 6. The measuring cylinder may not have been completely full of water, creating an overall inaccurate run. Equipment Failure: 1. There may have been a very small leak or an opening in stopper or in the side arm tubing, this would cause the results to be inaccurate. 2. The electronic scales may have been giving false measurements but this could also be due to human error or recording of the measurements given by the scales. 3. For the lower concentration (lower rate of reaction) runs. The large measuring cylinder used for collecting the results, may have been to large to get an accurate reading because of such small increases in hydrogen volume, it may have been wiser to use a smaller measuring cylinder for the lower concentrations, but this was only to be discovered after the experiment was completed. Extended investigation: Research: There are a number of ways that I could extend and improve this investigation, the one bellow should generate considerably more accurate results and cut down on the floors in procedure and equipment failure in the tests. This involves removing the large measuring cylinder, and the tub of water and replacing it with a gas syringe. This piece of equipment is made for measuring volumes of gas and so is perfect for such an experiment where we are measuring the amount of gas given off by a reaction. Diagram: The advantages for using this piece of equipment are: 1. The measurements are more accurate and than guesswork by eye. 2. Likely hood of it leakage or incorrect reading reduced. 3. Less equipment is used. (taking away the measuring cylinder with and the tub of water) I would also change the measurements of the chemicals to be moles so we can get accurate calculations and so we can tell if the experiment ran accurately by the amount of produce Hydrogen and MgSO4 are left at the end of the experiment. Revised Method and apparatus list: Apparatus:Â   Goggles Method: Set up apparatus as before BUT instead of preparing water with the upturned measuring cylinder, attach the gas syringe to the clamp stand and secure the end of the side arms delivery tube to it. Then continue the procedure as normal recording the results from the readings on the side of the gas syringe. Diagram: Conclusion: The experiment went well, at the end of the experiment, i am able to conclude that from the results given from the practical and from the research taken that my prediction is accurate. As the concentration of H2SO4 is increased so does the rate of reaction equally until either of the reactants are used up to the point that the concentration (of sulphuric acid) or the surface area (of the Magnisium because of the lack of molecules after most of them have reacted) . The conclusion states the facts originally shown in the prediction and those backed up in the observations in the scientific model after the experiment. The anomalies that occurred did not have any crucial bearing on the experiment as it does not require accuracy to a finite level as long as the results are moderately accurate I can come to a conclusion. 1 Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Patterns of Behaviour section.

Solution to cali ed crisis Essays - Susquehanna Valley, Free Essays

Solution to cali ed crisis Essays - Susquehanna Valley, Free Essays Solution to cali ed crisis The $1.4 billion of proposed cuts to California?s higher education have already prompted tuition increases in the UC, CSU, and community college systems, alongside mass layoffs and program cuts. Brown?s budget proposal freezes funding levels for kindergarten through high school (K-12). The unions and media have widely reported this as ?sparing? K-12 education, but the actual situation in schools shows that nothing has been ?spared.? Instead of desperately needed increases, Brown?s proposal will conditionally keep funding at current levels for the 2011-2012 school year. Due to increased attendance, a funding freeze results in lower amounts of spending per pupil. California is already ranked 47th in the nation in per pupil spending. If a set of regressive taxes are not approved by the voters, then billions will be cut from the already reeling education system. Perhaps most importantly, California?s schools will continue to decline even if ?spared,? as prior cuts continue to have their effect. Over the past three years $18 billion has been cut from California?s K-12 system. This has resulted in thousands of layoffs, increased class sizes, shortened school years, and either reduced or eliminated music and art programs. According to State Superintendent Torlakson, 58 percent of schools have cut educational materials, 48 percent have cut nursing and counseling staff, 35 percent have increased class sizes, and nearly half have reduced employee pay. Even with all these reductions, 174 out of 1,077 school districts will be insolvent within three years at the current level of funding. Unsurprisingly, these cuts have affected the districts covering low-income families the hardest. As state funding has dried up, schools have had to rely on local taxes or fundraising to maintain their programs and class sizes. As reported in the San Jose Mercury News, parents in the Cupertino Union School District managed to raise $2.5 million to keep student-teacher ratios at 20-1 for their youngest students. In districts where the community has not cobbled together enough to pick up the state?s slack, the ratio is routinely over 30-1. Beyond suffering more cuts, schools serving low-income communities have a higher proportion of inexperienced teachers, according to statistics gathered by the Center for the Future of Teaching and Learning (CFTL). Due to collective bargaining agreements with the teachers? unions, the last teachers hired are the first to be fired. During the current crisis, this has meant that in addition to suffering more cuts, poorer schools have had higher turnover rates as their low-seniority teachers are fired in greater numbers. This concentration of layoffs in poor communities reached an extreme pitch last year when over half the teachers at three middle schools in the Los Angeles area were laid off, sparking a case brought against the Los Angeles Unified School District by the American Civil Liberties Union. In one school, Liechty, a full 72 percent of the teachers received layoff notices.

ECOM AUTO BUSINESS Essay Example | Topics and Well Written Essays - 2750 words

ECOM AUTO BUSINESS - Essay Example Analyzing import Federal policy from the view point of agency’s interest and government’s interest will be important part of the study. The report will try to analyze ethical dilemma in terms of transparency, common interest and fairness to create sound argument to support Sara’s (V.P. of Sales for ECOM Auto) ethical dilemma. Finally the study will try to establish a valid recommendation by taking help of Nash equilibrium. Table of Contents Table of Contents 3 1.0 Lobbying 5 2.0 Responsible Lobbying 6 3.0 U.S.A Trade Laws- Trader’s View 7 3.1 Import Quota 7 3.2 Tariff Rate Quota (TRQ) 8 3.3 Voluntary Export Restraint (VER) 8 4.0 U.S.A Trade Laws- Government’s View 9 5.1 Ethical Dilemma 10 5.1.1 Fairness 10 5.1.2 Transparency 11 5.1.3 Common Good 11 6.0 Answer 2 12 6.1 Recommendation 12 6.1.1 Nash Equilibrium 12 1.0 Lobbying The exercise of lobbying comes in many forms in terms purpose and functionality. Although establishing theoretical definition o f the subject is a complex work but research scholars have tried to underline a theoretical concept of lobbying. They defined lobbying as an act to influence decision of government authority or legislators or public officials for or alongside a particular cause. The process comes in various formats. Various formats can be described in the following manner. 1- Submission of official responses to legislator or government over anticipated legislation. 2- Appointment of professional lobbyists to help the company to move forward in the lobbying process. 3- Participation of associations in membership process with other association in order to lobby for combined interests. 4- The association gets engaged in multi segment partnerships with other partners to promote higher values in lobbying condition. 5- The association creates campaigns in order to elect representative in the lobbying process. Common people or governments perceive lobbying as unethical strategic initiative while lobbying i n the field of business is common legitimate activity. Many of the business lobbying can be classified as against the common interest of people and often create hindrance in the way of sustainable development of society. Negative image about lobbying process is garnished by the absence of transparency in the process. Many companies use critical business legal jargons to define lobbying which ultimately creates barrier in understanding for common people. Stake holders and other interest groups do not equivalent influence over objectivity of lobbying process. Business communities are largely dependent on professional lobbyists in order to understand complex procedures of lobbying process. Complex lobbying process demands huge investment of capital and time in the process. 2.0 Responsible Lobbying Government or legislator acts as primary addressees for lobbying and must align the process with unbiased legal procedure in order to achieve sustainable development of the society. Governmen t can accomplish this by implementing rigorous gearstick against ‘improper and unethical influence’ to ensure that the discussion between business agency and them is aimed to achieve sustainable development of the society. Responsible lobbying is emerged as latest trend in the field of lobbying process. Companies use responsible lobbying process to construct successful long-standing relationships with public sector and civil society. Corporate and business agencies are trying to establish more visible and ethical lobbying process from the view point of public interest in order to gain trust from the majority of the society. Business agencies focus on various issues like creating sustainable social development for poor, managing environmental opportunities

Connection Between Substance Abuse and Crime Research Paper

Connection Between Substance Abuse and Crime - Research Paper Example Most importantly, however, is the fact that; when the net is cast widely, then it will trap everybody since if it is not addicted to alcohol and drug abuse, then, it is the resultant violence and crime associated with alcohol and substances abuse. Therefore, the interest in analyzing the subject of Substance Abuse, Alcohol, and Crime is derived from the fact that it is a social problem that has refused to go away for the longest time. Further, the need to study this subject emanates from the fact that it is a problem for all, and since everybody is affected by this subject, it important to engage it widely, since the existing laws and policy regulation framework does not seem to be effective in addressing the problem, creating a need to engage alternative means of addressing the problem. However, while substance abuse, alcohol, and crime is a serious menace for the nation, the specific area where the issue needs to be addressed is in the issue of alcohol and substance use by teens and young people, which results to juvenile crimes, while also affecting every aspect of their lives, such as their personal health, education, safety and security, relationships and addition (Musto, 1999). Nevertheless, the major risk is the connection that exists between alcohol or substance abuse and crime. The legal risks emanating from alcohol consumption and substance abuse by young people is high, and the chances of destroying the whole life ahead of the young people are high. The legal and policy framework in relation to the subject of substance abuse, alcohol, and crime is not favorable for deterring the access of alcohol and substances, and their consequent illegal use. The legal and regulatory framework has illegalized the possession, production, and distribution of drugs and sub stances, while the actual problem is not licensing, but the fact that such drugs and substances are available and accessible for use (NCADD, 2013).

Is action more important than knowledge Essay Example for Free

Is action more important than knowledge Essay Pablo Picasso once said that, Action is the foundational key to all success. In some ways I must agree with Picasso. To succeed in something of importance and value you must take action and not idle away as action speaks louder than words. Though knowledge is important because in some aspects as you cannot be illiterate about your cause if you wish to succeed. Knowledge is a key aspect of human beings. In order to advance in our society you must gain knowledge. Therefore to take action you must have a basis of information in order to be successful. You should not act in haste or proudness but rather develop your pool of information and make an informed decision to acquire your desired results, ignorance is the curse of God; knowledge is the wing wherewith we fly to heaven. Some may say that taking action is more important than acquiring knowledge. They may say that people may spend too much precious time on gaining knowledge and miss there time of action. History does not remember those who were knowledgeable but rather those who took action in a steadfast manner. Though I must disagree. History are full of those who carelessly and in alacrity took an ill-informed decision that was destructive on humanity. For example in when Lenin, the first leader of communist Russia died, his testament was not read out in public. This testament would have kicked Stalin out of the Communist Party and therefore would have stopped the mass murder that happened due to Stalins orders under his reign. Due to the ill-thought Trotsky and other high members of the Bolsheviks, the decision was to not read out the testament in public. This enabled Stalin to take power and soon Stalin became a despotic leader of the communist parties and created a terror in Soviet Russia as well as the rest of the world. Therefore I believe knowledge is of key importance. This is due to the timeless evidence of how acquiring knowledge is more important than taking knowledge, like the testament of Lenin and this story; There once was a man named Pars. He was thought to be slow as before making every decision he would sit and ponder about the connotations and effects this decision would have on him and his fellow classmates.

foolear Essay on the Fool in Shakespeares King Lear -- King Lear ess

Importance of the Fool in King Lear       Beginning in the late 17th century, producers of King Lear removed the Fool from productions of King Lear. He did not return until 1838. Producers greatly diminished both King Lear and Lear as a result.    One should notice the importance of the Fool very early in the play. In Scene 4, Lear asks for his Fool twice. The second time is just a few lines after the first. He seems to need his Fool urgently. Yet the Fool has been pining over the loss of Cordelia (1.4. ). Yet Lear orders the Fool to come to him.    Upon the Fool's arrival, one can see the Fool is a king of teacher to Lear (1.4. ). The Fool arrives and begins to teach Lear a speech. Also, when the King is going mad, he asks the advice of the Fool. Although Lear may not realize it, he constantly depends on the Fool.    In addition to advice and teaching, the Fool adds commentary on Lear's decision. He voices what many people are thinking-Lear is the Fool. In fact, the Fool calls Lear less than a fool. He calls him nothing (1.4. ). His constant comments shed...

Fraud Risk Management

Fraud risk management A guide to good practice 1 This guide is based on the fi rst edition of Fraud Risk Management: A Guide to Good Practice. The fi rst edition was prepared by a Fraud and Risk Management Working Group, which was established to look at ways of helping management accountants to be more effective in countering fraud and managing risk in their organisations. This second edition of Fraud Risk Management: A Guide to Good Practice has been updated by Helenne Doody, a specialist within CIMA Innovation and Development.Helenne specialises in Fraud Risk Management, having worked in related fi elds for the past nine years, both in the UK and other countries. Helenne also has a graduate certifi cate in Fraud Investigation through La Trobe University in Australia and a graduate certifi cate in Fraud Management through the University of Teeside in the UK. For their contributions in updating the guide to produce this second edition, CIMA would like to thank: Martin Birch FCMA, MBA Director – Finance and Information Management, Christian Aid.Roy Katzenberg Chief Financial Offi cer, RITC Syndicate Management Limited. Judy Finn Senior Lecturer, Southampton Solent University. Dr Stephen Hill E-crime and Fraud Manager, Chantrey Vellacott DFK. Richard Sharp BSc, FCMA, MBA Assistant Finance Director (Governance), Kingston Hospital NHS Trust. Allan McDonagh Managing Director, Hibis Europe Ltd. Martin Robinson and Mia Campbell on behalf of the Fraud Advisory Panel. CIMA would like also to thank those who contributed to the fi rst edition of the guide. About CIMACIMA, the Chartered Institute of Management Accountants, is the only international accountancy body with a key focus on business. It is a world leading professional institute that offers an internationally recognised qualifi cation in management accounting, with a full focus on business, in both the private and public sectors. With 164,000 members and students in 161 countries, CIMA is committed to upho lding the highest ethical and professional standards of its members and students.  © CIMA 2008. All rights reserved.This booklet does not necessarily represent the views of the Council of the Institute and no responsibility for loss associated to any person acting or refraining from acting as a result of any material in this publication can be accepted by the authors or publishers. Acknowledgements Fraud risk management: a guide to good practice 2 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fraud – its extent, patterns and causes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 1 What is fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 2 The scale of the problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. 3 Which businesses are affected? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. 4 Why do people commit fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1. 5 Who commits fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1. 6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk management – an overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 1 Wh at is risk management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 2 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 3 The risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2. 4 Establish a risk management group and set goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 5 Identify risk areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 6 Understand and assess the scale of risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 7 Develop a risk response strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 8 Implement the strategy and allocate responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 9 Implement and monitor suggested controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 10 Review and refi ne and do it again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 11 Information for decision making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 12 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Fraud prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 1 A strategy to combat fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 2 Developing a sound ethical culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. 3 Sound internal control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 1 Detection methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 2 Indicators and warnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 4. 3 Tools and techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Responding to fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 1 Purpose of the fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 2 Corpor ate policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 3 Defi nition of fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 4 Roles and responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 5 The response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 5. 6 The investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5. 7 Organisation’s objectives with respect to dealing with fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 8 Follow-up action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 9 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 1 2 3 4 5 3 Appendices Appendix 1 Fraud and the law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Appendix 2 Examples of common types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Appendix 3 Example of a risk analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Appendix 4 A sample fraud policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix 5 Sample whistleblowing policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Appendix 6 Examples of fraud indicators, risks and controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Appendix 7 A 16 step fraud prevention plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Appendix 8 Outline fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Appendix 9 Example of a fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Appendix 10 References and further reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Appendix 11 Listed abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Figures Figure 1 Types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 2 The fraud triangle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Figure 3 The CIMA risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Figure 4 Anti-fraud strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Figure 5 Ethics advice/services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Figure 6 Meth ods of fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Case Studies Case study 1 Fraud doesn’t involve just money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Case study 2 Size really doesn’t matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Case study 3 A breach of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Case study 4 Management risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Case study 5 A fi ne warning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Case study 6 Vet or regret? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Case study 7 Tipped off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Case study 8 Risk or returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Case study 9 Reporting fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Case study 10 TNT roots our fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 4 5 Periodically, the latest major fraud hits the headlines as other organisations sit back and watch, telling themselves that ‘it couldn’t happen here. ’ But the reality is that fraud can happen anywhere. While only relatively few major frauds are picked up by the media, huge sums are lost by all kinds of businesses as result of the high number of smaller frauds that are committed. Surveys are regularly carried out in an attempt to estimate the true scale and cost of fraud to business and society. Findings vary, and it is diffi cult to obtain a complete picture as to the full extent of the issue, but these surveys all indicate that fraud is prevalent within organisations and remains a serious and costly problem. The risks of fraud may only be increasing, as we see growing globalisation, more competitive markets, rapid developments in technology, and periods of economic diffi culty. Among other fi ndings, the various surveys highlight that: organisations may be losing as much as 7% of their annual turnover as a result of fraud †¢ corruption is esti mated to cost the global economy about $1. 5 trillion each year †¢ only a small percentage of losses from fraud are recovered by organisations †¢ a high percentage of frauds are committed by senior management and executives †¢ greed is one of the main motivators for committing fraud †¢ fraudsters often work in the fi nance function †¢ fraud losses are not restricted to a particular sector or country †¢ the prevalence of fraud is increasing in emerging markets. Introduction Despite the serious risk that fraud presents to business, any organisations still do not have formal systems and procedures in place to prevent, detect and respond to fraud. While no system is completely foolproof, there are steps which can be taken to deter fraud and make it much less attractive to commit. It is in assisting organisations in taking such steps that this guide should prove valuable. The original guide to good practice was based on the work of CIMA’s Fraud and Ri sk Management Working Group that was established as part of the Institute’s response to the problem of fraud. Since the publication of the original guide, we have continued to see high rofi le accounting scandals and unacceptable levels of fraudulent behaviour. This second edition of the guide includes updates to refl ect the many changes in the legal environment and governance agenda in recent years, aimed at tackling the ongoing problem of fraud. The guide starts by defi ning fraud and giving an overview of the extent of fraud, its causes and its effects. The initial chapters of the guide also set out the legal environment with respect to fraud, corporate governance requirements and general risk management principles. The guide goes on to discuss the key components of an anti-fraud strategy nd outlines methods for preventing, detecting and responding to fraud. A number of case studies are included throughout the guide to support the text, demonstrating real life problems th at fraud presents and giving examples of actions organisations are taking to fi ght fraud. Fraud risk management: a guide to good practice Management accountants, whose professional training includes the analysis of information and systems, can have a signifi cant role to play in the development and implementation of anti-fraud measures within their organisations. This guide is intended to help management accountants in that role and will also be seful to others with an interest in tackling fraud in their organisation. The law relating to fraud varies from country to country. Where it is necessary for this guide to make reference to specifi c legal measures, this is generally to UK law, as it would be impossible to include references to the laws of all countries where this guide will be read. It is strongly advised that readers ensure they are familiar with the law relating to fraud in their own jurisdiction. Although some references may therefore not be relevant to all readers, the general principles of fraud risk management will still apply and rganisations around the world are encouraged to take a more stringent approach to preventing, detecting and responding to fraud. 6 7 Defi nition of fraud The term ‘fraud’ commonly includes activities such as theft, corruption, conspiracy, embezzlement, money laundering, bribery and extortion. The legal defi nition varies from country to country, and it is only since the introduction of the Fraud Act in 2006, that there has been a legal defi nition of fraud in England and Wales. Fraud essentially involves using deception to dishonestly make a personal gain for oneself and/or create a loss for another. Although defi nitions vary, ost are based around these general themes. Fraud and the law Before the Fraud Act came into force, related offences were scattered about in many areas of the law. The Theft Acts of 1968 and 1978 created offences of false accounting, and obtaining goods, money and services by decept ion, and the Companies Act 1985 included the offence of fraudulent trading. This remains part of the Companies Act 2006. There are also offences of fraud under income tax and value-added tax legislation, insolvency legislation, and the common law offence of conspiracy to defraud. The Fraud Act is not the only new piece of legislation.Over the last few years there have been many changes to the legal system with regard to fraud, both in the UK and internationally. This guide focuses mainly on UK requirements, but touches on international requirements that impact UK organisations. In the UK, the Companies Act and the Public Interest Disclosure Act (PIDA) have been amended and legislation such as the Serious Crimes Act 2007 and the Proceeds of Crime Act 2002 (POCA) have been introduced. Internationally the Sarbanes-Oxley Act 2002 (Sarbox) has been introduced in the United States (US), a major piece of legislation that affects not only companies in the US ut also those in the UK and othe rs based all over the globe. Further information on these pieces of legislation can be found in Appendix 1. As well as updating the legislation in the UK, there have been, and will continue to be, signifi cant developments in the national approach to combating fraud, particularly as we see implementation of actions resulting from the national Fraud Review. Appendix 1 gives further information on the Fraud Review. There are also many law enforcement agencies involved in the fi ght against fraud in the UK, including the Serious Fraud Offi ce, the Serious Organised Crime Agency SOCA), the Financial Services Authority (FSA), and Economic Crime Units within the police force. Different types of fraud Fraud can mean many things and result from many varied relationships between offenders and victims. Examples of fraud include: †¢ crimes by individuals against consumers, clients or other business people, e. g. misrepresentation of the quality of goods; pyramid trading schemes †¢ em ployee fraud against employers, e. g. payroll fraud; falsifying expense claims; thefts of cash, assets or intellectual property (IP); false accounting †¢ crimes by businesses against investors, consumers and employees, e. g. i nancial statement fraud; selling counterfeit goods as genuine ones; not paying over tax or National Insurance contributions paid by staff †¢ crimes against fi nancial institutions, e. g. using lost and stolen credit cards; cheque frauds; fraudulent insurance claims †¢ crimes by individuals or businesses against government, e. g. grant fraud; social security benefi t claim frauds; tax evasion †¢ crimes by professional criminals against major organisations, e. g. major counterfeiting rings; mortgage frauds; ‘advance fee’ frauds; corporate identity fraud; money laundering †¢ e-crime by people using computers and technology to commit crimes, e. . phishing; spamming; copyright crimes; hacking; social engineering frauds. 1. 1 Wh at is fraud? 1 Fraud: its extent, patterns and causes Figure 1 Types of internal fraud Cash Non-cash Financial Non-fi nancial Confl icts of interest Bribery and extortion Asset misappropriation Fraudulent statements Corruption Internal fraud Fraud risk management: a guide to good practice 8 The fi nal of the three fraud categories is corruption. This includes activities such as the use of bribes or acceptance of ‘kickbacks’, improper use of confi dential information, confl icts of interest and collusive tendering. These types of internal fraud are summarised n Figure 1. Surveys have shown that asset misappropriation is the most widely reported type of fraud in UK, although corruption and bribery are growing the most rapidly. Further information on common types of internal fraud, and methods by which they may be perpetrated, is included in Appendix 2. This guide focuses on fraud against businesses, typically by those internal to the organisation. According to the Associa tion of Certifi ed Fraud Examiners (ACFE), there are three main categories of fraud that affect organisations. The fi rst of these is asset misappropriations, which involves the theft or misuse f an organisation’s assets. Examples include theft of plant, inventory or cash, false invoicing, accounts receivable fraud, and payroll fraud. The second category of fraud is fraudulent statements. This is usually in the form of falsifi cation of fi nancial statements in order to obtain some form of improper benefi t. It also includes falsifying documents such as employee credentials. 9 1. 2 The scale of the problem There have been many attempts to measure the true extent of fraud, but compiling reliable statistics around fraud is not easy. As one of the key aspects of fraud is deception, it can be diffi cult to identify and urvey results often only refl ect the instances of fraud that have actually been discovered. It is estimated that the majority of frauds go undetected and, even wh en a fraud has been found, it may not be reported. One reason for this may be that a company that has been a victim of fraud does not want to risk negative publicity. Also, it is often hard to distinguish fraud from carelessness and poor record keeping. Although survey results and research may not give a complete picture, the various statistics do offer a useful indication as to the extend of the problem. There can be no doubt that fraud is prevalent within organisations nd remains a serious issue. PricewaterhouseCooper’s Global Economic Crime Survey (PwC’s survey) in 2007 found that over 43% of international businesses were victims of fraud during the previous two years. In the UK, the fi gures were higher than the global average, with 48% of companies having fallen victim to fraud. Some surveys put the fi gures much higher. For example, during 2008, Kroll commissioned the Economist Intelligence Unit (EIU) to poll nearly 900 senior executives across the world. The EIU found that 85% of companies had suffered from at least one fraud in the past three years1. This fi gure had risen from 80% in a imilar poll in 2007. KPMG’s Fraud Barometer, which has been running since 1987, has also shown a considerable increase in the number of frauds committed in the UK in recent years, including a 50% rise in fraud cases in the fi rst half of 2008. According to the UK report of PwC’s survey, the average direct loss per company over a two year period as a result of fraud has risen to ? 1. 75 million, increasing from ? 0. 8 million in the equivalent 2005 survey. These fi gures exclude undetected losses and indirect costs to the business such as management costs or damage to reputation, which can be signifi cant. Management costs lone were estimated to be on average another ? 0. 75 million. Participants of the ACFE Report to the Nation 2008 (ACFE report) estimated that organisations lose 7% of their annual revenues to fraud. It is diffi cult to put a total cost on fraud, although many studies have tried to. For example an independent report by the Association of Chief Police Offi cers (the ACPO) in 2007 revealed that fraud results in losses of ? 20 billion each year in the UK. The World Bank has estimated that the global cost of corruption and bribery is about 5% of the value of the world economy or about $1. 5 trillion per year. It is thought that these stimates are conservative, and they also exclude other types of fraud such as misappropriation of assets. While it may be impossible to calculate the total cost of fraud, it is said to be more signifi cant than the total cost of most other crimes. According to the Attorney General in the UK, fraud is an area of crime which is second only to drug traffi cking in terms of causing harm to the economy and society2. 1 Kroll Global Fraud Report, Annual Edition 2008/2009 2 Attorney General’s interim report on the government’s Fraud Review, March 2006 Fraud risk managemen t: a guide to good practice 10 Case study 1 Fraud doesn’t just involve moneyCounterfeiting is one example of fraud that can have extremely serious consequences. Technology is ever improving, making it easier for counterfeiters to produce realistic looking packaging and fool legitimate wholesalers and retailers. Counterfeiting is a potentially lucrative business for the fraudster, with possibilities of large commercial profi ts, and it is a problem affecting a wide range of industries including wines and spirits, pharmaceuticals, electrical goods, and fashion. However, there are often many victims affected by such a fraud and not just the business that has been duped or had their brand exploited.For some, the outcome of counterfeiting goes way beyond fi nancial losses and can even be fatal: †¢ In late 2006, 14 Siberian towns declared a state of emergency due to mass poisonings caused by fake vodka. Around 900 people were hospitalised with liver failure after drinking indu strial solvent that was being sold as vodka. This is not a one off problem and sales of fake alcohol have been known to kill people. †¢ Also in 2006, a counterfeit product did result in more tragic consequences. At least 100 children died after ingesting cough syrup that had been mixed with counterfeit glycerine.The counterfeit compound, actually a dangerous solvent, had been used in place of more expensive glycerine. The manufacturing process had been sourced to China and the syrup passed through trading companies in Beijing and Barcelona before reaching its fi nal destination in Panama. The certifi cate attesting to the product’s purity was falsifi ed and not one of the trading companies tested the syrup to confi rm its contents along the way. It is thought that the number of deaths is likely to be much higher than the 100 cases that have been confi rmed. Fraud is often mistakenly considered a victimless rime. However, fraud can have considerable social and psychologic al effects on individuals, businesses and society. For example, when a fraud causes the collapse of a major company, numerous individuals and businesses can be affected. In addition to the company’s own employees, employees of suppliers can be affected by the loss of large orders, and other creditors, such as banks, can be indirectly affected by huge losses on loans. Consumers have to pay a premium for goods and services, in order to compensate for the costs of fraud losses and for money spent on investigations and additional security.Taxpayers also suffer due to reduced payments of corporation tax from businesses that have suffered losses. Fraud drains resources, affects public services and, perhaps of more concern, may fund other criminal and terrorist activity. According to the Fraud Review, fraud is a major and growing threat to public safety and prosperity. Case study 1 demonstrates just how much of a threat fraud can be to public safety and that there truly are victims of fraud. 11 1. 3 Which businesses are affected? Fraud is an issue that all organisations may face regardless of size, industry or country. If the rganisation has valuable property (cash, goods, information or services), then fraud may be attempted. It is often high profi le frauds in large multi-national organisations that are reported on in the media and smaller organisations may feel they are unlikely to be a target of fraudsters. However, according to the ACFE report, small businesses (classifi ed as those with less than 100 employees) suffer fraud more frequently than large organisations and are hit by higher average losses. When small companies are hit by large fraud losses, they are less likely to be able to absorb the damage han a larger company and may even go out of business as a result. The results of PwC’s survey showed that companies reporting fraud were spread across many industries, with at least a quarter of the respondents in any one industry suffering from f raudulent incidents. Industries suffering the highest average losses were insurance and industrial manufacturing. Losses in the fi nancial services industry, a sector frequently in the press and one with which fraud is often associated, were actually below average. Even not-for-profi t organisations are not immune to fraud, with government institutions nd many charities falling victim to unscrupulous fraudsters. As one director working in the international development and aid sector has pointed out, ‘In my sector, fraud is not a possibility, it is a reality and we are always dealing with a number of suspicious incidents on a more or less permanent basis. ’ PwC’s survey also revealed that incidences of fraud were highest in companies in North America, Africa and Central and Eastern Europe (CEE), where more than half of the companies reported fraud. It was lowest in the Western European region, although the UK was uch higher than the average for this region, with l evels of fraud similar to those in CEE. The EIU poll commissioned by Kroll in 2007 found that respondents in countries such as India and China have seen a signifi cant increase in the prevalence of corporate fraud in the last three years and this trend is likely to increase in businesses operating in emerging markets3. Although fraud is prevalent across organisations of all sizes and in all sectors and locations, research shows that certain business models will involve greater levels of fraud risk than others. The control environment hould be adjusted to fi t with the degree of risk exposure. Further guidance on risk assessment and controls is given in later chapters. 3 Kroll Global Fraud Report, Annual Edition 2007/2008 Fraud risk management: a guide to good practice 12 Case study 2 Size really doesn’t matter From a family affair†¦ A member of a small family business in Australia committed a $2m fraud, costing profi ts, jobs and a great deal of trust. The business owner s became suspicious when they realised that their son in law used the company diesel card to buy petrol for his own car.On closer scrutiny, they soon uncovered a company cheque for $80,000 made payable to the son in law’s personal account. BDO’s Brisbane offi ce discovered that the cheque and the fuel were just the tip of a vast iceberg. The company’s complex accounts system allowed the son in law to disguise cheques payable to himself as creditor payments. He then became a signatory and took ever larger cheques. He claimed that the poor cash fl ow was due to losses in one particular division which the family therefore closed, creating redundancies and losing what was in truth a successful business.The costs of ineffi cient accounting systems and undue trust can be massive. Every business should protect itself with thorough controls and vigilance. Adapted from ‘FraudTrack 5 Fraud: A Global Challenge’ published by BDO Stoy Hayward †¦ to a major corporate scandal WorldCom fi led for bankruptcy protection in June 2002. It was the biggest corporate fraud in history, largely a result of treating operating expenses as capital expenditure. WorldCom (now renamed MCI) admitted in March 2004 that the total amount by which it had misled investors over the previous 10 years was almost US$75 billion (? 2 billion) and reduced its stated pre-tax profi ts for 2001 and 2002 by that amount. WorldCom stock began falling in late 1999 as businesses slashed spending on telecom services and equipment. A series of debt downgrades raised borrowing costs for the company, struggling with about US$32 billion in debt. WorldCom used accounting tricks to conceal a deteriorating fi nancial condition and to infl ate profi ts. Former WorldCom chief executive Bernie Ebbers resigned in April 2002 amid questions about US$366 million in personal loans from the company and a federal probe of its accounting practices.Ebbers was subsequently charged with conspir acy to commit securities fraud and fi ling misleading data with the Securities and Exchange Commission (SEC) and was sentenced to 25 years in prison. Scott Sullivan, former Chief Financial Offi cer, pleaded guilty to three criminal charges and was sentenced to fi ve years in prison. Ultimately, losses to WorldCom shareholders were close to US$180 billion and the fraud also resulted in the loss of 17,000 jobs. The SEC said that WorldCom had committed ‘accounting improprieties of unprecedented magnitude’ – proof, it said, of the need for reform in the regulation of corporate ccounting. Adapted from CIMA Offi cial Learning System, Management Accounting Risk and Control Strategy 13 1. 4 Why do people commit fraud? There is no single reason behind fraud and any explanation of it needs to take account of various factors. Looking from the fraudster’s perspective, it is necessary to take account of: †¢ motivation of potential offenders †¢ conditions unde r which people can rationalise their prospective crimes away †¢ opportunities to commit crime(s) †¢ perceived suitability of targets for fraud †¢ technical ability of the fraudster expected and actual risk of discovery after the fraud has been carried out †¢ expectations of consequences of discovery (including non-penal consequences such as job loss and family stigma, proceeds of crime confi scation, and traditional criminal sanctions) †¢ actual consequences of discovery. A common model that brings together a number of these aspects is the Fraud Triangle. This model is built on the premise that fraud is likely to result from a combination of three factors: motivation, opportunity and rationalisation. Motivation In simple terms, motivation is typically based on either reed or need. Stoy Hayward’s (BDO) most recent FraudTrack survey found that greed continues to be the main cause of fraud, resulting in 63% of cases in 2007 where a cause was cited. Other causes cited included problems from debts and gambling. Many people are faced with the opportunity to commit fraud, and only a minority of the greedy and needy do so. Personality and temperament, including how frightened people are about the consequences of taking risks, play a role. Some people with good objective principles can fall into bad company and develop tastes for the fast life, which empts them to fraud. Others are tempted only when faced with ruin anyway. Opportunity In terms of opportunity, fraud is more likely in companies where there is a weak internal control system, poor security over company property, little fear of exposure and likelihood of detection, or unclear policies with regard to acceptable behaviour. Research has shown that some employees are totally honest, some are totally dishonest, but that many are swayed by opportunity. Rationalisation Many people obey the law because they believe in it and/or they are afraid of being shamed or rejected by eople the y care about if they are caught. However, some people may be able to rationalise fraudulent actions as: †¢ necessary – especially when done for the business †¢ harmless – because the victim is large enough to absorb the impact †¢ justifi ed – because ‘the victim deserved it’ or ‘because I was mistreated. ’ Figure 2 The fraud triangle Motivation Opportunity The fraud triangle Rationalisation Fraud risk management: a guide to good practice 14 Case study 3 A breach of trust A good example of the fraud triangle in practice is the highly publicised case of the secretary that stole over ? . 3 million from her bosses at Goldman Sachs. Motivation There were some suggestions that Joyti De-Laurey originally started down her fraudulent path because of fi nancial diffi culties she found herself in before starting work at the investment bank. De-Laurey had previously run her own sandwich bar business, but it was closed down due to ins uffi cient fi nances. According to her defence, De-Laurey’s ‘fi rst bitter experience of fi nancial turmoil coincided with a novel introduction to a Dallas-type world where huge, unthinkable amounts of money stared her in the face, day in and day out. The motive behind the fraud was primarily greed though, with De-Laurey spending her ill gotten gains on a luxury lifestyle, including villas, cars, jewellery, designer clothes and fi rst class holidays. De-Laurey has even admitted that she did not steal because she needed to, but because she could. She explained that she fi rst started taking money simply to fi nd out if she could get away with it. She says that it then became ‘a bit addictive’ and that she ‘got a huge buzz from knowing they had no idea what I was doing. ’ Opportunity In terms of opportunity, De-Laurey’s bosses trusted her and held her in high regard.She had proved herself indispensable, on both business and personal fronts , and was given access to their cheque books in order to settle their domestic bills and personal fi nances. A little over a year after starting at Goldman Sachs, De-Laurey began forging her bosses’ signatures on personal cheques to make payments into her own accounts. Realising she had got away with it, De-Laurey continued to steal money by issuing forged cheques and making false money transfers. Before long she was forging signatures on a string of cash transfer authorities, siphoning off up to ? 2. million at a time from supposedly secure New York investments. Rationalisation De-Laurey was able to rationalise her actions by convincing herself that she had earned the money she stole. De-Laurey believed that she deserved the plundered amounts as a just reward for her dedication, discretion and loyalty, and claims that she had the consent of her bosses to take money in return for her ‘indispensable services’. The fact that they were so rich they did not even noti ce the money was missing, only served to fuel De-Laurey’s fraudulent activities. She justifi ed her actions through the belief that her bosses had cash to spare.According to De-Laurey; ‘They could afford to lose that money. ’ Caught out After four years of siphoning off vast amounts of money, De-Laurey was eventually caught when her boss at the time decided to make a six-fi gure donation to his former college. He took a look at his bank accounts to see if he could cover the donation and was surprised to fi nd the balance on the accounts so low. He investigated further and realised that large sums had been transferred to an unknown account. De-Laurey was the obvious suspect. By this time, De-Laurey had actually stolen around ? 3. 3 million from this particular boss.De-Laurey was the fi rst woman in the UK to be accused of embezzling such a large sum and, after a long and high profi le trial in 2004, she was sentenced to seven years imprisonment. Various sources in cluding The Guardian, The Times, The Independent and the BBC News 15 One of the most effective ways to tackle the problem of fraud is to adopt methods that will decrease motive or opportunity, or preferably both. Rationalisation is personal to the individual and more diffi cult to combat, although ensuring that the company has a strong ethical culture and clear values should help. These methods and principles are developed further in later hapters of this guide. 1. 5 Who commits fraud? Different types of fraudster Fraudsters usually fall into one of three categories: 1 Pre-planned fraudsters, who start out from the beginning intending to commit fraud. These can be short-term players, like many who use stolen credit cards or false social security numbers; or can be longer-term, like bankruptcy fraudsters and those who execute complex money laundering schemes. 2 Intermediate fraudsters, who start off honest but turn to fraud when times get hard or when life events, such as irritation at being passed over for promotion or the need to pay for care for a family ember, change the normal mode. 3 Slippery-slope fraudsters, who simply carry on trading even when, objectively, they are not in a position to pay their debts. This can apply to ordinary traders or to major business people. In 2007, KPMG carried out research on the Profi le of a Fraudster (KPMG survey), using details of fraud cases in Europe, India, the Middle East and South Africa. The ACFE carried out similar research on frauds committed in the US. These surveys highlight the following facts and fi gures in relation to fraudsters: †¢ perpetrators are typically college educated white male most fraudsters are aged between 36 and 55 †¢ the majority of frauds are committed by men †¢ median losses caused by men are twice as great as those caused by women †¢ a high percentage of frauds are committed by senior management (including owners and executives) †¢ losses caused by managers are ge nerally more than double those caused by employees †¢ average losses caused by owners and executives are nearly 12 times those of employees †¢ longer term employees tend to commit much larger frauds †¢ fraudsters most often work in the fi nance department, operations/sales or as the CEO. The ACFE report also found that the type of person ommitting the offence depends on the nature of the fraud being perpetrated. Employees are most likely to be involved in asset misappropriation, whereas owners and executives are responsible for the majority of fi nancial statement frauds. Of the employees, the highest percentage of schemes involved those in the accounting department. These employees are responsible for processing and recording the organisation’s fi nancial transactions and so often have the greatest access to its fi nancial assets and more opportunity to conceal the fraud. Fraud risk management: a guide to good practice 16 Case study 4 Management riskIn 2007, a major British construction fi rm suffered from extensive fraud committed by management at one of its subsidiaries. Accounting irregularities dating back to 2003 were said to include systematic misrepresentation of production volumes and sales by a number of senior fi gures at the division. Management at the subsidiary attempted to cover their behaviour by selling materials at a discounted price and the fraud went undetected for several years despite internal and external audits. The irregularities were eventually uncovered by an internal team sent to investigate a mismatch between orders and sales.Following an initial internal investigation, a team of external experts and the police were brought in to identify the full extent of malpractice. The investigation found that the organisation was defrauded of nearly ? 23 million, but the fraud was said to cost the company closer to ? 40 million due to the written down value of the business and factoring in the cost of the investigation. The managing director of the subsidiary was dismissed, another manager faced disciplinary action and fi ve others left before disciplinary proceedings could be commenced. Civil proceedings were ruled out on the basis that osses were unlikely to be recovered. Operations at the centre of the incident had to be temporarily closed and more than 160 jobs were cut at the business. In addition to individual fraudsters, there has also been an increase in fraud being committed by gangs of organised criminals. Examples include false or stolen identities being used to defraud banks, and forms of e-fraud exploiting the use of internet by commercial businesses. SOCA is responsible for responding to such threats, with the support of the victim organisations. 1. 6 Summary A major reason why people commit fraud is because they are allowed to do so.There are a wide range of threats facing businesses. The threat of fraud can come from inside or outside the organisation, but the likelihood that a frau d will be committed is greatly decreased if the potential fraudster believes that the rewards will be modest, that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must be to establish a comprehensive system of control which aims to prevent fraud, and where fraud is not prevented, increases the likelihood of detection and increases the cost to the fraudster. Later chapters of this guide set out some of the easures which can be put in place to minimise fraud risks to the organisation. Before looking specifi cally at fraud risk, the guide considers risk management in general. Risk management is defi ned as the ‘process of understanding and managing risks that the entity is inevitably subject to in attempting to achieve its corporate objectives’ (CIMA Offi cial Terminology, 2005). For an organisation, risks are potential events that could infl uence the achievement of the organisation’s objectives. Risk management is about understanding the nature of such events and, where they represent threats, making positive plans to mitigate them. Fraud s a major risk that threatens the business, not only in terms of fi nancial health but also its image and reputation. This guide is primarily focused on managing the risk of fraud, but fi rst, this chapter looks at more general aspects of risk management and corporate governance. 17 2 Risk management – an overview Risk management is an increasingly important process in many businesses and the process fi ts in well with the precepts of good corporate governance. In recent years, the issue of corporate governance has been a major area for concern in many countries. In the UK, the fi rst corporate governance report and code of best practice s considered to be the Cadbury Report in 1992, which was produced in response to a string of corporate collapses. There have been a number of reports since, covering provisions around areas such as exec utive remuneration, non-executive directors, and audit committees. The principles of these various reports have been brought together to form the Combined Code on Corporate Governance (Combined Code). The Combined Code was fi rst introduced in 1998 and among other matters, calls for boards to establish systems of internal control and to review the effectiveness of these systems on a regular basis. UK isted companies are required to provide a statement in their annual reports confi rming that they comply with the Combined Code, and where they do not, they must provide an explanation for departures from it (the ‘comply or explain’ principle). The assessment of internal controls should be included in the report to shareholders. The Combined Code is reviewed regularly and the most recent version was published in June 2008. Following the original introduction of the Combined Code, the Turnbull Committee was set up to issue guidance to directors on how they should assess and report on their review of internal controls. TheTurnbull Committee made it clear that establishment of embedded risk management practices is key to effective internal control systems. The Turnbull guidance was fi rst published in 1999 and revised in 2005. In the revised report (sometimes referred to as Turnbull 2) there is now a requirement for directors to give explicit confi rmation that any signifi cant failings or weaknesses identifi ed from the review of effectiveness of internal controls have been, or are being, remedied. 2. 1 What is risk management? 2. 2 Corporate governance Fraud risk management: a guide to good practice 18 The Financial Reporting Council is responsible for aintaining and reviewing the Combined Code, although the Combined Code is annexed to the rules of the UK Listing Authority, which is part of the FSA. The FSA is responsible for ensuring that listed companies provide the appropriate ‘comply or explain’ statement in their annual report. While the guidance is generally applicable to listed companies, the principles are relevant to all organisations and have been widely used as a basis for codes of best practice in the public and not-for-profi t sectors. Fraud risk management practices are developing along the same lines. Many other countries have also produced reports on orporate governance, usually accompanied by codes of best practices. For example, South Africa has had the King Report (version I and now II) since 1994, Malaysia has had its Code of Corporate Governance in place since 2000 and Sri Lanka issued the Rules on Corporate Governance as part of its Listing Rules in January 2007. Corporate governance requirements in the US are now largely set out within the Sarbox legislation, further details on which are provided at Appendix 1. As previously mentioned, these requirements extend beyond the US, capturing any company that is SEC listed and its subsidiaries. Some other countries have lso introduced a statutory appr oach to corporate governance, such as that in the US, although none are currently as comprehensive. A number of international organisations have also launched guidelines and initiatives on corporate governance, including the Organisation for Economic Co-operation and Development (OECD) and the European Commission. An example of a growing area of corporate governance is IT governance, which has developed in light of rapid and continuing advances in information technology. The following box gives more information on IT governance. IT Governance IT governance is about ensuring that the rganisation’s IT systems support and enable achievement of the organisation’s strategies and objectives. It encompasses leadership, organisational structures, businesses processes, standards and compliance. There are fi ve specifi c drivers for organisations to adopt IT governance strategies: †¢ regulatory requirements e. g. IT governance is covered by the Combined Code and Turnbull gu idance in the UK †¢ increasing intellectual capital value that the organisation has at risk †¢ alignment of technology with strategic organisational goals †¢ complexity of threats to information security †¢ increase in the compliance requirements of nformation and privacy-related regulation. A key benefi t of an effective, integrated IT governance framework is the integration of IT into the strategic and overall operational approach of an organisation. There are a series of international Information Security (IS) standards that provide guidance on implementing an effective IT governance framework, known as the ISO 27000 series. For example, ISO/IEC 27001 defi nes a set of IS management requirements in order to help organisations establish and maintain an IS management system. The standards apply to all types of organisation regardless of size or sector.They are particularly suitable where the protection of information is critical to the business, for example in t he fi nance, health and public sectors, and for organisations which manage information on behalf of others, such as IT outsourcing companies. ISACA also offers a series of IS standards and certifi cation. ISACA is a leading global association in the IT governance and control fi eld. With a network across more than 160 countries, its IS standards are followed by practitioners worldwide. Figure 3 The CIMA risk management cycle Controls assurance Controls assurance is the process whereby controls are eviewed by management and staff. There are various ways to conduct these exercises, from highly interactive workshops based on behavioural models at one end of the spectrum to pre-packaged self audit internal control questionnaires at the other. These models all include monitoring and risk assessment among their principal components. 19 The risk management cycle is an interactive process of identifying risks, assessing their impact, and prioritising actions to control and reduce risks. A n umber of iterative steps should be taken: 1 Establish a risk management group and set goals. 2 Identify risk areas. Understand and assess the scale of risk. 4 Develop a risk response strategy. 5 Implement the strategy and allocate responsibilities. 6 Implement and monitor the suggested controls. 7 Review and refi ne the process and do it again. 2. 3 The risk management cycle Identify risk areas Review and refi ne process and do it again Implementation and monitoring of controls Implement strategy and allocate responsibilities Understand and assess scale of risk Develop risk response strategy Information for decision making Establish risk management group and set goals Fraud risk management: a guide to good practice 20 2. Establish a risk management group and set goals A risk management group should be established whose task it is to facilitate and co-ordinate the overall risk management process. Possible members of the group could include a chief risk offi cer, a non executive direc tor, fi nance director, internal auditor, heads of planning and sales, treasurer and operational staff. Depending on the size and nature of the organisation, the risk management group may be in the form of a committee who meet from time to time. The risk management group will promote the understanding and assessment of risk, and facilitate the evelopment of a strategy for dealing with the risks identifi ed. They may also be responsible for conducting reviews of systems and procedures to identify and assess risks faced by the business, which include the risk of fraud, and introducing the controls that are best suited to the business unit. However, line managers and their staff may also be involved in the risk identifi cation and assessment process, with the risk management group providing guidance. 2. 5 Identify risk areas Each risk in the overall risk model should be explored to identify how it potentially evolves through the organisation.It is important to ensure that the risk is c arefully defi ned and explained to facilitate further analysis. The techniques of analysis include: †¢ workshops and interviews †¢ brainstorming †¢ questionnaires †¢ process mapping †¢ comparisons with other organisations †¢ discussions with peers. Once risks have been identifi ed, an assessment of possible impact and corresponding likelihood of occurrence should be made using consistent parameters that will enable the development of a prioritised risk analysis. In the planning stage, management should agree on the most appropriate defi nition and number of categories to be used when ssessing both likelihood and impact. The assessment of the impact of the risk should not simply take account of the fi nancial impact but should also consider the organisation’s viability and reputation, and recognise the political and commercial sensitivities involved. The analysis should either be qualitative or quantitative, and should be consistent to allow compa risons. The qualitative approach usually involves grading risks in high, medium and low categories. Impact The assessment of the potential impact of a particular risk may be complicated by the fact that a range of possible outcomes may exist or that the risk may occur number of times in a given period of time. Such complications should be anticipated and a consistent approach adopted which, for example, may seek to estimate a worst case scenario over, say, a 12 month time period. Likelihood of occurrence The likelihood of a risk occurring should be assessed on a gross, a net and a target basis. The gross basis assesses the inherent likelihood of the event occurring in the absence of any processes which the organisation may have in place to reduce that likelihood. The net basis assesses the likelihood, taking into account current conditions and processes to mitigate he chance of the event occurring. The target likelihood of a risk occurring refl ects the risk appetite of the organisa tion. 2. 6 Understand and assess the scale of risk 21 Where the net likelihood and the target likelihood for a particular risk differ, this would indicate the need to alter the risk profi le accordingly. It is common practice to assess likelihood in terms of: †¢ high – probable †¢ moderate – possible †¢ low – remote. An example of a risk analysis is contained in Appendix 3. The resulting document is often referred to as a risk register. The overall risk registers at organisational nd operational levels should include the risk of fraud being perpetrated. Some organisations also prepare detailed fraud risk registers that consider possible fraudulent activity. The fraud risk register often directs the majority of proactive fraud risk management work undertaken by an organisation. Analysing fraud risks Fraud risk is one component of operational risk. Operational risk focuses on the risks associated with errors or events in transaction processing or ot her business operations. A fraud risk review considers whether these errors or events could be the result of a deliberate act designed to benefi t the perpetrator.As a result, fraud risk reviews should be detailed exercises conducted by teams combining in depth knowledge of the business and market with detailed knowledge and experience of fraud. Risks such as false accounting or the theft of cash or assets need to be considered for each part of the organisation’s business. Frequently, businesses focus on a limited number of risks, most commonly on thirdparty thefts. To avoid this, the risks should be classifi ed by reference to the possible type of offence and the potential perpetrator(s). Fraud risks need to be assessed for each area and process of the business, for example, cash payments, ash receipts, sales, purchasing, expenses, inventory, payroll, fi xed assets and loans. Fraud risk management: a guide to good practice 22 2. 7 Develop a risk response strategy Once the ri sks have been identifi ed and assessed, strategies to deal with each risk identifi ed can be developed by line management, with guidance from the risk management group. Strategies for responding to risk generally fall into one of the following categories: †¢ risk retention (e. g. choosing to accept small risks) †¢ risk avoidance (e. g. stopping sale of certain products to avoid the risk to occurring) †¢ risk reduction (e. g. hrough implementing controls and procedures) †¢ risk transfer (e. g. contractual transfer of risk; transferring risks to insurers). Before strategies are developed, it is necessary to establish the risk appetite of the organisation. Risk appetite is the level of risk that the organisation is prepared to accept and this should be determined by the board. The appetite for risk will infl uence the strategies to be developed for managing risk. It is worth noting that a board’s risk appetite may vary for different types of risk and over tim e. For example, the board may have a low risk tolerance on compliance and egulatory issues, but be prepared to take signifi cant strategic risks. The board may also reduce their risk appetite as the external environment changes, such as in times of recession. 2. 8 Implement the strategy and allocate responsibilities The chosen strategy should be allocated and communicated to those responsible for implementation. For the plan to be effective it is essential that responsibility for each specifi c action is assigned to the appropriate operational manager and that clear target dates are established for each action. It is also important to obtain the co-operation of those esponsible for the strategy, by formal communication, seminars, action plans and adjustments to budgets. The chosen strategy may require the implementation of new controls or the modifi cation of existing controls. Businesses are dynamic and the controls that are in place will need to be monitored to assess whether or n ot they are succeeding in their objectives. The risk management group should be empowered to monitor the effectiveness of the actions being taken in each specifi c area, as these can be affected by internal and external factors, such as changes in the marketplace or the introduction of new computer systems. . 10 Review and refi ne and do it again All of the elements outlined above form part of an iterative cycle where risk management is continually reviewed and developed. As the cycle continues, risk management should increasingly become embedded in the organisation so that it really becomes part of everyone’s job. 2. 11 Information for decision making Risk management should form a key part of the organisation’s decision-making process. Information is gathered at all stages of the risk management cycle and this information should be fed into the decision-making mechanisms. For more information on risk management, please refer o CIMA’s publication Risk Management : A guide to good practice. 2. 9 Implement and monitor suggested controls 23 There are risks in most situations. Risk management is an important element of corporate governance and every organisation should review their risk status and develop their approach as described in the CIMA Risk Management Cycle in 2. 3 to 2. 11 above. Managing the risk of fraud is the same in principle as managing any other business risk. First, the potential consequences of fraud on the organisation need to be understood, using the principles set out in this chapter. The risks should then be reduced by developing nd implementing an anti-fraud strategy across the organisation. This is best approached systematically, both at the organisational level, for example by using ethics policies and anti-fraud policies, and at the operational level, through introduction of controls and procedures. The following chapters expand on the fraud risk management process in the context of an antifraud strategy. 2. 12 Summar y Fraud risk management: a guide to good practice Given the prevalence of fraud and the negative consequences associated with it, there is a compelling argument that organisations should invest time and resources towards tackling fraud.There is, however, sometimes debate as to whether these resources should be committed to fraud prevention or fraud detection. Fraud prevention Based on the earlier discussion aroun