Examinations Should Be Abolished Essay

Examinations should be abolished. When examinations are abolished, it means that it should be ridden of. Ever since our primary education started, we were all studying for examinations every year. The education system set by the Singapore government stated that examinations are a good way to test a student’s capability of a subject. The examinations’ purposes are to also allow teachers to know where each student’s individual standards, and letting them to be able to differentiate each student’s abilities and talents. It is also a common universal yardstick used around the world, since a long time ago. But, is it an accurate method? Nowadays, students are just required to memorise formulas and texts to answer the questions in examinations. Examinations do not measure one’s capability accurately. Examinations bring about stress and sleepless nights to students. These few factors affect the students’ emotions and feelings, and they might also affect the students’ performance in examinations. When students study, they will feel tired, and they will also feel that they have not studied enough, which leads them to not having enough sleep. At this period, students are also prone to falling sick. Tiredness will affect the students’ thinking, and memory will not work well when examinations come. The results of their examinations are not desirable which might also lead to other factors like, for example, the students’ parents getting angry because they did not do well. Students might get depressed and their attitude will change towards people. Examinations are also not fair. People who took examinations and did well received paper qualifications which state how well they did and what did they achieve. By applying for a job, this acts like another examination. If you are clever enough, you will pass the exam. The same thing applies too. If you have high qualifications, you can take the job. But it is not fair because there are so many hidden talents out there. Some might not have the money to take major examinations like the O and A levels which determine their achievements and grades, and these people are not being noticed. These people are seen in an unfair light. Another factor is that quite a lot of the things that we study are not  required much when we enter the working world. Let’s take, for example, Mathematics. Not all that we learn in Mathematics needs to be applied when we work. Students study so hard about Mathematics just to do well for their examinations to get good paper qualifications and being able to get a good job. In conclusion, I feel that examinations should be abolished because it does not measure a student’s potential and ability accurately and that it is unfair. An alternative is that schools should not have any examinations at all, and teachers should just teach throughout the year.

Main Currents of Spanish Thought

Among the deep thinkers that contributed to the changes that had taken place in Spain during the last decade of the 1800s was Jose Ortega Gasset (883-1955). He is one of the most important Spanish thinkers whose writings examined the manifestations of culture revealing the intimate depths of individual and social human condition. Ortega’s contribution was in the area of education, as he believes that â€Å"if one does not educate for the city, a person cannot be brought to plenitude, and that the school tends to operate on preterit principles, when it should educate from the present for the future† (Palmer, Bresler, & Cooper, p. 244) However, during the last decade of the 1800s in Spain, the Spanish society has been divided by a great debate that raged in 1890s up to early 1900s between the conservative traditional politicians who were asserting that Spain was a global power and had essential role to play in the world, and the so called liberal or perhaps the enlightened politicians who argued that the reality was that Spain during this time was a sinking ship. According to an internet article entitled Spain, the eternal Maja: Goya, Majismo, and the Reinvention of the Spanish National Identity, the debate served as a wakeup call for many Spanish intellectuals to come up with a win-win solution not only to the debate but also to the real condition of the Spanish nation, which was already two decades behind powerful countries such as France, Germany, and England. Among these intellectuals was Miguel de Unamuno who emphasized that it is only by opening windows to European winds, saturating themselves with European ambience, having confidence that they will not lose their identity in so doing would make them catch up with the advancement made such nations (Internet article). Along with other intellectuals such as Jose Martinez Ruiz also known as Azurin and Granados, they were able to revolutionize the Spanish intellectual society. Views of the Authors in their attempt to turn Spain into a Modern Nation The famous writers and authors during the Enlightenment period in Spain such as Giner de los Rios, Angel Ganivet and Joaquin Costa were known as â€Å"the generation of 1898.   Their contribution started upon realizing their country’s weakening condition due to defeats in wars against the United States of America and the lost of treasured colonies such as the Philippines, Puerto Rico, Guam, and Cuba.   During their respective periods they tried to revolutionize the intellectual society as well as to redeem the prominence their country once enjoyed. Like Jose Ortega Gasset, Ginner Delos Rios also saw the importance of education to be able to transform itself and to cope up with fast industrializing European nations. Being highly educated, he was well versed in many branches of knowledge, Ginner Delos Rios’ viewed education as a very important instrument in regenerating the Spanish society; he believed that reforms were not established by laws but by teachers and professors. Delos Rios views held that teachers and educators were responsible in framing the new generations’ educational values and understanding. I believe that his views are timely and appropriate to the present condition of Spain. Ganivet was no doubt a great writer and essayist. His views was reflective of the true condition of Spain, where in he calls Spain’s past as an error, a departure from its true nature. Ganivet believed that Spain must wake up from its present slump and fulfill its true mission to give birth to a great nation and culture. No doubt Ganivet’s view was really interesting; however, his poor interpersonal relationship seemed to have put his ideas on the shelves at least during his own time. Joaquin Costa (1844—1911) on the other hand     descended from a politicians family and was one of generation 1898. Costa’s view of the condition of Spain however, was that the country needs national regeneration. Costa depicts unbelief to the leadership of those in governments in running the affair of the state. How did they see Spain, and how did each think Spain should be changed to become a modern country. Each of these authors viewed Spain during this period as weakening and being slowly left behind by other European countries. Both Delos Rios and Ortega emphasized on the need of education for every individual, while Ganivet saw Spain as lacking regeneration. Perhaps what he meant was that the present generations were failure. The hope of the new of the Nation lies in the new generation. What did these men give to the Spanish Society These men in the first place were able to give the society brilliant ideas on how the society can rise up from where it was at present. They provided a new avenue by which the government can start a new in bringing back the country in line with other advanced nations in Europe. The most particular was the ideas of Miguel de Unamuno to open the country’e windows to other European countries and be satisfy with fresh wind of information and knowledge coming from those countries.  Ã‚   They also provided important educational guidelines that would help keep up standards of learning for every individual. Berrio, J. R. Ftancisco delos Rios (1839-1915) http://www.ibe.unesco.org/publications/ThinkersPdf/giner Palmer, J., Bresler, L., & Cooper, D.E. (2001) Fifty Major Thinkers on Education: From Confucius to Dewey. UK: Routledge   

Nick Adams as Code Hero of in Our Time

Ernest Hemingway is noted for having made many contributions to the literary world and one of his most notorious contributions is the Code Hero. The birth and growth of the Code Hero can be easily observed simply by watching the growth and development of Nick Adams throughout Hemingway's writing. In Our Time contains a various assortment of Nick Adam stories at various stages of his life and also shows the Code Hero at various stages of its development. In Our Time was the second book Hemingway had published. His first contained only three short stories and ten poems and had little to do with the Code Hero, making In Our Time the first time Hemingway revealed the Code Hero to the rest of the world. The technique and characterization contained in In Our Time is consistent with most of Hemingway's later writings, setting up In Our Time as a model of Hemingway's style and the Code Hero According to Professor Paul Totah of St. Ignatius, Hemingway defined the Code Hero as â€Å"a man who lives correctly, following the ideals of honor, courage and endurance in a world that is sometimes chaotic, often stressful, and always painful. The Code Hero measures himself by how well they handle the difficult situations that life throws at him. In the end the Code Hero will lose because we are all mortal, but the true measure is how a person faces death. The Code Hero is typically an individualist and free-willed. Although he believes in the ideals of courage and honor he has his own set of morals and pr inciples based on his beliefs in honor, courage and endurance. Qualities such as bravery, adventuresome and travel also define the Code Hero. A final trait of the Code Hero is his dislike of the dark. It symbolizes death and is a source of fear for him. The rite of manhood for the Code Hero is facing death. However, once he faces death bravely and becomes a man he must continue the struggle and constantly prove himself to retain his manhood (Totah). The Code Hero is present in the majority of Hemingway's novels. Even the young man in Hills Like White Elephants contained many of the characteristics of the Code Hero such as free-willed, individualist, and travel. The individualism comes out in his desire to not have a child. It would solidify the group aspect of a family between him and the lady. The travel trait is obvious by the mention of the stickers on the luggage denoting the many places they had been. His free will comes out also in his desire not to be a father. If he were a father he would have to begin making decisions for his child and family, not just for himself. The first Nick Adam story, Indian Camp shows Nick as a young boy and also shows Nick as he experiences the main characteristic of the Code Hero, facing death bravely. Nick's witnessing of the Indian's suicide introduces him to death for the first time. Instead of being frightened or sickened by the experience, Nick stays strong and asks his father questions about it instead. The fear of darkness is also touched upon in Indian Camp. When Nick first goes to the camp it is dark and he sits in the boat with his father's arm around him, providing a sense of security. When Nick leaves the camp it is light outside. Nick runs his hand through the water, which is described as warm and provides the sense of security that his father had to provide during the night. The light shining on the water and warmth that Nick feels is also mentioned along with Nick's thought that he would never die. Nick draws strength and sanctuary from the morning as opposed to the night before. Nick's feeling that he would never die shows this as an early stage in his development into a Code Hero. He has not accepted the inevitability of death, yet. The Doctor and the Doctor's Wife also shows Nick developing into the Code Hero, although in a very subtle way. Nick is only involved in the end of the story but the few sentences that Hemingway writes about him are enough to show development. Nick is described as sitting in the woods reading. This shows him as someone who enjoys the outdoors. From this it can be derived that he enjoys traveling. He doesn't like being tied down to civilization; he'd rather be out exploring and setting his own path. This shows the free will and individualism of Nick. The description of him reading shows that he's expanding his knowledge. It's unimportant what he's reading; it just shows that he's expanding his knowledge of the world. From this he will form his opinions and beliefs, helping him create his own value and belief system. His parents' contradicting religious views reinforce this. Since he does not have one religion exposed to him he has to examine both. From this he will pick and chose the ideals he believes in. The End of Something and The Three-Day Blow show the development of Nick's individualism. Although his age is not mentioned, it can be assumed he has passed through adolescence and is becoming a young man. He feels that his relationship with Marjorie is becoming too close. He is losing his individuality as they become more of a couple, although he doesn't realize it. All he knows it that the relationship wasn't fun any longer and it was over for some reason he didn't know. Bill articulates the reason when he describes what married life would have been like for Nick. Nick would have had to settle down and get a job and raise a family. Bill also points out that Nick would have been marrying her whole family, not just her. Nick would have no longer been an individual; he would have been part of a group. He also would have lost his free will. He would not have been able to do whatever he wanted whenever he wanted. He would have had to factor in the family into his decisions. Bill further points out that Marjorie's mother would have been around all the time telling them how to do things and act. Nick's desire to travel is illustrated when he thinks about how he and Marjorie had talked of going to Italy and all the places they would go and see. Another characteristic revealed is honor. Bill states that Nick did the right thing by breaking up with Marjorie now while she still has a chance to meet someone else and settle down with him. It is implied that by Nick stopping things he actually helped both of them avoid a life that would have made them miserable. In The Battler Hemingway has Nick face death for the first time since that day at the Indian camp as a young boy. Nick is older now and is becoming a young man. Although death is not openly visible in the story, Nick does face it in two ways. The first is symbolic in the fact that although it is dark outside, Nick walks up to the fire and the stranger and begins a conversation. Nick bravely faced death in this instance. He didn't let the fact that it was dark, he was not near anyone that could help him, or that he didn't know the man stop him. The other way Nick faced death was his encounter with Ad. Ad said he was going o give Nick a beating but a man that could snap in and out of reality the way Ad did could easily beat Nick to eath. Nick is aware that he is in a dangerous situation, but he remains calm and doesn't show cowardice. He slowly backs away from Ad while trying to talk him out of the fight. Although he backed away, he didn't turn and run or begin crying and begging for mercy. He recognized the fact that he couldn't win a fight against Ad and used his intelligence to try and find ano ther solution. The Battler also shows Nick as a traveler. He is train hoping his way from town to town. Cross-Country Snow again shows the travel aspect of the Code Hero. Nick talks of wanting t travel all over Switzerland and Europe to ski and mentions having traveled a lot in the United States. The story also shows Nick being unhappy about giving up his free will and individualism. He has a baby on the way and it will change everything. He knows he will have to return to the U. S. He says he is happy now that he will be a father but he still emits regret at not being able to ski anymore. This is symbolic of more than skiing, though. It symbolizes his regret at not being able to just bum around Europe or travel around the States. It symbolizes a loss of his free will. His decisions will no longer affect just him. This ties in with his loss of individualism. He now has a family to think about and provide for. He is part of a small group and not just an individual. Despite all this, he faces it bravely. He says he is happy to become a father. In this way he faces the death of his free will and individualism bravely. Big Two-Hearted River shows Nick as a man and also reveals that he has acquired many of the qualities of the Code Hero. He is out in the woods and camping along the river alone, depicting his individualism. His camping and fishing show his adventuresome personality. His reminiscing of other fishing trips at various places reveals his love of traveling. Nick is always respectful of nature and the river. There is an aspect of Nick's fear of the dark as well. When he speaks his voice sounds strange in the darkness and he doesn't speak again. Despite this fear he is brave and camps out alone near the river. By this point Nick has nearly matured into the full Code Hero and fully into a man. Chapter IV is the conclusion of the growth of the Code Hero and Nick Adams. Nick is in a war, most likely WWI. He has been shot and he is staring into the face of death. He is also smiling. In this short one paragraph sketch, Nick shows his bravery, courage and endurance to face an extremely difficult situation and face death. At this point Nick proves his manhood and shows the final evolution of the Code Hero. The fact that Nick is a soldier fighting in a war reinforces his bravery and courage. His survival during the war displays his ability to endure and persevere through tough situations. Although it is a collection of short stories, Hemingway's In Our Time presents his famous Code Hero in various stages of its development through the development of one of his most famous characters, Nick Adams. Characteristics such as bravery, courage, endurance, free will, individualism, a desire to travel, a fear of the darkness and the ability to face death and the difficulty of life are prevalent in Nick as he grows from a young boy in Indian Camp into a man in Chapter VI. The Nick Adams stories contained in In Our Time do a great job of showing Nick at various stages of his life and in various stages of his development into the Code Hero, making the book a model of the Code Hero.

Logistics Essay Example | Topics and Well Written Essays - 3500 words

Logistics - Essay Example Today, 49% of the equity of the company is owned by Nigerians and Nigerian organizations, while the remaining 51% is owned by Unilever Plc of UK. The company prides itself as being in virtually almost all sectors of the economy which includes nutrition, hygiene, personal care etc. and its products are of world class standards. The popular ones in the market include Omo detergent, Persil, Lux soap, Lipton Tea label, Blue band margarine, Close Up toothpaste and many more. With an employee strength of over 10,000, turnover of N44 bn, profit before tax of over N5 bn, shareholders funds of N8 bn, indeed Unilever Plc is a company the exemplifies a giant productive entity, hence the decision to adopt it as a case study for this paper. Vision and Mission Every organization has its raison d’etre in other words, its reason for existence. This is stated in its mission and vision statements. Drucker (1974) classifies these to include what is our business? What will it be? And what should it be? For Unilever Plc, its vision statement is inspiring billions of people to take small everyday actions that add up to a big difference. The mission statement is to meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Future of the company The company has four pillars which directs the long term direction and ensures that it knows where it wants to go and how it’s going there and this is inline with its vision and mission statements. These are: to create a better future everyday; to help people feel good, look good and get more out of life with brands and services that are good for them and good for others; to inspire people to take everyday actions that can add up to a big difference for the world; and to develop new ways of doing business with the aim of doubling the size of the company while reducing the environmental impact. These four pillars which serve as the guiding and driving pr inciple of Unilever are achieve through its key two strengths. First, its strong roots in local markets and firsthand knowledge of the local culture, and secondly, world class business expertise applied internationally to serve consumers everywhere. These key two strengths has over the years ensured consistent growth, increase return on investment (ROI) and maintained a relative high share price in the stock exchange market. Internal, External and Temporal Environment According to Kazmi (2002) the environment in which an organization exists could be broadly divided into two parts: the external and the internal environment. Environment literally means the surroundings, external objects, influences or circumstances under which someone or something exists. The environment of any organization is â€Å"the aggregate of all conditions, events, and influences that surround and affect it† (Davis, 1982). The internal environment of Unilever from the above description involves all that goes on with in the company. Unilever like most production companies that wishes to make optimum use of available resources runs three shifts, Monday to Saturday. While Sundays are basically for the maintenance of production machineries, Administrative and

Operation Management and Quality Management Essay

Operation Management and Quality Management - Essay Example However, quality management remains an under-researched concept in strategic resource management (Powell, 1995). The standards provided by the ISO 9000 (ISO) were developed from the ISO/TC document, and quality management criteria is now used in corporations across the globe which have been taken up by over 880, 000 corporations in over 161 nations (International Organization for Standardization, 2006). As such, the ISO is a generic management system benchmark for quality management expectations in business due to; its customer-centered approach to their needs and requirements; its regulatory requirements; its orientation toward customer satisfaction; and commitment to continual improvement achieving these goals (International Organization for Standardization). An individually owned corporation that has successfully implemented the ISO standards is FEXCO in County Kerry, Ireland, is an internationally recognized competitive company (FEXCO, 2006a). The corporation provides world wide payment services for both corporate and public markets, for activities such as financial transfers, bureau de change and currency conversion. On average, FEXCO processes 19 million transactions annually. Over 1,400 staffs are employed with the company, almost half of them being based in Kerry, and the others located in country offices in countries such as the United Kingdom, Spain, Malta, Australia, Finland, Denmark, Sweden, Dubai and the USA. Predominantly, FEXCO has adopted ISO 9000 guidelines to assist with decision making with regard to information technologies (IT), and country and currency codes. The corporation first implemented the ISO code in 1996.FEXCO displays its commitment to ISO principles in its description of its core competencies and values; a commitment to the best technology, staff and services; a focus on the customer (i.e., people matter); a desire to form long-term relationships with stakeholders; transparency and accountability of corporate practices; embracing innovation and treasury management; and having technology driving the global payment transactions (FEXCO, 2006b). The organization was recently awarded the Payment Card Industry Data Security Standards (PCI DSS) compliance accreditation for its excelling efforts to implement technology that secures cardholder account data security. The award is an example of the effectiveness of ISO principles, as further elaborated by Managing Director of FEXCO, Dermot O'Shea: We are delighted to have received this important payment card industry accreditation. As FEXCO deploys its Dynamic Currency Conversion solutions internationally, it is vital that we are accredited by the Visa AIS and MasterCard SDP programs to ensure a high level of confidence for our ever-growing customer base (FEXCO, 2006c). With regard to its focus on continual improvement of staff, FEXCO has drawn on ISO standards to develop managers by providing them the opportunity to pass a Diploma in Management FEXCO, 2006d). Working in conjunction with Carole Hogan & Associates, the managers were accredited by the Institute of Commercial Management, a world renowned Foundation that provides high quality education. The Diploma was initiated in February of 2005 in Kerry, and aims to expose new managers to an overview of corporate culture, procedures, guidelines (e.g., ISO 9000) and goals. Identify the

Training Program Outline Essay Example | Topics and Well Written Essays - 750 words

Training Program Outline - Essay Example to elaborate the threat posed by biological weapons, the world players, the biological agent (francisellatularensis virus), the delivery systems, preparedness and prevention, exposure and surveillance, diagnosis and characterization, response, communication and future proposals and recommendations (Richardson, 2001). Approximately more than 100 countries have the capacity of producing biological weapons. Initially, only the US, Russia, Western Europe Countries and Japan were the known producers of biological weapons (Richardson, 2001). Additional countries have developed advanced biotechnical infrastructures capable of producing biological weapons. These countries include China, North Korea and Thailand among others (Richardson, 2001). In as much as a ban has been imposed on the utilization of biological weapons imposed by international treaties, the approach has failed as a deterrent measure to limit nations from stockpiling and developing biological weapons. Modern technology has made it possible for non-state agents to acquire the technical expertise of biological weapons production. A good example is the threat posed by terrorist groups such as ISIS and Al Queada if they manage to access biological weapons. The non-state agents search the internet on ways to produce and deliver biological weapons. A dilemma occurs on how to dismantle a non-state agent who operates within a state’s jurisdiction and enjoys security from the host state. The bacterium has a high infection levels that has enabled airborne transmission possible and only require a small dose for one to be infected. The agent has made it a potential agent for bioterrorism (Garcia, Bearden, Forsman, Michell, & Titball, 2010). The delivery system utilized depends on the fatality levels desired by the releasing actor. A biological onslaught can incorporate two forms that include liquid and a dry powder form (Richardson, 2001). Powder forms are known for their easy storage, transportation and

American Government Research Paper Example | Topics and Well Written Essays - 1250 words

American Government - Research Paper Example History of same sex marriages is young. In 1993, the Supreme Court of Hawaii ruled in favor of same sex marriages, as their rights were denied to them on the basis of their sex and not sexual orientation (NYT 2012). Though Hawaii defined by law that marriage is to be between a man and a woman only, conservatives across the country lobbied (NYT 2012). In 1996, Congress passed the Defense of Marriage Act, which denied federal benefits to married people of the same sex and authorized states to neglect gay marriages sanctioned in other states (NYT 2012). Same sex marriage is still illegal at the federal level, though practiced by several states. The Massachusetts Supreme Court in 2004 ruled that the same sex marriage is legal in the State of Massachusetts (NYT 2012). Since then, a few other states followed the suit: New York, Connecticut, Iowa, New Hampshire, Vermont and Washington, D.C. (NYT 2012). It was not until 2012 when Vice President Biden publicly stated that he supported same sex marriages that President Obama decided to push for same sex marriages to be legalized in the USA (NYT 2012). In 2011, President Obama â€Å"directed the Justice Department to  stop defending the Defense of Marriage Act† (NYT 2012).    Though some states legalized same sex marriages, the refusal to acknowledge these marriages is not a violation in other states. According to the Article IV of the US Constitution, the Full Faith and Credit Clause, states must respect each other’s laws (Sachs 1203). However, under the Defense of Marriage Act this is no longer true. This act excuses states from being in compliance with laws of other states with regard to same sex marriages. According to Sachs, states can do so as long as the laws of other states conflict with their own, important national interests (1205). Since Congress did not clearly state under what conditions states must comply with other’s states’ laws, the Full Faith and

Medical Microbiology case study Essay Example | Topics and Well Written Essays - 500 words

Medical Microbiology case study - Essay Example ion which is the infection of the urethra and bladder that is shown by pain during urination, frequent urinating, blood stained urine and ‘NO’ fever is reported. The upper urinary tract infection that is the infection of the kidney parenchyma and pylus that shows in lower UTI signs and symptoms, fever and chills, vomiting and nausea (Tadesse & Alem, 2006). Laboratory diagnosis involves direct microscopic examinations of white blood cells, erythrocytes and epithelial cells. Existence of more than five white blood cells and many epithelial cells per HPF indicates UTI (Tadesse & Alem, 2006). Also culture can be done through blood agar medium and Mac Conkey agar medium. Culture results are interpreted as greater than or equal to 105cfu/ml of urine indicates UTI. Less than 103cfu/ml of urine shows specimen contamination, 103 - 105 cfu/ml of urine is not certain and 103 - 105cfu/ml of urine in catheterized specimen or symptomatic patient shows UTI (Tadesse & Alem, 2006). There are two species: Pseudomonas aeruginosa and pseudomallei. Our species of interest is P. Aeruginosa. It is located in animal and human intestines, soil, water and moist areas in hospitals. Primarily, it is a nosocomial bacterium. It invades and triggers infections in hospitalized persons whose host defences are abnormal. It produces toxins. Its antigenic features include exotoxin A which by hindering protein synthesis is cytotoxic, pili to stick to epithelial cells, lipopolysacchride which has an endotoxic effect, exopolysacchride that has anti – phagocytic features and its enzymes include protease, hemolysins, phospholipases C and elastases which digests proteins (Tadesse & Alem, 2006). Its clinical features are that it’s pathogenic when it is introduced into environments that lack the required defences such as neutropenia of any cause, a broken mucus membrane and the utilization of urine catheter. Urinary tract infection is related with an indwelling catheter (Tadesse & Alem,

Social work; Critically evaluate its implications for social work Essay

Social work; Critically evaluate its implications for social work practice in challenges in transracial adoption and racial identity - Essay Example In addition, social workers work together with birth families to establish their abilities to continue to engage in their children’s lives as well as to parent, and/or to cope with cessation of parental rights. Social workers assist with placement transitions, and give post-adoption services in order to guarantee enduring and strong adoptive families. It is apparent that adoption is an alternative for young children and older teens, for children of varying ethnic and racial background, and for children with diverse educational, developmental as well as medical needs. This paper will discuss different aspects surrounding transracial adoptions, in particular, the transracial adoption of black children. Transracial adoption is the joining of parents and children of different racial background together in adoptive homes as well as families. It usually occurs through varying types of domestic adoption such as foster care, stepchildren and children in interracial marriages, and international adoption. In transracial adoption, the issue of racial identity features prominently (Lee 2003, 712). Some individuals argue that transracial adoptions will lead to loss of racial identity, particularly if a child is adopted in a family of different race at a very young age. Racial or ethnic identity issue concerns the use of racial or ethnic self-descriptors among transracial adoptees. It also involves attitudes of adopted children towards their race and determines whether they are comfortable or proud with their ethnicity and race. One of the significant elements of transracial adoption is the actual relationship between ethnic and racial occurrences of transracial adoptees and their psychologic al adjustments (Steinberg & Hall 2011, 262). Transracial adoptees exhibit a great deal of variability in their racial or ethnic identities. They have considerably lower racial or ethnic identities compared to same-race adoptees. Domestic

An Empirical Study on Why Sociological Research and Theory Focus on Essay

An Empirical Study on Why Sociological Research and Theory Focus on Issues of Identity - Essay Example Vander Zanden (1990a) presented this as both tackling a problem, is faced with initial perplexity and assumptions, then comes the search for evidence, perceptive reasoning, false leads and eventually, or ideally really, the final sense of victory. In contrast yet the justification as well, Zanden continued, (1990b), "detectives undertake to identify and locate criminals and collect evidence to convict them in a court of law. Sociologists develop concepts and theories to explain people's behavior. Even though their goals may differ, detectives and sociologists attempt to answer two types of question: "Why did something happen" and "Under what circumstances is it likely to happen again" In brief, both attempt to explain and predict." In grasping both comes thereafter the issue of identity issues. Simply put, one needs to know the proper approach and yet even before that, how to do it, when to do it right and why it is best to do it right. The late Professor C. Wright Mills (1959a) aptly addressed this when he said, "Neither the life of an individual nor the history of a society can be understood without understanding both. The history that now affects every man is world history." Very true. Identity issues do confront every single citizen of this world no matter the creed, race or religion. From social identity issues, to political and gender issues, all these help shape and unshape a nation and the many communities, societies in it. For anybody and everybody to achieve triumph or come close to overcoming these issues hounding the world and its populace, imperative then to understand how these personal battles have become public issues. Sociological imagination as Mills labeled it (Mills 1959b) and explained as the ability to see our lives, concerns, problems and hopes entwined within the largest social and historical context in which we live. (Zanden 1990c, p.7) And from thereon comes government policies, formulated and designed to address the specific public issues that have become more than social issues. Ours is a "human-made world," as yet another renowned sociologists Zygmunt Bauman and Tim May pointed out in their joint

Story About Pablo Picasso Essay Example for Free

Story About Pablo Picasso Essay Good artists copy, great artists steal. Pablo Picasso was born on October 25th, 1881 in Malaga, Spain. He was baptized Catholic, but would later convert into being an Atheist. His father, a painter, specialized in painting birds and other animals. Pablo Picasso showed a passion for art at an early age. According to his mother, his first words were piz piz, an abbreviation for the spanish word lapiz which means pencil. Starting from the age of seven, Picasso started receiving artistic training from his father. In 1891, the family moved to A Coruà ±a, a city in Galicia, Spain, where his father became a professor at the School of Fine Arts. Unfortunately, in 1895, Picasso lost his seven year old sister, Conchita to diphtheria. Diphtheria is an upper respiratory tract illness and an infectious disease. Despite being traumatized by his sister’s death, he managed to make it into an advanced class at the school where his father taught. At the mere age of 13, he began his first oil paintings which were portraits of his family and the same year his sister died, he began to exhibit and sell his work. His father, Ruiz, persuaded the people at the academy he was working at, to allow Picasso to take an exam to be accepted in the advanced class. Where most kids wouldve taken nearly a month, Picasso only took a week to complete all the aspects of the exam and got admitted at age 15. Picasso spent most of his adult life in France and died on April 8, 1973 in Mougins, France. Pablo Picasso had th ree, different periods throughout his career. Picasso’s Blue Period, which began in 1901 and ended in 1904, was a collection of sad paintings that was done in shades of blue and blue green. Picasso’s Blue Period was influenced by a trip he took through Spain and by the suicide of his friend, Carlos Casagemas. After his Blue Period, then came his Rose Period which lasted for about two years (1904-1906). His Rose Period was a more uplifting period with cheery colors such as orange and pink and that featured circus people like acrobats. This period began when his psychological condition began to improve. The Rose Period has been considered influenced more by the French while the Blue Period is more Spanish influenced. The harlequin, a comedic character usually drawn with patterned or checkered clothing, became a personal symbol for Picasso. Picasso had an African Period as well which lasted from 1906 to 1909. Les Demoiselles dAvignon is a revolutionary work that introduced this period of cubism. He painted in such a style that was inspired by African sculpture and artifacts. Analytic cubism is a style of painting that Picasso developed with Georges Braque using brown and neutral colors. During this period of cubism, both artists took apart objects and drew them in terms of their shapes. Picasso’s most celebrated work is his depiction of the German bombing of Guernica during the Spanish Civil War. This piece of work, which was done in 1937, displays the harshness and reality of war and how it affects those who are innocent. Picasso is normally identified as an artist who â€Å"re-invented† art. While many artists normally painted just one side of an object or person, Picasso realized that different perspectives still mattered and so, he drew them too. Picasso did a lot of artwork during his notorious career. Two of my favorite pieces of artwork by him are Jacqueline and the Old Guitarist. Jacqueline is the name of Picasso’s second wife. I think the artwork is beautiful and I feel like he did the painting out of love and dedicated it to his wife. I also love the Old Guitarist because I enjoy looking at the angle of the man and there’s so much meaning in the artwork. The piece of art shows poverty and loneliness. Pablo Picasso’s work doesn’t relate to my artwork at all. I’m not an artist or a drawer. I’ve never had a strong interest in art and I don’t think I’ll ever reach the level Pablo Picasso was at. But, just like Picasso, I have the ability to improve and develop my skills as I go. I chose Pablo Picasso as the topic of my research paper because I feel like he’s an artist that not many people know well and someone that’s more recent than Vincent van Gogh and Leonard da Vinci. I also chose Pablo Picasso because I felt like doing a research paper on a person would be much easie r than doing a paper on an art movement or a piece of artwork.

Human resource management Essay Example for Free

Human resource management Essay All managers and great leaders should want to motivate and reward their employees. A good and effective manager would motivate and encourage their employees. If you were a manager, how would you motivate and reward your employees effectively? Money seems to motivate a majority of employees, but there are other ways employees find satisfaction in their jobs, such as a work-life balance, telecommute, challenging work, and academic reimbursement, to name a few. If we take care of our employees, they will take care of our customers† (Noe, p. 319) I truly believe this statement. If I was a manager, ensuring that my employees are taken care of would definitely be a top priority. The employees are also stakeholders. Every day they work which is an investment in the company. When the employees are treated right, involved, and able to voice their opinions, they are more willing to stay at the organization longer. Of course, the longer they stay the lower a company’s turnover rate is. The employees are the company, and they represent the company. In my past experiences and positions in the life, taking care of the employees was not a priority for my previous employers. For the most part my previous employers were about numbers, quotas, sales, money and customer satisfaction. Employees always seemed to come last, and I can say this reason was partly why I did leave. As an employee, I like the open door policy with managers. I like feeling like I’m a part of a great organization like it’s my second home. I enjoy being recognized for a job well done, and I do feel that if employees feel as if they are an important part of an organization then they will always give 100% into their work. Money is a major motivator for employees, but it’s not the only motivator. Employee motivation can be as individual as the people who work for you. â€Å"But you can boil down employee motivation to one basic ideal: finding out what your employees want and finding a way to give it to them or to enable them to earn it†(Inc. , Nov. 30, 1999). Examples of employee motivators are performance-based cash bonus, praise and commendation from manager, increase in base pay, teambuilding, incentives, career discussions, attention from company leadership, stock or stock options, opportunity to lead projects and advancement or growth within the organization. Gaining a better understanding of what motivates employees will make you a better manager. It will help you get the most out of your employees. Great leaders and managers make all the difference when it comes to managing and motivating employees. These alternative methods of motivating will be effective differently for each employee. Making employees feel they are doing something meaningful is an alternative methods. When employees are involved and feel that they are helping to create and achieve goals, they feel important. â€Å"Research on job satisfaction reveals employees are most satisfied when they are working on a challenging task uninterrupted† (ASTD, Patterson). Also effectively communicating help motivates employees. Employees like to know how the organization is progressing toward a goal. Giving ongoing communication about employee’s performances is important for employee development. Listening, respecting, and providing recognition makes employees feel worthy. Managers should manage but not micromanage. Managers should empower their employees by allowing them choices and ensuring they are accountable for their choices. There are many alternative methods that motivate employees, and this will be determined individually. Texas Roadhouse looks for ways to recognize employees and bring them together to have fun. They provide competitions, events, outings and conferences to employees. I do think these motivating ways can be transferable to other organizations. Some bigger organizations can probably provide the same employee recognitions, but smaller organizations may not be able to. Although the smaller organizations can find other ways to recognize their employees and to bring them together, such as offering competitions, and winning gift cards, for example. Each individual organization, no matter what size can still find ways to motivate, recognize, and bring their employees together. In conclusion, motivating and rewarding your employees is how you will keep them. Making sure your employees are engaged is very important in helping to keep them motivated. Organizations should focus on their mission, vision and higher purpose and ensure that all employees understand their daily efforts and how it drives progress towards the mission, vision and purpose. Human resources professionals must manage their organizations with finesse, constantly looking for that optimal level workplace satisfaction, which helps employees motivated and engaged.

Creation of Neocolonialism

Creation of Neocolonialism By studying craft breweries across the state of Iowa, this study will investigate how Iowa craft breweries are fostering neolocalism and providing third places for their patrons by appealing to their desire to seek out local ties.   It will also investigate how the industry has grown spatially.   Here, I will examine Iowas strong ties to agriculture, the demographics of the first settlers, population and demographics of the state, its history of brewing, and the locations of breweries throughout the state. Iowa Iowa is located in the Midwestern United States.   Its eastern border is the Mississippi River and the Missouri River runs near its western border (Figure 1).   The geographic location (latitude ranging from 40 ° 36 N to 43 ° 30 N and its interior continental location) allows for distinct seasonal variations (Climate of Iowa   ; Iowa Geography from NETSTATE).   The states average temperature ranges from between 45 to 52 degrees Fahrenheit with July being the hottest month ranging from 61 to 65 degrees Fahrenheit in the mornings to 82 to 87 degrees Fahrenheit in the afternoon.   Average precipitation is around 34 inches per year, almost three-fourths of which falls during the growing season which lasts about 162 days, beginning after the last frost in spring, and ending with the first frost in fall (April through September) (Climate of Iowa). Due to multiple glaciations over geologic time, the state is generally flat to rolling, with well-draining and fertile soils.   These characteristics along with her wet springs, hot summers, and long growing season allow the state to have successful and variable agriculture (Ross 1951).   Iowas first settlers were Native Americans.   The Ioway, Sauk, Mesquaki, Sioux, Potawatomi, Oto, and Missouri tribes were among them.   Iowas first official white settlement was established in 1833 and the settlers quickly identified how fertile the land was (Schwieder 2010).   By 1838, Iowas population had grown, primarily due to immigration, to 22, 859 and by 1840 the state had 43, 112 residents (Ross 1951) (Table 1). Table 1:   Historical Population of Iowa (Peters 2011) Year 1910 1950 1970 1980 1990 2000 2010 Population 2,224,771 2,621,073 2,824,376 2,913,808 2,776,755 2,926,324 3,046,355 The states population was estimated in 2014 to be 314,107,084 with around 72 percent of the population being 21 years of age or older.   It is divided into 99 counties with the largest city in the state being the capital, Des Moines, with a population of 204,220 followed by Cedar Rapids at 126,326 (United States Census Bureau 2016).   Sixty-six open breweries across the state will be investigated. The History of Brewing in Iowa Brewing in Iowa began with the opening of its first brewery in Ft. Madison in 1844; by 1854, there were 27 throughout the state.   The Temperance movement began to become popular in the state well before Prohibition so the number of craft breweries rose and fell with the strength of the movement.   In 1854, the state passed its first prohibition law.   This law failed to be effectively enforced, so by 1858 the state had increased its number of breweries to 42 followed by a further increase to 149 by 1875 (Lipsman, Siegelman, and Otto 2015). In 1880 and 1882, the voters supported laws that made all alcohol, except that sold by pharmacists, illegal in the state.   The statewide prohibition lasted until 1893, causing the number of breweries to drop to 28.   These laws had many loopholes and were difficult to enforce.   Finally, in 1915 and 1917, more prohibition laws were passed resulting in the closing of all breweries in the state (Lipsman, Siegelman, and Otto 2015). Iowa saw the establishment of the first post-Prohibition brewery in Amana in 1985 (Figure 2).   By 2015, there were 66 (Figure 3).   Much of the expansion began after a 2010 (Figure 4) change in state law that allowed the production of high alcohol content beers (greater than 5 percent but less than 12 percent ABW) (Lipsman, Siegelman, and Otto 2015). References    Climate of Iowa. 2017. National Weather Service [cited 01/28/2017 2017]. Available from http://www.crh.noaa.gov/Image/dvn/downloads/Clim_IA_01.pdf. Iowa Geography from NETSTATE. 2017. 02/25/2016 [cited 01/29/2017 2017]. Available from http://www.netstate.com/states/geography/ia_geography.htm. Lipsman, M., H. Siegelman, and D. Otto. 2015. The Economic Impact of the Craft Beer Industry in Iowa, 1-88: The Iowa Wine and Beer Promotion Board. Peters, D. J. 2011. Iowa Population Over 100 Years, 26: Iowa State University Extension and Outreach. Ross, E. D. 1951. Iowa Agriculture: An Historical Survey. Cedar Rapids, Iowa: State Historical Society of Iowa. Schwieder, D. 2017. History of Iowa. State Library of Iowa 2010 [cited 01/28/2017 2017]. Available from http://publications.iowa.gov/135/1/history/7-1.html.

Relatively Einstein Essay -- Essays Papers

Relatively Einstein His genius reshaped the laws of nature. His theories changed scientists? perception of the Universe. His ideas led to the most destructive and lethal weapon known to man. Albert Einstein hypothesized some of the most complex theories of all time, The Special Theory of Relativity and The General Theory of Relativity. He was a pudgy first child of a bougesois Jewish couple from Southern Germany. His father was an unsuccessful Engineer and his mother was a talented musician. His mother often encouraged his interests in Bach and Mozart. In his early years he received a toy compass, a gift from his father, that provoked his first "thought experiment." He was curious as to why the needle always pointed North (Golden 21). When he was fifteen he quit prep school, renounced his German citizenship, and entered the Swiss equivalent of MIT. There he fell in love and married a classmate. The marriage lasted a short three years (Golden 21). While coping with his loss, he moved in with a divorced cousin by the name of Elsa. She cooked and cleaned for him while he was discovering his, soon to be, theory of General Relativity. Elsa and Albert were wed a short time after (Golden 21). At the peak of World War I he risked his wife?s life, and his own, and signed an anti-war petition. When the Nazis came to power prior to World War II, he was forced to leave Germany. He moved to Princeton, where they built a physics program around him. A Hungarian scientist warned him of the Germans? attempt to make an atomic bomb. Einstein then wrote a letter to Franklin Roosevelt and warned him of the Nazi threat. Shortly thereafter, The Manhattan Project (the program which was responsible for the designing, building and testing of the atomic bomb) was organized, in which Einstein had no part in (Hawking 66). Albert urged for a ban on nuclear weapons after he learned of the explosions in Hiroshima and Nagasaki. He tried to convince Americans that McCarthyism (false threat of communism reaching North America) was a hoax, and called for an end to racism (Golden 22). Shortly after graduation Einstein began to ponder about the universe. While living in Germany, he composed his first of two relativity theories; The Special Theory of Relativity (Golden 23). "The Special Theory of Relativity deals with phenomena that becomes noticeabl... ...ce. This is precisely what Einstein envisioned happening to planets, the moon, and the rest of the cosmos. This is the reason that Earth orbits the sun and the moon revolves around the sun. "He (Einstein) maintained that gravity, as an invisible force that pulls apples and other things to the ground does not exist," states Chaisson (99). Albert Einstein hypothesized some of the most complex theories of all time, Special and General Relativity. His Genius reshaped the way scientists think and the way we look at the universe. "I still can?t believe he thought of it."?Marcel Grossman (Feynman 49) Bibliography 1. Bohm, David. The Special Theory of Relativity. Routledge: NY, 1965. 2. Chaisson, Eric. Relatively Speaking. W. W. Norton: NY, 1988. 3. Feynman, Richard P. Six Not-So-Easy Pieces. Addison-Wesley: Reading,1997. 4. Golden, Frederick. "Person of the Century." Time 31 Dec 1999: 21. 5. Gundersen, P. Erik. The Handy Physics Answer Book. Detroit: Visible Ink, 1999. 6. Hawking, Stephen. "A Breif History of Relativity." Time 31 Dec 1999: 66. 7. Laing, David. The Earth System. Fort Kent: Wm. C. Brown, 1991. 8. Sagan, Carl. Cosmos. Random House: NY, 1980. Relatively Einstein Essay -- Essays Papers Relatively Einstein His genius reshaped the laws of nature. His theories changed scientists? perception of the Universe. His ideas led to the most destructive and lethal weapon known to man. Albert Einstein hypothesized some of the most complex theories of all time, The Special Theory of Relativity and The General Theory of Relativity. He was a pudgy first child of a bougesois Jewish couple from Southern Germany. His father was an unsuccessful Engineer and his mother was a talented musician. His mother often encouraged his interests in Bach and Mozart. In his early years he received a toy compass, a gift from his father, that provoked his first "thought experiment." He was curious as to why the needle always pointed North (Golden 21). When he was fifteen he quit prep school, renounced his German citizenship, and entered the Swiss equivalent of MIT. There he fell in love and married a classmate. The marriage lasted a short three years (Golden 21). While coping with his loss, he moved in with a divorced cousin by the name of Elsa. She cooked and cleaned for him while he was discovering his, soon to be, theory of General Relativity. Elsa and Albert were wed a short time after (Golden 21). At the peak of World War I he risked his wife?s life, and his own, and signed an anti-war petition. When the Nazis came to power prior to World War II, he was forced to leave Germany. He moved to Princeton, where they built a physics program around him. A Hungarian scientist warned him of the Germans? attempt to make an atomic bomb. Einstein then wrote a letter to Franklin Roosevelt and warned him of the Nazi threat. Shortly thereafter, The Manhattan Project (the program which was responsible for the designing, building and testing of the atomic bomb) was organized, in which Einstein had no part in (Hawking 66). Albert urged for a ban on nuclear weapons after he learned of the explosions in Hiroshima and Nagasaki. He tried to convince Americans that McCarthyism (false threat of communism reaching North America) was a hoax, and called for an end to racism (Golden 22). Shortly after graduation Einstein began to ponder about the universe. While living in Germany, he composed his first of two relativity theories; The Special Theory of Relativity (Golden 23). "The Special Theory of Relativity deals with phenomena that becomes noticeabl... ...ce. This is precisely what Einstein envisioned happening to planets, the moon, and the rest of the cosmos. This is the reason that Earth orbits the sun and the moon revolves around the sun. "He (Einstein) maintained that gravity, as an invisible force that pulls apples and other things to the ground does not exist," states Chaisson (99). Albert Einstein hypothesized some of the most complex theories of all time, Special and General Relativity. His Genius reshaped the way scientists think and the way we look at the universe. "I still can?t believe he thought of it."?Marcel Grossman (Feynman 49) Bibliography 1. Bohm, David. The Special Theory of Relativity. Routledge: NY, 1965. 2. Chaisson, Eric. Relatively Speaking. W. W. Norton: NY, 1988. 3. Feynman, Richard P. Six Not-So-Easy Pieces. Addison-Wesley: Reading,1997. 4. Golden, Frederick. "Person of the Century." Time 31 Dec 1999: 21. 5. Gundersen, P. Erik. The Handy Physics Answer Book. Detroit: Visible Ink, 1999. 6. Hawking, Stephen. "A Breif History of Relativity." Time 31 Dec 1999: 66. 7. Laing, David. The Earth System. Fort Kent: Wm. C. Brown, 1991. 8. Sagan, Carl. Cosmos. Random House: NY, 1980.

Baldwins Insights of History in Notes of a Native Son Essay -- James

Private Insight into Public History James Baldwin had a talent of being able to tell a personal story and relate it to world events. His analysis is a rare capability that one can only acquire over an extensive lifetime. James Baldwin not only has that ability, but also the ability to write as if he is conversing with the reader. One of his most famous essays, â€Å"Notes of a Native Son,† is about his father’s death. It includes the events that happened prior to and following his father’s death. Throughout this essay, he brings his audience into the time in which he wrote and explains what is going on by portraying the senses and emotions of not only himself, but as well as the people involved. This essay has a very personal feeling mixed with public views. Baldwin is able to take one small event or idea and shows its place within the â€Å"bigger picture.† Not only does he illustrate public experiences, but he will also give his own personal opinion about those events. Throughout â€Å"Notes of a Native Son† Baldwin uses the binary of life versus death to expand on the private versus public binary that he also creates. These two binaries show up several times together showing how much they relate to each other. Baldwin makes certain readers understand the states of the issue at once; his essay starts by describing his father’s funeral in the aftermath of the Harlem riots of 1943. Baldwin states, â€Å"As we drove him to the graveyard, the spoils of injustice, anarchy, discountent, and hatred were all around us. It seemed to me that God himself had devised, to mark my father’s end, the most sustained and brutally dissonant of codas† (63). Yet as Baldwin mourned the death of his father, he celebrated the birth of his yo... ...e â€Å"big picture† in the world. Some events may not seem significant, but they are somehow related to other events that are going on in the world. Baldwin also took events that coincidentally happened at the same of his father’s death and analyzed them, giving his own personal opinion. Baldwin also had a constant motif of life versus death throughout his life story and his analysis of events. Baldwin’s creative writing skills show through his style of writing and makes the reader feel as though he is being directly spoken to. He gives the audience the opportunity to feel the emotions that he felt during these events. It is this ability that made James Baldwin the celebrated talent that he became. Works Cited Baldwin, James. â€Å"Notes of a Native Son.† 1955. James Baldwin: Collected Essays. Ed. Toni Morrison. New York: Library of America, 1998. 63-84.

Jack Welch and the GE Way Essay -- Managing Case study business Essays

Jack Welch and the GE Way   Ã‚  Ã‚  Ã‚  Ã‚  When Jack Welch was named CEO of General Electric, Welch saw a company in trouble even though the business world saw GE as an intrinsically healthy corporation, secure in its position as a world industrial leader. Welch knew that the company was too large to fail yet GE was too unwieldy to adapt for further growth. The changes he instituted restructured and revolutionized GE and made Welch the most respected CEO in business today. After reading the book there were three parts that really stood out for me.   Ã‚  Ã‚  Ã‚  Ã‚  Chapter 3: Cultivate managers who share your vision was the most important chapter to me. It talks about putting the right managers in the right positions. Welch says, â€Å"What we are looking for†¦are leaders†¦ who can energize, excite, and control rather than enervate, depress, and control† (p. 35). Managers in a company should bursting with energy and are able to develop and implement a vision and not just talk about those visions. They must also know how to spread enthusiasm throughout the entire company. One of the keys to being a great business leader is getting employees excited about their work. One of the ways to get employees excited about their work is to allow employees more freedom and responsibility then they have now. In order to make this happen, middle managers have to be team members and coaches. They need to facilitate more than control. Managers should be energizers and not enervators. Welch suggests that the only way to last at GE is to get on board, to become a team player, and to adapt oneself to the company’s values and culture when describing the different types of managers that will or will not succeed. The first type of manager delivers on commitments and shares the company’s values. The second type does not meet commitments and does not share the company’s values. The third type misses commitments but does share the company’s values. Welch himself cares more that a manager sticks to the company’s values than meets the numbers. The fourth type delivers on the commitments but does not subscribe to the company’s values. Welch broke these managers into three categories, type A, type B, and type C managers. Type A managers were defined as team players that subscribe to the company’s values. People trust them; they make impacts on decisions, and are leaders who seek to develop high value in other... ...h targets† (p. 170). Welch emphasizes that one should not settle for second best when you are able to achieve more. When you reach for the stars, you may fail but stretching yourself and stretching your business you are going to bring better performance results to your business. He also says to be creative, more imaginative, and more thoughtful about your business. The more you think about how to get more out of your business, the higher your stretch targets and the better off your are going to be. I think that all employers and manager should encourage their employees to reach for the stars. This will help employees realize what they are capable of doing. Managers need to help employees realize and make goals along with making sure that they meet their goals. I believe that Jack Welch and the GE Way is a great tool for any manager. He Welch helped turn a great company into an even greater company. Many of his ideas can be used in the workplace and in everyday life. His ideas are not complex or complicated to understand. It will just take time to incorporate them into your life or business. When you do, you will realize that even you life or business can be better.  Ã‚  Ã‚  Ã‚  Ã‚  

Effect of Temperature on Enzyme Catalase Activity in a Potato

Effect of Temperature ( C ? ) on Enzyme Catalase Activity in potato Aim: To investigate the Effect of temperature (10, 37, 60) Celsius (C ? ) on enzyme catalase activity in potato using 2% of hydrogen peroxide (H202) as the substrate measuring the height (cm) of oxygen gas (bubbles) and calculating the volume of oxygen bubbles produced (cm3) Introduction: Enzymes are biological catalysts that speed up metabolic reactions without being affected. They lower the activation energy needed to start a reaction. Enzymes are affected by several factors including PH, Substrate concentration; Temperature & other factors.Each enzyme has an optimum temperature at which its activity is the highest, below this optimum temp, the kinetic energy of molecules decrease , therefore the collisions between the active site of the enzyme and substrate decreases , as a result the enzyme activity will decrease , so decreasing the rate of the reaction If the temp. Exceeds the optimum temp. The kinetic energy be tween molecules increase therefore collisions increase leading to the change in the tertiary structure of the enzyme and in this case active site is lost and the enzymes will be denatured so the reaction will slow down &stops.Catalase is an enzyme, found basically in all living cells. It breaks down hydrogen peroxide (waste product) into water and oxygen. 2H? O? 2H2O+O2 As predicted, the enzyme catalase activity would be the highest at 37c ? (Optimum temp. )if increased to 60c ? then the enzyme would be denatured and if decreased to 10c ? (very low temp. ) then the reaction would be slow. Variables: Dependent: Height of oxygen bubbles (cm) using a ruler. Independent: Temperature (10c ? , 37c ? , 60c ? ) using three different water baths each adjusted to a specific temp . Controlled: 1.Number of potato cubes: 3 cubes of potatoes were used in each trial at each different temp. If changed, whether decrease or increase, then the number of enzymes (active site) available would change, th erefore affecting the rate of the reaction. 2. Size of potato cubes with dimensions 1cmx1cmx1. 5cm . This is controlled by cutting all potato cubes with same dimensions using a ruler & a cutter. If changed, then this would affect the rate of enzyme activity, therefore affecting the results. 3. Volume of hydrogen peroxide: 15cm3 of hydrogen peroxide was measured using graduated cylinder for each trial at different temp.If changed then the rate of enzyme activity would change, therefore results won’t be accurate. 4. Concentration of hydrogen peroxide: 2% of hydrogen peroxide was used through all trials this is prepared by adding 20cm3 of H2o2 to 1000cm3 of water. If changed it would affect the rate of enzyme activity since substrate concentration is one of the factors that affect enzyme activity. 5. Volume of liquid detergent: 2drops of liquid detergent were added to each test tube throughout the experiment. If changed, then this will affect the height of oxygen bubbles measure d cm3 therefore the results won’t be accurate. . Time: time was recorded for 2 minutes; if changed this will affect the results. Materials: * 27 cubes of potato each with dimensions 1cmx1cmx1. 5cm. * 15cm3 of 2% hydrogen peroxide for each trial. * 9 test tubes * Water adjusted to (60c ? ,37c ? &10c ? adding ice) * 2drops of liquid detergent in each test tube * Cutter * Ruler * 100cm3 graduated cylinder * Stopwatch * 1000cm3 volumetric flask * 50cm3 beaker Procedure: 1. Use the cutter, and ruler to cut 27 cubes of potato with dimensions 1cmx1cmx1. 5cm 2. Adjust the water bath temp one at 60c ? , the other one at 37c ? amp; last one at 10c ? adding ice. 3. Place 3 potato cubes in each of the three test tubes placed at 10c ?. 4. Leave the test tubes at 10c ? for 10min. 5. Add 2 drops of detergent for each test tube. 6. Measure 15cm3 of 2% hydrogen peroxide for each test tube using graduated cylinder. 7. Add 15cm3 of 2% H2o2 to each test tube, and immediately start the stop watch recording time for 2 min. 8. After 2 min exactly, use the ruler to measure the height of oxygen bubbles (cm). 9. Repeat steps 3 to 8 at a different temp (60c ? ,70c ? ). 10. Record all data in an organized table. Processing and Presenting Data: Table (1): Shows the height of oxygen bubbles produced (cm) at different temp. (C ? ) TemperatureC ?  ± 0. 05| Height of oxygen bubbles produced after 2 minutes (cm)| | Trial 1| Trial 2| Trial 3| 10. 00| 2. 00| 6. 00| 2. 00| 37. 00| 3. 00| 4. 50| 1. 50| 60. 00| 3. 00| 2. 00| 2. 00| Table (2): Shows mean height in (cm) for oxygen bubbles  ± 0. 05 and volume of oxygen bubbles (cm3) ±0. 05 at different temp (C ? ) Temperature C ?  ± 0. 05| Mean height (cm) for oxygen bubbles  ± 0. 05| Volume of mean height of oxygen bubbles cm3 0. 05| 10. 0| 3. 33| 16. 34| 37. 00| 4. 86| 23. 84| 60. 00| 2. 06| 10. 11| * Sample calculations 10c ? 1. Mean height of oxygen bubbles in cm. T1+T2+T33= 2+6+23= 3. 33cm 2. Volume of oxygen bubbles cm3 Volume o f cylinder: ? r2xh 3. 14x (1. 25)2Ãâ€"3. 33=16. 34cm3 Discussion: As shown in table (2) as temperature increased from 10c ? to 37c ? , the mean height in cm of oxygen bubbles increased from 3. 33cm to 4. 86cm. Aa temperature increase from 37c ? to 60c ? the mean height cm of oxygen bubbles decreased from 4. 86cm to 2. 06cm. Reffering to the table (2) and graph , as temp. ncreased from 10c ? to 37c ? the volume of oxygen bubbles (cm3) increased from 16. 34cm3 to 23. 84cm3. As temp increased from 37c ? to 60c ? the volume of oxygen bubbles produced (cm3) decreased from 23. 84cm3 to 10. 11cm3. Each enzyme has an optimum temp. at which the rate of enzyme activity is the highest. Above the optimum temp the kinetic energy of molecules increases therefore the collisions between the active site and the substrate increase and as a result the enzyme would lose its 3D structure and active site and the enzyme would be denatured.This is shown in the graph, as the volume of oxygen bubbles cm3 de creased from 23. 84cm3 to 10. 11cm3 at 60c ?. Below the optimum temp the kinetic energy of molecules decreases ,therefore the collisions decrease and the enzyme would slow down and the rate of energy decreases as it’s shown in table (2) the volume of oxygen bubble decrease from 37c ? to 10c ?. According to our results in table (2) and graph, the optimum temp was 37c ? at which rate of enzyme catalase activity was the highest as the highest volume of oxygen bubbles was produced 23. 84cm3.The results obtained matched the hypothesis which stated that 37c ? is the optimum temp for enzyme catalase to break hydrogen peroxide which is a toxic product into water & oxygen. Evaluation & Improvements: 1. Size of potato cubes . Potato cubes were cut into cubes of dimensions 1cmx1cmx1. 5cm using a ruler and a blade which was a source of error since all cubes vary slightly in size which means the concentration of catalase enzyme is different. A potato cutter that cut the potato into equal sizes . 2. Height of oxygen bubbles measured by a ruler. This was inaccurate method.Volume could be measured instead in height using gas Syringe which will give more accurate results 3. Volume of detergent. 2 drops of detergent were measured using a dropper. A pipette can be used which will give more accurate results. Done BY: JIHAN AL-BUKHARI 9A ——————————————– [ 1 ]. [ (Jones, 2009) ] [ 2 ]. â€Å"Introduction to Enzymes. †Ã‚  Factors Affecting Enzyme Activity (). N. p. , n. d. Web. 16 Nov. 2012. . [ 3 ]. â€Å"Effect of Temperature on Enzyme Activity. †Ã‚  Effect of Temperature on Enzyme Activity. N. p. , n. d. Web. 16 Nov. 2012. .

Macchiavellian theories in “King Lear” Essay

William Shakespeare’s â€Å"King Lear† has within it many Machiavellian theories. This is evident once we examine the characters of Edmund, Goneril, and Regan. The Machiavellian principles relating to politics, ethics, and virtue are exemplified throughout â€Å"King Lear† play by these three characters. Machiavellian politics deal with acquiring power and forming very strong governments. For Machiavelli, power meant politics. Ethics can be best described as a branch of knowledge concerned with moral principles. The Theme of morality and ethics keeps evolving throughout â€Å"King Lear† and is demonstrated by these three characters. Virtue is the final principle highlighted by this Shakespeare play. By examining each of the three characters in more depth, we can better understand how Machiavellian theories apply to the play â€Å"King Lear† Edmund is the most Machiavellian character in â€Å"King Lear† for many reasons. Edmund was born as illegitimated son of Gloucester. He had elder brother named Edgar who was legitimated son of Gloucester and beloved suitable heir. Edmund shows his avarice, greed, and envy towards Edger. Edmund states soliloquy â€Å"Thou, Nature, art my goddess; to thy law, †¦ now, gods, stand up for bastards.†(I, ii, 1-22) This shows that he blame the nature that he never meant to born as an illegitimated, such as bastard son. He also decides that as concern everything think as a bastard, he will act as a bastard, the way of being Machiavellian as manipulating and taking advantage of others. Especially from the part of soliloquy, â€Å"legitimate Edgar, I must have your land.† (I, ii, 16) He is showing his jealousy towards Edgar, and all that he has. Back in Shakespeare’s time, land ownership was a form of wealth. Wealth equaled political power. Acquiring political p ower is a Machiavellian trait. Edmund also criticized his father for being too superstitious and gullible in nature. He ridiculed his father, Gloucester for his beliefs and he thought he was morally superior to him. Edmund exploited his father’s good nature by enraging with Edgar’s false letter against his father. In a deceptive manner, Edmund, quite simply acted phony to Edgar. He tries to cover Edger, however deceiving both ends of his mouth between Gloucester and Edgar. Edmund acted in a two faced manner and this is true to the Machiavellian way  of doing things. There is one more example of Edmund’s Machiavellian behavior. In Act III, we are exposed to Edmund’s treacherous tendency against his own father. Edmund states, â€Å"The younger rise when the old doth fall†(III, iii, 26) it is clear that Edmund wished to take over and assume power over his father’s domain. Edmund is seeking power that Macchivelli often wrote about. The greed in acquiring power is all right if the end justifies the means. In Act V, Edger, Edmund’s brother, also a victim of Edmund’s Machiavellian tendencies revenge on Edmund and murdered him. Along with Edmund, Goneril is also another character in the play, which exemplifies immoral and unvirtuous behavior. Goneril used flattery to get on the good side of her father. â€Å"Sir, I love you more than words can wield the matter, †¦ Beyond all manner of so much I love you.†(I, i, 57-64) She wanted to inherit her father’s kingdom. Goneril had an ulterior motive for acting this way to achieve any greedy goal. After she took advantage of her old father, she kicked her father out from her castle. This shows how she unvirtuous Machiavellian treatment to her father. There is the second example of Goneril’s deceiving ways. Goneril cheated on her husband Albany. This is undoubtedly Machiavellian trait. Albany even detected Goneril’s conniving deceptive behavior. He states † You are not worth the dust which the rude wind blows in your face.†(IV, ii, 30-31) Furthermore for Goneril’s love of Edmund, she poisoned her own sister, Regan to eliminate from him. At the end of the play, these Machiavellian traits and characteristics brought her to this point of self-destruction and suicide. Regan is the next character who also showed Machiavellian behavior in her personality. She flattered her father just like Goneril did. â€Å"I am made of that self mettle as my sisters, †¦ In your Highness love†(I, i, 71-79) She had an ulterior motive to in praising and flattering her father. Like her deceptive sister Goneril, Regan wanted the wealth and kingdom. It was more than she deserved. Regan cooperated thoroughly with Goneril to mistreat her  father with disrespect. Regan defends her sister’s poor treatment of her father to her father and informs her father that he is old and should be rule by others. She mentioned to him that return to Goneril and beg her Forgiveness. â€Å"O, sir, you are old, †¦ Say you have wronged her.†(II, iv, 145-151) This behavior is Machiavellian in nature, because it is immoral and unvirtuous. Regan also cheated on her husband, Cornwall. She loved Edmund as her sister Goneril did. She informed her sister that she wou ld merry Edmund as soon as her husband died, however Regan was poisoned by Goneril. This shows that how the last become to the Machiavellian who looks for their own profit, and their Machiavellian personalities bring themselves into their own grave. It is clearly evident that the Machiavellian themes are prevalent by the words and actions of Edmund, Goneril, and Regan. The theory of acquiring power, ethics, morality, and virtue that Macchiavelli wrote about is a common theme in William Shakespeare’s â€Å"King Lear†. The three characters previously mentioned are all looking out for their own self-interest. They will do anything to achieve their greedy and selfish goals. Perhaps it is truly ironic that the play does not have happy ending. Much can be learned by examining Machiavellian principals and theories as they pertain to â€Å"King Lear†.

Book Review Malcolm X

Book Review: Terrill’s Malcolm X Inventing Radical Judgment Terrill, Robert. Malcolm X: inventing radical judgment. East Lansing: Michigan State University Press, 2004. Print. When saying the name Malcolm X many things come to mind extremist, violence, racists, but usually not motivational speaker. Catalytic is defined as increasing a reaction rate, Terrill uses this term to describe Malcolm X ‘s rhetoric style that left him a highly noted public figure. So why was he important? Why is Malcolm X a must read for high school and college students? In his book Malcolm X: Inventing Radical Judgment Robert E.Terrill makes the argument through out his book that though Malcolm X did not leave anything, or change laws, and his speeches were never documented correctly, but that it was his way of using rhetoric to his advantage he began to help people think critically and form their own opinion. Terrill’s term â€Å"catalytic rhetoric† refers to how Malcolm X would pr esent a speech in a way that would make people think and come to the conclusion and interoperate what was being said and then the audience would take action as they saw necessary to fix the problems mostly about race in their communities.His speeches were not only intended for African Americans, but also Whites who were equally important to persuade for a change even if it meant going against the Nation of Islam. Malcolm X’s public speaking, according to Terrill, is a model of radical criticism, and we can see his speeches not simply as the means to liberate, anti-racist end but as a â€Å"theory of rhetorical action† (p. 17). Terrill mostly discusses the progressively more critical voice that Malcolm X launched against the Nation of Islam’s principle in his last year.During this period, Malcolm X asked African Americans to hold tight to both the ballot and the bullet, employing each strategically and not becoming ideologically reliant upon either one. At the sa me time, Terrill maintains that this rhetoric forged a sense of shared identity and purpose among his African-American listeners that allowed them to translate their critical questions into modes of action. Most know that joining the Nation of Islam Malcolm X turned away from a life of crime and spent more time and energy on the teachings of Muhammad, this is where he formed his platform on most racial issues and his desire to mpower African Americans to better themselves and their futures. However, Terrill makes the argument that the Nation of Islam prevented him from speaking out, and to more diverse people which is what Malcolm wanted, calling Elijah Muhammad’s teaching â€Å"rambling apocalyptic visions† (p. 105). While Terrill’s primary argument centers on Malcolm X in his last year of life without the Nation of Islam, he places this material in context by comparing it to Malcolm X’s rhetoric within the Nation of Islam and other speeches.This I found to be one of the more interesting parts of the book looking at well-known African American authors and comparing their work with Malcolm X’s style. Terrill uses the approach of looking at African American â€Å"prophetic† speakers from the past to examine the way they influenced Malcolm’s speeches. He looks at four speakers that use prophetic protest Frederick Douglass’s â€Å"What to the Slave Is the Fourth of July? † W. E. B. Du Bois’s â€Å"the Conservation of Races, David Walker’s â€Å"Appeal†, and â€Å"The Confessions of Nat Turner (p. 62).He compares Douglas with Malcolm by showing how they both talked to the white community and understood the importance in changing the way that they thought, since they were the majority and the most effective way of change is having more people on your side (p. 62). This collection of speeches Terrill calls the prophetic speech a key method of African-American protest rhetoric. Thro ugh a breakdown of prophetic texts by Frederick Douglass, W. E. B. DuBois, David Walker and Nat Turner, Terrill distinguishes between the jeremiad (a long complaint) and the apocalyptic style (unrevealing of future) of prophetic communication.While the jeremiad (shown in this text by DuBois and Douglass) retains faith in the possibility for American social change, apocalyptic texts (shown by Walker and Turner) claim that only a radical break will bring about the golden age anticipated by religious prophesy. Terrill acknowledges the crucial role that the prophetic tradition has played in African-American organizations and texts and locates the Nation of Islam’s rhetoric within this tradition.Such rhetoric contributed to the reputation and steadiness of the Nation of Islam and the Universal Negro Improvement Association (UNIA) as radical organizations, as it offered consistent projects for identification and action. Prophetic rhetoric model was challenging approach for it was o ften times confusing and made it hard to understand for listeners and readers. The Nation of Islam taught participants to see straight references to Elijah Muhammad and the African-American struggle in the Bible just like how Frederick Douglass asked his readers to interpret the Constitution as an anti-slavery document.Terrill ultimately sees such models of reading to harsh not letting the audience come to conclusions by themselves and created too much of an emphasis on God and pre-determined. But while he states early on that he will reject the prophetic tradition for its strictness, Terrill goes on and on about prophetic history for practically half of the book. Following an extensive reading of the four texts by Douglass, DuBois, Walker and Turner, Terrill traces the prophetic tradition until he reaches the Nation of Islam (NOI).Painting a bad picture of the nation Terrill says that the NOI walked the line between reformism and revolutionary sentiment by combining socially conser vative and politically disengaged action with an apocalyptic vision of the American future (p. 78). During his almost rant about the Nation of Islam he tends to over look the clear fact that Malcolm X is a highly recognized public figure because of that organization. Through out the book his undertone leaves almost a bad taste in your mouth as Terrill speaks so poor of the Nation.Terrill proceeds to outline Malcolm X’s speech, from a strict association with the Nation of Islam’s tradition of prophetic with strict rhetoric, then moving toward a gradually more open dialogue with concrete politics and social critiques. Through close readings Terrill identifies the beginnings of Malcolm X’s afterward-rhetorical review in his early speeches, while maintaining that only in his final year did Malcolm X move productively beyond prophecy and begin to model â€Å"radical judgment. The year before Malcolm X died Terrill argues he â€Å"worked to break his audiences free from the confines of the dominant white culture while at the same time helping them avoid becoming trapped within another set of restrictions† (p. 110). Terrill states several times, the year before Malcolm X’s death that was the time when he gave the most influential messages and used his rhetorical skills to fulfill his goals, for African Americans to become rhetoricians themselves. This being said it is the purpose of this book to prove that Malcolm X was trying (through his speeches) to teach African Americans to think for themselves.After doing so to maintain their freedom it becomes critical that they do not fall into like minded thinking again especially with white people, but by doing that they will fall back in to the repression they were in. Malcolm X’s need to communicate more effectively with his audience was a major factor in his split with the Nation of Islam and one that has been basically ignored by scholars. Terrill sees Malcolm X as first and fo remost a public speaker, and the Nation of Islam’s prophetic rhetoric ultimately became confining in his attempt to address political as well as religious matters.After his break with the NOI, Terrill notes an increasingly individualist style in Malcolm X’s rhetoric. Disillusioned by the hierarchical structure of the NOI, he rejected its rigid narrative structures and began to preach â€Å"radical flexibility. † (142) In doing so Terrill argues, Malcolm X aloud his audience to develop a â€Å"trickster consciousness,† questioning both hegemonic and extremely cruel anti-hegemonic doctrines (p. 171). He repeats many times that African Americans should become more critical of the world around them, and question things to better themselves.That African Americans should not support an action without knowing all of the details and judging it for themselves. This is the major key role that Malcolm wanted his listeners to understand that if they can think more cr itically about the world around them than they can become more independent from disheartening world. While stating multiple times that Malcolm X desires his listeners to be individual thinkers, Terrill towards the end of his book turns away from the intense independence often connected with trickster-style questioning of doctrines.Combined identity remained important to Malcolm X’s project. According to Terrill, Malcolm X’s late speeches were a form of â€Å"constitutive rhetoric† that helped define the audience as part of a collectivity. The switching of the ideas towards the end of the book tend to be a bit confusing since through out the book the main idea is independent thinking then switches back to collective thinking. This idea of radical critique did not appear simply in such obvious statements.Terrill argues that it was shown in Malcolm X’s rhetorical choices, as when Malcolm criticized his Black audience members for unthinkingly supporting a Dem ocratic Party that had done little to advance the civil rights movement. Instead, he urged them to use their voting power more strategically â€Å"Don’t register and vote — register! † He meant this in a way that he believed that most of the politicians in that day were not looking out for the black man so do not vote for them just because you can vote, because no matter who you vote for none of them are concerned with the black man.As he broke down the social definitions that trapped his African-American audience members, the inner rationality of his rhetoric allowed them to redefine themselves as members of an aggressively African community. This delicate relationship between individualism and collectivism, Terrill argues permitted listeners to continue their own perspectives of radical judgment, but it did not cause stable activist organizations. Malcolm X’s Organization of Afro-American Unity (OAAU) and the Muslim Mosque, Inc. (MMI) never achieved the stability of more traditional, hierarchical organizations such as the NOI.These were programs that Malcolm X started after leaving the Nation of Islam. â€Å"The post-Malcolm histories of his OAAU and MMI serve as concrete reminders,† Terrill tells us, â€Å"that this sort of radical critique cannot easily sustain a traditionally defined political movement. † (185) Terrill’s investigation is useful in its focus on how Malcolm X’s rhetoric fully affected his audience. There is no uncertainty that Malcolm X’s words formed his audience’s perceptive of themselves and of the political environment. It opened them up to tools of critical investigation.Terrill sees this effect as Malcolm X’s major solid involvement to the essential anti-racist struggle. Turned off by the hierarchical organization and â€Å"closed narratives† of the Nation of Islam, Terrill says that Malcolm X’s post-NOI language does not interpret easily into o rdered political movements. Instead it creates a community of important individuals who cannot be brought in by the limitations of hierarchical political movements, though they may â€Å"assemble momentarily †¦ coherent texts, motives, and identities. † (191) This part of the book Terrill comes close to allowing Malcolm X to reduce into a poststructuralist realm of open.Taken up from all blocked ideologies, Malcolm X and his listeners can apparently act only temporarily, in short-lived moments of shared action. Terrill is absolutely right to recognize Malcolm X’s desire to question and revise structures of thinking, but he underestimates the potential for solid political group, even hierarchical organization, that continue in Malcolm X’s system of â€Å"radical judgment. † Even though Terrill continues to state that Malcolm X’s rhetoric instructs listeners to stay away from giving into hierarchical structures, he restricts his own study of org anizational forms influenced by Malcolm’s adical conclusion to Malcolm X’s own organizations that he started. The MMI and the OAAU, on the other hand were by no means the only organizations that relied greatly upon the rhetoric of Malcolm X’s last year. Neither did Malcolm himself analysis his own organizations as the necessary leaders in the movement. He saw his organizations as structures planned to increase a principles, and he strained the potential for partnership work involving similarly organizations.Even though Malcolm might have been to some extent only seen other organizations to their face value, we might look to other organized embodiment of Black independence to see his observation come alive. We may see the different gathering of organizations frequently known as the Black Power movement as an over used organizational personification of Malcolm X’s radical judgment. Malcolm X’s everything has been used name, image and words have been adopted by numerous Black Power groups and continue to be adopted.But we might also read Malcolm’s iconic status as the celebration and enactment of his radical judgment. A mixture of organizations acted out Malcolm X’s rhetorical tradition of critique and fighting through their personal organizational structures and existing ideologies. The Black Panther Party used heavily Malcolm X’s support for self-defense much like how Malcolm used Douglass and others, his perseverance upon the need for instant survival programs, and his argument that African Americans should think strategically about using both the ballot and the bullet.The Panther’s rebellious principles and militaristic party authority might turn Terrill off, but never the less they were a clear example of an organizational understanding of many of Malcolm X’s ideas. Panthers enacted the critical judgment that Terrill sees in Malcolm X’s rhetoric without rejecting all forms of organi zational hierarchy or denying their dependence on ideology. Terrill shows Malcolm X as a beneficial social critic who gave his audience the tools they needed to resist.He offers a central idea when he shows us Malcolm X’s speeches as resourceful models of evaluation that do not basically teach facts. Malcolm X’s rhetoric encourages listeners to build such critiques independently. Malcolm’s rhetoric was not simply a means of group classification but a movement to collective action. Through out this whole book Terrill makes very strong comparisons with other well-known African American authors. Doing this really helps readers connect more and gain a better understanding to whatTerrill was trying to prove through out the book. To me the book was a bit lengthy in some parts where in others it could of used more emphasis on. The book had a simple topic and that was Malcolm X style of rhetoric and how his speeches helped his listeners become more critical analyzers. B ut at the end of the book Terrill points out how Malcolm ditches his platform and persuades his followers to become more collective, it made the book seem inconsistent and lost most of its argument.This book would be beneficial for people to read because it does show how Malcolm X’s rhetorical style was different than most. Only argument to be made is that the later half of the book contradicts the rest of what Terrill was trying to prove and therefore made the book illegitimate. The good is that Terrill broke the book down into 3 different sub sections, which also made the book easier to read. Again also the side-to-side comparisons helped Terrill make a concrete argument. Overall a good book but the lengthiness in some parts made it a little boring.

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