Conflicting Perspectives Essay Example for Free

Conflicting Perspectives Essay Composers are able to evoke in the audience certain reactions to characters or events in their texts by presenting conflicting perspectives on different issues through the manipulation of the language forms and features of their medium, often communicating their own ideas about issues in question, which results in the creation of meaning within their texts. (?). David Guterson in his 1995 novel Snow Falling on Cedars (Snow) and Henry Bean in his 2001 film The Believer (Believer) demonstrate conscious choices made regarding structure and techniques in the construction of their texts in order to represent conflicting perspectives exploring ideas on racial prejudice and hatred and cultural contrasts and thus engage the audience. Composers can examine racial/religious prejudice brought on by war by using form specific techniques to present conflicting perspectives on the same event, designed to incite certain audience responses. Guterson, in Snow, purposely presents conflicting perspectives between Arthur Chambers and Hatsue and other members of the white community on San Piedro, particularly Etta Heine, in order to draw sympathy for the treatment of the Japanese after Pearl Harbour is bombed. Arthur is empathetic towards them, saying in his local paper the San Piedro Review, â€Å"†¦ those of Japanese descent on this island are not responsible for the tragedy at Pearl Harbour. Make no mistake about it.† The high modality language and short, direct sentences used by Guterson highlights Arthur’s deeply-held opinion of the innocence of the Japanese on the island. In support of Arthur’s argument, Hatsue, through the narrative’s non-linear structure, recalls her pain and confusion at the treatment of her people, saying, â€Å"It just isn’t fair – it’s not fair. How could they do this to us, just like that?† The emotive appeal in addition to Arthur’s article triggers audience support of the Japanese community. Guterson, however, also presents the contrasting racial hatred of the white islanders towards the Japanese. Etta Heine justifies the deportation of the Japanese with blunt, monosyllabic sentences – â€Å"They’re Japs†¦ We’re in a war with them. We can’t have spies around.† The use of the derogative term â€Å"Japs† and the distinct differentiation between â€Å"them†, the Japanese, and â€Å"we†, the white people, illustrates her bigoted hatred of the Japanese. Through the conflicting perspectives of Etta against Arthur and Hatsue, Guterson sways the audience to feel for the ill treatment of the Japanese, and shows them his own opinion on the negative effect of racism in wartime on the perceptions and conduct towards certain groups. Conflicting perspectives are established by Bean in Believer between Daniel, a neo-Nazi who is paradoxically a Jew himself, and a number of Holocaust survivors pertaining to the strength of their actions during WWII which aims to convey a pro-Jewish sentiment to audiences. At a sensitivity training session, Danny is enraged at a Jewish man’s lack of action while watching his son being murdered by a Nazi during the Holocaust. Rapidly cutting over-the-shoulder shots between Danny and the Jews indicate their opposing views. A close-up of Danny when he is asked by the Jews what he would have done in the situation shows his contempt and incredulous disbelief of the Jews’ weakness as he replies â€Å"Not what he did. Just stand there and watch?† Bean immediately employs a close-up reaction shot of the female Jew who rebuts with, â€Å"How do you know? You’ve never been tested like he has. Here in his rich, safe, stupid country it is so easy to imagine oneself a hero.† The personal address through 2nd person and the accumulation of adjectives to build a negative image of America strongly opposes Danny’s prejudiced conviction that Jews are pathetic, and also appeals to audiences the idea that religious prejudice towards Jews is unjustified. As Guterson does in Snow, conflicting perspectives are represented by Bean in order to sway his audience to respond negatively to unfounded sentiments of prejudice. Conflicting perspectives between characters can be used by composers to control the way in which an audience perceives them by exploring the cultural clashes that exist in the text as a reflection of societal (or social?) behaviour. In Snow, Guterson presents conflicting perspectives between Kabuo and the jury during his murder trial. In the opening chapter, a vivid description of Kabuo’s posture and expression is given from the jury’s perspective; he is shown as â€Å"proudly upright†¦ rigid†¦ detached.† This initial portrait portrait of Kabuo makes him suspicious not only to the jury but also to the audience, as Hatsue tells Kabuo using a simile that he â€Å"looks like one of Tojo’s soldiers.† However, Guterson, through the novel’s non-linear structure, refutes this perspective by explaining Kabuo’s behaviour to the audience via a flashback. Through his father’s teachings that â€Å"the greater the composure, the more revealed one was†, the audience learns the reason behind Kabuo’s unemotional stance. Third person omniscient allows the audience to sympathise with Kabuo’s emotive explanation that â€Å"he sat upright in the hope that his desperate composure might reflect the shape of his soul.† Guterson, through conflicting perspectives, influences his audience to understand Kabuo and the impact of contrasting cultural values on the perception of an individual. In Believer, Bean likewise shows contrasting opinions between Danny, who cannot fully repress his secret Jewish identity, and his anti-Semitic ‘skinhead’ friends to create audience sympathy for Danny’s inner struggles with the opposing aspects of his identity. When Danny and his friends break into a synagogue, Daniel shows a surprising respect for his religion which clashes with those of the other neo-Nazis. This directly conflicts with Danny’s character established at the film’s opening, when he violently beats up a Jew for no apparent reason. Wearing a brown shirt symbolising the Nazi SA (brown-shirts), Danny’s dark costuming contrasts with the light coloured one of his Jewish victim, highlighting the evil in his nature. Bean, however, challenges the audience’s view of Danny in order to allow them to understand his conflicting identities. In one frame, Danny is in the foreground walking down an aisle, which is juxtaposed with the othe r Nazis vandalising the synagogue. Their loud, raucous whooping contrasts to that of Danny’s respectful silence, highlighting their different treatments of the Jewish culture. When one of the Nazis tears up a Torah, a sacred Jewish text, after much opposition from Danny, a reaction shot of him shows sadness and pain accompanied by melancholy music, underlining Danny’s unspoken deference for Judaism. Bean’s portrayal of conflicting perspectives on Jewish culture incites the audience to respond more sympathetically towards Danny, and to understand that his veneer is a product of cultural differences in his society. The composers in Snow and Believer have effectively utilised techniques within their medium to represent conflicting perspectives about racial or religious prejudice and cultural differences in order to provoke certain audience responses to the characters, events or situations in their story. This includes reactions of sympathy for a certain perspective or disbelief and even dislike of opposing perspectives. In this way, the composers connect to the audience and generate meaning within their texts. In Snow, Hatsue is confined by the traditions of her culture, as shown when her mother Fujiko says to her â€Å"don’t allow living among the hakujin to become living intertwined with them. Your soul will decay†¦ rot and go sour.† The change in language to refer to the Americans as hakujin and the emotive metaphor of Hatsue’s breakdown of purity highlights Fujiko’s dislike of American culture. This

Analysis of Soldiers Home by Ernest Hemingway Essay -- Literary Analys

The story, A Soldiers Home, is about a man in conflict with the past and present events in his life. The young man’s name is Harold Krebs. He recently returned from World War 1 to find everything almost exactly the same as when he left. He moved back into his parents house, where he found the same car sitting in the same drive way. He also found the girls looking the same, except now they all had short hair. When he returned to his home town in Oklahoma the hysteria of the soldiers coming home was all over. The other soldiers had come home years before Krebs had so everyone was over the excitement. When he first returned home he didn’t want to talk about the war at all. Then, when he suddenly felt the urge and need to talk about it no one wanted to hear about it. When he returned all of the other soldiers had found their place in the community, but Harold needed more time to find his place. In the mean time he plays pool, â€Å"practiced on his clarinet, strolled down town, read, and went to bed.†(Hemingway, 186) When his mother pressures him to get out and get a girlfriend and job, he te...

The Role of Youth in Realizing Dreams of Abdulkalam

A computer network is a telecommunications network that allows computers to exchange data. The physical connection between networked computing devices is established using either cable media or wireless media. The best-known computer network is the Internet. Network devices that originate, route and terminate the data are called network nodes. [1] Nodes can include hostssuch as servers and personal computers, as well as networking hardware. Two devices are said to be networked when a process in one device is able to exchange information with a process in another device. Computer networks support applications such as access to the World Wide Web, shared use of application and storage servers, printers, and fax machines, and use of email and instant messaging applications. The remainder of this article discusses local area network technologies and classifies them according to the following characteristics: the physical media used to transmit signals, the communications protocols used to organize network traffic, along with the network's size, its topology and its organizational intent. The communication media used to connect devices to form a computer network include electrical cable (HomePNA, power line communication, G. hn),optical fiber (fiber-optic communication), and radio waves (wireless networking). In the OSI model, these are defined at layers 1 and 2 — the physical layer and the data link layer. A widely-adopted family of communication media used in local area network (LAN) technology is collectively known as Ethernet. The media and protocol standards that enable communication between networked devices over Ethernet is defined by IEEE 802. Ethernet encompasses both wired and wireless LAN technologies. Wired LAN devices transmit signals over cable media. Wireless LAN devices use radio waves or infrared signals as a transmission medium. Wired technologies[edit] The order of the following wired technologies are, roughly, from slowest to fastest transmission speed. Twisted pair wire is the most widely used medium for all telecommunication. Twisted-pair cabling consist of copper wires that are twisted into pairs. Ordinary telephone wires consist of two insulated copper wires twisted into pairs. Computer network cabling (wired Ethernet as defined by IEEE 802. ) consists of 4 pairs of copper cabling that can be utilized for both voice and data transmission. The use of two wires twisted together helps to reducecrosstalk and electromagnetic induction. The transmission speed ranges from 2 million bits per second to 10 billion bits per second. Twisted pair cabling comes in two forms: unshielded twisted pair (UTP) and shielded twi sted-pair (STP). Each form comes in several category ratings, designed for use in various scenarios. Coaxial cable is widely used for cable television systems, office buildings, and other work-sites for local area networks. The cables consist of copper or aluminum wire surrounded by an insulating layer (typically a flexible material with a high dielectric constant), which itself is surrounded by a conductive layer. The insulation helps minimize interference and distortion. Transmission speed ranges from 200 million bits per second to more than 500 million bits per second. ITU-T G. hn technology uses existing home wiring (coaxial cable, phone lines and power lines) to create a high-speed (up to 1 Gigabit/s) local area network. An optical fiber is a glass fiber. It uses pulses of light to transmit data. Some advantages of optical fibers over metal wires are less transmission loss, immunity from electromagnetic radiation, and very fast transmission speeds of up to trillions of bits per second. One can use different colors of lights to increase the number of messages being sent over a fiber optic cable. Wireless technologies[edit] Main article: Wireless network Terrestrial microwave – Terrestrial microwave communication uses Earth-based transmitters and receivers resembling satellite dishes. Terrestrial microwaves are in the low-gigahertz range, which limits all communications to line-of-sight. Relay stations are spaced approximately 48 km (30 mi) apart. Communications satellites – Satellites communicate via microwave radio waves, which are not deflected by the Earth's atmosphere. The satellites are stationed in space, typically in geosynchronous orbit 35,400 km (22,000 mi) above the equator. These Earth-orbiting systems are capable of receiving and relaying voice, data, and TV signals. Cellular and PCS systems use several radio communications technologies. The systems divide the region covered into multiple geographic areas. Each area has a low-power transmitter or radio relay antenna device to relay calls from one area to the next area. Radio and spread spectrum technologies – Wireless local area networks use a high-frequency radio technology similar to digital cellular and a low-frequency radio technology. Wireless LANs use spread spectrum technology to enable communication between multiple devices in a limited area. IEEE 802. 11 defines a common flavor of open-standards wireless radio-wave technology. Infrared communication can transmit signals for small distances, typically no more than 10 meters. In most cases, line-of-sight propagation is used, which limits the physical positioning of communicating devices. A global area network (GAN) is a network used for supporting mobile across an arbitrary number of wireless LANs, satellite coverage areas, etc. The key challenge in mobile communications is handing off user communications from one local coverage area to the next. In IEEE Project 802, this involves a succession of terrestrial wireless LANs. [6] Bluetooth is managed by the Bluetooth Special Interest Group, which has more than 18,000 member companies in the areas of telecommunication, computing, networking, and consumer electronics. 3]Bluetooth was standardized as IEEE 802. 15. 1, but the standard is no longer maintained. The SIG oversees the development of the specification, manages the qualification program, and protects the trademarks. [4]To be marketed as a Bluetooth device, it must be qualified to standards defined by the SIG. [citation needed]A network of patents is re quired to implement the technology and are licensed only for those qualifying devices. Coaxial cable, or coax (pronounced ‘ko. ?ks), is a type of cable that has an inner conductor surrounded by a tubular insulating layer, surrounded by a tubular conducting shield. Many coaxial cables also have an insulating outer sheath or jacket. The term coaxial comes from the inner conductor and the outer shield sharing a geometric axis. Coaxial cable was invented by English engineer and mathematician Oliver Heaviside, who patented the design in 1880. [1] Coaxial cable differs from other shielded cable used for carrying lower-frequency signals, such as audio signals, in that the dimensions of the cable are controlled to give a precise, constant conductor spacing, which is needed for it to function efficiently as a radio frequency transmission line. Coaxial cable is used as a transmission line for radio frequency signals. Its applications include feedlines connecting radio transmitters and receivers with their antennas, computer network (Internet) connections, and distributing cable television signals. One advantage of coax over other types of radiotransmission line is that in an ideal coaxial cable the electromagnetic field carrying the signal exists only in the space between the inner and outerconductors. This allows coaxial cable runs to be installed next to metal objects such as gutters without the power losses that occur in other types of transmission lines. Coaxial cable also provides protection of the signal from external electromagnetic interference. Twisted pair cabling is a type of wiring in which two conductors of a single circuit are twisted together for the purposes of canceling out electromagnetic interference (EMI) from external sources; for instance,electromagnetic radiation from unshielded twisted pair (UTP) cables, and crosstalk between neighboring pairs. It was invented by Alexander Graham Bell. An optical fiber (or optical fibre) is a flexible, transparent fiber made of high quality extruded glass (silica) or plastic, slightly thicker than a human hair. It can function as a waveguide, or â€Å"light pipe†,[1] to transmit light between the two ends of the fiber. [2] The field of applied science and engineering concerned with the design and application of optical fibers is known as fiber optics. Optical fibers are widely used in fiber-optic communications, which permits transmission over longer distances and at higher bandwidths (data rates) than other forms of communication. Fibers are used instead of metal wires because signals travel along them with less loss and are also immune to electromagnetic interference. Fibers are also used for illumination, and are wrapped in bundles so that they may be used to carry images, thus allowing viewing in confined spaces. Specially designed fibers are used for a variety of other applications, including sensors and fiber lasers. Microwave transmission refers to the technology of transmitting information or energy by the use of radio waves whose wavelengths are conveniently measured in small numbers of centimetre; these are calledmicrowaves. This part of the radio spectrum ranges across frequencies of roughly 1. gigahertz (GHz) to 30 GHz. TMicrowaves are widely used for point-to-point communications because their small wavelength allows conveniently-sized antennas to direct them in narrow beams, which can be pointed directly at the receiving antenna. This allows nearby microwave equipment to use the same frequencies without interfering with each other, as lower frequency radio waves do. Another advantage is that the high frequency of microwaves gives the m icrowave band a very large nformation-carrying capacity; the microwave band has a bandwidth 30 times that of all the rest of the radio spectrum below it. A disadvantage is that microwaves are limited to line of sight propagation; they cannot pass around hills or mountains as lower frequency radio waves can. Microwave radio transmission is commonly used in point-to-point communication systems on the surface of the Earth, in satellite communications, and indeep space radio communications. Other parts of the microwave radio band are used for radars, radio navigation systems, sensor systems, and radio astronomy. ese correspond to wavelengths from 30 centimeters down to 1. 0 cm. Wireless network refers to any type of computer network that uses wireless (usually, but not always radio waves) for network connections. It is a method by which homes, telecommunications networks and enterprise (business) installations avoid the costly process of introducing cables into a building, or as a connection between various equipment locations. [1] Wirelesstelecommunications networks are generally implemented and administered using radio communication. This implementation takes place at the physical level (layer) of the OSI model network structure. [2] Bluetooth is a wireless technology standard for exchanging data over short distances (using short-wavelength radio transmissions in the ISM band from 2400–2480 MHz) from fixed and mobile devices, creating personal area networks (PANs) with high levels of security. Created by telecom vendor Ericssonin 1994,[2] it was originally conceived as a wireless alternative to RS-232 data cables. It can connect several devices, overcoming problems of synchronization. Wi-Fi, also spelled Wifi or WiFi, is a popular technology that allows an electronic device to exchange data or connect to the internet wirelessly using radio waves. The Wi-Fi Alliance defines Wi-Fi as any â€Å"wireless local area network (WLAN) products that are based on the Institute of Electrical and Electronics Engineers' (IEEE)802. 11 standards†. [1] However, since most modern WLANs are based on these standards, the term â€Å"Wi-Fi† is used in general English as a synonym for â€Å"WLAN†. Only Wi-Fi products that complete Wi-Fi Allianceinteroperability certification testing successfully may use the â€Å"Wi-Fi CERTIFIED† trademark. A device that can use Wi-Fi (such as a personal computer, video-game console, smartphone, digital camera,tablet or digital audio player) can connect to a network resource such as the Internet via a wireless network access point. Such an access point (or hotspot) has a range of about 20 meters (65 feet) indoors and a greater range outdoors. Hotspot coverage can comprise an area as small as a single room with walls that block radio waves or as large as many square miles — this is achieved by using multiple overlapping access points.

Literature Review Of Graduacting Project Finance Essay - Free Essay Example

Sample details Pages: 16 Words: 4709 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The purpose of this literature review is to understand how the operational risks are managed, prevented and how much it cost by non-managing and managing it for financial establishment. To study the operational risk management of banks and the impact of the non-management of operational risks for a French financial sector, our research will particularly focuses under the certain financial regulation like Basel III and scientific articles about the management of operational risks. It will permit to have a clear idea of the positions of those companies about it. Firstly, we are going to have an overview of risks in general then operational risks for different types of business companies to then evolve on worldwide regulation towards the latest one Basel III. The literature review is going to be based on scientific reviews and the Bank for International Settlement reports for studying position of regulators and banks about operational risks. To better know of what the topic is all about, it is compulsory to explain how are define the risks for Basel committee and then go further with the operational risks. The BIS (Bank for International Settlement) has created in 1974 the Basel Committee on Banking Supervision (BCBS) in Basel in Switzerland. The aim is to create a worldwide banking regulation by publishing a set of minimum capital requirements for banks however the Committee cannot obliged countries to follow those rules. The representatives members are from central banks and regulatory authorities mainly from leader countries i.e. G 20 countries and they use to meet 4 times per year. It has been created because of the systemic impact of the bankruptcy of Herstatt Bank in Germany. Basel I in 1988 focused on the capital measurement system with the COOKE ratio where 8% of a credit has to be financed by bank equity. Then Basel II in 2004 has as goal to create an international standard for banking regulators to control how much capital banks need to put aside to guard against the types of financial and operational risks banks (and the whole economy) thanks to the Mac Donough ratio. For Jayamaha (2005), Basel II needs a separation between the capital allocations for operational risk. This ratio does not only take into account the credit risk but also the operational risk and the market risk (cf bcbs 196). In response to crises and the bankruptcy of Lehman Brothers, banks have from 2013 to 2018 to implement the new rules adopted of Basel III. For Basel committee (bcbs 222), the risk management will be part of the politic of banks and that decisions in terms of risk coverage, analysis and interpretation, scalability and comparability across group institutions will have be take to as a priority i.e. A bank should determine risk reporting requirements to best suit its own business models and risk profiles. For example, an aggregated risk report should include, but not be limited to, the following information: capital ade quacy, regulatory capital, capital and liquidity ratio projections, credit risk, market risk, operational risk, liquidity risk, stress testing results, inter- and intra-risk concentrations, and funding positions and plans As the regulation advice, managing all the risks (specific, systemic, liquidity, counterparty, interest rate, FOREX, operationalÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦) are the most important to not lose money for companies. This interrogation is very important for the financial sector because it is one of the main reasons where most of the problems come from leading a loss of money and then clients. Almost all of the banks and big brokers have a risk management department but it is still quite new in this sector. In this regard, the BIS took into account numerous factors that have an influence over the value change: volatility, credit rating, correlation with risky assets, investors confidence (the flight to quality), and the liquidity of these assets (that is, th e speed at which they can be traded without a loss of value). It has been found that these factors have a crucial impact on banks profitability and solvency, and that banks should have a tighter risk management policy regarding the counterparty risk (avoidance of exposure above 1% of the total balance sheet) and the quality of assets (they should not be pledged, nor collateralized). This study is a good start to analyze the Basel III ratio as it establishes the variables that have an influence over banks financial positions. Thus, operational risks began to be managed from Basel Agreement II in order to allocate an amount of equity. Before those companies was not managing those risks and realized that after scandals, frauds and crises that it was mandatory to take into account the operational risk in the management of the banks. This topic is actual because it has been highlighted thanks to the different crises, fraud and events that occurred this last 4 years. These events have showed that managing risk especially operating risks is essential from different point of views. Besides, operational risks are linked to people, to the management, the intra and inter-communication. A good management can avoid spending money for mistakes that you be averted and keep a good reputation. Thus it will go through a huge improvement for banks and huge development for brokers these next few years. Thereby this graduating project will be based on being efficient in case of operating problems and control at the maximum operational risks. First of all, an operational risk is defined for the Basel committee as the risk of loss resulting from inadequate or failed due to procedures, human factors and systems or from external causes. Legal risks are not included but strategic risks are (BCBS, 2003). Nonetheless, this definition evolved during the creation of Basel II because at the beginning the Basel committee didnt define it like that. However not everybody is agreed on this definition, Vanini (2004) criticized it and Wild West Semantico defined it as any risk other than credit risk and market. To come back to Basel II agreement, it structured the operational risks in 7 types : internal and external frauds, employment relation and safety at work, customer, business and product relations, damage to physical assets, business disruption and system failures and execution of operations, deliveries and process which allow us to study on different cases regarding on what face more a broker. Jobst (2007) agrees on the definition below by splitting it in two categorizes : internal and external operational risk. He spilt internal risks in various risks as people risks by attributing loss exposure to the potential for failure of people from management failure, organizational structure or other human failures, which may be exacerbated by poor training, inadequate controls, poor staffing resources, or other factors, then the process risk, with the breakdown of established processes, failure of following processes or inadequate process mapping within business lines and finally technology or system risk, which reflects the operational exposure to disruptions and outright system failure in both internal and outsourced operations. These risks are applicable in the course of regular business operations, such as breaches in internal controls and monitoring, internal and external fraud, legal claims or business disruptions and improper business practices but also goes more further by defining it as the risk of some adverse outcome resulting from acts undertaken (or neglected) in carrying out business activities, inadequate or failed internal processes and information systems, misconduct by people or from external events. This definition includes legal risk from the failure to comply with laws as well as prudent ethical standards and contractual obligations, but excludes strategic and reputational risk. On the side of external risk, Jobs (200 7) expand his point of view based on environmental factors, such as a new competitor that changes the business paradigm, a major political and regulatory regime change, unforeseen (natural) disasters, terrorism, vandalism, and other such factors that are outside the control of the firm. For Jarrow (2008), he defines the operational risks into two types which create loss processes. The first one is the risk of a loss due to the firms operating technology and the second one the risk of a loss due to agency costs. He argues that the current methodology for the determination of economic capital for operational risk is overstated. It is biased high because the computation omits the banks net present value (NPV) generating process. Although it is conceptually possible to estimate the operational risk processes parameters using only market prices, the non-observability of the firms value makes this an unlikely possibility, except in rare cases. Instead, we argue that data internal to th e firm, in conjunction with standard hazard rate estimation procedures, provides a more fruitful alternative. So the assessment and the management of operational risks are different regarding activities in the financial sector ant countries. We also have to adapt the estimation of operational risks regarding the type of companies i.e. banks, credit establishment, brokers and also on the countries where the businesses are based Spain, France, England, China, India, United StatesÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦thats why we are going to do. Operations risks are linked to internal control and analysis of internal losses of companies. To take into account the percentage of those risks, a risk mapping has been done and imposed for and by banks. For Bon Michel (XXXX 71930056) This approach is part of an effort to streamline the complexity in an uncertain world with the crisis, we had the demonstration in the financial sector where figures mean everything and nothing at the same time. So this mapping risk was created to reassure managers, regulatorsÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦. But for Bon Michel (XXXX 71930056) can we really trust the results of the mapping? Taleb (2009) thinks that : Rationality itself could be an obstacle to the identification of a risk often characterized by the interdependence of causes because of the complexity. Operational risks, as we saw on Basel, are linked to people so that risk by nature is strongly linked to the human component (Power, 2005). It is then in a continuous process of interaction that the construction of intelligence risks can generate a change in the perception of risk by the same individuals and thus of their actions. Bon Michel But we also have to adapt the estimation of operational risks regarding the type of companies i.e. banks, credit establishment, brokers and also on the countries where the businesses are based Spain, France, England, China, India, United StatesÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦thats why we are going to do. To begin with Hedge Funds, the definition of operational risks is slightly different. For (CAPCO 2005) it includes the operating environment of the fund i.e. middle and back office functions such as trade processing, accounting, administration, valuation and reporting. This combination of Multiple Risksspans these categories. The evidence of non managing risks has been highlighted especially for Hedge Funds From a survey  [1]  , it resulted that over 10 years (1996-2006) half of the hedge funds went to bankruptcy because of an insufficient control of operational risk only (43843882). For most of them, fraud is the main reason i.e. embezzlement or false valuations of capital. (43443142 dà ©ja rà ©f en bas) as the graph below shows (CAPCO 2005) : Figure 1: graphs showing the different types of risk failure and the detail of operational risks Breakdown of Fund Failures Attributed to Operational Risk Only by Operational Issue The opacity of the man agement of operational risk exist because those companies are not obliged to provide information to investors about the management process and risks linked to operational risks. Besides, Hedge funds have a specific structure, usually off shore companies trading on OTC (Over The Counter) in illiquid products market or by doing arbitrage so it result that operational risks are specific thus it is less easy to prevent it. Regulations tried to implement for each complex product a prospectus. However, all the operations risks cannot be mentioned on it and defined due to a lack of maturity of the industry and its opacity so these prospectus alert investors to be aware of the risks known. Risks related to the operational weaknesses of hedge funds significantly outweigh the levels of financial risk, which are usually the focus of the managers attention and investors concerns. If we assume that the universe of investable funds is 2,500, the failure rate can be estimated at 0.6%, which rep resents a very high probability of default in the context of funds of hedge funds that invest in 10 to 25 vehicles EDHEC Une meilleure prise en compte des risques opà ©rationnels sera nà ©cessaire pour retrouver la confiance des investisseurs notamment à   la suite des scandales rà ©cents SOL : managing operational risks working paper EDHEC Credit establishments have to follow Basel rules (BCBC, 2006) and regulations. For example, Power (2005) established that the operational risk assessment differs from traditional risks of the bank including the absence of known outstanding. It is diffuse, multifaceted and ambiguous. That is all the complexity of the assessment of operational risks. It is based on the probability of a risk occur. And the risks as we saw before are various so even more difficult to manage and prevent. Banks are split in different activities; traditionally it is composed of retail banking, corporate and investment banking. However, these last few ye ars banks developed a new service, the online banking specialized in stock exchange for individual investors. This was really an expectation from customers so most of the French banks have their own online brokers under a different brand name. They are doing advertising to bring the clients of the retail bank but also clients from others competitors. Those brokers had a huge development and didnt focus on risk management. Usually the Director of Operation also deals and solves the risks problems in these small entities. All the banks for traditional activities and others brokers in France or abroad particularly in the FOREX market have a risk management department because they understood it was primordial. Thereby we will focus more on what has been done and developed in those companies and how it has been treated on the research side. The operation risks are those that use the most of equities after credit risks. To solve the operating losses, three strategies have been implemen ted in the banking system : the internal controls inside the department i.e. the back office and the management control the operations, the internal audit where a specialized department checks the operations to ensure that policies and procedures are followed and external audits where it is an external and independent institution who checks the financial statements and more. Those three actions permit to reduce operational risks and its cost. To focus on internal controls, for Arnold, Larsen, Hollinger, ODoherty, and Milne (2008), the problem of banks is that they dont care about it and are done by a spawned allegations of moral hazard and for Anna Chernobai, Philippe Jorion, and Fan Yu (2011) this is the consequences of a weak internal control environment so it makes loss an enormous amount of money. In the same article, they illustrate it by taking the example of the Trader Jerome Kerviel in Socià ©tà © Gà ©nà ©rale in 2008 that made a loss of $7.2 billion due to unauthoriz ed trading and that the management did nothing by letting him trade. However, for Alberto Balestra (2006), there is existing internal control procedures but because of a lack of compliance companies makes big losses. For the internal and external audit, the approach is quite different, the first one has to be permanent and the second one is usually periodic. The Basel committee defines what the banks have to do to manage its internal audit of its operational risk like create an operational risk management function responsible for codifying firm-level policies and procedures concerning operational risk management and risk-reporting system for operational risk; and for developing strategies to identify. And for the GCAP (group of Assistance to poor) the internal control is define by checking all the following points : The financial information and operating data are accurate and reliable, the policies and internal procedures are followed, the business risks of the institution are i dentified and minimized, resources are used efficiently and economically, the institutions objectives are being achieved and the external regulations are met. J. Cernes agreed to say that Internal audit sees his expanded role, including the control of new skills related to this development. Although for Balestra (2006), the operational risk manager can have difficulties to do it so it has to ask help from rely also on reengineers for this operational auditing. From the external point of view of an independent auditor, C. Cox (2008) director of the Securities and Exchange Commission (SEC) agreed that his agency failed to act for nearly a decade on credible allegations about Bernard Madoff, whose fraudulent internal controls allowed a Ponzi scheme that cost hedge fund investors as much as $50 billion The goal of these auditors is to check the financial statements, records, transactions, and transactions of a structure by an external party to express an opinion on the financial stat ements of the IMF. However, Markus Leippold (2003) doubts on the notion of managing risk and more particularly on finding a reasonable notion of diversification but also on the evaluation and quantification of the benefits from altering value chains and work flow structures For George S. Oldfield and Anthony M. Santomero (1997) the level of effort focused on reducing these risks can be communicated to shareholders and cost-justified. To conclude, for Leippold and Vanini (2003), the operation risk occurs at low frequency but it has a high impact. Usually it comes from of human behaviors. In 2001, the Basel committee realized a survey on 89 international banks, a bank has been affected by an average of 528 instances of operational risks, mainly on retail banking, generating an average loss per unit average of 10 000 ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬. It follows a gross loss average of 90 million ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬ per institution. For Jeffery Atik (2010) Not all ris ks can be anticipated. Indeed, it is difficult to manage risks that cannot be imagined (those that are outside of experience) although experience teaches that unanticipated and unimagined events do occur in reference to those crises. So we can see the difficulties to understand and limit the impact of the operational risks. Lots of things have been done from the past events on how to calculate the operational risks with the Value At Risk (VaR) but almost nothing has been done yet to limit the impact of operational risks on the financial sector after the recent past events of these last four years. From what we saw, risk management has been studies on its definition or on the calculation on the VaR few years ago. However, the risk management is still quite new on the financial sector and even more for operating risks on the way how to manage it. Thanks to the past, it has to be re-studies to improve its management to avoid to repeat mistake and to find of the possible risks that i t could occur. From few examples, when one problem occurs it costs a lot for the bank but it is quite surprising that it can still happen nowadays. With the crises and recent frauds, it was obvious that nothing has been done on this topic. The Basel committee is working on Basel III thus the operation risks will be more controlled and highlighted. Like that, the banks would less suffer of the impact of a bad management of operating risks. Besides, after all the crisis and scandals like as seen earlier for Socià ©tà © Gà ©nà ©rales case in 2008 or even for Barings in 1995, Calyon in 2006 or famous internal frauds like JP Morgan Chase in 2006, Bank of China in 2007 or commercial litigation in 2006 with the Deutsche Bank or fire in the headquarter of the Credit Lyonnais in 1996, these scandals do not give a positive image of the bank. The press uses to relay it in the headline for few days or months. Clients, customers read it and after the word of mouth begin. This external com munication cannot be controlled by the bank. Generally, this is the worse for a company. The employees and managers suffer also of that so training has to be done to surpass the impact of the event and be able to give an answer to all the attack they have from the family and clients. This impact of the management of operation risks has never been studied in term of figures for the bank and from the human side. The intangible assets are a very important notion than operating risks affect for years like the brand name, the image, the reputation. Even external events affect banks like attacks because citizens do not trust in institutions, fear appearÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ During the crises, the bankrupt of a bank or a scandal like Madoffs system was able to affect the entire sector and by definition all the others banks, which lead that clients wanted to withdraw their economies. So it would be important to see what the impact of the management is in all those cases of sys temic crisis. Ethic is a bad word in finance so it has to change by re-establishing a good image of the finance sector, in what way a new culture. The change has to be done from the top of the management i.e. operational risks could be avoided if a good management, a day to day management for example, would be implementing and if the employees would care about their banks. In this globalized world, people have to be reassured; the confidence is one of key word and important data that everybody forgot because the goal was to make money without any respect and trust toward the counterparty. The aim of the management of operational risks is to reinforce transparency and restore confidence. That goal always existed but events, scandals have updated it. Operating problems majority come from an error from the machines or an error from the human. Thus to avoid it, it could be possible to implement very strict strategies to eliminate it by capitalizing the mistakes whether voluntar y or not. The banks should, as what has been done before control and audit from a restrictive point of view but also train employees. A bonus could be given if the employee reacts in a good way, do not try to fraud and promote its company simply is a good employee. In my previous company i.e. a broker, there were a risk manager and all the employees received at the beginning a training to face to potential problems. This should be compulsory because it permits to go through all the problems with clients but also in intern with the crash of the trading platformÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ In France, it is coming but not in this way, they oblige the employees to pass an internal exam to be apt to face to it, some companies ask to pass the AMF (French Market Authorities) certification. However it has to become compulsory to everybody, like that when employees know what they can or cannot do for an internal or external situation, they wont try to cheat, hide or fraud because they wi ll be aware of the damage that it can cost for them, for the department, for the company and at the end for the clients. Besides, different departments are involved in the management of operating risks, like the general inspection, IT, back office, communication, customer services, investors relationsÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦so all those employees has to be trained to face to it hereby one of the solutions is to reinforce the corporate culture, like that, employees will be involved in their job but also in the improvement of their company. Sometimes, board of directors and managers are not also in the best position for that, because they can have strange behaviors and reactions i.e. panic of the management of Kerviel case. They can forget the common sense and act as individual careerists. It would be interesting to study the impact of training in time of crisis and how to react to those cases, like that companies would control the situation. Nevertheless to rebuild a go od relationship with the clients, the big famous banks created online bank with less fees and more attractive contracts, products and new names than their mother societies. Those brokers were not impacted by the crises and by the bad image of the banker. The reason why, is because there are new companies with no background like the major banks where most of population believe that they are not clear, corrupted and use to make a lot of speculation. Clients built this bad image on operating risks that occurs for banks. The managers didnt get the important of those risks so it would be nice to study it by getting information from clients, employees and managers to understand the importance of the operating risk, the management that they do, how they prevent, avoid and communicate on it from an old and traditional but also from a broker point of view. To conclude, the impact of a non-management has to be measured recently, the BIS wrote in 1998 a document on the management of oper ational risks. It has not been done since the crises and the internal events, fraud that occurred these last 5 years. Clients, customers, prospects, employees, directors are suffering of the non-management of operations risks and it has to be studied with the help of the stakeholders to find a compromise and begin to solve it. 71930056 p327 Si là ©valuation quantitative du risque a à ©tà © le premier exercice rà ©alisà © par les banques (Lamarque et Maurer, 2009), en tà ©moignent les nombreuses recherches qui se sont orientà ©es vers une approche quantitative (Frachot et alii, 2003 ; Klugman et alii, 1998 ; King, 2001), le rà ´le de la composante humaine dans le risque lui mà ªme et dans son processus didentification rend particulià ¨rement intà ©ressante toute approche de nature qualitative. Comme le soulignent Lamarque et Maurer (2009), lapproche quantitative du risque opà ©rationnel, compte tenu de sa difficile prà ©visibilità ©, est  « insuffisante pour m aà ®triser ces risques et la gravità © des à ©và ¨nements exceptionnels est extrà ªmement difficile à   à ©valuer  ». Cest gà ©nà ©ralement lapparition mà ªme du risque qui permet de le connaà ®tre et donc de le gà ©rer de manià ¨re efficace, cest-à  -dire a posteriori. Si lorganisation se caractà ©rise par sa diversità © et sa complexità © (Weick, 1995), celles-ci constituent un frein à   lidentification prà ©cise du risque futur. Sources : https://www.bis.org/bcbs Arnold M., Larsen P. T., Hollinger P., ODoherty J. and Milne R. (2008) The outsider: How Kerviel exposed lax controls at Socià ©tà © Gà ©nà ©rale, In The Financial Times, February 7th, London. Atik, Jeffery, (2010) Basel II and Extreme Risk Analysis. Loyola-LA Legal Studies Paper No. 2010-40. Available at SSRN: https://ssrn.com/abstract=1677682 Balestra A., (2006) Quantification of Operational Risk, Mohassaba S.A., Geneva. 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