Risk Protection Measures for the Bank Essay Example | Topics and Well Written Essays - 1500 words

Risk Protection Measures for the Bank - Essay Example Bank A may have the option to propose an early termination date in order to avoid further losses (FN3). However the contract between the two banks should make provision for such losses and one of the best options open to Bank A is to enter into an ISDA Agreement. An ISDA Agreement allows a bank to operate in financial markets while conforming to strict regulations. The EU Directive 2001/24/EC dated 4 April 2001 has laid out specific guidelines on the winding up of credit institutions and will apply to both bank A and Bank A who are in Europe. (a) Article 25 specifically clarifies that netting agreements will be solely governed by the nature of the agreement that exists between the two parties – Bank A and B. Therefore, Bank A can cope with the risks by introducing appropriate clauses into the Schedule to the ISDA agreement. If Bank A has any intimation of the potential winding up of Bank B and then enters into any financial arrangements with them, recoveries will be limited, despite any risks. However, if at the time of entering the agreement, Bank A is not aware of any winding up, then financial obligations due to it from Bank B may be secured through the means outlined below. Derivatives are financial instruments that are used for financial speculation and their fluctuating value is caused by volatility in the financial markets1. Counterparties enter into derivatives for purposes of hedging and arbitrage to be derived in financial transactions through the management of asset liabilities2. Contractual provisions under ISDA Agreements include a Master Agreement which is standard all contracting organizations and an attached Schedule may be tailored according to the requirements of the two parties. Therefore, Bank A can tailor the Schedule by including a clause that will also regulate oral trading arrangements of the two parties.

Communication Problems and Recommendations Case Study - 1

Communication Problems and Recommendations - Case Study Example It is evident that the employees within the company are not pleased with the tendency of Mr. XYZ to hire family members and friends. This has persisted because the employees have not been able to communicate their displeasure to the owner of the company. It is therefore recommended that the management of XYZ to establish a two-way communication process between the management so that the employees will be allowed to talk out their concerns. This would be achieved through forums and meetings where open discussions for improvement could be encouraged (Davis 278). It is through this that Mr. XYZ would be aware of the lateness of his son and the needs of the employees for the successful and efficient attainment of business goals and objectives. The behavior of Larry, Carlos, Juan, and Manny demonstrate a case where effective communication is disregarded by these four Spanish speaking individuals. This is revealed by the fact that they share jokes amongst themselves without involving the non-Spanish speaking individuals. It is evident that these individuals shut others away from communications. Moreover, they assume that other people would not understand what they are talking about. In this regard, it is true to assert that these individuals are barriers to effective communication. It is also possible that the Spanish speakers have not been told how important communication is in any social or professional setting. In the light of this case, it is recommended for those who get in contact with the Spanish speakers demonstrate to them the importance of communication so that they would not shut others from trying to initiate a conversation. Additionally, the cultural or ethnic element within an organization or social interactio n should be prevented from being a barrier to communication (Yi-Hui 334).