...In a world that is constantly changing and with every change bringing about new ways of doing business with different outcomes, risk and how to manage it has become a critical issue. The recent global financial crisis served as a reminder that risk management and how the same is practiced is fundamental if performance objectives are to be consistentlyachieved. It has emerged that as business owners and managers strive to improve and sustain performance they are now also required to consider what risk management practices their organizations have adopted to avoid falling short of their strategic objectives. This is even more so in the financial services sector which was the most affected during the recent financial crisis. The objectives of this study were to analyze the risk management practices undertaken by Commercial Banks in Kenya and to determine and assess the effect of these risk management practices on their financial performance. The risks facing financial institutions are mainly classified into; strategic, operational, credit and market risks. In managing these risks, the risk management approach adopted by the owners and/or management was influenced by the organizational culture and support, whether or not risk management is integrated in the setting of organizational objectives, whether there is a documented risk management policy or framework, how the risk identification process is conducted, the risk analysis process, evaluation and treatment of risk; risk monitoring...
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...Management: Concepts and Cases, 13e (David) Chapter 9 Strategy Review, Evaluation, and Control 1) Most strategists believe that an organization's well being depends on evaluation of the strategic-management process. Answer: TRUE Diff: 1 Page Ref: 286 Topic: The Nature of Strategy Evaluation Objective: 9.02 Explain why strategy evaluation is complex, sensitive, and yet essential for organizational success. 2) Adequate, timely feedback is important to effective strategy evaluation. Answer: TRUE Diff: 1 Page Ref: 287 Topic: The Nature of Strategy Evaluation Objective: 9.02 Explain why strategy evaluation is complex, sensitive, and yet essential for organizational success. 3) Too much emphasis on evaluating strategies may be expensive and counterproductive. Answer: TRUE Diff: 2 Page Ref: 287 Topic: The Nature of Strategy Evaluation Objective: 9.02 Explain why strategy evaluation is complex, sensitive, and yet essential for organizational success. 4) Strategy evaluation should have a long-run focus and avoid a short-run focus. Answer: FALSE Diff: 2 Page Ref: 287 Topic: The Nature of Strategy Evaluation Objective: 9.02 Explain why strategy evaluation is complex, sensitive, and yet essential for organizational success. 5) According to Richard Rumelt, consonance and consistency are mostly based on a firm's external assessment. Answer: FALSE Diff: 2 Page Ref: 288 Topic: The Nature...
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...matching two key ingredients: core competencies and available opportunities. The external factors relate to the identification of the opportunities available to the firm, the second key ingredient in formulating strategy. Identification of opportunities also includes the threats facing the firm in the areas of competitors, customers, suppliers, regulatory bodies, as well as socio-political circumstances. 3. Accounting provides the skills necessary to quantify in financial terms the factors that influence strategy formulation -- strengths, weaknesses, opportunities and threats --, and to develop projections of costs and benefits as financial expressions of strategy. Capital budgets are a prime example of the contribution accounting makes in strategy formulation. Further, organizational goals are often expressed in financial terms, for example, to achieve a particular level of return on investment. 4. Both NPV and IRR are discounted cash flow techniques (recognizing the time value of money) used for evaluating capital investment proposals. The NPV method uses a discount rate (usually, the firm’s cost...
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...recovered through charges for the goods and services or whether those paying for the goods and services will benefit from them. Also, some services cannot be provided by public entities, like infrastructure projects. ------------------------------------------------- ------------------------------------------------- The similarities of government and nonprofit (or not-for-profit) organizations and profit-seeking (or for-profit) organizations: a. ------------------------------------------------- Both types of entities operate in the same economy and use the same financial, human and capital resources to accomplish their goals. b. ------------------------------------------------- Both must get and convert scarce resources to produce goods and services. c. ------------------------------------------------- Both use information systems that will make their jobs easier through evaluating, planning, directing and controlling the resources and their uses. d. ------------------------------------------------- Both aim to effectively, efficiently, and...
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...What is a Performance Appraisal? * Performance appraisal is the identification, measurement and management of human performance in organizations (Gomez-Mejia 2010). Identifying what areas of work the manager should be evaluated. Measuring how “good” or “bad” an employee is doing compared to the normal standards. Managing employees by providing constructive feedback and coaching them towards company, department and personal goals. * Performance appraisal is used for administrative and developmental purposes (Gomez-Mejia 2010). Any decisions that affect an employee’s working conditions are administrative purposes while decisions that work toward improving the performance standards are for developmental purposes Slide 3: Positive Results from a Performance Appraisal * When done correctly, performance appraisals can help develop an effective employee and improve their performance levels (Gomez-Mejia 2010). Positive performance appraisals also establish performance strategies that set the company apart from it’s competition (Gomez-Mejia 2010). Measurement standards like quality and timeliness can help a company strategically meet the needs of their consumers. Results from a performance appraisal can also provide evidence for selection systems in the situation of a termination of an employee. Slide 4: Pre-Appraisal Activities * One of the first steps in the appraisal process is to determine the performance dimensions. Dimensions are “an aspect of performance that determines...
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...CPA Program The Practical Experience Guide EVE CHENG CPA SENIOR ANALYST BHP BILLITON Contents Practical experience requirement How to identify if your role is relevant Where do you fit? What skills areas do you need to demonstrate? Your mentoring relationship How to record your experience in the logbook The skills guide Personal effectiveness skills Leadership skills Business skills Technical skills 3 4 6 7 8 10 11 12 13 14 15 MICHELLE ROACH CPA 2 Practical experience requirement Did you know? Our studies show that members consistently perform better in their segments when they are enrolled in the practical experience requirement The practical experience requirement of the CPA Program gives you the opportunity to use the knowledge and skills gained in your education and apply them in your workplace. Combining your education with mentored practical experience will give you the opportunity to develop and demonstrate highly sought after technical and soft-skills that will benefit your entire career. Starting your practical experience requirement means that you are one step closer to your goal of becoming a CPA. CPA Australia recommends that you start the practical experience requirement and the professional level segments at the same time, if you are employed in a relevant role. What are the requirements? • complete a minimum of three years of relevant full-time or equivalent part-time work experience • demonstrate competence in 16 personal effectiveness...
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...Science Technology Company Presentation to the Board of Directors on 5 Year Plan Executive Summary Context Science Technology Company designs and manufactures electronic measuring equipment and systems The electronics industry is characterized by a short product life cycle, rapid growth and increasing competition The Problem STC’s financial policies and profit margins have limited their ability to finance their working capital requirements STC is approaching the prudent limit of debt financing in relation to its equity Our Recommendation STC needs to raise more equity by positioning itself for an IPO. To do so, the company needs to: – Increase their operational effectiveness to free up working capital – Improve financial performance through asset and liability management 2 Agenda Background The Finson Plan A New Financial Strategy Results 1. Background 2. Evaluating the CFO’s (Harry Finson) Five-year Plan 3. Developing a New Financial Strategy 4. Results 3 1. Background Science Technology Company Science Technology was an early pioneer in the design, manufacture and use of electronic measuring instruments Product Categories: Systems for testing electronic circuits and components Equipment for measuring and analyzing noise and vibration Audiometric devices Time 1915: Founding Pioneer of electronic measuring instruments 1915 – 1945: Pre-war Era Little serious competition Growth resulted from R&D “We don’t want to grow too large” 1945 – Present: Post-war...
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...valid predictor of future financial performance. It is understood and often disputed that predicting financial performance beyond a time horizon of four years, using accounting analysis is not as reliable as initially determined. Based on both academic research studies and reviews alongside nonacademic reviews, it seems plausible to a certain comfortable level that it is possible to incorporate targeted and focused accounting information and ratios in conjunction with additional industry/market based variables within statistical models to be successful in predicting future performance beyond the short run. Financial ratios, together with other analyses, are widely used as critical indicators in evaluating a firm’s performance. One question constantly arises, which financial ratios are informative among the hundred ratios available? Material below will identify and support particular ratios of focus. Research also suggests that in order to accurately forecast future financial performance, accounting information needs to work alongside other variables (i.e. firm size, economic trends, and industry specific ratios). Beyond the microeconomics of the company, analysis should also consider relevant macroeconomics that can have a direct correlation on a firm’s success. Based on all findings included, there has been no distinct criticism of using accounting information beyond the time horizon of four years as a mechanism to predict longer term horizon performance. But a more succinct and...
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.................................................................................. 3 Competency Weightings ....................................................................................................................................... 3 Structure of the Examination ................................................................................................................................ 5 Examination Competency Coverage ..................................................................................................................... 6 Scoring Model and Evaluation of Candidate Performance ................................................................................... 6 ©CGA-Canada, 2011 1 CGA-Canada PA2 Examination Blueprint 2011/2012 PA2: Strategic Financial Management Examination Blueprint 2010/2011 About the Examination Blueprint The PA2: Strategic Financial Management examination has been constructed using an examination blueprint — a widely accepted tool used...
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...ch 8ch 8 Student: ___________________________________________________________________________ 1. The task of crafting corporate strategy for a diversified company encompasses A. picking the new industries to enter and deciding on the means of entry. B. initiating actions to boost the combined performance of the businesses the firm has entered. C. pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage. D. steering corporate resources into the most attractive business units. E. All of these. 2. Which one of the following is not one of the elements of crafting corporate strategy for a diversified company? A. Picking new industries to enter and deciding on the means of entry B. Choosing the appropriate value chain for each business the company has entered C. Pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage D. Steering corporate resources into the most attractive business units E. Initiating actions to boost the combined performance of the businesses the firm has entered 3. Diversification merits strong consideration whenever a single-business company A. has integrated backward and forward as far as it can. B. is faced with diminishing market opportunities and stagnating sales in its principal business. C. has achieved industry leadership in its main line of business. D. encounters declining profits in its mainstay business...
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...Accounting Standards for the Public Sector Objective The objective of this Standard is to establish principles for reporting financial information by segments. The disclosure of this information will: (a) help users of the financial statements to better understand the entity’s past performance and to identify the resources allocated to support the major activities of the entity; and (b) enhance the transparency of financial reporting and enable the entity to better discharge its accountability obligations. Definition of a Segment A segment is a distinguishable activity or group of activities of an entity for which it is appropriate to separately report financial information for the purpose of evaluating the entity’s past performance in achieving its objectives and for making decisions about the future allocation of resources. Reporting By Segments Under this Standard, public sector entities will identify as separate segments each distinguishable activity or group of activities for which financial information should be reported for purposes of evaluating the past performance of the entity in achieving its objectives, and for making decisions about the allocation of resources by the entity. In addition to disclosure of the information required by paragraphs 51 to 75 of this Standard, entities are also encouraged to disclose additional information about reported segments as identified by this Standard or as considered necessary for accountability and decision making...
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...competitiveness factors for a business better than auditor. Individuals choosing an auditing in a public accounting firm have the opportunity to progress from a starting position of staff assisstant to senior auditor, to manager and then to partner. Regardless of their career path, most auditors are recognized for their expertise in evaluating organizational performance. AUDITING DEFINED The term auditing is used to describe a broad range of activities in our society. The Report of the Committee on Basic Auditing Concepts of the American Accounting Association defines auditing as : “a systematic process of objectively obtaining and evaluating evidence regarding assertion about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.” Several attributes of auditing contained in this definition merit special comment: 1. A systematic process connotes a logical, structured, and organized series of steps or procedures. 2. Objectively obtaining and evaluating evidence means examining the bases for the assertions and judiciously evaluating the results without bias or prejudice either for or against the individual (or entity) making the assertions. 3. Assertions about economic actions and events or the representations meat by the entitiy or individual. Assertions include...
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............................................................................... 2 Prerequisite Courses for the PA1 Examination .................................................................................................. 3 Competency Weightings ....................................................................................................................................... 3 Structure of the Examination ................................................................................................................................ 5 Examination Competency Coverage ..................................................................................................................... 6 Scoring Model and Evaluation of Candidate Performance ................................................................................... 6 ©CGA-Canada, 2014 1 CGA-Canada PA1 Examination Blueprint 2014/2015 PA1: Issues in Professional Practice Examination Blueprint About the Examination Blueprint The PA1: Issues in Professional Practice examination has been constructed using an examination blueprint — a widely...
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...college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking papers. Tools of Performance Measurement: Managers use a number of tools to measure performance. The approach to measurement depends on what will be measured and against what benchmark the performance will be measured. A benchmark can be viewed as a goal to meet, or a standard that management expects its employees to achieve. A significant management component involves...
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...initiative to attend college. Understanding managerial accounting will help you move up the ladder more quickly, regardless of your chosen career path. How Can Managerial Accounting Help You? In any responsible business capacity, your boss and all other management levels above you will want to know how well you handle your responsibilities. To do so requires that they measure your performance. The evaluation process is similar to your perceptions in each college course in which you enroll. During your first class meeting in each course, one of your initial goals is to find out how your performance will be evaluated. In a business environment, you want to know what they expect, i.e., how they will measure your performance. While you won’t be earning letter grades in the business world, your performance will ultimately translate into promotions, bonuses, raises, reprimands, or perhaps dreaded walking papers. Tools of Performance Measurement Managers use a number of tools to measure performance. The approach to measurement depends on what will be measured and against what benchmark the performance will be measured. A benchmark can be viewed as a goal to meet, or a standard that management expects its employees to achieve. A significant management component involves planning, which is...
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