Premium Essay

Types: Doc, Docx, Pdf, Wps, Rtf, Odt

In: Business and Management

Submitted By motiv869
Words 16125
Pages 65
Assessment 1 Develop workplace sustainability

Questions

What are the sustainability issues?
Unsustainable activities have led to changes in our environment, or have been identified as having the potential to lead to future changes. The types of changes that are occurring or are predicted to occur form the key issues for sustainability.

The following Table 1 provides a summary of the key issues. They are related to changes to the physical and cultural (being the way we live) environments, which in turn relate to the economic environment.

What does sustainability mean?

Every day we hear the term ‘sustainable’ or ‘sustainability’ being used to describe a large number of issues and news items. There is the ‘sustainable economy’, ‘sustainable agriculture’, ‘economically sustainable’, ‘the need to be sustainable’, ‘sustainable work practices’ and ‘sustainable water supply’ to name a few.

The Brundtland Report, Our Common Future, is seen by many as one of the first global reports to address sustainable development. This report defined sustainable development as:

“…development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Brundtland (1987)

National strategy for ecologically sustainable development

Sustainable Development is defined by the Australian Government’s
National Strategy for Ecologically Sustainable Development as:

“…using, conserving and enhancing the community’s resources so that ecological processes, on which life depends, are maintained and the total quality of life, now and in the future, can be maintained.”

Commonwealth of Australia (1992)

The United Nations Educational, Scientific and Cultural Organisation (UNESCO) defines sustainable development in reference to the United Nations Decade of Education for Sustainable Development, spanning from…...

Similar Documents

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...and the resulting opportunities for inexperienced workers to learn from experienced workers. This helps new employees quickly learn the kinds of behavior that lead to success and promotion. Coordination of activities within functional departments is easier than in more broadly based organizations. A functional organization fosters efficiency, teamwork, and coordination of activities within individual units. Types of Organizational Structure Simple: This is a basic organizational structure where there is little work specialization, the owner yields most power, and few rules govern operations. The organizational structure is also flat – meaning that there are not many levels of hierarchy. Typically, small organizations such as restaurants would have these types of organizational structures. Functional: This is where the work is divided into specific areas of specialization: jobs and activities are grouped together – also referred to as departmentation. Departmentation can take place in different ways: based on a product or service, by types of customers, or by type of equipment used to produce the business products. Traditionally, work activities have been specialized and grouped into departments. Those specialists are under the direction of a manager. There are several ways in which these activities can be grouped. Activities can be grouped according to function to pursue economies of scale by placing employees with shared skills and knowledge into work-groups. These......

Words: 2597 - Pages: 11

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...available long-term to keep the tastes of our products consistent. Food-type ingredients and flavorings are added to some types of cigarettes – typically American style blends – to balance the natural tobacco taste, replace sugars lost in curing, and give individual brands their characteristic flavor and aroma. Other ingredients control moisture, protect against microbial degradation, and act as binders or fillers. Smokeless snus Swedish-style snus is a form of tobacco that isn’t smoked. It is acknowledged by several independent health experts to be at least 90 per cent less harmful than smoking cigarettes. Although not all public health bodies agree that snus has a role to play in helping to reduce the impact of tobacco on public health, encouraged by the independent evidence and support that snus has received, we have begun marketing it under some of our major brands Cigars Cigars come in a variety of shapes and sizes. They also vary by method of manufacture, flavour, strength and country of origin. In Europe, cigars date back to the arrival of Columbus in the West Indies in 1492, where he found people smoking primitive forms of cigar in the shape of rolled leaves made of aromatic herbs. Much of the territory in the West Indies, Central and South America were Spanish colonies at this time and the Spanish were responsible for the early development of tobacco, which is why most cigar types have Spanish names. Pipe tobacco It is believed that the Mayan......

Words: 3988 - Pages: 16

Free Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

... It's time to come to grips with the fact that you have been forfeiting your power to make the change you say you want. Even if you're blaming yourself for not being happy or for having the courage to make the change, then part of you is beating up another part of yourself, hence there's a victim in there somewhere. To the degree you play the role of victim, you are losing power. So wake up and own your full power to create the life you desire, no matter what. 6. Give up analysis that breeds paralysis. We are so conditioned to figure things out before we leap, that sometimes we become paralyzed to take the actions our bodies are directed to take from the beginning. This is particularly true if you are an engineer, scientist, or other type of technical person who experiences the world more through analysis more than feeling. I was an engineer once and from my own experience know this to be true. The mind is meant to be used to create and to keep us safe. If it's stuck in a pattern rehashing the same ideas over and over, trying to figure out what will happen if, then you're probably stuck in a mind-loop. It's time to quit thinking and start doing. Ask your body what action to take, and then just take it. Often the information you're seeking will only be made available after the action is taken. Wisdom often comes in the motion, not the analysis. 7. Risk failure. Has the fear of failing got you stuck? If so, define what failure would look like for you. Imagine the worst......

Words: 1539 - Pages: 7

Free Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...notion of an African Renaissance had become a political cliché and has not, even at this early stage, resulted in sustainable stability, peace and development that was hoped for. Collectively, Africa is already behind the targets set for achieving the UN’s Millennium Development Goals (MDGs). With this in mind, African states cannot be expected to engage themselves in outer space affairs. Nevertheless, one of the most significant international normative developments since the end of the Cold War is the focus on human security as opposed to state security. As consecutive COPUOS meetings and the Third United Nations Conference on the Exploration and Peaceful Uses of Outer Space (UNISPACE III) in 1999 have reiterated, the application of some types of space technology can enhance human security by, for example, helping to reduce the risk of natural disasters, 91 AFRICAN SKIES/CIEUX AFRICAINS, No. 12, October 2008 forecast crop yields, monitor environmental degradation and prevent the spread of infectious diseases.10 States through their governments play a crucial role in the establishment and maintenance of sustainable human security. On a continent ravaged by natural and human-induced disasters, the application of these technologies can greatly enhance human security. However, in some African states, state structures are the very institutions that cause human insecurity. Interactions between states and between states and commercial non-state space enterprises are......

Words: 7026 - Pages: 29

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...11.3.1 Logical incrementalism 11.3.2 Resource allocation processes 11.3.3 Organisational politics 11.3.4 Cultural processes 11.4 Patterns of strategy development 11.5 Challenges for managing strategy development 11.5.1 Managing intended and realised strategy 11.5.2 The learning organisation 11.5.3 Strategy development in uncertain and complex conditions DETAILED CONTENTS xiii Summary Work assignments Recommended key readings References Case example: Strategy development at Intel 424 426 427 427 429 433 434 436 436 438 440 440 443 444 446 447 447 450 450 453 455 455 459 463 465 467 467 468 470 473 474 475 475 477 478 480 482 482 485 487 489 490 492 496 497 497 500 12 Organising for Success 12.1 Introduction 12.2 Structural types 12.2.1 The functional structure 12.2.2 The multidivisional structure 12.2.3 The matrix structure 12.2.4 The transnational structure 12.2.5 Project-based structures 12.2.6 Choosing structures 12.3 Processes 12.3.1 Direct supervision 12.3.2 Planning processes 12.3.3 Cultural processes 12.3.4 Performance targeting processes 12.3.5 Market processes 12.4 Relationships 12.4.1 Relating internally 12.4.2 Relating externally 12.4.3 Configuration dilemmas Summary Work assignments Recommended key readings References Case example: Hurricane Katrina: human-made disaster? 13 Resourcing Strategies 13.1 Introduction 13.2 Managing people 13.2.1 People as a resource 13.2.2 People and behaviour 13.2.3 Organising people 13.2.4 Implications for managers......

Words: 298447 - Pages: 1194

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...Practice Tests IELTS General Tests IELTS Sample Exam IELTS Line Graphs IELTS Tips IELTS Writing Samples Speaking Part 1 Speaking Part 2 & 3 IELTS Writing Task 1 #101 You should spend about 20 minutes on this task. The chart below gives information about the UK's ageing population in 1985 and makes predictions for 2035. Summarise the information by selecting and reporting the main features, and make comparisons where relevant. Write at least 150 words. Source: Office for National Statistics, National Records of Scotland, Northern Ireland Statistics and Research Agency Test Tip In Task 1 of the IELTS Writing modules, you may be asked to interpret and describe data presented in graph form. There are three basic types of graph: pie charts, bar charts and line graphs. Bar charts are useful for comparing the quantities of different categories. Bar charts are constructed such that the lengths of the different bars are proportional to the size of the category they represent. Bar charts usually show the numbers or percentages on the y-axis and the different categories that are being measured along the x-axis. Both axes are labeled to show what they refer to. Sometimes each category along the x-axis can be divided into two further sub-groups, e.g. 1985/2035, so that these sub-groups can be compared. Model answer The graph shows how the size and distribution of the UK's ageing population is likely to change over a 50-year period. Overall, the......

Words: 465 - Pages: 2

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...paper . I am highly grateful to Mrs. Anju Saini, Lecturer LSB, for the trust she has shown in me by allowing me to do this work. Her constant review and suggestions throughout my work on term paper are highly commendable. I express my thanks to my friends, with whom I was able to complete my term paper project, their able guidance and direction are always promising that help me a lot in one way or the other. Javaid Ahmad Canara Bank India The Canara Bank of India is one of the renowned banks in the country. The bank provides excellent services and facilities to its customers. Personal Banking, Corporate Banking, NRI Banking and Priority & SME Credit are some of the important functions provided by the bank. PROFILE OF CANARA BANK Type Public (BSE: 532483, NSE: CANBK) Industry Financial Commercial banks Founded Canara Bank Hindu Permanent Fund (1906) Canara Bank Ltd (1910)Canara Bank (1969) Headquarters Bangalore, India Key people A. C. Mahajan, Chairman & Managing Director Jagdish Pai K L , Executive......

Words: 7637 - Pages: 31

Premium Essay

Doc Doc, Docx, Pdf, Wps, Rtf, Odt

... | Profit growth: |Year |Amount in million | |1999 |12 | |2000 |192 | |2001 |404 | |2002 |461 | |2003 |575 | OBJECTIVE OF THE BANK Prime Bank Limited is designed to provide commercial investment bank services to all type of customers ranging from small entrepreneurs to big business firms. In this regard, it gives emphasize on the priority sector of the economy like industry, housing and self employment. Besides, the bank aims to provide different customer friendly deposit and loan products to fulfill the banking needs of the individual customers. VISION OF THE BANK To be the most efficient Bank in terms of customer service profitably and technology applicable. MISSION OF THE BANK: ( Continuous improvement in Bank's business policies and procedures; ( Cost reduction through integration of technology at all level. Organization Structure [pic] Management structure [pic] Chapter-2 General......

Words: 1805 - Pages: 8

Free Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...ﺍﻟﺘﻔﺎﻋـل ﺒـﻴﻥ ﺍﻟﻤـﺴﺘﺨﺩﻤﻴﻥ‬ ‫ﻭﺍﻟﺠﻤﺎﻋﺎﺕ، ﺫﺍﺕ ﺍﻻﻫﺘﻤﺎﻤﺎﺕ ﺍﻟﻤﺸﺘﺭﻜﺔ، ﺍﻟﺘﻲ ﺘﻤﺜل ﺃﻫﻡ ﺭﻜﺎﺌﺯ ﺍﻟﻭﻴﺏ 0.2 ﻭﺍﻹﻋﻼﻡ ﺍﻟﺠﺩﻴﺩ.‬ ‫ﻓﺎﻹﻋﻼﻡ ﺍﻟﺠﺩﻴﺩ ﻫﻭ ﻤﺠﻤﻭﻋﺔ ﻤﻥ ﺍﻟﺘﻁﺒﻴﻘﺎﺕ ﻭﺍﻷﺭﻀﻴﺎﺕ ) ‪ (Platforms‬ﻭﻭﺴﺎﺌل ﺍﻹﻋﻼﻡ ﻋﻠﻰ‬ ‫ﺍﻟﺸﺒﻜﺔ ﻭﺍﻟﺘﻲ ﺘﻬﺩﻑ ﻟﺘﺴﻬﻴل ﺍﻟﺘﻔﺎﻋﻠﻴﺔ، ﻭﺍﻟﺘﻌـﺎﻭﻥ ﻋﻠـﻰ ﺒﻨـﺎﺀ ﺍﻟﻤﺤﺘﻭﻴـﺎﺕ ﻭﻤـﺸﺎﺭﻜﺘﻬﺎ )٤(.‬ ‫‪Kirkpatrick, David," The Face book Effect", the inside story of the Company That Is Connecting‬‬ ‫.‪the World: New Yurok : 2010, Simian 8 Shuster‬‬ ‫-1‬ ‫.1 ‪What is Web 2.0? Design patterns and Business Models for the Next Generation of‬‬ ‫.‪Software‬‬ ‫-2‬ ‫‪http //digitalyouth.ischool.berkeley.edu /files /report/digitalyouth- White Paper.pdf, " live‬‬ ‫.18‪with new media, p‬‬ ‫-3‬ ‫.201‪http://www.universalmccann.com/ Asset/Wave_3_20080403093750.pdf, Wave.3,P‬‬ ‫35‬ ‫-4‬ ‫ﺤﻴﺙ ﻴﻌﺘﻤﺩ ﺍﻹﻋﻼﻡ ﺍﻟﺠﺩﻴﺩ ﻋﻠﻰ ﺍﻟﻌﺩﻴﺩ ﻤﻥ ﺍﻟﺘﻜﻨﻭﻟﻭﺠﻴﺎﺕ ﻜﺨﻼﺼﺎﺕ ﺍﻟـ ‪ ،RSS‬ﺍﻟﻤﺩﻭﻨــﺎﺕ‬ ‫، ﺍﻟﻭﻴﻜﻲ، ﻤﻨﺼﺎﺕ ﻤـﺸﺎﺭﻜﺔ ﺍﻟـﺼـﻭﺭ ) ‪ ،( Flickr‬ﻤـﺸـﺎﺭﻜﺔ ﺍﻟﻔــﻴﺩﻴﻭ )‪، (You Tube‬‬ ‫ﺍﻟﺒﻭﺩﻜﺎﺴﺕ، ﺍﻟﺸﺒﻜﺎﺕ ﺍﻻﺠﺘﻤﺎﻋﻴﺔ، ﻋﻼﻤﺎﺕ ﺘـﺩﺍﻭل ﺍﻟــﻤﻭﺍﻗﻊ ، ﺍﻟــ‪ ،Mash- ups‬ﺍﻟﻌـﻭﺍﻟﻡ‬ ‫ﺍﻻﻓﺘﺭﺍﻀﻴﺔ، ﺍﻟـﺘﺩﻭﻴﻥ ﺍﻟـﻤﺼﻐﺭ، ﻭﺍﻟﻜﺜﻴﺭ ﻤﻥ ﺍﻟـﺘﻜﻨﻭﻟﻭﺠﻴﺎﺕ ﺍﻷﺨﺭﻯ )1(.‬ ‫ﻜﻤﺎ ﺘﺘﻴﺢ ﻭﺴـﺎﺌﻁ ﺍﻹﻋـﻼﻡ ﺍﻟﺠﺩﻴـﺩ ﺇﻤﻜﺎﻨﻴـﺎﺕ ﻫﺎﺌﻠـﺔ ﻟﻠﺘﻭﺍﺼـل ﻭﺍﻻﺘـﺼﺎل ﺍﻟﺠﻤـﺎﻫﻴﺭﻱ‬ ‫ﻭﻤﻥ ﺍﻟﺠﺩﻴﺭ ﺫﻜﺭﻩ، ﺃﻨﻨﻲ ﻻﺤﻅﺕ ﻫﻨﺎﻙ ﺒﻌﺽ ﺍﻟﺨﻠﻁ ﻓﻲ ﺍﻟﺩﺭﺍﺴـﺎﺕ ﺍﻟﻌﺭﺒﻴـﺔ ﺤـﻭل ﺍﻹﻋـﻼﻡ‬ ‫ﺍﻟﺠﺩﻴﺩ، ﻓﺎﻟﻜﺜﻴﺭ ﻤﻥ ﺍﻟﺒﺎﺤﺜﻴﻥ ﻴﻌﺭﻓﻭﻥ ﺍﻹﻋﻼﻡ ﺍﻟﺠﺩﻴﺩ ﻋﻠـﻰ ﺃﻨـﻪ ﺍﺴـﺘﺨﺩﺍﻡ ﻭﺴـﺎﺌل ﺍﻹﻋـﻼﻡ‬ ‫ﻟﻠﺘﻜﻨﻭﻟﻭﺠﻴﺎﺕ ﺍﻟﺤﺩﻴﺜﺔ ﻓﻲ ﻋﻤﻠﻬﺎ، ﻭﻫﻡ ﺒﺫﻟﻙ ﻴﺭﻭﻥ ﺃﻥ ﺍﻹﻋﻼﻡ ﺍﻟﺠﺩﻴﺩ ﻅﻬﺭ ﻓﻲ ﺍﻟﺠﺯﺀ ﺍﻷﺨﻴـﺭ‬ ‫ﻤﻥ ﺍﻟﻘﺭﻥ ﺍﻟﻌﺸﺭﻴﻥ، ﺒﻴﻨﻤﺎ ﺍﻹﻋﻼﻡ ﺍﻟﺠﺩﻴﺩ ) ‪ ،( New Media‬ﺍﻟﺫﻱ......

Words: 49057 - Pages: 197

Free Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...the other hand, to distinguish quality service from the customer’s perspective, it is necessary to know first of all, customers’ expectation and how their perception of the quality of service delivered differs from their expectation. Hence, issues of customer service very often focus on external customers. Thus, all the principles of service quality equally apply to internal customers who are staff of the organisation. Who is a Customer? A “customer” can be defined as a person, client or a business that uses the services or products of a provider. Whoever receives your work is engaged in a service delivery with you in which you are the service provider and he/she is your customer. By this definition customers can be categorised into two types, namely “internal customers” and “external customers.” Accordingly, staff of an organisation can be considered “internal customers” because they receive products and services essential to their work from fellow workers. When co-workers do not provide the needed support services, work process in the organisation can be adversely affected. The issue of internal customers is sometimes downplayed to the detriment of general customer service of an organisation. In other words, the concept of customer satisfaction must be applied to internal customers if organisations are to satisfy external customers. “External customers” refer to persons who receive the services provided by the organisation and who are not members or staff. Customers are......

Words: 1484 - Pages: 6

Free Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...individual equity for employees * Performance enhancement for the organization * For employers, compensation costs must be at a level that both ensures organizational competitiveness and provides sufficient rewards to employees for their knowledge, skills, abilities, and performance accomplishments. Balancing these facets so that the employer can attract, retain, and reward the performance of employees requires considering several types of compensation | Nature of Compensation | * Compensation is a critical component influencing how and why individuals work at one organization over others. * Employers must be sensibly aggressive with a few sorts of compensation so as to hire, keep, and reward performance of people in the organization. * Compensation is a key factor in attracting and keeping the best employees and ensuring that organization has the competitive edge in an increasingly competitive world. * Without adequate compensation, current employees are likely to leave and replacements will be difficult to recruit.Financial type * Direct Financial Compensation - Pay that person receives in form of wages, salaries, bonuses, and commissions. * Indirect Financial Compensation (Benefits) - All financial rewards not included in direct compensation such as paid vacations, sick leave, holidays, and medical insurance. * Nonfinancial Compensation - Satisfaction that person receives from job itself or from psychological or physical environment in which......

Words: 769 - Pages: 4

Free Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...Levin, H., 1986) B.A Chansarkar and A. Mishaeloudis (2001),explained the effects of age, qualification distance from learning place etc. on student performance. The performance of students on the module is not affectedby such factors as age, sex and place of residence but is associated withqualification in quantitative subjects. It is also found that those who live near theuniversity perform better than other students.Yvonne Beaumont Walters, kola soyibo,(1998) further elaborated that studentperformance is very much dependent on SEB (socio economic back ground)asper their statement, “High school students’ level of performance is withstatistically significant differences, linked to their gender, grade level, schoollocation, school type, student type and socio-economic background (SEB).”Kirby, Winston et al. (2002) focused on student’s impatience (his time-discountbehavior) that influences his own academic performance.Goethe found out that weak students do better when grouped with other weak students. (As implied by Zajonc’s analysis of older siblings (1976) it shows thatstudents’ performance improves if they are with the students of their own kind.There are often different results by gender, as in Hoxby’s K-12 results (2000);Sacerdote (2001) finds that grades are higher when students have unusually academically strong room mates.The results of Zimmerman (1999, 2001) were somewhat contradictory to Goetheresults but again it proved that students performance depends on......

Words: 3190 - Pages: 13

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...building telecom infrastructure and the progress that has been made on regulatory reforms. Some key measures of the status of telecommunications in Bangladesh are also provided. Population: By July 2008, the total population of Bangladesh is going to be 153,546,901 with a growth rate 2.022%. In July 2007 the growth rate was 2.056%. (CIA World Fact Book 2008) Age structure is 0-14 years: 33.1% (male 25,639,640/female 24,174,937), 15-64 years: 63.4% (male 48,659,087/female 46,712,687), 65 years and over:3.5% (male 2,818,638/female 2,443,350) (2007 EST.). Median age of the population is 22.5 years. (ibid) Communication systems Communication in Bangladesh is based on Telephone, mobile communication, TV Broadcast, Radio, Internet etc. Three types of radio broadcast stations; AM15, FM 13 and shortwave 2. There are 376 Internet hosts with 10 ISP’s and 450,000 internet users as of the year 2006. Telephone density is less than 1 per 100 persons. Mobile cellular density is 13 per 100 per person. The country is introducing digital systems, trunk systems which include VHF and UHF microwave radio links and some fiber optic links. The country has a link to Europe with SEA-ME-WE-4 fiber optic submarine cable. (CIA World Fact Book 2008) vMETHODOLOGY We have conducted the literature search connected to the topic to support and direct the research. This search was mainly conducting on the University databases, Journal databases, Library Journals, websites and Textbooks. We have......

Words: 6988 - Pages: 28

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...Part 4: Compensating Human Resources Chapter 11: Variable Pay and Executive Compensation Prepared by Linda Eligh, University of Western Ontario Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 11–1 Learning Objectives After you have read this chapter, you should be able to: 1. 2. 3. 4. 5. 6. Define variable pay and identify three elements of successful pay-for-performance plans. Discuss three types of individual incentives. Explain three ways that sales employees are typically compensated. Identify key concerns that must be addressed when designing group/team variable pay plans. Discuss why profit sharing and employee stock ownership are common organizational incentive plans. Identify the components of executive compensation and discuss criticisms of executive compensation levels. Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 11–2 Variable Pay: Incentives for Performance • Variable Pay  Compensation linked to individual, group/team, and/or organizational performance. • Basic assumptions:  Some jobs contribute more to organizational success than others.  Some people perform better and are more productive than others.  Employees who perform better should receive more compensation.  Some of employees’ total compensation should be tied directly to performance. Copyright © 2008 by Nelson, a division of Thomson Canada Limited. 11–3 Developing Successful Pay-for-Performance Plans • Reasons for Adopting...

Words: 1689 - Pages: 7

Premium Essay

Doc, Docx, Pdf, Wps, Rtf, Odt

...investors to-  Provide leverage or gearing, such that a small movement in the underlying value can cause a large difference in the value of the derivative.  Speculate and to make a profit if the value of the underlying asset moves the way they expect (e.g., moves in a given direction, stays in or out of a specified range, reaches a certain level).  Hedge or mitigate risk in the underlying, by entering into a derivative contract whose value moves in the opposite direction to their underlying position and cancels part or all of it out.  Obtain exposure to underlying where it is not possible to trade in the underlying (e.g., weather derivatives). Collateralized debt obligations (CDOs): Collateralized debt obligations (CDOs) are a type of structured asset-backed security (ABS) with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand. CDOs' value and payments are derived from a portfolio of fixed-income underlying assets. CDO securities are split into different risk classes, or tranches, whereby "senior" tranches are considered the safest securities. Interest and principal payments are made in order of seniority, so that junior tranches offer higher coupon payments (and interest rates) or lower prices to compensate for additional default risk. Summary: In simple terms, think of a CDO as a promise to......

Words: 5315 - Pages: 22