The Valuation Implications Of Enterprise Risk Management

The Valuation Implications of Enterprise Risk Management Maturity by Mark Farrell and Ronan Gallagher seeks to prove that firms who integrate the Enterprise Risk Management (ERM) process tend to enhance their value by recognizing risk. This article states that enterprises will be subject to many risks and that the goal of ERM is to â€Å"model, measure, analyze, and respond to these risks in a holistic manner† (p. 625). As defined by the Casualty Actuarial Society (2003) ERM is â€Å"the discipline by which an organization in any industry assesses, controls, exploits, finances and monitors risks from all sources for the purpose of increasing the organization’s short and long-term value to its stakeholders†. The value of a firm was found by analyzing the ERM maturity assessment score by using the Risk and Insurance Management Society Risk Maturity Model (RIMS RMM), which is commonly known and esteemed. This was done to provide evidence that companies who incorpora te the ERM process tend to add value to their company. This is important because as the article states, the premise of ERM has only been in existence for just over 10 years, and therefore research is extremely limited in regards to how to measure the full effect of ERM on a firm. This article seeks to discuss the value of ERM and how it has evolved, the data and model used to confirm the value of ERM, and then it concludes with the observed results. Summary – Lead article This study seeks to build on the fact that there isShow MoreRelatedEssay on Summit Partners Fleetcor a1705 Words   |  7 Pagesâ€Å"FleetCor† or the â€Å"Company†) an investment into FleetCor for the total amount of $44.9 million in return for a post transaction ownership of 54.2% in the â€Å"Company† and coming down to 46% ownership in the company after newly created stock options for management equivalent to 15% ownership in the company has been completely executed and fully diluted. This investment is in the form of convertible preferred stock with an 8% accrued interest, compounding annually. As the transaction come through, Summit’sRead MoreTiffany Case1531 Words   |  7 PagesTiffany option of IPO was favorable since it had positive operating results for the past months. Since the terms of renegotiating the terms of the GECC revolving credit were not encouraging , management of Tiffany consideration of getting funding via the IPO route made sense. IPO would help the management of Tiffany to repay GECC completely and free the company to make alternative borrowing arrangements. Since the operating cash-flows where not steady, refinancing by additional debt was not theRead MoreThe Risk Associated With Currency Exposure1610 Words   |  7 PagesDear Senior Management: Our team has written this briefing note in order to inform you of the risks associated with fluctuations in exchange rates and how that risk relates to our organization; Coca-Cola Enterprises Inc. (CCE). Serving customers for the last 128 years, our products are now available in more than 200 countries around the world. As our global presence continues to grow, so too does our exposure to fluctuations in currencies other than our base currency, the US dollar. Worldwide, weRead MoreFinancial Statement Analysis-Questions (1)1087 Words   |  5 Pagesstatement? 11. Differentiate between systematic risk and unsystematic risk and discuss the various components of latter. 12. Discuss the Capital Asset Pricing Model (CAPM) and explain how it deals with the problem of securities valuation of the market. 13. Explain how the Efficient Market Hypothesis (EMH) deals with the reaction of the market prices to the financial and other data. 14. Explain the concept of the trade-off between risk and return as well as its significance to portfolioRead MoreFinancial Statement Analysis-Questions (1)1097 Words   |  5 Pagesstatement? 11. Differentiate between systematic risk and unsystematic risk and discuss the various components of latter. 12. Discuss the Capital Asset Pricing Model (CAPM) and explain how it deals with the problem of securities valuation of the market. 13. Explain how the Efficient Market Hypothesis (EMH) deals with the reaction of the market prices to the financial and other data. 14. Explain the concept of the trade-off between risk and return as well as its significance to portfolioRead MoreEssay on Cross Border Valuation Issue9648 Words   |  39 PagesCROSS-BORDER VALUATION ISSUES. Ninfa Borth Altadonna Jeff Fosler Susan Hua Shawn Kennedy Brian Limurti Alex Santibanez Valuation and Corporate Combinations Finance 668.25 Sat., Dec. 4, 2010 Contents I. Executive Summary 3 II. Summary of Key Terms amp; Concepts 3 III. Discuss various Valuation Implications and Applicability to MNC’s amp; global capital markets 13 IV. Discuss DCF Methods (MultipleRead MoreAtlas Analysis : Atlas Resource Partners1600 Words   |  7 Pagesliquids in the United States. The company has been in operation for the past forty years. Atlas Resource Partners has its core activities in three main areas, that is, Well Construction and Completion, Gas and Oil Production and Other Production Management. It has interests in over 14,000 natural gas and oil wells located Texas, Oklahoma, New Mexico, Alabama and Colorado. The company acquires its coal bed methane gas from various basins established in different places across the world. These areasRead MoreFinance Case Study2989 Words   |  12 Pagesclassroom discussion of tools and concepts. The range of topics includes value creation, market efficiency, economic profit, financial analysis and forecasting, cost of capital, capital budgeting, dividend policy, equity issuance, capital structure management, derivative securities, and mergers and acquisitions. The spirit of these cases is to link the study of value creation with a respect for the administrative point of view, and an orientation toward capital markets. All of the cases are set in 1995Read MoreCase Study : Capital Partners / Team System3278 Words   |  14 Pageshow the deal would benefit Palamon standing both financially and in the equity market and whether Palamon Management should go ahead and make the investment considering both financial and non-financial implication of the deal. TeamSystem is an Italian based software company that specializes in providing accounting, tax and payroll management software to small and medium size enterprises (SMEs). Founded in 1979, and under co-founder, Giovanni Ranoochi, the company built for itself a customer baseRead MoreValoracion de Empresas2438 Words   |  10 PagesrP os t 9-206-095 REV: OCTOBER 31, 2006 ROBIN GREENWOOD LUCY WHITE Introduction to Valuation Multiples Table 1 op yo A multiple is a market price per unit, which, when multiplied by the number of units, gives the value of those units. We use multiples regularly in our everyday lives without even realizing it. For example, to determine the value of a bag of fish, we multiply the price of fish per pound (the multiple) by the weight of fish in the bag (the number of units)

Inseparable Companion Free Essays

The main character of this book is a St. Bernard and Scotch Shepherd mix, named Buck. As I read the book, I found out that Buck can be very loyal and trustworthy to his master, if his master is loyal to him. We will write a custom essay sample on Inseparable Companion or any similar topic only for you Order Now Also, at times I found that Buck could turn into an enraged beast very easily. At home, which was a large house called Judge Miller†s Place, in the sun kissed Santa Clara Valley in California, Buck ruled over all of the dogs that were there. Buck was Judge Miller†s inseparable companion, until a man named Manuel, who was one the gardener†s helpers, committed a treacherous act. In order to cover his Chinese lottery gambling debts, he stole Buck from his sound sleep and brought him to a flag station called College Park. There, the exchanging of money took place. Buck was loaded onto an express car to Seattle. On his way to Seattle, he found that a man in a red sweater repeatedly beat him. From then on, I knew that Buck would never forget that experience. In that part of the book, I found out that Buck was now an enraged animal and could only be tamed by repeatedly being hit with a club or a whip. At this point of the book, I was thinking about Judge Miller. He would†ve sent out a message or an investigation in order to find Buck. Because Judge Miller had a big house to live in, the book implied that he was wealthy. The trip to Seattle must of taken days and by then, Judge Miller would†ve been worried sick about his inseparable companion. As the story goes on, Buck†s first experience of snow left him feeling pretty stupid. When the train got to the station in Seattle, two men named Perrault and Francois bought him. Then, they put him on a ship called the Narwhal. At this point of the book, I was thinking about the cruelty of animals and how the humans treated them. It was cruel, but I guess they didn†t care. The Narwhal took Buck to the Yukon where he was trained to be a sled dog. There were other dogs that Buck had grown to know well during his training. In a matter of time, Buck became a great sled dog. Francois and Perrault took the huskies and mix breeds from Dyea Beach to the town of Dawson. There were many conflicts with Buck and Spitz, who was the leader of the dogs. From then on, Buck†s motivation was to survive the freezing cold weather of the arctic. Buck was very ambitious to be the leader. In some ways, I find that Buck can be satanic. To become the lead dog of the sled team, he would fight to the bloody death of the lead dog, and that was what he did later on in the book. When I was reading, I noticed something in the writing of Jack London. Francois and Perrault must of came from France or something. Their English was really bad. It took me a while before I could really understand what they were saying. An example of this was when Francois was talking about how there was no other dog like Buck. â€Å"Nevaire such a dog as dat Buck!† he cried. â€Å"No nevaire! Heem worth one t†ousan† dollair, by Gar! Eh? Wot you say, Perrault?† When Spitz was killed, Francois and Perrault didn†t even make Buck the leader of the pack. Buck became enraged and pushed himself harder than ever to achieve the roll of being the leader. As days past, Francois and Perrault made the trip to Dawson. By the time they got there, most of the dogs were severely wounded. Some of them had broken legs and some of them were severely sick. The dog that was in best condition was Buck, although he had many wounds and bruises. When Francois and Perrault got to Dawson, Buck was traded to a family who knew absolutely nothing about managing a sled team. This part of the plot didn†t seem right. There was a rich family who could†ve taken a train to their destination instead of risking their lives in the freezing cold; meanwhile, taking a crew of dogs and having to feed them and having to stop each night can kill the dogs if not treated right. The plot continues when the family packed too much on the sled. It was too much for the dogs to pull and it was mostly unnecessary baggage. The driver told the dogs to start. They pulled as hard as they could but the sled didn†t budge. Luckily, a local came along and told the family to throw away their tent. They started and finally got somewhere. As the sled made a sharp turn, some of the access baggage tipped over and the trip was barely completed because of the harsh weather, inadequate supplies, and poop management skills of the dog handlers. This was a beginning of a bad start of Buck and the family. Perhaps the only sane one in the group was John Thortnon. When the family started to repeatedly beat on Buck, Thornton became enraged and threatened to kill the man. Shortly after, Thornton unhooked Buck from the sled, nonetheless the rest of the family left John Thornton. As the sled took off, it slid on a lake and then began to sink. This situation left me to think about what it would feel like to be a dog in those days. It leaves a horrible scene in my mind because seeing a whole crew of sled dogs sink in freezing cold water is very hard to imagine. This situation left John and Buck to fend for themselves. As time pasted, John and Buck became the best of friends. The rest of the book concludes all of the good times that John and Buck have together. In this book, Jack London makes Buck look like a human being instead of a dog. It is not that realistic because Jack London makes the dog feel human emotions. An example of this is at the end of the book when Buck discovers that John Thornton is dead because of the Indians. It said in the book that Buck felt and remembered all of the times that they have spent together. I think that Jack London uses a writing style that everyone can understand. Overall, I think that The Call of the Wild is an exhilarating and an exciting novel. It is packed with drama and adventure. Throughout the chapters, this book takes you through many stages of a dog†s life. I would recommend this book to anybody who is interested in reading about dogs and the arctic. I think that this book has to do with the love from a dog to a man than anything else in the book. Overall, I think that this is a great book and I recommend that you read it. How to cite Inseparable Companion, Essay examples

Woolworths Australia CSR Factors Sample Guideline

Question: Explain Woolworths Australia CSR Factors. Answer: The Woolworths chains of stores in Australia have been committed to retail business since establishment. The organization generates the profits based on the good and services they offer to their customers. The profit created by the company depends on the sales recorded over the specified period in the accounting strategies. It is essential to note that the economic responsibility of the organizations in the corporate sector begins with the process of accumulating profit (Corporate Social Responsibility, 2016; Hopkins, 2006). The Woolworths retail stores in Australia have established their market coverage mechanisms through customer satisfaction measures and promotion of their activities. Corporate enterprises are required to determine their profitability before engaging in the Corporate Social Responsibility activities. The Woolworths administration has ensured that the process of buying and selling does not exploit the vulnerability of the customers and suppliers (Woolworths Limited , 2012). The profit generated by the organization is focused on investment, expenditure, and community support. The company has established its financial capacity as a measure of supporting their economic responsibility. Ethical Factor Business organizations are obligated to carry out their practices based on the moral standards and the ethical measures. The activities of the enterprises are supposed to be aligned according to the goodwill and the requirements of the community, the business, and the government (Lindgreen, Kotler, and Maon, 2010). The Woolworths management has ensured that the activities carried out by their stores are ethical and acceptable by the internal and external stakeholders. The organization deals with the retail activities, which is subjected to more interactions based on the variety of products the company is selling. The company has ensured that the goods are sold at reasonable prices that do not exploit the customers or paralyze the competitors in the industry. The organization has created strategies that ensure the employees are paid well based on the wages regulation standards. Woolworths management has provided a high level of compliance to the Consumer Laws and Regulations in Austra lia (Woolworths Limited, 2012). The retail activities have been based on the need to create profit and the build the capacity of the parties the business is interacting with such as the customers, the suppliers, the employees, and the government. Discretionary Factor The Woolworths chains of stores are guided by several philanthropic responsibilities within their locality across Australia. Corporate organizations participate necessary activities that are meant to add value to the surrounding community not because it an obligation but they feel the need to improve the society by sharing the generated profits (Nejatti and Ghasemi, 2012). The Woolworths management has been formulating strategies for supporting the community through campaigns, sensitization, and funding processes. The action by the organization has benefited to the members of the public and the respective systems receiving the support. The principle that the company has embraced involves the establishment of the financial capacity, adherence to legal requirements, and carrying activities based on ethical standards before engaging in community support. Several cases have emerged in the corporate sector where firms participate in support community events but fail to adhere to internal and external quality and regulatory measures (Idowu and Louche, 2011). Woolworths management has set actions that protect the reputation of the business by adhering to the Australian corporate regulation mechanisms. The participation in the community-based development activities has enabled the company to be part of the structural changes in the society. The companies should add value to the community that forms part of their market niche by sharing part of the profit through social interventions (Jones et al., 2009; Trong, 2012: Rigoberto, 2009). Overview of the Plan The Woolworths Sustainability program is a long-term commitment that the company developed to achieve primary objectives over a period of several years related to water usage, carbon emission, packaging, and waste recycling. The strategy is being executed under the Greening Retail plan, which targeted the contribution of retail outlets globally to assist in building a sustainable green environment (Woolworths Limited, 2012). The Greening Retail Plan is an international measure that requires the retail stores to ensure that their operations, market transformation, and the supply chain adhere to creating a sustainable environment irrespective of their capital of exploitation and location (Wendy, 2009). The operational focus ensures that the stores design measures according to their structure that will lead to energy being saved. The approach was mainly designed for the grocery chains as well as the food outlets. The consumer transformation requirement called for the setting up of avenu es that will incorporate the customers when creating the market new approaches. Such measures need research and development activities, which is aimed at developing products that are safe for the market and sustainable for the sector (Piacentini et al., 2000; Preston and Bailey, 2003). The supply chain mechanisms called the retail outlets to consider their transportation activities are aligned to environmental conservation measures. Objectives and Aims The Woolworths Greening Retail was created according to the internal and external structures of the Australian corporate sector. The plan was based on four key areas including the climate change, water, packaging, and waste. The program was started to generate effective change within the community by developing a sustainable environment (Woolworths Limited, 2012). The objectives of the company were scaled down to six major undertakings as outlined below. To reduce the carbon emissions by 40% by 2016 a level that will be similar to the recorded percentage in the year 2006 To ensure that the carbon emission levels are reduced through the transport mechanisms that will ensure that each carton carried by Woolworths trucks contributes to 25% carbon emission reductions by 2012 To ensure that the company fleet contributes to 30% carbon emissions reductions by 2010 To reduce the water the level of water usage by around 200 million liters each year To contribute to the elimination of food waste to landfill by 2016 To carry out the retail sourcing activities based on ethical and sustainable measures Strategies and Methods of Implementation The company used several methods to ensure that the activities are aligned to achieve the Greening Retail objectives under their Sustainable Program. The organizations restructured the internal factors to ensure total compliance to regulation and authority (Wendy, 2009). Whenever agencies comply to set measures, then a safe internal environment for executing other mechanisms is created. The Woolworths administration ensured that the suppliers were appraised based on their production methods and culture. The organization changed the energy methods used within the shop units from carbon-based to more clean forms such as electricity and natural gas. The objective of the company was to ensure that the processes within the store no longer increase carbon emission. The company focused on the transportation patterns across the units. The trucks were to be loaded to ensure that they maximize on each trip. The packaging process shifted to biodegradable materials to reduce the level of carbon in the environment from the production activities. The retail shop encouraged recycling operations whenever non-biodegradable packaging was involved. The standard of water usage was based on the strict management that encouraged safety and efficiency (Woolworths Limited, 2012). The organization has sensitized farmers to use water management measures during production to reduce the level of consumption. The innovated stores have been fitted with air conditioning features and refrigeration mechanisms. Evaluation and Sustainability The organization has managed to bring a difference since the start of the implementation of the Sustainability Greening Retail Strategy. The Woolworths administration has been able to control the supply of the products from the manufacturer base on their commitment to the sustainable environment in Australia. The collaboration with farmers has seen a change in the methods of production. Farmers have resorted to techniques that preserve water to produce the sound, which is sold at the Woolworths grocery unit. The controlled transport schedule has seen the business collaborating with companies that offer delivery services to reduce the engagement of trucks. Moreover, the organizations have reduced the number of the fleet for the staff through sharing that has encouraged lower levels of the anticipated carbon emission (Woolworths Limited, 2012). The quality and assurance departments for the chain stores have been committed to ensuring that the company activities are based on the corpora te regulations of the government of Australia. The selling of safe and quality products to the customer has created trust for market sustainability. The company has engaged the community in programs that encourage safety. The employees satisfaction and motivation has improved over the years. The commitment to developing the expertise of the workers has developed the ethical standards as well as the level of the customer experience (Schrag, 2011; Reilly and Peter, 2000). Challenges and Possible Improvements The implementation of the sustainability program has been subjected to several shortcomings. The business cost and expenditure has increased over the years. The process of community engagement involves the provision of essential training and sensitization some of which are expensive to offer especially to farmers. The participation of the organization in the carbon emission reduction processes has affected the efficiency of the organization regarding timely deliveries. The time factor is an essential aspect of the retailing business and it determines the customer experiences and store management ability. The numerous activities that are incorporated into the strategy are a potential source of incompetence for the business since they are to focus on several objectives (Wendy, 2009). However, the Woolworths management can form a separate department that will assist in the administration of the Corporate Social Responsibility affairs. Setting a fixed percentage of the profit generated f or CSR projects will help in producing a constant amount to fund the intervention without paralyzing the operations of the shops. The management should consider implementing one strategy at a time to avoid straining their budget and concentrate on quality and sustainability of the programs. PART 3: Integration and Sustainability of the Woolworths Australia CSR Strategy The essential part of a CSR strategy in an organization is the sustainability and integration of the program to the plans of the firm. The community may be in need of a special support, but the company may find it difficult to align the intervention to the structure of the organization (Filho, 2009). For example, it is hard for an alcohol manufacturing company to assist the community affected by youthful indulgence in excessive drinking. The Greening Retailing Strategy that is being implemented as a CSR approach for the Woolworths chains of stores is directly linked to the objectives of the organization. Most of the activities being carried out regarding the retailing business contribute to the prevalence of the shortcomings the strategy is geared to solve. The project is essential for the organization both for the short-term and long-term targets in the corporate sector (Wendy, 2009). The program is not limited to Woolworths, but it is global agenda to be embraced by all retail orga nizations. The decision to incorporate the CSR interventions in the objectives of the business was essential for the competitive advantage in the Australian market. The process of integrating the project into the activities of the firm was consultative and involved the contribution of the stakeholders. The implementation of the carbon emission standards was based on the Carbon Blueprints. The measures called for a critical analysis of the functions of the business. The hiring of the external consultants assisted in establishing the renovations and changes that the company has to take. The interventions to be carried out depended on the comparison between the owned assets and the indirect assets since they define the supply chain of the retail outlets. The evaluation led to an establishment of the effects from the refrigeration activities. The organization, therefore, found it necessary to alter the cooling activities, transport routine, lighting systems, and air conditioning techniques (Wendy, 2009). The level of water usage through controlled production of the farm outputs was based on the rate of billing costs. The firm also focused on production and selling of good that are safe for consumption as well as environmentally friendly. The focus of the analysis was to set a baseline that will define the process of the achievement of the objectives of the master strategy. The comparison of the annual levels and data assisted in setting the yearly targets for carbon emissions, water preservation, and market and supply sustainability mechanisms. The viability of the projects was guaranteed by establishing policies that will guide the business culture in the subsequent years. The government of Australia also contributed to the setting of a culture favorable for the implementation of the objectives through the business and competition regulations such as the commercial laws. The interventions were spread over several years to ensure that the goals are attained entirely. Through the websites, publications, workshops, and community events the organizations defined the mechanisms of sensitization. The sustainability of supply and purchasing footprints was created through training and contracts that represent the environmentally friendly production according to the regulations in Australia. Retailers are responsible for the choices they make regarding the products that are sold in their stores (Wendy, 2009). Therefore, the organization ensured that the suppliers adhere to the consumer standards and quality requirements before enga ging in supply contracts. The nature of the interventions that were set forth concerned the ingredients of the products, pollution effects during production, and sourcing factors. The funding of each intervention relied on the profit generated in the business since it was necessary to consider the strain on the budget and costs. References Corporate social responsibility, 2016. International Journal of Science and Research (IJSR), 5(1), pp. 18291831. doi: 10.21275/v5i1.nov153197 Filho, L., 2009. Professionals perspectives of corporate social responsibility. Edited by Samuel Idowu and Walter Leal Filho. Germany: Springer-Verlag Berlin and Heidelberg GmbH Co. K Hopkins, M., 2006. Corporate social responsibility and international development: Are corporations the solution? 2nd edn. London: Earthscan Publications Idowu, S. O. and Louche, C. (eds.), 2011. Theory and practice of corporate social responsibility. Berlin, Heidelberg: Springer-Verlag Berlin and Heidelberg GmbH Co. K Jones, B., Bowd, R. and Tench, R., 2009. Corporate irresponsibility and corporate social responsibility: Competing realities, Social Responsibility Journal, 5(3), pp. 300310. doi: 10.1108/17471110910977249 Lindgreen, A., Kotler, P. and Maon, F., 2010. A stakeholder approach to corporate social responsibility: Pressures, conflicts, and reconciliation. United Kingdom: Ashgate Publishing Nejati, M. and Ghasemi, S., 2012. Corporate social responsibility in Iran from the perspective of employees, Social Responsibility Journal, 8(4), pp. 578588. doi: 10.1108/17471111211272552 Piacentini, M., MacFadyen, L. and Eadie, D., 2000. Corporate social responsibility in food retailing, International Journal of Retail Distribution Management, 28(11), pp. 459469. doi: 10.1108/09590550010356822 Preston, M. and Bailey, A., 2003. The potential for high-performance design adoption in retail property portfolios, Corporate Social Responsibility and Environmental Management, 10(3), pp. 165174. doi: 10.1002/csr.42 Reilly, P. A. and Peter, K., 2000. Flexibility at work: Balancing the interests of employer and employee. United Kingdom: Gower Publishing Company Rigoberto Parada Daza, J., 2009. A valuation model for corporate social responsibility, Social Responsibility Journal, 5(3), pp. 284299. doi: 10.1108/17471110910977230 Schrag, B., 2001. The moral significance of employee loyalty, Business Ethics Quarterly, 11(1), p. 41. doi: 10.2307/3857868 Trong Tuan, L., 2012. Corporate social responsibility, ethics, and corporate governance, Social Responsibility Journal, 8(4), pp. 547560. doi: 10.1108/17471111211272110 Wendy, E., 2009. Greening Retail: Best environmental practices of leading retailers from around the world, Canada: Conservation for the Living City. Woolworths Limited, 2012. Corporate Social Responsibility