Different Types of Risks Faced by Banks Today

All companies which have a profit maximizing objective hold a certain degree of risk whether through microeconomic or macroeconomic factors. Banks also face a number of risks atypical of non financial companies due to the payment and intermediary function which they perform. Recent changes in the banking environment has lead to an increased pressure to maximize shareholder value, this means that banks take on a higher risk in order to gain a higher return. It is due to this increased pressure and market volatility that banking risk needs such effective management to ensure the banks continued solvency. Risk can be defined as an “exposure to uncertainty of outcome” measured by the volatility (standard deviation) of net cash flow within the firm. Banks aim to add equity to the bank by maximizing the risk adjusted return to shareholders highlighting the importance of fully considering the risk and return business equation. Exposure to risk does not always lead to a loss, pure risk only has a downside from the expected outcome but speculative risk can produce either a better or worse result that expected.

Credit risk is the risk that the counterparty will fail to repay the loan in part or full. This includes delayed payments or any default on the loan agreement. It is widely know that credit risk is one of the most damaging risks to banks, for this reason there is usually a separate credit department run around a credit culture of the management’s views. The objective of the credit department will be to maximize shareholder value added through credit risk management.… Read the rest

Electronic Human Resource (e-HR)

e-HR stands for Electronic Human Resource. The term e-HR refers to deal Human Resource Management transactions using an internet. E-HR aims to keep information available to employees and managers at anywhere at any time. E-HR may include organizations HR portals and web applications, Enterprise Resource Planning, HR service centers and interactive voice response. There are three identified levels of e-HR such as publishing of information (delivered by intranet medium), automation of transactions with integration of workflow (intranet or extranet used) and transformation of the HR function (redirect HR function towards a strategic one). E-HR is characterized in field of HRM as having numerous innovations in Technology and it provides wider potential in term of usages including employee self service, information sharing, functions administration and production of reports.

e-HR make use of technology to create a real-time, information-based Self-service, interactive work environment. With e-HR, managers can access relevant information and data, conduct analyses, decision making and communicate with others and employees are able to control their own personal information like update their records when it changes and make any decision on their own without consulting with any professionals help.

e-HR will effect both efficiency and effectiveness of Human resources function in such a way that the efficiency of the human resource process can be effected by reducing cycle time for paperwork, improvements is data accuracy and reducing manpower requirement. In similar way the effectiveness of human resource process will be effected by improving the capabilities of both employees and managers to make a better and accurate decisions.… Read the rest

New Roles of Human Resource Managers in Business Development

A great team of working professionals in an organization cannot be possible without the human resources. The main contribution of HR management to organizations are hiring and training the workforce, takes care of the performance management system, helps in building culture and values, manages conflict, and most importantly developing good relations. Human resources managers promote, recommend on, and implement plan associated to the usage of employees within an organisation effectively.  They are the most qualified and skilled people into the organisation to make a difference in enhancing the productivity of the employee and the organization. Their desire is to assure that the organisation hires the suitable people in terms of skills and experience, and that training and development opportunities are accessible to personnel to boost their achievement and attain the goals in the organization. HR officers are responsible in a range of activities needed by the organisation such as working ethics, recruitment, salary, terms of employment, external negotiation, and equality and diversity.

Since time immemorial, human resources have played a vital role in managing people and magnifying their full potential. There are key insights to surpass in any inevitable business growth, decline or any dynamic changes in a management.

Business Growth

First, managers should have a clear comprehension of where the organization is headed. In order for HR to anticipate fundamental stages of improvement, transition and deal with necessary shifts, they need to be genuinely familiar with the strategy, values and vision. Secondly, values and goals should be the bedrock of the business.… Read the rest

Role of Human Resource Management in Organizations Difficult Times

Today, Human Resource Management (HRM) is emphasizing on adding value in the organization as a key player. The most significant challenge for organization in difficult time (recession) is transforming of the human resource to recognize, sustain, enlarge and exploit talents in the whole organization to their fullest capacities than organization can claim that it has the best of the systems to identify talents across the organization. The management professionals and employees might undergo through the anxiety and other issues during recession and economic downturn, so organization must make plan for economic crisis.

Roles and functions of HR in the Organizational change

HR can and ought to play a key role in creating and executing organizational change and transition. HR can give help and direction in investigation and determination, highlighting the employee’s problems that will essentially influence the success of the organization. HR might recommend on resourcing programs and planning and executing the key learning, reward, aspects of involvement and communications process. HR can foresee individual’s issues and manage them before they get serious. If the program does include rebuilding and downsizing, HR can recommend on how this ought to be carried out empathetically and with the base interruption to individuals’ live.

When the business is in turbulence zone, HR can put its straight out best in guaranteeing that he directs the corporate effectively. HR needs to be capable in such circumstances in light of the fact that they not just need to keep up the individuals inspiration level however needs to expand it utilizing non-money related apparatuses.… Read the rest

Negative Effects of Technology on Society

There is no doubt that technology is playing a critical role in developing societies as countries depend on it in all disciplines of life. Countries all over the globe are competing to invent and develop the highest technological devices that can maintain the highest efficiency and accuracy of the work. Starting from 1980s, people started to use technology every day. The use of technology kept rising dramatically that people used it in tiny things. That overuse resulted in many negatives. There are many negative effects of overusing of technology on societies but the three major effects could be health problems, privacy problems and social problems.

One of the negative sides of the rapid use of technology on societies is the health issue. There is no doubt that the technology is getting better and spreading around the world. That led societies to deal with it almost every day to get their work done resulting in many issues. These issues can mainly be divided into two main categories which are mental health problems and physical health problems. First of which is the physical health problem, there are many physical health issues that caused by dealing with technology but the critical ones are weaken the eyesight. People who usually deal with computers for a long periods of time like programmers suffer from blurry vision and eye soreness. According to a research study, people who usually use computers for long terms experience serious issues such as soreness of the eyes and blurring the vision. That can be clearly seen since eyes have to concentrate all the time on the screen that emits dangerous radiations that affects the eyes critically leading the eyes to start dropping tears which can make the eye blurry.… Read the rest

Distributed Data Processing (DDP)

Distributed database system technology is the union of what appear to be two diametrically opposed approaches to data processing: database system and computer network technologies. Database system have taken us from a paradigm of data processing in which each application defined and maintained its own data to one in which the data is defined and administered centrally. This new orientation results in data independence , whereby the application programs are immune to changes in the logical or physical organization of the data. One of the major motivations behind the use of database systems is the desire to integration the operation data of an enterprise and to provide centralized, thus controlled access to that data. The technology of computer networks, on the other hand, promotes a mode of that work that goes against all centralization efforts. At first glance it might be difficult to understand how these two contrasting approaches can possibly be synthesized to produce a technology that is more powerful and more promising than either one alone. The key to this understanding is the realization that the most important objective of the database technology is integration, not centralization. It is important to realize that either one of these terms does not necessarily imply the other. It is possible to achieve integration with centralization and that is exactly what at distributed database technology attempts to achieve.

The term distributed processing is probably the most used term in computer science for last couple of years. It has been used to refer to such diverse system as multiprocessing systems, distributed data processing , and computer networks.… Read the rest