Into the Wild Blue Yonder Essay Example for Free

Into the Wild Blue Yonder Essay The vast majority will never find the opportunity to fly a plane. They will never get the chance to encounter the excitement of soloing just because or the fear of avoiding crows at 100 mph. A great many people will be acquainted with the impression of your stomach settling some place around your knees or your throat while on a thrill ride, well, flying a plane causes that to feel like strolling down a stairway. For one thing, I need to start by depicting to you exactly what a plane resembles, in and out. Indeed, outwardly most little broad flight airplane have a slim, fabric skin extended over an aluminum skeleton for quality. The airplane has four surfaces that control how the pilot can control the plane in flight. Outwardly trailing edge of the wings are the ailerons, they control how much the plane rolls when the pilot turns the burden (like a controlling wheel in a vehicle) either right or left. Within the wings, near the body of the plane, are the folds. They are utilized to deliver extra lifting power at more slow speeds, they are constrained by a handle in the middle of the pilot and co-pilot seats. At the back of the plane on a level surface corresponding to the wings is the lift, the pilot can move the burden in or out to move the lift either up or down, subsequently either lifting the tail for the plane to plunge, or bringing down the tail for the plane to climb. Over the lift is a vertical control surface called the rudder, which the pilot controls with foot pedals to turn the plane left or right. Presently a plane can be either high-or low-wing. The greater part of the airplane at Henderson State University are high-wing, which implies the wings are at the highest point of the body of the airplane and not at the base. Our planes have what is known as tricycle gear, which implies there are two wheels underneath the body of the plane where the wings are, and one underneath the nose of the plane. Most planes have somewhere in the range of six and nine lights, two on the rudder, two on either wingtip, a couple on the main edge of either wing near the body, and at times one underneath the propeller. Presently onto within the airplane. It is a finished riddle the first occasion when somebody investigates an airplane. Nobody realizes what catch, handle, or switch does what. Simply all things being equal, I can tally more than five multi-shaded handles, seventeen switches, and in any event forty catches. The seats in our airplane at HSU are basic, awkward, however practical dim sliding seats. I simply wish the architect that planned our airplane had really been compelled to utilize the seats. You can scarcely observe out of the windshield in them, they are so low the safety belt essentially saws your neck into equal parts when you get out toward the finish of your flight. That is about it for looks, gives check access on how it sounds. Every plane has its own character, so each commotion is unique, anyway they are on the whole much the equivalent. Here are a couple of my top picks. As you tow the immensely substantial plane out of the shelter onto the incline, the staying brakes screech like frightened mice, the low weight tires slap on the falter asphalt like a seal applauding his ball, the nose gear cries like a multi year old needing a treat, and the unlatched entryways pummel open and shut like vehicle entryways on Black Friday. A portion of the planes are more awful than others however. One of the planes when it begins, you naturally realize that somebody is flying this specific plane, it sounds more like a rocket going to departure rather than a vehicle without a suppressor quickening. At the point when you are in the plane going to fire it up, the low murmur of discussion fills the lodge. As the pilot makes a couple of last changes in accordance with the choke, groundwork, and blend handles, the discussion stops and the immensely significant call of â€Å"CLEAR PROP!† ends the quiet. At the point when the pilot turns the start, the motor hacks and wheezes into life, as it gradually comes to speed with a thunder that would embarrass a lion. How does a plane feel you may inquire? All things considered, each control is diverse to assist you with realizing which will be which during a night flight or a crisis circumstance. For instance, the preliminary is furrowed with a jewel design, like what might be on a trucks tool compartment, while the main thing that is smooth for the pilot is the burden. Another model would be the choke control handle, it is furrowed with the exception of it has little spots on it rather than a precious stone example. Everything in the lodge is found out by muscle memory, a pilot needs to get out and fly, or he can not be the most ideal pilot. Flying a plane is a tiring errand, intellectually, yet truly. The pilot needs to continually hold pressure on the burden, either in reverse or forward to keep the art flying like the person in question needs it to fly. All things considered, with that all stated, those are the most ideal approaches to depict an airplane that I know how. Out of the five detects, those are the ones most appropriate to portraying a plane, sight, sound, and contact. I would not have any desire to taste a plane and they truly don't have a perceptible smell, to me at any rate.

Athens VS Sparta Essays -- essays research papers

During the late Archaic Greek and Classical periods, two specific city-states were in presence with critical likenesses just as contrasts. These two city-states, Sparta and Athens have one of a kind arrangements of government, accounts, objectives, just as social orders. Â Â Â Â Â After encountering the impacts of a rising populace and lack of arable land, the Spartans traveled through their precipitous western boondocks in anticipation of looking for another extensive land to live upon. Their choice to change their home grounds put the Spartans in incredible peril as they ended up going into the rich plain of Messenia. Expecting that they might be toppled by power by the Messenian opposition and the helot status, the Spartans started to look for security for their city-state and their residents. In anticipation of ensuring themselves, the Spartans started another lifestyle by presenting a prevailing military camp that would keep their locale alert and mindful consistently. This was the establishment of how the Spartans turned into a military based society. Â Â Â Â Â On the opposite finish of the Greek city-expresses, the Athens picked a moderately extraordinary way as their administrative framework, a vote based system. In spite of the fact that the Athens didn't flourish into a majority rules system over night, each progression brought uncovered a change into the new legislative framework they were yet to get. In anticipation of maintaining a strategic distance from a common war, an individual from the nobility, Solon, was delegated as power to groups ...

Bible Study in The Quest for the Plausible Jesus by Winter Dagmar

Disclosure In Christian viewpoint, disclosure is the correspondence or divulgence of profound truth by God to an objective animal through dynamic or aloof methods which are uncommon and not normally simple to comprehend.Advertising We will compose a custom exposition test on Bible Study in The Quest for the Plausible Jesus by Winter Dagmar explicitly for you for just $16.05 $11/page Learn More In The Quest for the Plausible Jesus, Winter Dagmar brings up that â€Å"God uncovers Himself to humankind through the Physical Universe and furthermore through Human Conscience (innate capacity of mankind to pass judgment on directly from wrong)†1. These two types of disclosure are widespread and are along these lines regularly alluded to as General disclosure as it is accessible to all individuals and at record-breaking. General disclosure uncovers to us God’s presence, power, matchless quality, significance, thoughtfulness, goodness and shrewdness. God additionally uncovers Him self and His reality at explicit occasions and to explicit individuals through Special Revelation. These incorporate individual encounters and experiences, for example, having dreams (like in the tale of Joseph), seeing a dream (like Paul) and getting express data from a holy messenger (like Mary). Disclosure is at various times and, as in the tale of Samuel in the Bible, God can discuss legitimately with people. This is another type of Special disclosure alluded to as verbal disclosure. Every one of these types of disclosure, be that as it may, have different huge confinements. General disclosure (Physical universe), for instance, contains no data with respect to Christ and his passing and in this manner doesn't give solid reasons that can bring about otherworldly salvation. Human still, small voice, then again, has no disclosure through it of reclamation and doesn't in this manner give enough truth to accept. Extraordinary disclosure additionally doesn't typically appear to be imp actful to us today and barely any individuals can accept or even feel obliged to follow another person’s otherworldly revelation.Advertising Looking for article on religion philosophy? We should check whether we can support you! Get your first paper with 15% OFF Learn More The Bible The Bible contains an assortment of books or sacrosanct works and strict writings of Judaism and Christian religions. It is the world’s unsurpassed smash hit and comprises of the enlivened Word of God, recorded by people. The printed substance and request wherein the books are orchestrated shift among the various sections. Thus, there is no single regular adaptation of the Bible. Protestant Christian Bibles, for instance, just consider 39 books of Hebrew Scripture as Old Testament books, while Ethiopian Orthodox Church Bible has an aggregate of 81 books. The Roman Catholic Church, then again, perceives a few different books as sanctioned and has a Bible with 46 Old Testament books. Basic te chniques by which current scriptural researchers try to comprehend scriptural writings The Bible, being a library or huge assortment of books, contains an entire scope of sacred text lessons, lineages, sonnets, accounts which describes the life and lessons of Jesus Christ and epistles or letters. Accordingly, to set up the possible reason and significance of the content, scriptural researchers apply various basic techniques and points of view in their investigation. In Systematic Theology, Wayne Grudem clarifies that â€Å"many present day scriptural researchers utilize sociological translation or socio-logical analysis, by drawing on the sociologies, to comprehend the sociological foundations to a text†2. Redaction analysis is another technique utilized by today’s researchers to examine how the scholars in the good book molded their source material, to remake the network and to set up the job of the essayists of the content. Today, liberal scriptural researchers likew ise utilize Narrative analysis technique to perceive authorial goal, to determine ramifications of numerous understandings and to reestablish the feeling of the story inside the Bible. The accounts are not really generally true or anecdotal records of the life of Jesus, however they contain reality with regards to what his identity was and about his message. The accounts in the New Testament additionally mirror the expected message with respect to the scholars to the intended interest group. The four accounts present various stories that depict Jesus as the child of God, a pioneer of a gathering of followers, a healer and a minister of the expression of God. The book of Mathew, for instance, cautiously records Christ’s significant talks and recalls the Savior’s phenomenal work.Advertising We will compose a custom article test on Bible Study in The Quest for the Plausible Jesus by Winter Dagmar explicitly for you for just $16.05 $11/page Learn More Though it underscores the deeds of Christ by recording just one significant message, the good news of Mark (composed for Roman crowd) delineates Jesus Christ as a gallant, worker like figure and an alluring man of activity. In his part, the lone Gentile author Luke underscores the human viewpoints and character of Jesus Christ, His profound worry for the wiped out, feeble and poor and the activity of the Holy Spirit. The gospel which was composed by the clinical doctor (Colossians 4:14) likewise accentuates the estimation of petition and the significance of salvation offered by Christ. The book of John, then again, sets up the heavenly nature of Jesus Christ. As one of the individuals that inward hover of supporters (Mark 5:37; 9:2; 14:33), John firmly contends the case for the god of Christ. The book is portrayed by various word signs and work signs: â€Å"I am the light of the world† (8:12), â€Å"the bread of life† (6:35), â€Å"the way, reality, and the life† (14:6), all which a ssert that Christ is undoubtedly the friend in need and child of God. Book reference Dagmar, Winter. The Quest for the Plausible Jesus: The Question of Criteria. Westminster: John Knox Press, 2002. Grudem, Wayne. Deliberate Theology. Leicester. Britain: Inter-Varsity Press, 1994. This article on Bible Study in The Quest for the Plausible Jesus by Winter Dagmar was composed and put together by client Mole Man to help you with your own investigations. You are allowed to utilize it for research and reference purposes so as to compose your own paper; in any case, you should refer to it in like manner. You can give your paper here.

Using the Purdue A-B Compendium for Effective Search

Using the Purdue A-B Compendium for Effective SearchThe Purdue A-B Compendium is the perfect resource for the keen food connoisseur to find the most relevant bibliography for the following food and beverages: sweet foods, edible flowers, nuts, lean meat, vegetables, oil and cheese. With the description of the bibliography and the Food and Beverage Highlights, the reader gets a deep look at the basic categories of food and beverages which will definitely help to simplify the task of discovering the bibliography.The user will be able to learn about the bibliography, in terms of categories, which are probably the best resources to choose for those seeking any information on foods. Most of the bibliographies are designed for those who are not familiar with food or who do not know much about foods. The easier search on the Internet makes it easier for readers who are not familiar with food as well as for readers who want to search for a book which will explain and review food in an easy w ay.The main components of the Bibliography include search terms which will help the readers to search for the bibliography from the most appropriate sites. The search engines will have the most pertinent list of the bibliographies which are provided by various food and beverage companies or magazines.The search term is what the readers need to use in order to find the right bibliography in terms of the food and beverages that they are searching for. A thorough search will help the users to narrow down the search for food in terms of the best recipes for their dishes.The Bibliography does not only assist the users in finding the bibliography but also lets them know of the type of food that they will want to try. The compilation of different food categories will help to locate the main types of food like the meat, wine, alcoholic drinks, fruit, herbal food, vegetarian food, and the vegetarian food. The proper way to proceed in using the Bibliographyis to think of the foods that you li ke to consume in a complete way.Once the users find the types of food types that they like the most, they can select the foods that they want to try. The search terms that are used to search through the bibliography will help the users to browse through the food descriptions and recipes that will help them find the dishes that they like the most. The keywords can be used to give quick access to the food category, which will make the bibliography complete.The Purdue A-B Compendium is designed to give the readers a comprehensive list of the bibliography which will help them in their search. The food bibliography is a complete guide to food and it should be the most complete bibliography for the food category. Users will have a better and easier time of searching for the information about the foods and the recipes.

The Halo Effect And Stereotyping - 1567 Words

â€Å"Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment† (Robbins Judge, 2014, p. 80). Robbins and Judge (2014) give an explanation that perceptions are important because each of us has a biased worldview since we are all limited to using our own observations to draw conclusions based on our personal experience. Perception shortcuts are tools that allow people to judge someone quickly and provide data for making decisions, but are sometimes incorrect and result in distortions. Two of these shortcuts are the halo effect and stereotyping. The halo effect is characterized by impressions and based on a single trait. Stereotyping, entails that someone would believe every person in a particular group is the same. Most often we would refer to these as judging a book by its cover; decisions are made easily and rapidly because of an appearance or characteristic most obvious and accessible to the person perceiving it. Leadership decisions are made on how a situation is perceived, so understanding how perceptions can affect decisions will determine their outcome. The Halo Effect The halo effect is an inaccurate judgment of a person or thing based on the perception of one trait that influences the opinion about another, often unrelated trait. The article the writer chose discusses the â€Å"Hallo Effect† explaining the tendencies people have to make unwarranted judgments about a person’s unknownShow MoreRelatedHy Diaries Inc899 Words   |  4 PagesCase study 3.1: HY DAIRIES, INC. 1. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here. Stereotyping is the process of assigning traits to people on the basis of their membership in a social category. Stereotypes generally have some inaccuracies, some overestimation or underestimation of real differences, and some degree of accuracy. One problem with stereotyping is that stereotypes under certain conditions, such as the degree to which theyRead MoreHy Diaries Inc913 Words   |  4 PagesCase study 3.1: HY DAIRIES, INC. 1. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here. Stereotyping is the process of assigning traits to people on the basis of their membership in a social category. Stereotypes generally have some inaccuracies, some overestimation or underestimation of real differences, and some degree of accuracy. One problem with stereotyping is that stereotypes under certain conditions, such as the degree to whichRead More Perceptual Errors Essay763 Words   |  4 PagesPerceptual Errors Perceptual Organization (1) #61607; Similarity is described as the tendency to group similar items. Similarity is much like stereotyping. Stereotyping is when someone judges another person on the perception of the group to which that person belongs. #61607; Proximity is described as the tendency to group elements that are close together. Implicit theories allow the presence of one characteristic to bring up a list of other characteristics that one would â€Å"think†Read MoreSynopsis of Article Perception: Some Recent Research and Implications for Administration by Sheldon S. Zalkind and Timothy W. Costello1271 Words   |  6 Pagessurrounding in which they are made. Also experts agree that the impressions are also influenced by some very personal reactions of the perceiver. Some of the factors influencing or rather distorting the impressions are listed and explained as under. Stereotyping : This refers to the beliefs made by people about other people based on the groups to which they belong. It is used to form judgments about others (mostly inaccurate) on the basis of the ethnic group they belong to or even other types of groupsRead MoreDifference Between Distributive and Integrative Bargaining1284 Words   |  6 Page sat a cognitive level. There are four major perceptual errors negotiators make: stereotyping, halo-effect, selective perception and projection. Negotiators should be aware of these errors and be prepared to discuss the negative aspects of their effects. Stereotyping seems like a dated practice in today’s world, but it is a common error and negotiators should be concerned with its impact. The practice of stereotyping occurs when an individual assigns attributes to another solely on the basis of theRead MorePerception And Perception Of Perception1727 Words   |  7 Pagesperception will be described through academic definitions and knowledge also with practical examples. The main objective is to provide readers with a better on what perception is, why it is important to the study of Organization Behaviour (OB) and the effects and implications of it onto managers’ job. Perception is defined as the process in which perceivers give meaning to the things they see after comprehend and rearrange the data in their brains (Robbins, 2014). The final information concluded by eachRead MoreManagement And Organizational Behavior And Management Essay1525 Words   |  7 Pagesidentified selective perception, stereotyping, contrast effect, projection and the halo effect, as five frequently used shortcuts, used by managers, to judge others. Because perceiving and interpreting others is a rather tiresome task shortcuts are employed to assist with the process. These shortcut techniques can be valuable in the sense that they allow perceptions to be made quickly, it is not without problems. Two of these shortcuts, projection and the halo effect, will be examined to see the possibleRead MoreEssay on The Need to Explain Leave Impression in an Interview953 Words   |  4 Pagesanchor being that Hagan is a slacker is what Rowan will tend to fixate on to guide his view o n not hiring Hagan. In case of Rowan and Merel, Stereotyping bias seems to be playing a major role. According to Robins, Millet and Boyle, Stereotyping is judging someone on the basis of ones perception of the group to which that person belongs(Robbins, S.2011). Stereotyping occurs because we rely on generalizations everyday which help us make decisions quickly in order to simplify this complex world. RowansRead MoreTraditional Methods of Performance Appraisal1717 Words   |  7 Pagesrating purpose and affect the career of these employees. 4. Problems with halo effect: †¢ A person outstanding in one area tends to receive outstanding or better than average ratings in other areas as well, even when such a rating is undeserved †¢ To minimizing the halo effect, you should appraise all the employees by one trait before going to rate on the basis of another trait. 5. Problems with recent performance effect: In general, raters remember the recent appraisal of the employee andRead MorePerception and Individual Decision Making Mcqs7335 Words   |  30 PagesModerate; Attribution Theory; p. 141) 11. When individuals observe another person’s behavior, they attempt to determine whether it is internally or externally caused. This phenomenon is most directly relevant to which of the following? a. the Pygmalion effect b. projection theory c. attribution theory d. selective perception theory e. expectancy theory (c; Moderate; Attribution Theory; p. 141) 12. Which of the following is an example of externally caused behavior? a. An employee is late because

Structure And Operation Of A Enterprise Architecture

TOPIC A1 Enterprise Architecture EA is about designing, managing and planning an organization/firm’s IT assets, people, and processes so it can achieve business strategy/goals providing benefit to the business.An enterprise architecture (EA) is a conceptual blueprint that defines the structure and operation of an organization. The intent of enterprise architecture is to understand how an organization can most effectively achieve its current and future objectives. Importance of EA ïÆ'Ëœ Holistic Approach ïÆ'Ëœ Consistency in Delivering Solutions to Business Problems ïÆ'Ëœ Building Enterprise-wide Repository ïÆ'Ëœ IT Governance ïÆ'Ëœ Defined Business/Technical/Information System Architecture: ïÆ'Ëœ Ensure alignment of business and IT, Effectively use IT assets to support business strategy and needs, ïÆ'Ëœ Perform long-term IT planning to support business strategy, Plan and manage program to avoid failures, ïÆ'Ëœ Maximize investment in IT spending EA is similar to city planning City plan --Business Vision – provides context to define and evolve EA. Zoning plan: Patterns - different systems supporting different business functions but each can be classified by pattern (e.g. transactional, n-tier, client-server). Building code: Standards - common principles and standards that drive architectural decisions and design (e.g. web services must be used for integration, off-shelf preferred over custom build). Building material list: Technology Directives - formally approved hardware and software products,Show MoreRelatedStructure And Operation Of An Enterprise Architecture1350 Words   |  6 PagesSection 1: Summary Enterprise Architecture represents a conceptual blueprint that defines the structure and operation of an organization. The intent of an enterprise architecture is to decide how an organization can most effectively achieve its current and future goals. Enterprise architecture looks at the current state of the organization, it helps develop and evaluate current designs and create a sketch for the future. As business analysts, enterprise architecture represents an input to understandRead MoreEnterprise Architecture : The Structure And Operation Of The Organization1564 Words   |  7 PagesWhat is Enterprise Architecture? Enterprise Architecture is a conceptual blueprint that defines the structure and operation of the organization. The intent of Enterprise Architecture is to determine how an organization can most effectively achieve its current and future objectives. Enterprise Architecture is management and technology practice devoted to improve the performance of enterprise by enabling them to see themselves in terms of a holistic and integrated view of their strategic directionRead MoreConcept Of Enterprise Architecture ( Ea )960 Words   |  4 PagesThis article shows you a review about the concept of enterprise architecture (EA), and its importance of being integrated within the modern organizations in order to improve and proper document the organizations’ process. Organizations function in an operational environment that is enough complex, governed and globalized, as well as the need to maintain high levels of competitiveness. In addition, companies must manage the complexity of its inf ormation systems; they should keep active updated systemsRead MoreEnterprise Architecture ( Ea )1567 Words   |  7 PagesEnterprise architecture (EA) is â€Å"a well-defined practice for conducting enterprise analysis, design, planning and implementation, using a holistic approach at all times, for the successful development and execution of strategy. Enterprise architecture applies architecture principles and practices to guide organizations through the business, information, process, and technology changes necessary to execute their strategies. These practices utilize the various aspects of an enterprise to identifyRead MoreThe Enterprise Architecture ( Ea ) Essay1221 Words   |  5 PagesBody Enterprise Architecture (EA) is a process of describing the structure and behavior of an enterprise (including its information systems), then planning and governing changes to improve the integrity and flexibility of the enterprise. â€Å"Well Gartner defines EA is the process of translating business vision and strategy into effective enterprise change by creating, communicating and improving the key requirements, principles and models that describe the enterprise’s future state and enable its evolution†Read MoreApplication Of An Enterprise Architecture1658 Words   |  7 Pagesyear of their operations. In this day and age, technologies seem to change rapidly with executives and managers finding it difficult to get a pictorial view of the existing systems whenever a new system is being implemented. The primary purpose of an enterprise architecture is to integrate the Information Technology (IT) assets across different departments of an organization and in order to create blueprints that will define the current organizational structure and the targeted structure. There areRead MoreThe Contemporary Business Environment Is Complex And Relatively1353 Words   |  6 Pagesregard, enterprise architecture will help the organization to improve its decision making, adapt appropriately to the market demands and conditions, eliminate inefficient or redundant processes while at the same time optimize the use of organization resources (FEAPO, 2013). This paper explores the concept of enterprise architecture (EA) with the aim of determining the gap between theory and its practical implementation. Discussion Conventional studies have discussed enterprise architecture (EA) fromRead MoreEnterprise Architecture Framework Maps All Of The Software Development Process Within The Enterprise1395 Words   |  6 PagesIntroduction â€Å"Enterprise architecture framework maps all of the software development process within the enterprise and how they relate and interact to fulfill the enterprises mission.†[1] Frameworks are conceptually created to eliminate conflicts in the development phase. An easy transition and systematic architecture are essential functions to process an enterprise. The following paper discusses TOGAF in detail, along with DoDAF and FEAF. TOGAF is the most common enterprise architecture used globallyRead MoreEnterprise Systems Architecture Of An Organization1523 Words   |  7 Pages Enterprise Systems Architecture Kerven Nelson Nova Southeastern University â€Æ' Enterprise system Architecture (ESA) is the overall IT system architecture of an organization. This architecture is the key part of managing and evolving IT systems, and therefore the business operations, of an organization. It consists of the architectures of individual systems and their relationships in the perspective of an organization. The Air Force has a limited idea of what enterprise architecture is,Read MoreBusiness Operations And New Ideas840 Words   |  4 Pages†¢ The company’s managers are frequently busy with business operations and new ideas. Apparently, IT structures was never appropriated with organizational vision and IT was in an important state of disorganization. †¢ IT doesn’t have reliability in the lines of business. This is a known deficiency and sooner or later will be addressed in the reconversion of IT. †¢ Business operations are not understood by IT employee. Business unit managers were making IT decisions based on their current knowledge

Information Security Risks and Concerns

Question: Describe about the Essay for Information Security Risks and Concerns. Answer: Current security risks and concerns considered by NSW government - diagram Figure 1: Threats, Risk Concept Relationship and ISO codes linked to ISMS (Source: created by author) Diagram explanation and identification of low, medium-low, medium and high-risk exposure High-Risk exposure threats contain Earthquake, Flood, Storm, and Fire. This level of risk can wipe out the entire system and the buildings which comprise the server. They are categorized under Natural Disasters and can happen anytime and anywhere (Carrara Guzzetti, 2013). Medium Risk exposure threats include communication failure, errors in programming or software, transmission errors, technical failures, user or operational staff errors, outsourced operations failure, absence or loss of key personnel, rerouting or misrouting of messages, and building the fire. These threats are categorized under accidental threats because they are unpredictable most of the time (Kemppainen et al., 2012). According to Pathak (2016), medium-low exposure threats contain eavesdropping, sabotage, malicious destruction of data and facilities, industrial action, web site intrusion, unauthorized software changes, use of pirated software, denial of service, unauthorized dial-in access, social engineering, fraud and theft, malicious code, masquerade and unauthorized data access. They are categorized into deliberate threats because these types of risks are intentional who wishes to do harm to the system to disrupt the service. Low-risk exposure threats contain electronic interference, power supply failure, power fluctuations, vermin, extremes of humidity and temperature. They are categorized into environmental conditions and are considered low risk because these threats often take some time from hours to years (Ham, Park Jeong, 2015). Comparative analysis of Deliberate and Accidental Threats and justification of ranking in order of priority As stated by Guo (2013), there are quite a few comparisons that can be made between accidental and deliberate threats which happen in practical usage. Following are some comparative threats in order of degree are Use of pirated software which often has backdoors for hackers to manipulate critical system files, but also limits the economic growth of a country and the information sector. The rise of torrent and warez sites gave birth to online piracy and software easily available online often paid versions without any fee (Andrs Goel, 2012). The arrest of the largest torrent website Kickass, led to other web sites crippling or shutting their services. The piracy site allegedly stole over $1 billion in profits from the US (U.S. Authorities Charge Owner of Most-Visited Illegal File-Sharing Website with Copyright Infringement, 2016). Eavesdropping is another such issue and many big giants like Microsoft, Google and Facebook have been blamed for collecting, storing and selling user data. Edward Snowden became the whistleblower when he leaked papers and sensitive data of NSA collection data, snooping networks and internet traffic, voice calls and media over the past few years (Wu, Ma Chan, 2015). Distributed Denial of Service (DDOS) can often cause failure of communications services or halting them altogether, which was the case in 2013 when hackers too down NASDAQ for three hours on August 22nd (Kaur, Sachdeva Kumar, 2012). Social Engineering on the system can be misused in rerouting or misrouting of messages, instance of it as the Hidden Lynx Watering Hole on Bit9 case in 2013 (Doherty, 2013). Unauthorized software changes can cause transmission errors and may also result in technical failures. Errors on the part of the user or operational staff can cause theft and fraud (Ramadan, Al-Khedher Al-Kheder, 2012). NSW Government possible challenges for risk/security management To mitigate security threats the government has to identify the problems on whether it should carry out security/risk management internally or external via outsourcing. Challenges that the government may face in risk management sector are Management of Organizational Assets Organizational assets are required in the form skills and resources since security is a problem that is scattered throughout a sector (Karimidizboni, 2013). Coping with Rapid Changes in Technology Keeping up with rapid changes in technology would require using modern operating systems on its servers and desktop computers and has to be actively managed (Christensen, 2013). It becomes complex and dynamically changing environment when it has to be managed actively. Security as an Additional Expense Additional expenditure on security is expensive, and the government does not always want to bear the costs as they reluctantly view security as an investment. This prevents from embracing security as a legitimate long-term plan investment for the strategic plan of the government (Peltier, 2016). Familiarization with Technology Employees have to be trained with updated technologies and simpler technical terms need to be used for them to be familiarized with and will require additional manpower and time (Chaston, 2015). Differences between Risk and Uncertainty in Information System Risk consists of theft, neglect, insecure practices and loss. When someone deliberately attacks a system to collection sensitive data, the person can cause much harm and pose a threat. Everyone breaches out of four breaches occurs due to theft. Primarily the inside employees play a role in this who has a grudge with the organization or criminals, who are looking to steal cash from sensitive electronic powered devices (Parekh, 2016). Neglect occurs when the discarded electronic items are not erased correctly and the data stored can be easily obtained by cheap tools. Same goes when the electronic items are not protected by a secure password (Schell, 2013). Insecure practices include data being shared carelessly over networks which can lead to unauthorized access or exposure. Irresponsible or carelessly handling of data which can misplace or loss of devices is another common way for the loss of media and data (McGregor et al., 2015). Uncertainties in information security present a challenge in itself. It can overload the user with lots of details of a particular product or service and yet may not represent the actual one and is the case of misrepresentation, and many times there is no way to verify. Adapting to newer technologies is not for everyone and people often are wary of the service, failure, and theft. This unfamiliarity brings more hazards to those using it (Luo, Ba Zhang, 2012). To deliver more personalized content and recommendation based on a users habit, cookies" are stored, which itself is sold and commoditized to other third-party services. Not only it can be a risk to privacy, but the personal usage data is often collected, bought and sold often without the user's content (Newman, 2013). Possible approaches of NSW government for risk mitigation and control To approach information system security, the NSW government can take many approaches as follows as per ISO 27001:2013. Governance According to Susanto, Almunawar and Tuan (2012), senior management must aid in support and direction for digital information systems and security in compliance with relevant regulations and laws for business requirements. The governance arrangements included in the ISMS or Information Security Management Systems are a policy for information security, a person handed over the responsibility for online security, and alignment to the management policy and organizations internal risk and audit such as TPP09-05. Controlling access to information system and data classification labeling and handling Access to information systems online must be controlled and monitored having regards to relevant regulations and laws like Health Records and Information Privacy Act 2002, State Records Act 1998, Privacy and Personal Information Protection Act 1998, NSW Classification and Labeling Guidelines, and Government Information (Public Access) Act 2009 (Smith, 2014). Controlling relationships with outside parties The security of digital information systems and information processed, accessed, managed, or communicated to third parties must be monitored. Security regarding software exchanged and digital information with any third-party entity needs to be maintained(NSW Government Digital Information Security Policy | NSW ICT STRATEGY, 2016). Training and Awareness Employees who take on the role of information security performance must be aware of the role and keep up-to-date with the changes by keeping their skills through education and training when necessary (Peltier, 2016). Security incident management Relevant authorities must keep contact with the agencies. For digital information security near misses, incidents, events and weakness associated with digital information systems, internal processes must be in place, and therefore, timely corrective action must be taken (Baskerville, Spagnoletti Kim, 2014). References Andrs, A. R., Goel, R. K. (2012). Does software piracy affect economic growth? Evidence across countries.Journal of Policy Modeling,34(2), 284-295. Baskerville, R., Spagnoletti, P., Kim, J. (2014). Incident-centered information security: Managing a strategic balance between prevention and response.Information management,51(1), 138-151. Carrara, A., Guzzetti, F. (Eds.). (2013).Geographical information systems in assessing natural hazards(Vol. 5). Springer Science Business Media. Chaston, I. (2015). Public Sector Online. InInternet Marketing and Big Data Exploitation(pp. 221-239). Palgrave Macmillan UK. Christensen, C. (2013).The innovator's dilemma: when new technologies cause great firms to fail. Harvard Business Review Press. Cobb, C., Cobb, S., Kabay, M. E., Crothers, T. (2012). Penetrating computer systems and networks.Computer Security Handbook. Doherty, S., Gegeny, J., Spasojevic, B., Baltazar, J. (2013). Hidden LynxProfessional Hackers for Hire.security response, Symantec Corp. Guo, K. H. (2013). Security-related behavior in using information systems in the workplace: A review and synthesis.Computers Security,32, 242-251. Ham, S. W., Park, J. S., Jeong, J. W. (2015). Optimum supply air temperature ranges of various air-side economizers in a modular data center.Applied Thermal Engineering,77, 163-179. Karimidizboni, R. (2013). Human resources information system.Interdisciplinary Journal of Contemporary Research In Business,4(10), 1004. Kaur, D., Sachdeva, M., Kumar, K. (2012). Recent DDoS Incidents and Their Impact.International Journal of Scientific Engineering Research,3(8), 1-6. Kemppainen, J., Tedre, M., Parviainen, P., Sutinen, E. (2012). Risk Identification Tool for ICT in International Development Co-operation Projects.The Electronic Journal of Information Systems in Developing Countries,55. Luo, J., Ba, S., Zhang, H. (2012). The effectiveness of online shopping characteristics and well-designed websites on satisfaction.Mis Quarterly,36(4), 1131-1144. McGregor, S. E., Charters, P., Holliday, T., Roesner, F. (2015). Investigating the computer security practices and needs of journalists. In24th USENIX Security Symposium (USENIX Security 15)(pp. 399-414). Newman, J. (2013). Cookie Monsters: Locally Stored Objects, User Privacy, and Section 1201 of the DMCA.AIPLA QJ,41, 511. NSW Government Digital Information Security Policy | NSW ICT STRATEGY. (2016).Finance.nsw.gov.au. Retrieved 23 August 2016, from https://www.finance.nsw.gov.au/ict/resources/nsw-government-digital-information-security-policy Parekh, S. M. (2016).U.S. Patent No. 20,160,094,566. Washington, DC: U.S. Patent and Trademark Office. Pathak, P. B. (2016). The Review of Terms and Concepts used to Understand Cybercrime to Safeguard Ourselves from Cybercriminals.International Journal of Advanced Research in Computer Science,7(1). Peltier, T. R. (2016).Information Security Policies, Procedures, and Standards: guidelines for effective information security management. CRC Press. Peltier, T. R. (2016).Information Security Policies, Procedures, and Standards: guidelines for effective information security management. CRC Press. Ramadan, M. N., Al-Khedher, M. A., Al-Kheder, S. A. (2012). Intelligent anti-theft and tracking system for automobiles.International Journal of Machine Learning and Computing,2(1), 83. Schell, R. R. (2013). Computer Security.Air Space Power Journal,27(1), 158. Smith, Z. W. (2014). Privacy and Security post-Snowden: surveillance law and policy in the United States and India.Intercultural Hum. Rts. L. Rev.,9, 137. Susanto, H., Almunawar, M. N., Tuan, Y. C. (2012). A novel method on ISO 27001 reviews: ISMS compliance readiness level measurement.arXiv preprint arXiv:1203.6622. U.S. Authorities Charge Owner of Most-Visited Illegal File-Sharing Website with Copyright Infringement. (2016).Justice.gov. Retrieved 23 August 2016, from https://www.justice.gov/opa/pr/us-authorities-charge-owner-most-visited-illegal-file-sharing-website-copyright-infringement Wu, A., Ma, W. W., Chan, W. W. (2015). Whistleblower or Leaker? Examining the Portrayal and Characterization of Edward Snowden in USA, UK, and HK Posts. InNew Media, Knowledge Practices and Multiliteracies(pp. 53-66). Springer Singapore.

Ferrari Performance Analysis Essay Example

Ferrari Performance Analysis Paper â€Å"Whats red, Italian and goes from 0 km/h to 100 km/h in three and a half seconds? † Ask this from any person on the street and you for sure will hear only one answer â€Å"Ferrari†. It was founded by Enzo Ferrari in 1943, the first Ferrari was built in 1947 and that is when the legend begins. Now it is hard to think of any other car that can make anyone feel more exclusive. It`s not just a sport car you own it`s quality, passion, luxury and status that comes with it. We chose it for our group presentation for all of those reasons and also because it is an outstanding, not usual brand, with a very special marketing strategy and a small group of exclusive costumers. In order to have a clear understanding of company’s position, potential and direction we used many business measurement tools. First of all, PEST analysis, which helped us to get a better idea about macro-environment in which Ferrari operates. By establishing main Political, Economical, Social and Technological factors we were able to assess current market situation, predict future challenges that company will have to face and think about possible solutions for those problems. After analyzing external factors we`ve identified strengths, weaknesses, opportunities and threats (SWOT analysis) in order to understand overall strategic position of the business. In other words, now we were able to evaluate on Ferraris’ internal environment and have a clear view of company’s perspectives, limitations and possible improvement areas. We will write a custom essay sample on Ferrari Performance Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Ferrari Performance Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Ferrari Performance Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To complete our environmental research we used Porters Five forces to find out about competition in the industry, potential of new entrants into industry, power of suppliers and customers, threat of substitute products Ferrari`s marketing strategy is also something that makes this company very special. This car is a legend in a world of supercars, everyone knows what a prancing horse logo or at list heard of it. However it never used a penny on advertisement. And indeed, have we seen a single advert about Ferrari? So how come we all know about it? To find the answer for this question have become an interesting challenge for our group. To evaluate our answer we used 4Ps theory or marketing mix theory which looks at the product, price, promotion and place, because a successful marketing mix is a base for successful company. The successful use of marketing mix means putting the right product in the right place, at the right price, at the right time. And from what we found in our investigation Ferrari have been doing quite well at that. It managed to produce a unique car, in which every detail is about passion- passion for speed, passion for quality, passion for excludability and luxury. Having a Ferrari is like having a piece of legend. So, here we have a unique product. Further Ferrari pricing strategy is a marketing masterpiece in itself. â€Å"Luxury sets price, price does not set luxury† ( Daye D. , 2010) -this phrase fully demonstrates Ferrari pricing principles. They know what is the right price for the product they offer as you don`t buy just a car, you buy status and quality. Next step, promotion. And here is where we found an answer for the first question that made us so passionate about this topic. To promote their product they simply did what they were best at doing- racing and building an ideal car for speed lovers. Such a simple but such a genius marketing strategy with passion going through its` every detail. Also the company have developed a market of merchandising that helped to expand the brand and increase customer awareness. And finally- the right place†¦ Ferrari is the most valuable exponent of the top quality Italian and German showrooms. No one but exclusive customers can enter these showrooms and this again shows company’s targeting principles- do not waste time on anyone who is not a potential customer. After using 4 Ps theory we`ve learned about main principles of the company and had a better knowledge of the way it works. We also found (From PEST and SWOT analysis) that as any company Ferrari faces some challenges. And that is why after finding enough information we tried to recommend some ways to resolve those problems. Our solutions are the result of group discussions as well as good individual research. We`ve made some basic recommendations such as: invest more money in CO2 emission problem and research and development in order to stay best in technology. Also one of the recommendations was to collaborate with other exclusive brands to produce even more exclusive Ferrari related products, for example collaborate with Rolex to produce exclusive watches. Those are quite common solution for common problems. However, as a group we also came up with some radical and rand new recommendations such as building a Ferrari hotels where only Ferrari owners would be able to stay or inventing a new brand in collaboration with other popular brand, to make something more affordable to middle classes but with a bit of Ferrari in it. This could help to increase their sales, however some would argue that more profits will come at cost of reputation of Ferrari as an exclusive brand that not everyone can afford. To su m up our group work: every member showed a lot of interest, creativity, passion and initiative. Everyone’s opinion was considered when making a decision and discussing the topic. However, more practice needed to improve our presentation skills: luck of confidence and practice have prevented us from making this topic as interesting to the audience as it was for ourselves. So if there is something that should have been done differently – is the amount of time spent on practice. Other than that I found that doing presentation with the group of people who are passionate about the topic was a great experience. Bhasin, H. (2010). Marketing mix Ferrari. [Online] Available at: [Accessed 1st Dec 2011] Bhasin, H. (2010). SWOT Ferrari. [Online] Available at: ; http://www. oogle. com/search? ie=UTF-8=UTF-8=navclient=1=italy_sports_cars_2006#sclient=psy-ab=en=hp=ferrari+marketing+mix=1=ferrari+marketing+=1=g4==e=0l0l2l134l0l0l0l0l0l0l0l0ll0l0=on. 2,or. r_gc. r_pw. ,cf. osb=12ad4e0eba6dfc1f=1246=636; [Accessed 1st Dec 2011] Daye,D. (2008). Italys Master of Marketing Strategy. [Online] Available at: [Accessed 1st Dec 2011] Fiat Group. (2008). Annual Report. [Online] Available at: [Accessed 5th Dec 2011]. SOS emarketing . (2010). Luxury Marketing . [Online] Available at: [Accessed

Power of one essay Essays

Power of one essay Essays Power of one essay Essay Power of one essay Essay Power of one essay BY addenda In the film, The Power of One directed by John Pavilions in 1992, many difficulties are faced by individuals resisting conformity. Pavilions uses many techniques to show how these unfortunate individuals deal with their difficulties. Racism is one of the mall difficulties faced by the individuals when resisting conformity. This Is evident when PC is in boarding school. PC is constantly bullied being the only English boy in the school. Pas voice over during his first lesson explains how the Afrikaners tried to overthrow the English government UT the English army were too strong, they locked the women and children In concentration camps where many died As the only English boy In the school, I took the blame for all those deaths. This use of voice over gives the audience information on why he was being bullied. While In the same lesson the camera pans across all the students to show all the boys, the camera stops at PC and Happy Burble who Is the bully. Wh ile the camera zooms Into a close up shot Happy Spits on PC. The close up shot depicts the look of disgust on the bullys face and how PC accepts being spat on because he Is too small as an Individual In a conformed group of Afrikaners. Racism is also shown as a main difficulty in the jail. This is evident when Gill Pieta, PC and Doc are talking. The sergeant comes from behind and hits Gill Pieta because the sergeant thinks Gill Pieta is up to something. When the sergeant hits Gill Pieta a sound effect of hit is used. This is used to make the hit sound more painful. Also a low angle shot is used on the sergeant to show his dominance and superiority and a high angle shot on Gill Pieta to show his inferiority. People with authority will enforce conformity upon the individual. This is greatly evident when the sergeant calls Gill Pieta a sit eater the sergeant puts manure on his shoe, forcing Gill Pieta to eat it. Shallow focus is used to show Gill Pieta who is in focus and PC and Doc in the background, out of focus. This shows the sergeant can make the sit eaters do whatever he wants because he has authority. The use of hallow focus allows us to see how emotional PC and doc are and how they are unable to assist Gill Pieta through his struggles as an individual. Maria is also forced to conform because of her fathers authority. While eating dinner Maria tells her father that she believes what he is doing to the black South Africans shouldnt apply to anyone. This makes her father furious; he slaps her across the face. A sound effect off slap is used when he does so. Deep focus is used to show them at the dinner table when Maria is told she is grounded by her father because she was coming an individual. The deep focus shows the father out of focus while disciplining Maria who is in focus. As you can see the power of one conveys all of these struggles that individuals face when resisting conformity. Main difficulties faced by the individuals when resisting conformity. This is evident the women and children in concentration camps where many died As the only English boy in the school, I took the blame for all those deaths. This use of voice over gives the audience information on why he was being bullied. While in the same at PC and Happy Burble who is the bully. While the camera zooms into a close up shot Happy Spits on PC. The close up shot depicts the look of disgust on the bullys face and how PC accepts being spat on because he is too small as an individual in a conformed group of Afrikaners. Racism is also shown as a main difficulty in the Jail. Father that she believes what he is doing to the black South Africans shouldnt apply effect of a slap is used when he does so.

Discussion Board Coursework Example | Topics and Well Written Essays - 250 words - 4

Discussion Board - Coursework Example The presence of the spirit, sent by God, gave the people guidelines on behavior, and consequently replaced the law. It was greater than the law and prophets, and their divine teachings to Christians. The day is important because it actually marked the day manifested himself to the people through a spirit (Bacchiocchi, 1996). Although the Day of Pentecost is not as popular as Easter or Christmas, it is important because it commemorated the beginning of the church. It memorializes the coming of the Holy Spirit on the early followers of Jesus. Although there were believers and followers of Jesus Christ, ‘the church’ gained recognition after the Day of Pentecost. The Pentecost provides both a historical and spiritual relevance and is the church birthday. Historically, it is the day Christians and believers started the church. Spiritually, it is the day the Holy Spirit appeared and gave the church

Discrimination under Title Vii Civil rights Essay

Discrimination under Title Vii Civil rights - Essay Example ring and firing; 2) compensation, assignment, or classification of employees; 3) transfer, promotion, layoff, or recall; 4) job advertisements; 5) recruitment; 6) testing; 7) use of company facilities; 8) training and apprenticeship programs; 9) fringe benefits; 10) pay, retirement plans, and disability leave; or 11) other terms and conditions of employment.9 Discriminatory practices under these laws also include: a) harassment on the basis of race, color, religion, sex, national origin, disability, genetic information, or age; b) retaliation against an individual for filing a charge of discrimination, participating in an investigation, or opposing discriminatory practices; c) employment decisions based on stereotypes or assumptions about the abilities, traits, or performance of individuals of a certain sex, race, age, religion, or ethnic group, or individuals with disabilities, or based on myths or assumptions about an individual's genetic information; and d) denying employment oppo rtunities to a person because of marriage to, or association with, an individual of a particular race, religion, national origin, or an individual with a disability. Title VII also prohibits discrimination because of participation in schools or places of worship associated with a particular racial, ethnic, or religious group. 10 The Equal Employment Opportunity Commission is the agency tasked to enforce this law. It is empowered to prevent any person from engaging in any unlawful employment practice as set forth in section 2000e-2 or 2000e-3 of this title [section 703 or 704]. 11 Whenever a charge is filed by or on behalf of a person claiming to be aggrieved, or by a member of the Commission, alleging that an employer, employment agency, labor organization, or joint labor ­-management...Discrimination under Title Vii Civil rights The Title VII Civil Rights Act also makes sexual harassment in the workplace illegal.3 In the simplest terms, Title VII prohibits employers from making employment related decisions where the decision is motivated by a person’s protected trait.   Thus, for example, an employer may be sued for favoring a white employee over a black employee because of race or color.4 Title VII, the federal law that prohibits most workplace harassment and discrimination, covers all private employers, state and local governments, and educational institutions with 15 or more employees. In addition to prohibiting discrimination against workers because of race, color, national origin, religion, and sex, those protections have been extended to include barring against discrimination on the basis of pregnancy, sex stereotyping, and sexual harassment of employees.5 This law protects employees of a company as well as job applicants. 6 Before the Civil Rights Act of 1964 was passed an employer could reje ct a job applicant because of his or her race, religion, sex or national origin. This Law however admits some exception. An employer is allowed to discriminate against an applicant or employee where the decision rests on a â€Å"bona fide occupational qualification† or BFOQ. This means that an employer can favor one person over another where the person’s trait is of essence to the performance of the job duties in question. The most notable example is hiring a female for modeling women’s clothing.

Polar Bear Crisis Essay Example for Free

Polar Bear Crisis Essay Bear Crisis In May 2008, the U. S listed the polar bear as a  threatened species  under the  Endangered Species Act. The Arctic is one of the most discussed on climate change, due to the fact that warming is greatest there and because what happens in the Arctic has the can eventually impact the rest of the Earth. So far, not only has it affected the way the ice is melting and the weather is changing, but it is mainly affecting the animals that are living there (for example, polar bears). Although, there are many environmentalists, and companies tried to solve, or at least help the situation (like Coca-Cola and WWF), the problem is not getting any better. As sea ice is being reduced in the area, the polar bears basis for survival is being threatened, said John Laird, WWFs Nunavut regional conservation director. The sea ice is melting earlier in the spring which is sending the polar bears to land earlier without them having developed as much fat reserves for the ice free season. By the end of the summer they are skinny bears, which in the worst case can affect their ability to reproduce. Also, The U. S. Fish and Wildlife Service says that, . . . extensive scientific studies have indicated that the increased observation of bears on land is a result of changing distribution patterns and a result of changes in the accessibility of sea ice habitat. It is crazy to think that all of these things are all being affected because we are not taking care of our planet; even though it’s happening thousands of miles away. Because we put trash on the ground, pollute the air etc. animals are being affected, especially the polar bears. Since bears use the sea ice to hunt for their main prey, seals, without the sea ice, their range are drastically reduced. On top of it all, the oil and gas development along the edges of the land mass and you have more problems. It has been said that two thirds of polar bears will disappear by 2050.

The Relationship Between Political Processes and Science Essay

The political processes involved in the production of scientific facts and technology continues to be misrepresented and underemphasised in contemporary academic and wider public discourse. This is evident when considering the approaches employed by historians, philosophers and commentators when interpreting past revolutions, paradigm shifts and controversies in science. In this failure to account for the intrinsic association of politics, scientific facts and technology, it has led to the problematic distortion of how science relates to society and operates as an institution. Several assumptions are often made about science, for example the existence of an objective ‘scientific method’. Naà ¯ve inductivists who maintain this view claim that â€Å"science starts with observation†, and secondly that â€Å"observation yields a secure basis from which knowledge can be derived† (Chalmers, 1982, p. 22). This standard model of science raises much concern as it negates to account for the complex nature of observation. Firstly, Gestalt imagery demonstrates the variety of distinct meanings which can be extrapolated from one image and so a variety of stimuli. Secondly, the standard story of ‘scientific method’ through observation is weakened when considering the importance of ‘gaps’ within science, shown through the Solar Neutrino case study. Scientists observed the activity of solar neutrinos and in 1967, when data begun to transpire, inconsistencies were noticed which defied their predictions. There were disagr eements concerning the reading of the results and from 1968 to 1978 the scientific community continued in their attempt to resolve the ‘gaps’. A crucial question arises, which interpretation of the image or data is ‘correct’ or ‘legitimate’... ...999, p. 17 - Bishop, J. and Landell-Mills, N., ‘Forest Environmental Services: An Overview’ in Selling Forest Environmental Services: Market-based mechanisms for conservation and development, Earthscan, London 2002, p. 30 - Ede, A. and Cormac, L., A History of Science in Society: From Philosophy to Utility, Broadview Press, Ontario, 2004, p. 209 - Kill, J., ‘The Scientific Uncertainty of Carbon Sinks’ & ‘Why Carbon Sinks Won’t Help Stop Forest Destruction’ in Sinks in the Kyoto Protocol: A dirty deal for forests, forest peoples and the climate, FERN, 2001, p, 9 - Kuhn, T., The Structure of Scientific Revolutions, The University of Chicago Press, 1996, p. 56 - Pinch, T. J. and Bijker, W. E., ‘The Social Construction of Facts and Artefacts’ in The Social Construction of Technological Systems, ed. W. E. Bijker, T. P. Hughes and T. J. Pinch, MIT Press, 1987, p. 19

Belonging: Salem witch trials

One’s sense of belonging can be defined in so many different ways. For some belonging is experienced through familiarity with ones environment. For others, belonging is more about feeling part of a group and being accepted in their community. Many of these concepts are explored in the texts, A play in four acts titled The Crucible by Arthur Miller, A picture book titled The Red Tree by Shaun Tan, and a poem called Metho Drinker by Judith Wright. All of these texts reflect belonging in a different way, the Red Tree focusing on visual imagery to emphasize displacement, The Crucible based on witchcraft, love, and the need of a high status to belong, and the poem Metho Drinker, revealing concern and compassion for a man who only belongs to his addiction. Displacement from ones natural environment can lead to an absence of belonging. This is shown in The Red Tree as the large size of the glass bottle and its position being close to the viewers eye is contrasted with the fainter less visible image of the ocean creating an absence of belonging. Furthermore the glass bottle is overshadowed by a dark blue sky in contrast with the smoky whites and blues of the sky above the ocean creating a sense of distance between the diver and its natural environment. the imagery shown of The glass bottle is situated on a barren landscape bereft of any life and surrounded by rocks and stones. Entrapment can lead to isolation preventing a sense of belonging. The thickness of the glass bottle and the narrow bottle neck give the effect of the diver being trapped with no form of escape. The diver is sitting hunched in a stiff position in the centre of the bottle emphasizing its sense of entrapment. In the poem ‘Metho Drinker’ the author is revealing her compassion and concern for the Metho drinker. A strong sense of belonging is clearly revealed in this poem. Displacement is shown in the first stanza as â€Å"the cruelty of human eyes†, revealing society shunts and rejects him due to his strong addiction to Metho (Alcohol). The personification in the second stanza â€Å"his white and burning girl, his woman of fire† is used because the alcohol he drinks (Metho) is his lover and it shows the intensity of how he belongs to his addiction as he compares it to a woman. The slang language used throughout the poem is suggesting his level in society showing the sense of non belonging and the tone of empathy and compassion created. At the end of the first stanza â€Å"Nothing now he lies†, we get nothing with a capital N because he doesn’t belong in society as he means nothing. The poem ends with sad imagery of a Metho Drinkers dominance by his mysterious passion that doesn’t bring peace and led him to the exclusion to not belong. This poem demonstrates a strong sense of belonging and choosing not to belong was shown due to his addiction â€Å"Metho† that he couldn’t sacrifice anything for. In the play the Crucible the events of the play demonstrate a huge power that can be wielded by groups and those whole belong to a group. It shows a small, seemingly powerless group can disrupt a entire community. Prior to the witch trials, Abigail and the girls were not powerful members of Salem society. Yet through unity, they manage to hold their whole community have people tied and have them executed, but belonging to this group also means they share the same potential gains and risks. Those who should belong are excluded until there is nothing left to belong to. The protagonist of the play ‘John Proctor’ is an individual who has not put a high priority on belonging in his life. Proctor chooses not to belong to Salem society. The fact that he has sinned with Parris’s 17 year old niece Abigail from Salem society causes him to view himself as a hypocrite and not worthy of association of such people like Rebecca Nurse, the most respected and highly regarded member of Salem society, therefore Proctor regards them as better than him. Proctor doesn’t even belong to his own family as at the beginning of the play his sin is still playing a negative influence on his relationship with his wife Elizabeth. In Act two we see that they are uncomfortable with each other. He doesn’t really belong to his family because he’s strayed from them. The repetition and alliteration of â€Å"spare me! You forget nothin’ and forgive nothin† was used to make his point too Elizabeth to show that she has not forgiven him because of the sin. His strong sense of belonging is reflected as he yells â€Å"because it is my name, leave me my name†. This clearly shows us the society he belongs to doesn’t accept him anymore and he fights to save his name so he can be remembered and belong to the Salem society. John Proctor believes that he is unworthy of belonging because of his affair with Abigail. He doesn’t deserve Elizabeth’s love or the respect of the community. Proctors confession of his sexual desire is an confess of secret guilt. He finally achieves his self acceptance and a sense of belonging in his marriage but when everything goes right before he grants a death penalty. In this play belonging is never based on the truth. The truth becomes a shared thing, something everyone agrees on. Belonging therefore is manifested (visible) in so many different ways as evidenced in the crucible, the red tree, and Metho drinker.

This Final Research Project Finance Essay - Free Essay Example

Sample details Pages: 30 Words: 8941 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? This Final Research Project is basically focused on the rising Non-Performing Loans Habib Metropolitan Banks Asset Portfolio. The purpose of research was to study the main key factors that are responsible for this rising trend of NPLs. And to find out a solution to this problem that Habib Metropolitan Bank is facing. Don’t waste time! Our writers will create an original "This Final Research Project Finance Essay" essay for you Create order The results show that the Textile Sector is the major contributor in the Non-Performing Loans of Habib MetroPolitan Bank. The bank has not enough diversified its Asset portfolio and has concentrated its lending to just one sector, the Textile Sector, almost 51% of Banks total lending is extended to the textile sector alone which is now causing such high NPLs in the Banks Asset Portfolio. If the bank had properly managed and diversified its portfolio it would not have been facing such problems with its Loan Portfolio. What the bank should do now is to minimize its exposure in the textile sector and should diversify its Portfolio to all the sectors in the economy so that its Exposure to just one sector would not be very significant as compared to the whole Loan Portfolio managed by HMB. Habib Metropolitan Bank Habib Metropolitan Bank, a subsidiary of Habib Bank AG Zurich, was incorporated in Pakistan in year 1992 under Section 160 of the Companies Ordinance, 1984, as a public limited company. The bank started its operations the same year it was incorporated and licensed by the authorities. HMB is placed among the top ten (10th) Commercial Banks in Pakistan and holds a standalone (independent) ranking of 1639th in the world. In October 2006 Metropolitan Bank that operated nationally with a network of 51 on-line branches all across Pakistan finally got merged into Habib Bank AG Zurich and this new entity was named Habib Metropolitan Bank, currently known as Habib Metro Bank. [1] Habib Metropolitan Bank has its operational branches in all the major cities of Pakistan with a Vision to be the most respected Financial Institution in Pakistan by providing excellent quality services which are primarily focused in Trade Financing and Retail Banking. Habib Metropolitan Banks parent company Habib Bank AG Zurich was incorporated in year 1967 and has a standalone International Ranking of 687th in terms of Banks Capital. Habib Bank AG Zurich is an international bank that has a Headquarter in Switzerland (Zurich) and operations in many countries across the globe. Habib Metropolitan Financial Services Ltd, a subsidiary of Habib Metropolitan Bank, is a renowned name in the Equity Brokerage Industry. As of 30th December 2011 the growth in Equity brokerage business remained stable but in the coming years it is expected to grow at rapid pace as the Investors confidence comes back to Pakistani Capital markets. [2] Pakistan Credit Rating Agency (PACRA) a renowned rating agency of Pakistan has maintained the Long term Credit Rating of Habib Metropolitan Bank at AA+ and A1+ for short term rating. AA+ rating is considered to be very safe and signifies that there is almost absolutely no Risk that the Company would default on its outstanding debt. This solid credit rating of HMB for Eleven (11 years) straight years clearly indicates that HMB has a very good reputation and has the ability to pay off the interest payments to its creditors and its probability to default on its debt is very low. [3][4] About Habib Metropolitan Bank Habib Metropolitan Bank is a middle tier bank that is currently ranked as the 10th biggest bank in Pakistan. As of 31st December 2011, HMB has nationwide network of 163 branches operating all across Pakistan with 3,073 permanent employees on its payroll and a total of 123 Automated Teller Machines installed all across the country. Bank has been growing at a very decent pace over the years ever since its inception and had maintained this growth rate even during the last few years that came out to very tough for the Economy. HMB has total assets amounting to Rs 288 Billion as mentioned in its financial statements and its Deposits have reached to Rs 185 Billion. Habib Metropolitan Bank is also one of the leading Tax Payers in Pakistan as it has paid Rs 1.9 Billion in direct taxes during financial year 2011. Being an AA+ rated bank, HMB has a very strong capacity to pay off its timely Interest payments. Reason for Selection of Habib Metropolitan Bank The main fundamental reason to choose Habib Metropolitan Bank is to critically analyze the performance of the Asset quality of a mid size bank, since there has not been much work done on analyzing the performance of mid-size banks in Pakistan. In a way, it would be a great opportunity to dissect the financial performance of this bank amid of poor economic conditions, worsening energy crisis and the ever deteriorating security conditions in the country. The main focus of this research paper would be based on the Non Performing Loans of Habib Metro Bank. Industry Overview Over the last decade, Pakistan has made many financial sector banking reforms, and has been quite successful in liberalizing its Commercial Banking sector. This decade of 2000s, didnt just liberalized the banking sector but it has also modernized the Central Bank of Pakistan to a great extent. In the days of inception Pakistan used to be an Agricultural based economy, but all that changed significantly in the next few decades, and Pakistan became a Service Dominated Economy. The contribution of Service Sector in the total GDP of the country has gone up to 53% as compared to a mere small percentage in the past. It means that the contribution of the service sector in the overall economy is more than the contribution of both Industrial and Agriculture sector. The Service sector is a very broad category which includes many sub sectors like the Telecom Sector, Health care, Education, Financial Sector and many more. The contribution of financial services sector in the overall service secto r of Pakistan has increased significantly during the last decade and has created thousands of jobs in the Commercial Banks, Modaraba Companies, Asset Management firms, Brokerage houses and Investment Banks. Before the privatization of banks and liberalization of banking sector reforms, the banking sector was in dire trouble, the non performing loans, issued by the then nationalized banks were reaching the skies and were making the already dangling economy of Pakistan suffer even more. [5] In 1990s things changed, as the government started to follow the Market based reforms (Demand- Supply), the troubled Banking sector of Pakistan took a u-turn and turned itself from a loss maker to a profit maker and contributed significantly in pumping the economy in upward direction. Today, banking sector is the main contributor in the growth of the Economy; it actually positively affects the economy not just directly but also indirectly as the growth in banking sector means the easy availability of funds to the deficit units from the surplus units of funds. That is how banking sector contributes in the growth and development of other sectors. The banking sector of Pakistan provides a great deal of services to its customers both individuals and corporations. Banks are the principal means of remittance flow in the country from all around the world, which is one of the main sources of foreign reserves for the country apart from exports and foreign direct investment in the country. Over the years banking sector has increased the number of services that it offers to its clients. Many services that were not that developed few years back are currently very much developed; credit card service and household lending could be the examples of service categories being matured with the passage of time. As of today, there are more than 35 banks currently working in Pakistan out of which 6 banks are owned by the Government of Pakistan -Public sector banks (Majority of their shares are owned by the Government), 22 are locally licensed Private banks like MCB, HBL, ABL, FBL, UBL, HMB etc, 7 foreign banks which are not fully licensed to work in Pakistan and 4 Specialized banks (micro finance banks). According to the statistics from Year 2010 to 2011 made available by the State Bank of Pakistan, The total assets of banking sector have shown a growth rate of 15% and the total deposits kept with the banking sector have grown at 14.5%. While the deposits have increased in this 1 year time period the Loans issued by the banks have seen a consistent decline, one of the reasons for this declining trend in banking sector lending is Loan Default, in other words Bad Debts. Banks are feeling highly in-secured lending funds out, due to the ever increasing NPLs and because of this very same reason banks are heavily investing into stock and money markets. Now coming to the distribution of banking sector, almost 50% of the total banking assets are contributed by the top 5 banks. These top five banks are MCB, HBL, UBL, NBP and ABL. These 5 banks are not just dominating in the contribution of total assets but they are also dominating in the total investment made by the banking industry and the profits earned by the industry. Almost half of the advances (Loans issued by the banks) extended by the banking industry are contributed by these five giant banks. Area of Interest Focus of this research would be the Non performing loans of Habib Metropolitan Bank. My interest in nonperforming loans is not just because I work for a bank as a Credit support analyst, but to analyze thoroughly the reasons why Habib Metropolitan Bank just like other banks is not able to control its NPLs even by being very responsible in its lending behavior. Banks are now lending lesser and lesser amount as compared to what they used to lend in the past. But still they are not able to bring down the NPLs to a very small percentage. Research Objectives I believe that with the help of this research paper we would be able to highlight the reasons why banks, in spite of being highly responsible with funds they lend, cannot have the complete control over their Bad Debts. These days banks follow many rules and regulations enforced by the regulatory authorities like Basel I, Basel II now Basel III, apart from their own internal systems to keep a check on their credit risk and the quality of their assets, but still there seems to few loopholes that are still existing in the banks lending procedures. These ever increasing NPLs are the reasons why banks are now scared of lending money to the deficit units and are investing heavily into the Government securities. There is no doubt that Government lending is highly lucrative, since it is risk free. However, high levels of Risk Free lending implies losing out on higher profitability opportunities and reducing focus on building long term customer relations (Retail Banking becomes weak eventually). Also, profits from government lending is artificial as Government pays bank by printing money (in Pakistan), which would reduce money value and depreciate the local currency. Eventually, dollar value of profits would fall. Additionally, as savings fall and inexpensive funding sources dry up (Current Deposits); Government lending would become unfeasible as funds would have to be secured at higher rates. With weak retail banking infrastructure, narrow product line few household/corporate customers the middle tier banks like Bank Al-Habib Lim ited, Bank Alfalah Limited, Faysal Bank Limited and Habib Metropolitan Bank Limited etc would quickly start producing heavy losses. Research Question WHAT ARE THE MAIN REASONS WHY HMBs NPLs ARE RISING? Research Methodology The research methodology that would be followed for this particular research paper would be based on both Primary and Secondary Research. The already published data, financial reports and SBP Banking reviews, interviews and information gathered from Questionnaires would be the source of information for this paper. Since this paper is not truly an Academic Research paper but rather a paper that specifically deals with the working and some specific problems of a particular bank the focus would be on the Financial Reports of the Bank and the already published and publically available data. Financial statements and secondary data does not necessarily give all the insights as to why something is happening, therefore to get the deep insights, conducting Interviews were necessary to know about the opinion of bankers as to what is leading to such high NPLs and why the bank is not able to control them. And to actually check whether the findings from Secondary research matches with the findings from the primary research (Questionnaires and Interviews) Primary Research Primary Research would include both Interviews and Questionnaires. The basic purpose of doing a primary research on a topic like this one (NPLs) is to compare the views and general perceptions of Bankers regarding the rising trend in Non-Performing Loans of Habib Metropolitan Bank with that of already published publically available Financial Statements of HMB. Secondary Research As it has been mentioned earlier the research methodology for this Research Project would 70% -80% be comprised of Secondary research. Since we are focusing only on the rising trend of Non-performing loans of Habib Metropolitan Bank, the deep and thorough analysis of financial reports of the company and of the competitors reports along with some yearly Banking sector reviews of State Bank of Pakistan, would be reasonable enough to know the real reasons of these worsening conditions of the Banks Asset Portfolio. Literature Review Siddiqui et al (2012), basically aims to find out why the Non-Performing Loans in Pakistani Banking Sector are constantly on the rise. Their whole research is focused on finding out why is this happening and what are the main factors that are contributing to such high Non-Performing Loans even by taking all the precautionary measures that could possibly be taken, and following all the rules and regulations implemented by the Regulatory authorities like State Bank of Pakistan or Securities and Exchange commission of Pakistan. There are many factors that might be causing the borrowers to go default on their debt obligations but the major emphasis is on the Interest rate volatility and the High Interest rate charged by the lenders from the view point of increasing Non Performing loans in Pakistans banking sector. GARCH and other quantitative techniques were used to closely analyze the volatility trend in the interest rates and their possible impact on the Non-Performing loans. Siddiqui et al research clearly states that there is no significant relationship between the Volatility in interest rates Non-Performing Loans. According to the Authors the Non-Performing Loan trend in Pakistan is constantly on a rise and has witnessed a significant growth over the last few years, but as far as the neighboring countries are concerned like India, Bangladesh etc. Their NPL trend is on its way down, and the major reason that they find out seems to be Interest Rates within the economy. The lending rates in Pakistan are way higher than the Interest Rates in the neighboring countries that brings extra burden on the debtors to pay off their debt. High interest rates combined with low economic development are the main reasons why Pakistan is facing such a positive trend in the growth of NPLs while all other South Asian countries are showing a negative trend. According to the authors of this research article, state Bank of Pakistan has divided bad debts into three categories, namely, Substandard, Doubtful and Loss. These categories basically help the Bank Management and Authorities in identifying the NPLs situation. In a way, this research is one of its kinds, but now it has opened the doors for further research in identifying the main factors that affect the Non-Performing Loans. [6] O. Masood and B. Aktan (2009) focused on the determinants that lead to loan defaults especially of the state owned banks of Pakistan and Turkey. The factors that seemed to be affecting the Non-Performing Loans among the state owned banks within these two countries are of completely different in nature, which was quite unexpected. According to the authors of this research article, reasons that are causing these NPLs in Turkey are basically the Government interventions within the Banks lending business and bad analysis of creditworthiness. But in Pakistan factors like Years of service of credit managers in the banks and Communication facilities provided to the credit analysts basically affects the NPL growth rate among the state owned banks. These NPL issues could only be solved if these above mentioned factors are brought under control, otherwise this rising trend of NLPs would keep on going up. [7] Samreen and Zaidi (2012) explained the concept of Credit scoring in this research article. According to the authors, Non-Performing Loans could be reduced to a great extent if a proper credit scoring model is used by the lenders (Banks) to analyze the creditworthiness of the applicants who have applied for the loans. This way banks would be able to distinguish High credit worthy applicants from the less credit worthy applicants which would ultimately lead to a much more responsible lending and hence there would be less loan defaults. A loan is considered to be a Non-Performing loan, if a borrower has been unable to pay off the principal and interest for over 90 days (90 DPD). (Samreen, 2012) [8] Husain (2012) explains the misconception of rising NPLs among the general public and many bankers in the financial services sector. Husain says its completely wrong to say that State Bank of Pakistan is doing nothing about controlling these Non-Performing Loans. If we compare NPLs in year 1999 with NPLs in 2009, the quantum or the absolute value would be a lot higher in year 2009 even if all the loans that were issued after 1999 didnt go bad. And why is that so? The reason for these growing NPLs is the markup or interest that is constantly being charged and added up on the bad loan that hasnt been serviced for over 90 days. Lets assume a loan, worth 1 Million, was lent out in 2000 on a 20% markup rate with a maturity of 10 years. This loan got defaulted in the same year which means there are no repayments being made by the borrower on the loan that he/ she borrowed but the NPL amount would keep on rising and keep adding up every year as the interest amount due is being added to the d efaulted loan amount every year. In 2001 the NPL amount would be 1.2 million, in 2002 in would become 1.4, and in just 5 years this NPL would be doubled in amount. Another reason why these NPLs seem to be rising is because these loans were issued in foreign denominated currency and not in Pakistani currency, and as the exchange rate changes it would directly impact the NPL amount. Lets assume a loan of 1 million was issued in dollar denominated currency when the exchange rate of Rupee to Dollar is 45 to 1. After 2 years the exchange rate has been changed to 80 to 1 (Rupee to Dollar) and we are assuming that the loan has already been defaulted. Now the quantum of NPL that would be seen by the general public would grow and increase according the change in Exchange rate. [9] Sofoklis D and Nikolaidou (2011) basically tried to identify the determinants that are contributing to Non-Performing loans in the Romanian Banking system. As per their research findings there are many macroeconomic cyclical indicators that are contributing in the growth of NPLs like the inflation rate, interest rate, GDP to External Debt, infrastructure development, Unemployment rate and Investment Expenditure. All these indicators in their separate and unique way do affect the Non-Performing loans in the Financial Services sector. [10] (Shaikh, 2004), Basically explained that determinants that affect the Non-Performing Loans vary with the geographical area, the culture and norms of a particular area, and the laws of a particular country where a particular bank is operating. These variations are basically because of factors like Economic growth of a country, situation of a particular industrial sector, quality of management, Regulatory laws which are different for each country. According to the author of this research article NPLs are majorly arising from the manufacturing sector which includes textile sector, cement, sugar and the Public sector enterprises. When a particular sector is having trouble regarding its performance and growth, the risk of loan defaults in that particular sector increases, which also seems to be a very logical reasoning, as the sector wise loan default data issued by the State Bank of Pakistan clearly states that textile sector is the major contributor in causing Non-Performing Loans withi n Pakistans Financial services sector. Textile sector is going through a lot of trouble and setbacks due to power shortage crisis, natural gas crisis and growing competition from countries like Bangladesh, China and India. Who are producing and exporting textile products at cheaper prices. All these above mentioned factors have badly affected the growth of textile sector which has further contributed in the rising trend of Non-performing loans within the textile sector. [11] (Vassiliou, 2004), Basically analyzed the change in behavior of the regulatory authorities of Asian countries regarding their policies on the non-Performing loans in their financial services sector. The author explains that most countries have changed their policies in dealing with loan defaults (debtors and creditors), lets assume the case of Pakistan, in 90s the authorities were very strict with the debtors (loan defaulters) and were highly pro creditors in order to keep a check on rising NPLs, the laws were so strict at that time that defaulters were forced into jails. But few years later these policy makers completely changed their policies in an opposite direction. Now the Regulatory authorities are more lenient to Debtors than they are to creditors. [12] (Assessment of Financial Intermediation, 2012) Chapter1 gives the updates on the economic conditions and Financial Services Sector progress. This report also clearly states that Pakistans banking sector does not enjoy the highest Banking Spreads if we compare it with other developing and developed countries, because in cross country analysis factors like financial sector development, Regulatory laws and framework and business conditions. According to World Banks database, Pakistans ranking is nowhere near banking spread of developed countries but as a matter of fact it comes out to be 69th among all other developing and developed countries. [13] Comprehensive Financial Analysis PERFORMANCE BAHL BAFL SONERI SUMMIT HMB ROE 24.33% 15.34% 7.14% -27.90% 17.20% ROA 1.14% 0.75% 0.60% -1.28% 1.43% Pre-Provisions Operating Profit/Avg.Equity 53.24% 45.87% 21.41% -56.84% 35.48% Pre-Provisions Operating Profit/Avg.Assets 2.49% 2.22% 1.81% -2.69% 2.95% Personal Expense-to-Total Net Revenue 45.98% 30.65% 27.38% 327.20% 19.82% Cost-to-Total Net Revenue 46.90% 64.05% ÂÂ   -448.79% 38.21% Other Operating Income/ Total Net Revenue 15.92% 16.15% 10.45% 56.22% 40.25% Taxes/ Pre-Tax Profit 38.07% 35.53% 27.33% -49.50% 25.90% Net Non-Earning Assets/Assets net to Non-Int Lia 7.50% 18.60% 17.46% 25.17% 9.88% ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   CAPITAL ADEQUACY ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   Equity/Total Assets 4.68% 4.88% 7.89% 4.60% 8.41% Adjusted Equity)/ Total Assets 5.23% 5.51% 8.46% 5.20% 8.53% Revaluation Surplus (Deficit)/Adjusted Equity 10.49% 11.39% 6.75% 11.58% 1.37% Capital Adequacy Ratio as per SBP ÂÂ   11.60% 13.53% 7.77% 13.93% ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   LIQUIDITY ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   Liquid Assets/Deposits and Borrowing 70.50% 53.65% 48.78% 39.47% 49.28% Finance/Deposits and Borrowing 36.06% 46.42% 50.72% 43.98% 43.04% Finance/Deposits 39.54% 49.34% 58.58% 64.75% 58.51% Demand Deposits/Total Deposits 25.36% 36.62% 20.65% 19.78% 31.86% Export Refinance/Advances 17.03% 5.25% 25.40% 38.06% 22.24% Fianance(net of Export Refinance)/Deposits 33.20% 46.83% 44.22% 40.11% 46.01% Government Securities/Total Assets 55.00% 33.43% 31.69% 25.83% 44.92% Finance/ Total Assets 33.04% 42.29% 45.04% 40.21% 37.64% Lending to Financial Institutions/Borrowing from Fis 0.00% 50.99% 71.84% 6.37% 5.43% ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   LOAN LOSS COVERAGE ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   Impaired Lending/Gross Finances 2.76% 9.65% 15.85% 48.75% 14.80% Loan Loss provision /Impaired Lending 158.10% 67.70% 64.10% 49.37% 64.97% Net Impaired Lending/ Equity -11.34% 27.01% 31.36% 206.05% 22.30% Net Impaired Lending/ Adjusted Equity -10.15% 23.93% 29.00% 182.20% 21.99% ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   INTERMEDIATION EFFICENCY ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   NIRM (Net Interest/Mark-up Revenue)/ Avg-Assets 2.96% 4.23% 3.75% 0.42% 3.20% Asset Yield (Interest Earned/Average 11.36% 12.45% 12.74% 11.63% 11.93% Cost of Funds {Interest Expense/ Average 7.18% 6.41% 7.81% -8.24% 8.23% Spread 4.19% 6.05% 4.93% 19.87% 3.70% ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   GROWTH ÂÂ   ÂÂ   ÂÂ   ÂÂ   ÂÂ   Total Assets 15.10% 13.78% 20.01% 65.70% 14.28% Gross Finance -13.80% -12.01% 18.53% 38.91% -10.43% Impaired Lending 7.70% 4.24% 26.01% 96.75% 40.75% Investments 49.38% 81.71% 38.32% 93.91% 56.78% Customer Deposits 16.20% 13.34% 21.60% 46.77% 15.54% Equity 9.34% 15.78% 23.10% 53.26% 21.00% Source: https://habibmetro.com/documents/2011/UnConsolidated2011-Final.pdf Source: https://www.soneribank.com/document/url/83/Soneri_AR_2011.pdf Source: https://www.bankalfalah.com/about/download/BALAnnualReport2011.pdf Source: https://www.bankalhabib.com/quick-links/financialReport2011.php [14][15][16][17][18][19][20] Ratio Analysis Ratios of four competitor banks have been calculated using their financial statements available online on their websites for the financial analysis and performance of these banks. These four competitor banks namely, Bank AL Habib Limited, Bank Alfalah Limited, Soneri Bank Limited and Summit Bank Limited are small and middle tier banks which makes them completely eligible for comparative ratio analysis with Habib Metropolitan Bank. Since this research is only being conducted to inquire about the Non-Performing loans of Habib Metropolitan bank, only Impaired Lending Ratios would be covered in the financial ratio Analysis section. 1) Impaired Lending/Gross Finances: Non-Performing loans to Total Gross Finances ratio is a very important ratio with significant usage in financial services sector. It basically explains the percentage of loans that have gone bad from the banks total Loan portfolio. Higher this ratio is, higher the trouble for the bank. Now if we see the figures given above in the table, the ratio of HMB does not come out to be very positive. It is way higher than the industry average. It could be clearly seen that BAHL and BAFL (2.76% 9.65% respectively) have small figures as compared to HMB which is almost touching 15% (14.8% to be exact). These ratios clearly states that HMB is not managing its loan portfolio very efficiently which is why it is having such a high figure for NPLs/Gross Finances ratio while its counterparts are keeping a strict control over it and not letting it to exceed beyond one figure. 2) Loan Loss Provision/ Impaired Lending: this ratio is probably the most important one in finding out the efficiency of Banks management in managing its Loan Portfolio. Higher this ratio is safer a bank would be, because provisions act like cushions for the banks in absorbing loan losses. If this ratio is more than or equal to 100%, it would mean the banks loan portfolio is completely covered with the provisions is not at risk regarding loan defaults. If the provisions allocated by the bank are not enough to cover up the NPLs portfolio completely and supposedly the whole loan portfolio maintained by the bank goes bad, then the banks equity would be at stake, which would ultimately cause trouble for the equity holders (Share holders) of the bank. As per the figures given above all four banks apart from BAHL have their Loan Loss Provision to Impaired Lending Ratio lower than 100%, which means these banks are at the mercy of the borrowers credit worthiness. Supposedly if only 64.97% (H MBs Ratio) of NPLs are covered and the total loan loss as of the total loan portfolio turns out to be 80%, then it would be a serious trouble for the Banks. 4) Net Impaired Lending / Equity: Non-Performing loans to Total Equity ratio basically represents the percentage of Non-performing loans over the banks Total equity. Higher this ratio is, worst the scenario would be for the bank. As far as figures in the above given table are concerned Habib Metropolitan bank has a very decent ratio as compared to its competitors. Lower this ratio is, safer the bank would be. Financial Analysis Over the years Habib Metropolitan bank has witnessed a very significant growth in its deposits, total assets, and total number of branches, investments, profit before tax and profit after tax. All these factors are the main indicators of a banks growth (growth or decline). In a period of just one year (FY10 to FY11) Habib Metropolitan Banks total assets grew from Rs 252 Billion to Rs 288 Billion which is a very significant figure. Similarly, Investments made by the Bank (Stock Markets / Government Securities) also grew from Rs 100 Billion to Rs 147 Billion which is also a very significant (increase) change in banks investment portfolio. These figures clearly shows that HMB is focusing and channeling its funds more towards Investment side (Government securities, Stocks, Bonds etc) rather than focusing into Advances. Over the years Bank has reduced its Advances portfolio due to the bad performance of Loan portfolios and diverts those extra funds towards investments which are the main r eason why Advances figure have seen a dip while the Investment figure has witnessed a jump (growth). Overall the bank is earning profits but the profit growth rate figures have reduced in the recent years, the reason for that is HMB is playing safe and in investing in Government securities which are a safer option of getting returns on its funds, rather, lower returns as compared to what Bank gets by lending these funds to some credit worthy borrowers which might earn bank higher returns. Now since the economy is in recession and most probably all the sectors are suffering from it, banks are very reluctant to release (lend) and channel their funds in the economy by lending their surplus funds to the deficit fund borrowers. Primary Research Questionnaire Analysis A sample size of 25 questionnaires was chosen for the collection of data essential to conduct this research and to come up with a significant conclusion on what Bankers and General Public think about the Non-Performing Loans condition in Pakistans Financial Services sector, what according to them is the trend being followed by the NPLs, upward or downward, and what factors do they actually think affects the creditworthiness of the outstanding Loans held by the debtors. The data that would be collected using this survey would be very useful in comparing what the real reasons are and what the Bankers think are the reasons behind the loans going bad. Question No: 1 Out of a total sample of 25 Individuals to whom this questionnaire was floated to 18 responded with Yes and only 7 individuals replied with a No. This means that majority of the individuals have or had borrowed money from banks at some part of their life. This pie chart shows that 72% of the respondents have themselves experienced a life of lending and borrowing from the financial services sector and 28% of the individuals have never taken a loan from a bank. Question No: 2 This question is very important in a sense that it will provide us with a feedback from the bankers (respondents) about what they think of Banks lending decisions and whether these banks follow proper rules and regulations while lending funds to the borrowers or not. Out of a total sample of 25 respondents, 15 responded with a Yes and remaining 10 responded with a No that means majority of the respondents believe Banks take all the necessary measures in their lending decisions and to make sure they lend to the responsible creditworthy borrowers and not to irresponsible and less credit worthy borrowers. In percentage terms 60% of the respondents believe that the banks are very careful in making lending decisions while only 40% believe this not to be the case. Question No: 3 This question is also a very important one for this research. All 25 respondents were asked about their views on the trend of Non-Performing Loans within the Banking sector and what they think is the direction of this trend, either its rising, declining or consistent. The response that was received was not unanimous at all. Its amazing how only 44% of the respondents believe NPLs are on a rising trend and 40% think they are following a declining trend and only 16% respondents believe that there is no significant change in the trend and is being quite consistent. The result shows that majority of the respondents dont even know the trend being followed by Non-Performing Loans in the banking sector which could be easily seen in the State Bank of Pakistans publications and each banks Financial Statements. In numeric terms only 11 out of 25 respondents think NPLs are rising in the banking sector while 10 out of 25 think NPLs are decreasing and only 4 respondents think the trend is being c onsistent. Question No: 4 This question had some trickiness hidden inside; the basic purpose of asking this question was to find out the understanding of lending and borrowing processes among the low level bankers and credit analysts. 76% of the respondents believe Banks could put a leash on this rising trend of Non-Performing loans occurring within the banking sector and only 24% of respondents believe stopping NPLs from rising is inevitable, the probability of loans going into default could not be controlled because you would never know when a creditworthy borrower might become a less creditworthy defaulter. There might be so many unknown determinants that could affect the creditworthiness of a borrower and could turn him into a defaulter. In numeric terms 19 out of 25 respondents said the probability of loans going bad could be reduced while only 6 out of 25 said it could not be controlled (Probability of default could not be reduced). Question No: 5 This survey question is just a follow up of the previous question. In the previous question respondents were asked whether the probability of loan default could be reduced or not, and the majority of the respondents replied with a Yes, and then a follow up question comes up, asking, how? 28% of the respondents said by applying more Checks in the banks lending processes, 24% said by restriction in lending to declining economic sectors e.g. Manufacturing, Textile, and Agriculture etc. 20% respondents said by giving more communication facilities to the Credit Analysts. 16% said by restriction in lending to particular geographical regions (areas where concentration of defaults is very high). 8% said all of the above options would help in reducing the probability of loan defaults and only 4% respondents said none of the above given options would result in a lesser probability of loan default. Question No: 6 This question is basically the crux of this research. Respondents were asked that which of the following determinants causes Non-Performing Loans within the banking sector. Almost 36% of the respondents said that lending to low growth economic sectors of the economy is the main factor that causes NPLs, 20% respondents each voted for Lending based on contacts and Poor Credit Analysis, 12% respondents said that fluctuating interest rate is the main factor which causes NPLs, 8% of the respondents said, all of the above mentioned factors do have their negative impact on NPLs, and only 4% respondents said there are other unknown factors that affects the Loan Portfolios of the banking sector (NPLs). Question No 7 Respondents were asked about their views on the Non-Performing loans with respect to the Economic conditions of a country. Almost 84% of the respondents responded to this question with a Yes which means that according to them Economic conditions within a country do affects the creditworthiness of the debtors. Only 16% respondents responded with a No, which means they dont believe Loan Portfolios of banks within a country gets affected by the Economic conditions within that particular country. In numeric terms 21 respondents out of 25, responded with a Yes and only 4 respondents out of 25 responded with a No. Question No 8 This question is basically looking for a link between the defaulted loans of a bank and the outstanding External Debt of that particular country where that bank is functioning. Almost 13 out of a total sample size of 25 respondents said No, external debt of a country does not have any impact on the NPLs of that countrys banking sector. 9 out of 25 respondents responded with Yes which means they believe Loan Portfolios maintained by the banks of a country gets affected by the External debt of that particular country. Only 12% respondents said they dont know either External Debt of a country have any impact on the NPLs or not. Question No 9 This question is about the impact of changes in Exchange Rate on Loan portfolio of the banking sector. Almost 64% of the respondents said that changes in exchange rate has absolutely no impact on the Non-Performing Loans within the Banking sector, 20% believe that changes in Exchange Rate affects the Non-Performing Loans (Asset portfolios of the banks) within the Banking sector. And only 16% of the respondents said, they dont know either change in Exchange Rate have any impact on the Non-Performing Loans or Not. In numeric terms 16 out of 25 respondents responded with a No, 5 responded with Yes and only 4 of the respondents said they dont know. Question No 11 This question is probably the most important one in this entire survey. It is basically the crux of this whole research. All the 25 respondents were asked to pick any of the below mentioned sectors which they think are the main cause of growing NPLs and are contributing more towards the Non-Performing Loans within the banking sector. 40% of the respondents think NPls are more concentrated within the Sugar industry, 32% respondents said NPLs are more concentrated in the Textile Sector, 12% of the respondents think its the power sector and only 8% respondents think its Cement sector where NPLs are more concentrated while remaining 8% respondents think other sectors are causing these NPLs. Question No 12 This question is basically to inquire about the impact of Credit Managers Performance and competence on the Loan portfolio of the Banks. Almost 64% of the respondents responded with No, 20% responded with Yes and only 16% of the respondents responded with May be which means they dont know either it has any impact on the NPLs or not. In numeric terms 16 out of 25 respondents said No, 5 responded with a No and only 4 respondents responded with May be Question No 13 This research question is about the impact of High Interest Rates on the Non-Performing Loans within the Banking sector. According to 52% of the respondents High interest rates within the Economy leads to high Non-Performing Loans in Financial services sector, 24% of the respondents think High interest rates dont have any impact on the NPLs while the remaining 24% respondents are not sure whether it has any impact on the Non-performing loans in the banking sector or not. Question No 14 The last question in the Primary survey questionnaire is about the impact of Government intervention on the Loan Portfolios of the banks. Majority of the respondents believe that Government Intervention in the banks lending decisions leads to high Non-Performing loans within the banking sector, 12% respondents believe Government intervention has nothing to do with the rising NPLs in the Banking sector while only 4% of the respondents responded with May be which means are not sure about the impact of Government Intervention on NPLs. Cross Tabulations NPL * FACTORS Cross tabulation FACTORS Total 1.00 2.00 3.00 4.00 5.00 6.00 NPL 1.00 2 3 6 11 2.00 3 2 2 2 1 10 3.00 1 1 2 4 Total 5 5 9 3 2 1 25 NPLs 1 Rising 2 Declining 3 Consistent Factors 1 Poor Credit Analysis 2 Contacts 3 Declining Sectors 4 Interest Rate 5 All of the Above 6 Others 6 out of 11 respondents who believed NPLs are rising think its because of concentration of Banks lending within few (manufacturing or Service) sectors of the Economy. While 3 out of 11 respondents believe its because of lending based on Contacts or in other words lending to a person or company not based on its credit worthiness but on somebodys request that might have influence on the Banks management or its operations, like politicians or people with authority. And only 2 out of 11 respondents who voted for the rising NPLs believe its because of poor credit analysis of the individuals or corporations applying for loan, by the Credit Analysts of the Banks. None of the 11 individuals who think NPLs are rising think Interest rates have anything to do with the alarming Non-Performing advances situation in Pakistan which is rather odd response to get, because many top level executives of Banks who were interviewed for this research said High Interest rates within the economy is also a ve ry important contributor in causing NPLs. NPL * ECOGROTH Cross tabulation ECOGROTH Total 1.00 2.00 NPL 1.00 11 11 2.00 8 2 10 3.00 2 2 4 Total 21 4 25 NPLs 1 Rising 2 Declining 3 Consistent Economic Growth 1 Yes 2 No The response gathered from the individuals regarding the cause and effect relationship between the Economic Growth of a country and the Non-performing Loans within in the banking sector, was quite unanimous, almost all of the respondents who voted for a rise in NPLs agreed that Economic growth within a country does affect the Loan portfolios of its banking sector NPL * EX.DEBT Cross tabulation EX.DEBT Total 1.00 2.00 3.00 NPL 1.00 8 2 1 11 2.00 1 7 2 10 3.00 4 4 Total 9 13 3 25 NPLs 1 Rising 2 Declining 3 Consistent External Debt 1 Yes 2 No 3 Dont Know This table is a cross tabulation between the trend in NPLs and the effect of External Debt taken by the country on the Non-Performing advances in the banking sector of that particular country. 8 out of 11 respondents who think NPLs are following a rising trend believes External Debt has a positive impact on the Non-Performing Advances of the banks, while only 2 out of 11 responded that there is no cause and effect relationship between the NPLs and the external debt of a country. NPL * EX.RATE Cross tabulation EX.RATE Total 1.00 2.00 3.00 NPL 1.00 4 6 1 11 2.00 1 8 1 10 3.00 2 2 4 Total 5 16 4 25 NPLs 1 Rising 2 Declining 3 Consistent Exchange Rate 1 Yes 2 No 3 Dont Know The above given table basically gathers up the response from all the respondents and helps in making patterns out of this raw data. This cross tabulation basically shows that according to the respondents there is not much of a cause and effect relationship between the exchange rates and Non-performing loans. This conclusion is representation of the numbers given above in the Cross Tabulation table as only 4 out of 11 respondents said there is a cause and effect relationship between these two while 6 out of 11 responded there is no relationship between the two. NPL * SECTOR Cross tabulation SECTOR Total 1.00 2.00 3.00 4.00 5.00 NPL 1.00 5 4 2 11 2.00 3 5 2 10 3.00 1 2 1 4 Total 8 10 2 3 2 25 NPLs 1 Rising 2 Declining 3 Consistent Sectors 1 Textile 2 Sugar 3 Cement 4 Power 5 Other This table basically aims to establish a cross tabulation between the rising Non-Performing Loans and the various declining sectors of the economy (Services Manufacturing). The response gathered was pretty much limited to only three sectors namely Textile, Sugar and the Power sectors. 5 out of 11 respondents said textile sector is the main contributor in the Non-performing advances of the banking sector, while 4 responded in the favor of the sugar sector and only 2 responded in favor of Power sector. NPL * I.RATE Cross tabulation NPLs 1 Rising 2 Declining 3 Consistent Interest Rate 1 Yes 2 No 3 May be I.RATE Total 1.00 2.00 3.00 NPL 1.00 10 1 11 2.00 2 5 3 10 3.00 1 1 2 4 Total 13 6 6 25 The response as per the figures given in the above table was somewhat unanimous. 10 out of 11 respondents who voted for rising trend in NPLs believe Interest Rate is a major factor that causes Non-Performing Advances in the banking sector, while only 1 out of 11 respondents responded with a May be which means he is not hundred percent sure if the NPLs are affected by the Interest Rates or not. Out of a total 25 respondents, 10 of whom responded that NPLs are declining, only 5 believe there is no cause and effect relationship between the NPLs and Interest Rates within the economy. NPL * GOVT.INT Cross tabulation GOVT.INT Total 1.00 2.00 3.00 NPL 1.00 10 1 11 2.00 7 2 1 10 3.00 4 4 Total 21 3 1 25 NPLs 1 Rising 2 Declining 3 Consistent Interest Rate 1 Yes 2 No 3 May be Almost all of the respondents who think NPLs are rising also think Government Intervention is the main factor that causes Non-Performing advances. 10 out of 11 respondents believe Government intervention in the Banks lending operations is one of the major factors why a consistently growing percentage of Advances given out by the banks to the individuals or the corporations end up in bad loans or Defaults. 10 out of 25 respondents who responded In favor of declining NPLs, majority of them also believes NPLs are caused by Government intervention but the trend is now declining the passage of time. Interviews Interviews are a great tool for getting in-depth insights for research purposes from the people who are the real experts in their particular fields. 12 interviews were conducted with both top level executives and middle level Credit Analysts in order to get their perspectives on the alarming Non-Performing loan situation within Pakistani Financial Services sector. The focus was not just on the whole financial system but it was also on Habib Metropolitan Bank. But, the question is, why are we even concerned with whats going on in the system and not just focusing on Habib Metropolitan Bank? The logic for that is quite simple and straight forward, what affects the whole system affects the entities that are working or operating within it. If the situation of Non-Performing Loans within the financial sector is correctly analyzed, it would be of great help in analyzing the trends and reasons of NPLs that are incurred by Habib Metropolitan Bank. Interviews were conducted both internally and externally. All the external Interviews were conducted with the employees of HMBs competitor, Faysal Bank Limited, and all the interviews conducted internally are with the Top level and middle level executives of the Bank. Internal Interviewees Fateh H Shamsi Senior Vice President Habib Metropolitan Bank Naveed Akbar Manager Operations Habib Mertopolitan Bank External Interviewees Muhammad Amir Sheikh AVP-Regional Manager CIU Verification-Central Faysal Bank Limited Hassan Credit Analyst Faysal Bank Limited Ahmar Credit Analyst Faysal Bank Limited Kamran Credit Analyst Faysal Bank Limited Syed Nadeem Ahmad CIU-Unsecured-Manager Faysal Bank Limited Tariq Raza CIU-Secured-Manager Faysal Bank Limited Mohsin Umar Verification Manager Faysal Bank Limited Sabah Sajjad Data Entry Manager Faysal Bank Limited Ali Senior Credit Analyst Faysal Bank Limited Fawad Senior Credit Analyst Faysal Bank Limited Key Findings Mr. Amir Sheikh, a MBA graduate from Lahore School of Economics, currently working as an Assistant Vice President Regional Manager CIU Verification -Central at Faysal Bank Limited, started his career as a Trainee with Prime Bank which was later on acquired by ABN-AMRO Bank, which also recently got acquired by Faysal Bank Limited, one of the fastest growing banks in Pakistan. According to Mr. Amir who has been working in the lending side of the Banks for the last 13 years, there are many factors that affect the Asset Portfolios of the Banks, which includes lending based on very high interest rates to both retail and corporate borrowers, slow economic growth, relaxed lending practices, poor credit analysis of potential borrowers, large amount of lending concentrated in few declining sectors of the economy, interest rate volatility, Depreciation of currency, External debt taken by the Government and the Intervention of Government in the Banks lending businesses. Almost similar response was given by Mr. Fateh H Shamsi, Senior Vice President of Habib Metropolitan Bank, who started his career in banking 34 years ago, and is now among the top Executives of the Bank. According to him Non-Performing Loans of Habib MetroPolitan Bank are constantly on a rising trend, even though they are not as high as they were used to be in the era of Nationalization, when the Government intervention in the banks lending businesses resulted in great losses to the Banks, as these interventions by the Governments, made banks to lend funds to less credit worthy borrowers who wouldnt have been able to get these loans themselves on the set criteria of the Banks. Even though Banks have recovered from that stage (Nationalization Era) this rising trend in Non-Performing Loans have started once again but the main factors causing it are different from those that were causing it in the Era of nationalization. Now the banks are following strict rules and regulations imposed b y the regulatory authorities such as State Bank of Pakistan and Securities and Exchange Commission of Pakistan to protect and safeguard the rights of the investors and the creditors of the Banks. Mr. Shamsi said our Bank is a subsidiary of Habib Bank Zurich which is a big multinational bank with a great reputation, and the way we are running our bank is very much equivalent to international standards, we are following the rules and regulations suggested by Basel Committee which means we are sincere and doing everything we can to further improve our banking operations and efficiency in our work. According to Mr. Shamsi One major reason that is causing NPLs in Habib Metropolitan Banks asset portfolio, is the alarming energy crisis prevailing within the country, which has also adversely affected the Textile sector of Pakistan where the Banks have heavily concentrated their lending. Now that the Textile Firms are not getting enough electricity to operate on their full capacity, their pr ofits have taken huge hits, which have caused most of them to default on their loans. Since most of the textile firms are export oriented and are generally dependant exports for generating profits, but the rising competition in international markets from countries like Bangladesh, India China is posing real threats to Pakistani Textile Sector and its profitability, which has resulted in more loan defaults from the firms in textile sector. The employees in the middle management and lower level management like Senior Credit Analysts, Credit Support Analysts or the Verification Managers, who work in backend offices of the banks also referred to as, the assembly lines of the Banks, and who are in direct contact with their clients also known as Relationship Managers, were not very interested in looking into a bigger perspective, putting it in simple words, they liked to evaluate such issues (NPLs) on a Micro level rather on a Macro level, according to majority of them, Poor Credit Analysis, poor infrastructure and above all, lack of documented information available to them are the main reasons why NPLs (especially in Retail Lending) are increasing in the banking sector. In corporate lending most of them believed Government intervention in banks lending decisions and lending concentrated in Textile and other manufacturing sectors are the main causes of this rising NPL trend. Majority of them were not able to make any cause and affect relationship between Exchange rate and Non Performing Advances of the Banking sector. According to Mr. Hassan who is a Credit Analyst, banks have set certain rules and criteria and defined each company and the employees working in it according to that set criteria, but this categorization is not updated on a frequent basis that is why the Credit Analysts who are evaluating the company for its credit worthiness are not able to identify the current situation of that company, which ultimately leads them in lending to less credit worthy borrowers who were once credit worthy which would ultimately cause Higher NPLs for the Bank in the future. Analysis Over the last few years Habib Metropolitan Bank has witnessed a jump in its deposits. This significant increase in its deposits is due to an increase in inflow of remittances from Pakistanis living abroad, and increase in the total branch network of HMB. On one hand the deposits of the bank are increasing while on the other hand the asset portfolio maintained by the bank is also deteriorating, as the Non-Performing Advances have increased in number (Not only in numbers but also in percentage terms, as the Provision to Non-Performing Loans ratio in 2011 has decreased as compared to the ratio in previous years). One of the reasons for rise in HMBs NPLs is, the top 5 (bigger banks) banks in Pakistan holds the majority of credit worthy borrowers while the smaller bank, including HMB, have to go for much risky borrowers to increase their network and extend their Loan Portfolios. The Credit risk of HMB has increased due to the Power Crisis, High Inflation Rate and Poor Economic Condition of the country. HMB has a very organized system for managing all kinds of risks its exposed to, because HMBs management considers the effective risk management as a tool for long term profitability and banks operating efficiency. As per the data given in the Financial Statements of Habib Metropolitan Bank, 51% of the total Advances in HMBs Advances Portfolio are extended to the Textile sector which is the main contributor in the Banks Non-Performing Loans. The remaining 49% of the advances are diversified in various sectors of the economy to reduce the credit risk from Loan defaults, caused by the macro factors like Power shortage, inflation, fluctuating interest rate, External Debt, Exchange Rate, poor economic growth and Government intervention. Trade and sale segment constitutes only 0.7% of the banks NPLs while the remaining 99% is constituted by the commercial banking. The Asset quality of Habib Metropolitan Bank is not good. Banks NPLs arising from the Textile sector alone have surged the NPL to Gross Finances Ratio to 14% (FY 2011). The provisions kept by HMB are not sufficient enough to NPLs which has further deteriorated the asset quality of the HMB and has made it vulnerable to unforeseen losses. ÂÂ   2011 2010 2009 Gross finances 108,486,293 125,988,840 115,035,839 NPLs 15,427,848 10,961,145 6,364,335 Provisions 10,022,934 7,522,371 4,629,476 NPLs/Gross Finances 14.80% 9.42% 6.33% Provisions/NPLs 64.97% 68.63% 72.745 Net NPLs/Equity 22.30% 16.41% 9.18% [21] Source: https://habibmetro.com/documents/2011/UnConsolidated2011-Final.pdf The main objective for conducting both the primary and secondary research was to evaluate and analyze, what the Bankers from all three hierarchical levels (Top, Middle Lower level) think, are the reasons for such high NPLs in the Asset portfolio of Habib Metropolitan Bank and what the Financial Reports of the Bank and other publically available published data and information in various research papers say. The main factor that is affecting the NPLs of Habib MetroPolitan Bank is the concentration of its Asset Portfolio within one sector of the economy, the textile sector. 51% of its asset portfolio is extended to the Textile sector which is also the main contributor in loan defaults. This is the reason why HMB is having problems with its Asset Portfolio; there is not enough diversification in its asset portfolio. Other questions might arise that Textile sector is taking this hit due to other Macro economic factors like energy crisis, inflation, Interest rate volatility, High Interest rate, Exchange rate volatility, poor economic situation and poor credit analysis. But the fact is, these factors are same for the whole financial sector, they are not just affecting HMB alone, they are affecting all the banks in the financial services sector. Moreover these factors could not be controlled by a single entity; they are a part of External Environment, which the bank cant change. The HMB could only change what is in its control (Internal environment), and that is Diversification in its asset portfolio and Good Credit Analysis. Recommendations The major reason why Habib Metropolitan Bank is not able to control its ever increasing Non-performing loans is the Non-Diversification of its asset portfolio. One basic rule which is taught in the basic foundation courses of finance is diversification. Dont put all your Eggs in one basket [22] Diversification means, one diversifies its money (Investments or advances) not just in one area but in a lot of areas. Hypothetically, if a bank lends all its funds to a single borrower and some days later that borrower goes bankrupt, then how would that bank get its money back? The money that the bank has lent to that borrower is gone as soon as that borrower is not able to pay back its obligation. This is the risk involved in Non-diversification. That is why in the world of finance diversification is considered to be very important, because Diversification reduces risk. If one borrower goes bust others are still alive and paying back their obligations to the bank on time. Habib Metropolitan Bank ha