The Stunning Realization

The quote, â€Å"†¦tell of a woman who almost died†¦kept on living, again and again,† in the essay â€Å"One Moment on Top of the World† by Naomi Shihab Nye, is full of meaning. It tells how even when you’re at death’s door, there still is hope. It speaks of the importance of life as well as the importance of loved ones. That even in times grim war, there is still happiness and joy. In short, by having hope, people you care about, and an appreciation for life, there will always be a bright spark in your life. Having hope is quite possibly what allows people to live through the challenges that they face in life. Because of hope, even when everything goes wrong, someone can still face it and go on to tomorrow. This is what let the nation recover from things such as the Great Depression or Hurricane Katrina. Although people’s lives were devastated and many were suffering, they lived by having a hope for a better future. Every time that I see a bad score on a test, I do not give up. Instead, I hope that next time I will learn the subject matter more ably in order to do better on the next test. Without hope, we simply could not go on with all the suffering that occurs in our world today. One thing that is always certain to help a person in need is to have someone there that cares about them. There are many people in a person’s life that matters to them, parents, relatives, and close friends being just a few. The quote itself refers to Naomi’s sick grandmother, who begins to miraculously recover as soon as she hears that a certain someone was coming to see her. This is because humans are, since birth, conditioned to refer to the touch of another human being with safety and reassurance. Therefore, being close to another person often helps those that are recuperating. Lastly, people often appreciate their lives and life in general after suffering from something life-threatening. Before her grandmother had fallen ill and recovered, Naomi did not have this realization. It was not until after the occurrence that she understood how precious life really was. The same happened to me when my grandmother died. At the time I was seven, so I did not understand the gravity of the situation but looking back I see how important it is to live. Due to this understanding, both Naomi and I comprehend that life is a thing to cherish, and not just after it has been lost. After all, the need to stay alive is what created nations and the world that we live in today. So a life changing experience makes a person appreciate life in general. Naomi Shihab Nye’s quote in the essay â€Å"One Moment on Top of the Earth,† is a very powerful realization. She realizes the importance of life once her grandmother recuperates from a debilitating illness. Her grandmother healed by having hope, human interaction, and an appreciation for her life. With these, she survived and continued to live her life the way she wanted to.

Long-Term Investment Decisions Essay

Assume that the industry you wrote about in Assignment 3 wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger. Write a four to five (4-5) page paper in which you: Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation. Justify the rationale for the intervention of government in the market process in the U.S. Assume that the company’s is considering a merger. The possible merger currently faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects. Analyze how the different forces will come together to create a convergence between the interests of stockholders and managers indicating the most likely impact to profitability. Provide support for your response. Use at least three (3) high-quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources. Look more:Â  difference between irr and mirr essay Your assignment must follow these formatting requirements: Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: Assess how managerial economics is used in business decision making. Evaluate how government regulation is constraining and enabling for managerial decisions related to maximizing shareholder wealth. Use technology and information resources to research issues in managerial economics and globalization. Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

Islamic Studies

ISLAMIC STUDIES Topic:- Islamic Principle Of business And Marketing & Present Business Evils GROUP MEMBERS:- Nauman Mushtaq Raja Hammad Ahmed kiani Farhad Shareef Shamsher Ali Daniyal Haider The teaching of Islam describe that Islam is a complete code of life. Since we talking about business and marketing therefore Islam give brief explanation about it. From the Islamic point of Islamic the first priority of business should be pleasing Allah and establishing Halal as a way of life. Seeking profit is not a bad aim, but it should be secondary.By making Allah the goal, and implementing Islamic rules of honesty, truthfulness, and good behavior with customers, Insha Allah, any Muslim business is bound to boom. Following are the characteristic that should need to present in Islamic business and marketing:- (1)Honesty (2)Trust (3)Fair and Kind (4)Truthfulness (5)Justice HONESTY IN BUSINESS The Holy prophet (pbuh) was declared not only Sadiq and Amin but he was an honest business man. This i s proved by Hazrat Khadija who was richest lady of Makkah. She gave a few things to sell and she sends her servant with him.But Holy Prophet (pbuh) proved his honesty brilliantly. Honesty is needed in everything we do. From the domestic work of daily routine or office work to studies, honesty makes the real difference. Honesty makes it easy for us to survive because an honest person is truthful and such a person does not fell into any trouble. The sad fact of the present day is the lack of honesty in people. Lies, and dishonesty has become standard in everyday matters and it is a common perception that no one can get rid of them now.This point of view is wrong, why cannot we live like honest humans? If one thinks that honesty cannot be achieved or truthfulness is a dream now this is wrong, just by practicing Islam truly in its true spirit we can achieve all this without devising any special plans or any complex system of morals. The world today is a big business hub, i. e. it is a b usiness market now. There are some main stock exchanges that control the money inflow and out flow of the world for example, wall street etc. these stock exchanges are actually business centers where whole world trades.Unfortunately, with the Jewish intervention in the business and introduction of riba in business, there has left no honesty and no halal money in the business any more. The best examples of the honesty in business are the prophets of Islam. From Quran we learn that prophet Yusuf a. s. used to look after the financial matters of the state as His own choice. That’s why It is called that honesty is the best policy, indeed honesty is the best policy. When a business man is honest, he will never sell a low quality product and will never earn unjustified profit.Thus, an honest business man will be God fearing and will never ever dodge his customers over the selling. An honest business man will never like to go for unjust means to increase his earnings neither will he ever like to give bribes or accept bribes thus with honesty in business, the curses of bribery and riba can be shunned. Hazrat abu bakar siddique r. a was one of the best and honest business men of Arabia. He was very rich and his financial as well as moral help was appreciated by Muhammad s. a. w. w as well. He was much honored in his region because he was honest in business.There are several examples in the Muslim world who did not only do business honestly but also earned much more than those who like to earn black money. In honest business ALLAH gives His blessings, thus honesty indeed is the best policy. The Prophet has said the honest and truthful businessman will be in Jannah amongst the Prophets the Truthful and the martyrs. Honesty and truthfulness are essential in this business. And when it comes to Muslim businesses, it means building a relationship of trust with customers, which cannot be done with lies and eceit. The Holy Quran already explains the factor of honesty in business and in every matter of life. The Holy Prophet (pbuh) has a great business skill due to which he was offered marriage. But unfortunately our current business values have been changing day by day. Our environment is lacking in honesty. For having a good business policy we should need to be honest. The Holy Prophet (pbuh) said,if you sell goods on lie basis then your goods would be sold with your faith.For instance if there is any medicine who will get expire any shop keeper sell to any uneducated person and he got infection, a person who got infected will complain to doctor not to pharmacy shop keeper. Today lie become the trend we just to sell a 300Rs shirt would lie many time. The Holy Prophet (pbuh) said selling thing upon lie basis would break trust of others. TRUST IN BUSINESS For having a successful business a trust of people is require. This does not mean that only one sided trust is require but from both seller and buyer. This enhances better understanding and good c ommunication.A Unit Trust is an investment vehicle that allows investors to take advantage of investing in a diversified group of stocks which manages risk and exposure to one or a few stocks. It also offers the opportunity to participate in the long-term performance of the stock market. Islamic Unit Trusts add other aspects that are a screening process to remove stocks of companies deemed to be inappropriate for Muslim investors and cleansing or purification of a company’s profits by removing any income derived from non-Shariah complaint sources, such as interest a company would earn on its bank accounts and donating them to charities.Therefore, Islamic unit trust schemes are required to additionally appoint a Shari’ah committee or to ensure that their operations are in accordance with Shari’ah. Islamic Unit Trusts can invest in many financial products in conventional financial markets which are not interest-based, or where the element of interest could be elim inated, such as property funds, commodities, financial options and futures and forward transactions in foreign currency. They can take advantage of international markets growth by giving priority to equity investments in Islamic banks and financial institutions, stock markets ofMuslim countries; and companies managed under the Islamic system. The manager of a Unit Trust mutual fund would typically invest the pooled money in a portfolio which may include the asset classes such as cash, bonds and deposits, shares, property and commodities; tangible assets represent more than 51% of the portfolio. Islamic Unit Trusts have also a wide range of investment options based on growth and income, open-ended, redeemable, etc. Their investments can cover international equity markets, currencies and properties.A Mudarabah fund can invest in a specific business activity on the basis of profit and loss sharing; Murabahah fund invest in companies whose transactions are undertaken on a cost-plus basi s; Through Musharakah the Unit Trust and the third party contribute funds in a joint venture, producing equity participation; And in Ijarah fund, the Islamic Trust finances equipment, building or entire project for a third party against an agreed rental. Besides, there will be no restriction to stop non-Muslims investing in an Islamic Unit Trust.A good analogy with Islamic Unit Trusts is one of ethical and green Unit Trusts. Here the universe of investable securities is limited by certain criteria based on moral and ethical considerations (muamalah. com; 2009). An ethical investment is the principle of investing in companies which make a positive contribution to the world and avoiding those which harm the world, its people or its wildlife. Society's increasing awareness of its environmental and social responsibilities is impacting on financial services, more and more investments based on ethical principles are now available.Some may think that the restrictions imposed by ethical inv estment with strict criteria may result in weaker performance; however ethical funds have often matched or beaten their non-ethical counterparts. Ethical investments are generally made through managed funds such as unit trusts which specialty is to seek profits for investors while conforming to certain ethical criteria such as that the company is not involved in activities like illegal armaments, gambling or pornography, or that it doesn’t produce or distribute alcohol, tobacco or drugs.Before buying shares of companies in a chosen sector, an ethical fund manager will run checks on that company to find out if it has interests in a number of areas according to pre-determined criteria. Accordingly, clients who invest in ethical funds can be sure that their money will be invested in companies that engage in legal and ethical activities. Islamic Unit Trusts investments are also based on specific criteria based on morality, the main criteria is to not deal in transactions which in volve the paying and receiving of interest.Islamic Unit Trusts should be run on a transparent and modern corporate basis and up-to-date accounting and within a legal framework in conformity with the Shari’ah. In the same way the decision to invest in the case of ethical unit trusts is made by the fund managers, based on information received from various professional bodies and specially constituted committees of reference, the decision in the case of Islamic unit trusts is conditioned by the a binding approval from the Shari’ah Boards which consist of established religious scholars who make a decision based on the interpretations of particular operations and contexts.A person can earn money by two means; one is agriculture and the other is business. If business is not done according to the ethics then there will always be inflation and shortage of goods. As it can be seen in the case of many commodities like wheat, sugar etc. It is due to the stocking in, speculation a nd the selfishness of some businessmen. The government has also become a trader itself, while the shariah has stopped the Islamic government from trading. As it can be seen that business is an important part of life, the Prophet Muhammad (P.B. U. H) said, â€Å"People get 9/10 of their daily bread by trade. † Islam explains the concept of righteous trade by telling business ethics. If trade or any other thing is done against the morals and creed then this will lead to the bad end on the day of resurrection. Also by the law the person guilty of illegal business would end up nowhere. Islam emphasizes on the importance of the business ethics a lot. Allah says in the Quran, â€Å"they say that buying is also like interest but Allah has declared buying as permissible and interest as forbidden. And â€Å"When you buy or sell then make someone a witness of it. † The Holy Prophet Muhammad (P. B. U. H) said, â€Å"If trade was not there then you would have become a burden on others. † He also said that â€Å"A trader is the guardian of the means of daily bread and a keeper of the dignity of himself and other people. † The Holy Prophet Muhammad (P. B. U. H) encouraged the trust worthy traders by these words, â€Å"A trustworthy and truthful merchant shall be with the prophets and the truthful and the martyrs and the righteous. â€Å"God shows mercy to a person who is kindly when he sells, when he buys and when he makes a claim† The prophet emphasized on the truthfulness and the righteousness of the businessmen a lot. He said that â€Å"Verily, merchants shall be raised up sinners on the day of resurrection, except he who fears God, and is good, and speaks the truth. As Muslims, we have to adhere to ethical standards, not only in business but also in all aspects of life. Both business and ethics are interrelated. There is a reference to this point in the Qur'an, â€Å"For you in the Messenger of Allah is a fine example to follow. Al lah Almighty says, â€Å"To the Madyan people (we sent) Shu'aib, one of their own brethren: he said: ‘O my people! Worship Allah. You have no other god but Him. And give not short measure or weight. I see you in prosperity, but I fear for you the penalty of a day that will compass (you) all rounds. And O my people! Give just measure and weight, nor withhold from the people the things that are their due: commit not evil in the land with intent to do mischief. That which is left you by Allah is best for you, if you (but) believed!But I am not set over you to keep watch! † At one Place Hazrat Ali said, if you dog your friend then don’t think you had brilliantly dodged but think that how much he still trust upon you. FAIR IN BUSINESS Fair is another quality which is also needed for business. WE shouldn’t concern with business whether it is small or big, but we should be fair and kind with people and people with you. The Holy Qur'an and Prophet Mohammad (PBUH) have made it clear that a Muslim must be honest and upright in his business and monetary dealing.Also the true Muslim should keep his word and fulfill his promises, shun fraud and avoid deceit and perfidy, encroach not upon the rights of others, nor take part in wrongful litigation. Also a good Muslim does not give false testimony, and abstains from making unlawful money as from usury and graft. According to Islam whoever is not free from these vices, is not a true believer but a renegade and a worthless transgressor. And the Qur'an is rich with verses that confirm all this. Allah says in the Quran, â€Å"Eat not up each other's property by unfair nd dishonest means. † Allah forbids all unclean and corrupt means of making money, such as, dishonest trading, gambling, and bribery. And the Holy Quran has explained and described such practices in many of its verses. He says, â€Å"Woe to those that deal in fraud, – those who, when they have to receive by measure from men, exact full measure, but when they have to give by measure or weight to men, give less than due. Do they not think that they will be asked on a Mighty Day when (all) mankind will stand before the Lord of the lords. Another example is given in the coming verse, where Allah urges Muslims to be very particular about their trusts and about other people's rights. â€Å"Allah does command you to render back your trust, to those to whom they are due. † Major principles of fair business dealings According to Islam, the following things must be avoided to commence fair business. 1. No fraud or deceit, the Prophet (P. B. U. H) is reported to have said, â€Å"When a sale is held, say, there’s no cheating† 2. Sellers must avoid making too many oaths when selling merchandise. The Prophet (P. B. U.H) is reported to have said, â€Å"Be careful of excessive oaths in a sale. Though it finds markets, it reduces abundance. † 3. Mutual consent is necessary. The Prophet (P. B . U. H) is reported to have said, â€Å"The sale is complete when the two involved depart with mutual consent. † 4. Be strict in regard to weights and measures. The Prophet (P. B. U. H) said, â€Å"When people cheat in weight and measures, their provision is cut off from them. † He told the owners of measures and weights, â€Å"You have been entrusted with affairs over which some nations before you were destroyed. † 5. The Prophet (P.B. U. H) forbade monopolies. â€Å"Whoever monopolizes is a sinner. † 6. Free enterprise, the price of the commodities should not be fixed unless there is a situation of crisis or extreme necessity. 7. Hoarding merchandise in order to increase the prices is forbidden. 8. Transaction of forbidden (Haram) items, such as intoxicants, is forbidden. Fraud and dishonesty in business Prophet Muhammad (P. B. U. H) has stressed the importance of honesty in most of his sermons, saying, â€Å"Remember, there is no faith in him who is n ot trustworthy; there is no place for him in religion who cares not for his ledged word or promise. He (PBUH) also said, â€Å"The signs of a hypocrite are three, when he speaks, he is false, when he promises, he fails; and when he is trusted, he plays false. † Condemning those who cheat in business Prophet Mohammad (PBUH) has said, â€Å"He who cheats is not of us. Deceitfulness and fraud are things that lead one to Hell. † Once Prophet Muhammad (P. B. U. H) came upon a heap of corn in the market of Medina and thrust his hand onto it. His fingers felt damp. On being asked, the trader replied that rain had fallen upon it. The Prophet (P. B. U.H) observed, â€Å"Why did you not then keep (the wet portion of) it above the dry corn, so that men may see it? He, who deceives, is not one of us. † Thus traders who deceive by showing to customers a false sample or by concealing from them the defects of the product they're selling are not true Muslims in the judgment of Allah Prophet (PBUH) and, they are going to end up in hell. Prophet Muhammad (P. B. U. H) said, â€Å"The seller must explain to the buyer the defects, if any, in the quality of the article offered for sale. Should this not be done, the seller will permanently be caught in the Wrath of Allah. In short, all manner of deceit and dishonesty in business is prohibited in Islam. The Holy Prophet has expressed his strong dislike for those who do so. The Prophet's general advice to all people was that, â€Å"What is lawful is clear and what is unlawful is clear, but between them are certain doubtful things which many people do not recognize. He who guards against the doubtful things keep his religion and his honor blameless, but he who falls into doubtful things falls into what is unlawful, just as a shepherd who pastures his flocks round a sanctuary will soon pasture them in it.Every king has a sanctuary, and God's sanctuary is the things he had declared unlawful. â€Å"Before the Proph et invited his people towards Islam, it was his truthfulness and trustworthiness which had earned for Muhammad (S. A. W. ) the glorious titles of â€Å"Sadiq† (truthful) and â€Å"Amin†. Therefore, one must follow the teachings of the Holy Prophet (P. B. U. H) in regard to business and all other aspects of life; to become a good Businessman and hence, a better Muslim. Islam puts certain conditions and restrictions to obviate the chances of bitterness between the employer and employees.Islam encourages and promotes the spirit of love and brotherhood between them. According to the Islamic teachings it is the religious and moral responsibility of the employer to take care of the overall welfare and betterment of his employees. Fair wages, good working conditions, suitable work and excellent brotherly treatment should be provided to the workers. The last Prophet of Allah (sws) has explained this principle in the following words: Those are your brothers [workers under you] who are around you, Allah has placed them under you.So, if anyone of you has someone under him, he should feed him out of what he himself eats, clothe him like what he himself puts on, and let him not put so much burden on him that he is not able to bear, [and if that be the case], then lend your help to him. The Prophet (sws) also said: I will be foe to three persons on the Last Day: one of them being the one who, when he employs a person that has accomplished his duty, does not give him his due. The Prophet (sws) is also reported to have said: The wages of the laborers must be paid to him before the sweat dries upon his body. TRUTHFULNESS IN BUSINESSIn order to earn profit and making things Halal truthfulness is essential. People to buy things where ethics like truthfulness is present. Islam encourages truthfulness in business transactions and raises the status of a truthful merchant so much so that he will be at par with the holy warriors and martyrs, in the Hereafter. The Prophe t (sws) is reported to have said: The truthful merchant [is rewarded by being ranked] on the Day of Resurrection with prophets, veracious souls, martyrs and pious people. The Prophet (sws) has also exhorted the believers to strictly adhere to truthfulness in business transactions.He says: The seller and the buyer have the right to keep or return the goods as long as they have not parted or till they part; and if both the parties spoke the truth and described the defects and qualities [of the goods], then they would be blessed in their transaction, and if they told lies or hid something, then the blessings of their transaction would be lost. The tradition implies that Allah blesses business dealings if both the buyer and the seller are true to each other. Telling lies and hiding facts will result in the loss of divine blessing. A tradition reads. The Holy Prophet said: ‘Traders are wicked people’.The Companions asked: ‘O Messenger, has Allah not permitted business? ’ The Messenger replied: ‘Of course He has declared trading lawful. But they (i. e. the traders) will swear by Allah and do evil, they will not speak but tell lies’. JUSTICE IN BUSINESS The Quran also emphasizes on the concept of justice. It is another types of ethics which is deeply needed for running on the business. The Holy Prophet (PBUH) said, He who deals unfairly with others can never become useful member of society. Among the set of values the Qur'an and the Prophet's sayings emphasize are the concepts of justice and benevolence.The concept of justice (‘Adl) occupies a central place in the economic system of Islam. This value is prescribed in legal, social, moral and economic dealings. It is to be practiced with individuals, orphans, wives, tribes, communities and nations and even with peaceful enemies. It is applicable to speaking, giving witness, acting as a guardian, writing an agreement, arbitrating between parties, dealing with other people, j udging in a court of law and making business transactions. The concept of justice in an economic context encompasses fairness, equity, balance and equilibrium, symmetry and impartiality.The Quranic verses address individuals not only in their personal capacity but also in their capacity of being rulers, administrators, directors, employers, and all who deal with others. Justice, like truth, is a Divine virtue. Islam does not compromise on this value as it does not compromise on truth. While the Qur'an lays great emphasis on the value of justice, the Prophet has repeatedly persuaded the Muslims to stick to the value of Ihsan, which stands for benevolence, generosity, proficiency and magnanimity. The absence of ‘Adl inflicts harm and disturbs peace and harmony, but the absence of Ihsan does not harm anybody.It implies a more liberal treatment than justice demands. It begins where the limits of justice end. Absolute justice is a legal requirement and, therefore, essential, but th e Prophet, in line with the Quranic requirement, has persuaded his followers to behave magnanimously in claiming their rights and be generous in discharging their duty. ‘While ‘Adl eliminates injustice and exploitation and strikes a real balance between rights and responsibilities in society, Ihsan decorates the society with generosity, kindness, mercy, forgiveness, self sacrifice, mutual cooperation and affection. Adl is the primary condition for setting up an Islamic government, while Ihsan plays a vital role in building up a truly Islamic society; the former is a legal phenomenon while the latter is moral and religious. When we say that prices must be just, or fair, does this justice or fairness involve a moral value? Wholesale prices for all the dealers are almost the same. Can we then justify price variations at different centres? In Islamic law, if anybody charges an extraordinarily high price, it is termed as grave deception and is unacceptable.The Ottoman Code of Civil Law defines grave deception as higher than 5% (profit) on goods, 10% on animals and 20% on immovable property. The concept lays down the rate of profit but not the sale price. As a matter of fact, the wholesale price alone does not determine the sale price. It is determined by locality, standard of intramural decoration, packing, service, environment and other overhead costs. A trader has to add all the incurred and accrued expenses to the wholesale price, in addition to a profit for himself/herself.What rate of profit he should charge is determined largely by market forces and the nature of the competition, given a normal or prevailing price. All this proves that the concept of a just price is not a moral concept except where monopolies or oligopolies arbitrarily fix an unrealistically high price quite out of proportion with costs. The concept of the right to justice is mentioned repeatedly in the Qur'an. There is quite a lot of detail in the passages relating to the freedom to justice.In Islam there are two concepts which are considered, Ihsan and Adl. While Adl is typical of monotheistic religions, referring to the need for balance and equality when judging and individual, in Islam perhaps the more important term is Ihsan. Ihsan refers to making up an imbalance or an injustice by returning or giving back something to the person that is at disadvantage. As such, it is not only important to treat all people equally, but to allow those that are at an objective disadvantage compensation.These relate to the two most basic attributes of God, mercy and compassion (Al-Rahman and Al-Rahim. ) These two concepts are often compared to the love of a mother to her offspring. A parent must love equally all of his offspring, but if one of them has a handicap or requires special attention Ihsan dictates that a loving parent will give that child more to help him make his way in life. In the ideal Islamic society, the concept of justice necessarily reflects helping the disadvantaged, like widows, orphans, and those living with handicaps or in poverty. If Musharakah principle† was applied to a bank which holds a huge amount of depositors’ money and no interest rates permitted to earn income, banks will be forced to invest in different projects whether it is new or current. But the bank here is exposed to a risk of loss! It encourages a bank to diversify its investments since interest is prohibited and that leads to a growth in the economy since money is injected in several business and projects. If the economy grows on average, the investment pool will make profit.Banks here make income from investment not form interest by lending money. No interest rates for the depositors but their income increase in line with the growth in the economy. Thus, Islamic system based in â€Å"cooperative† (Sharing) and does not favor rich people. But it works on the principle of sharing which in a way or another leads to justice. The current news is that Sweden government is awarded as best governance. When people asked reason behind this success. They replied, we followed the Hazrat Umar (R. A) Rule of law.

How have ideas about race been shaped by changing economic, social and Essay

How have ideas about race been shaped by changing economic, social and political circumstances - Essay Example Those who belong to a particular ethnic group maintain shared cultural heritages, language, social ideologies, religions, rituals and biological ancestry (Peoples and Bailey 2010). By applying a definition to ethnicity, society is able to make distinctions between different social groups. Race, however, is a construct that is absolutely considerate of anatomical attributes. Race is defined by Cornell and Hartman (2007) as the method by which groups are able to define themselves through the commonality of physical attributes that are shared biologically throughout a society or culture. Race is determined by the meaning that is placed on these shared characteristics. People who share common physical features determine which specific attributes are significant and then attempt to organise groups according to a perceived set of boundaries and then develop social ideologies that give the aforementioned boundaries or characterisation a relevant meaning which serves as the foundation for race. Hence, race is very much a social creation whilst ethnicity is more concerned with the tangible similarities of a particular group. Race serves to mould the social and political methodologies by which the world is classified and organised. The concept of race was formed in global and regional cultures as a product of various socio-political systems that recognised denial and opportunity (Dalmage 2010). Race has become substantially rooted in the structures that guide societies, a form of institutionalisation of perceived human value and relevancy constructed through centuries of changing economic, political and social circumstances. The conception of race as a social interpretation is ever-changing and the meanings and values assigned to various races evolve when it becomes advantageous to those maintaining power within a society. Those who represent dominant groups, such as the European whites in the 17th Century, often assign race to less-advantaged groups as a method

Leadership Term Paper Example | Topics and Well Written Essays - 1250 words

Leadership - Term Paper Example They provide a sense of direction and guidance, which the rest follow to the latter in order for the organization to achieve its intended results. In essence, the major requirement in being an effective team leader is ones ability to communicate with the team members in a manner that will not offend them. This means that the leader needs to value the rest of the team players and be an equal participant in the work process. As a result, the essence of this paper will be to evaluate the behaviors of a leader with whom I have worked with previously. The name of this leader in this paper will be ‘Martin Luther’. 1. Ohio State University – Initiating Structure and Consideration Behavior Leadership Style Research at this institution identified two styles of leadership that were applicable in the day-to-day running of organizations. First, they argued that one style of leadership would be consideration. This meant that this type of leader showed interest in the team memb ers and regarded them with utter respect. To this type of leader looking out for the well being of the team members was the overall quest. In addition, this leader shows gratitude and supports the junior staff to ensure that the group meets target. On the other hand, they adopted the initiating structure kind of leadership whose focus was on the performance of the tasks by clearly defining his roles and those of the followers. For this leader, the attainment of the set goal becomes the primary factor to which he establishes the channels of communication towards results attainment. In comparison, the consideration leader is friendly and approachable, but the task-oriented kind of leader only interacts with the followers when he/she is delegating the duties and tasks. In essence, Martin Luther was consideration kind of leader to the team as he treated all the members of the team with high regard. This enabled the team to feel appreciated and valued and that all their efforts were comm endable. Martin was accessible to the team members in case we needed any form of work related assistance, as he was willing to help at any time. Another positive attribute that he had was that he showed the willingness to adapt to any form of change, which also made the team’s transition process to changes relatively easy (Collins, 2001). In addition, he treated all the team members equally by looking out for our interests without favoritism or bias. Usually, he would consult with the team members before executing any task so that he could make sure that everyone was comfortable with the implementation plan. Remarkably, he was keen on explaining the actions that he took or intended to take which made the team feel like family. His style of leadership according to the Ohio State University model proved effective, as our department was the best in performance and output. 2. Expectancy Theory of Motivation This theory states that individuals will decide on certain behavior becau se of the motivation given towards the selection of a certain behavior ‘due to the possible outcome expected. These individuals choose this one behavior out of a number of behaviors. Essentially, this theory encourages organizations to reward performance by ensuring that the team members de3serve and appreciate the rewards. This theory depicts the behavioral process in which individuals decide on one behavioral option over the others. It gives the explanation as to why they make these choices to attain the product. The

Artproduct Design Essay Example | Topics and Well Written Essays - 2000 words

Artproduct Design - Essay Example Network society encompasses cultural, political, economic and social changes that resulted from broadening of the digital sphere of information, networking and communication technology developments. Network society focuses on elaborating effects of industrial entrepreneurship and modernization (Hassan 2004, p. 8). It is a society in which economic, social, political and cultural structures organization, constitutes electronic information systems. Network culture encompasses socio-economic, political and cultural networks management and processing based on micro-electronic technologies. Network culture represents the convergence of independent processes as information technology, restructured capitalism and socio-cultural movements. Information technology changes formed the foundation of network culture creation (Whelan 2013, p. 64). It is a representation of a new social structure, culture and a new economic structure. Centralization of these structures forms the network society around networks in which there is free multidirectional communication. Power of the network society exists in the global system itself. Global network comprises wealth, images, and information that revolve around the world. Network society has various characteristics including expanded access to information, high performance of the global, national and regional economies, network enterprise, culture of real virtuality, social polarization and space flows. Network society has its foundation in information capitalism. Information capitalism centers economic activities such as production and distribution on innovation, flexibility and technological skills. For instance, use of computerized technology in industrial production, marketing or distribution. Competitiveness and productivity of firms, regions, and countries depends largely on informational advances. Information technology

Homeless person and health Essay Example | Topics and Well Written Essays - 1000 words

Homeless person and health - Essay Example As Hudson and Nandy found out in their research, homeless youth registered a higher level of substance abuse (178). In this essay, I will compare various views of different authors about health and homelessness, and compare their study findings and assumptions about the same, to establish how they agree or disagree about various aspects in health and homelessness. Hudson and Nandy compared different health issues among homeless people. These are substance abuse and high-risk sexual behaviour (178). In their study, they aimed at establishing the rate of substance abuse, high-risk sexual behaviour, and depression symptoms among youth, who were homeless. McNeil on the other hand, in his research, aimed at finding out how substance abuse among homeless people was a health concern among the population in Canada. In another study, Walls and Bell studied the correlates of the young and adult homeless youth, in engaging in survival sex. Finally, Nicholson, et al in their study, used a generalized approach to study the overall health situation of the homeless in Downtown Calgary. The findings of the different researches mainly agree about different health aspects and situations of the studied homeless populations. First, Hudson and Nandy pointed out that both the homeless youth exposed to foster care and those not exposed to foster care use tobacco, alcohol, and other illicit substances. They also studied the variance of depression and risky sexual behaviours among the group. However, only their degree of use varied within these groups. While the homeless youth who had previously been exposed to foster care used more drugs, compared to those not exposed to foster care. They have argued that when youth are rendered homeless, they always suffer from anxiety and depression. Since these cannot access health care while on the streets, they turn to â€Å"self-medication† through use of drugs and alcohol

Interest Rate Options Essay Example | Topics and Well Written Essays - 1000 words

Interest Rate Options - Essay Example As the paper delcares a common example of this bond is, the Treasury Bond Futures Option. Others are Treasury Notes Futures Options and Eurodollar Futures Options. The Treasury Bond Future Options is priced at 1/64th of 1% of the Treasury Bond face value; the Eurodollar Futures Bond is calculated at 0.01 basis point value being equivalent to $25. It is to be noted here that the interest rate futures prices are indirectly proportional to the bond price increases or decrease. This report discusses that Black’s model is a mutation from the Black Scholes Model, which uses the rate of interest as the base for pricing the options. The most important factor is that it functions on the assumptions that â€Å"a key market variable will be lognormally distributed at a future time†. When Black's model is used to value the price of European interest rate options, the worth of future price of V for a contract maturing at time T, is usually set equal to the forward price of V rather than its futures price. This is more theoretical than practical since in this case you will have to assume that the rates of interest also remain constant while discounting over the same period of future, which is definitely not the case. This is an option which has pre-determined selling price and time. This value is determined based on the Black’s Model assumptions, that the price is lognormal at the pre-fixed time in the future. The value of the bond option can be worked out with the following equations using the Black’s model which sets Fo equal to the forward bond price.

Audience profile Assignment Example | Topics and Well Written Essays - 1500 words

Audience profile - Assignment Example The potential customer for the company has been divided into two groups, one group is males and females aged between 19 to 35 years who are single or live together with a partner (no children); the other group is young families with children, where the parents are aged between 25 to 40 years. On the basis of the findings, the following table has been created to illustrate the products and its market more clearly. Product Product Depth SKU Target Market Organic Smoothies Blackberry and Blueberry Cranberry and Red Currant Wild Strawberry and Red Cherries 750 ml cartons 200 ml plastic bottles Males and females aged 19-35, who are single or live together with a partner (no children). Young families with children, where the parents are aged 25-40 Brief Analysis The age group (19-35 years) have always been the potential target customers for fast food products. Similarly, marketers of ice-cream products such as Smoothies, target this age group. Reports also reveal that ice-cream and its rel ated products are witnessing high sales figures (Mintel, 2012). This category of product is mostly consumed by the age group 19-35 years. Those who are single or live together with their partners are likely to spend more time with their friends. They also visit restaurants or fast food outlets more than any other age group. In addition, the survey revealed that most of the respondents of this age group have a positive attitude towards the product. One of the major reasons of a positive attitude of this group towards the product is the absence of health concerns. Smoothies are products which have high calorie count and hence there are health concerns associated with this product. A large number of people belonging to this age group hardly have any concerns about health. On the other hand, a substantial number of people from the age group 25-40 years are health conscious and try to consume only those fast foods which have lesser number of calories. Apart from that people of the age gr oup 25-40 years are mostly married and thus their lifestyle is different and remains busy with their work. Hence, from the analysis it is absolutely clear that the age group of 19-35 years is more prospective than the age group 25-40 years. Therefore, it is recommended to the company that they should target people who are of the age group 19-35 years, single or live together with partners and do not have any children. Now, in this context, The Berry Powerful Smoothie Company is advised to use Integrated Marketing Communication (IMC) to reach out to the customers. Integrated Marketing Communication (IMC) is an approach which aims at achieving the marketing campaign objectives, by the use of well-coordinated promotional methods, which are intended to emphasize the brand’s core message. IMC approach also helps companies to reduce the overall promotional cost. The chosen target group of the company is males and females aged 19-35 (between 19 to 35 years), who are single or live t ogether with a partner (no children). Now, in-depth analysis of the chosen customer group will be carried out in the next section. On the basis of the findings from the detailed customer analysis, the IMC strategy will be recommended to the company. Audience Analysis Performa for the Audience Profile Your name: Name of the Student Registration no: - Registration Number of the Student Your chosen audience: - Males and females aged 19-35 who are single or live together with a partner and have no children. Circle one: - Individuals / Couples

Impact of Language Rights (of minorities) in the Field of Education Essay

Impact of Language Rights (of minorities) in the Field of Education - Essay Example In the absence of any other language from the national language, the minorities will obviously face the problems in communicating with the people around them and each and every facet of their life would be badly affected (Thornberry, 1997, 307). The minority language rights not allow make communication easy for the minorities but the significant impacts of language rights of minorities could be traced in the field of education as well (Dunbar, 2001, p120). The essay aims to discuss the effects of language rights upon the education of the minorities and discusses the critical importance of have language rights of the minorities in the society. It has been unveiled from the review of the literature concerning the topic that the importance of granting language rights to the minorities has been realized in most of the countries of the world and this realization and provision of the rights have drawn significant and strong impacts upon the educational achievement levels of the people of t he minority groups. Language Rights of Minorities The countries with multi-ethnic and multicultural population are critically need to implement the laws safeguarding the rights of the minorities because the absence of these rights in such countries could led towards satisfaction among the masses they might led towards social instability. The issue of language rights of the minorities is often viewed in informal and non-state contexts but the issue has been given importance in most of the public institutions that are forced to serve a linguistically diverse citizenry. The language rights of the minorities determine what style, tone and practice of language would be adopted by the public institutions that they could fulfil the requirements of the minorities as well (Tomasevski, 1996, p117). The growing trend of multicultural awareness in the wake of globalization has compelled the countries to think weather or not they should adopt policy of institutional mono-language where only one language dominantly used in the country will be used for communicating with the masses. Many countries now prefer to adopt institutional multilingualism that could not only serve the people of their own country but the minority people could not be able to understand and speak their concerns in the public institutions and places (Baderin, 2005, p15). This is very important for the countries to facilitate the people of other languages and nationality they mostly live in their countries for business or any other work related purpose. In the absence of the language rights, the minority language speakers could never have morally serious complaint about the system of the country and they will not be able to adjust at such places because all of their activities and lifestyle could be badly affected in the absence of language rights (Thornberry, 1997, 307). The neglect of these rights could also lead towards inter communal tension and such society could also be marked with the violation of basic human rights like giving freedom of speech and communication to all of the people of the society (Dunbar, 2001, p120). The language rights for the dominant language speakers exist for centuries and they have been taken for granted because these rights are allotted to them without calling them language rights. Likewise, in many countries the minority language speakers also have certain rights that are legally formulized to determine the dimension of usability of their language

Las Vegas Essay Example | Topics and Well Written Essays - 1250 words

Las Vegas - Essay Example We know our winning or losing is certain, yet wretch at the hollow glory gained by a shallow victory. Las Vegas explores the well-hidden lust that lies just beneath the sexually repressed exterior of the American public. This contradiction creates an illusion of sin and deviance that in reality stays just out of the grasp of the people wishing to partake of it. The closer the audience gets the more they discover there is nothing more that empty rooms surrounded by paper thin walls. Though the city appears to be rife with sex it is only an illusion created by the fantasy of violating our norms, which evaporates into a masquerade as inauthentic as the facade of any casino resort. America's fundamental belief in the Chrisitan values that the country was founded on are at the root of the illusion. People have a strong attraction to deviance yet live in a world where it is unacceptable by definition. In America, sex is the ultimate symbol of deviance. By European standards America is a modest country in terms of sexuality. In America, sex has become the Christian icon for the thing we want and the thing that is just not attainable. Ferrari and Ives write that, "We are a Puritan nation obsessed with sex, a self-proclaimed meritocracy that idolizes wealth, a hardworking, churchgoing, law-abiding people that can't wait to party all night long" (6). But the sex will have to remain a taboo to be meaningful, as it is the repression of sexuality that brings such glamour to it. "This paradoxical condition of being the aberration and yet, the dream, results in a Las Vegas that is disliked and rejected, yet seductive and pleasurable" (Firat 8). America is psychologically drawn to the forbidden fruit and at the same time is repulsed by it. People want it to be a reality but they pray that it is only a facade. Sexuality is an area where overindulgence is discouraged even while living in a society that praises consumer excess in the areas of wealth and avarice. Success in America is measured by how much materialism can be attained and flaunted. Yet, sex is the dirty little area where excess is truly taboo. Firat describes Las Vegas as "an aberration, where sleazy and illicit activities are sanctioned. Las Vegas is the excess of the American way of life, where many went to let go-the city of abandon" (8). However, norms and values as they relate to sex are not so easily abandoned in a culture that objects to even the most innocent public displays of affection. Sex in Las Vegas must necessarily remain a fantasy. These are the mixed messages that make Las Vegas a, "ridiculous manifestation of frustrated Puritanism" (Bouchet 7). People are praised for their love affections with their automobile and their public display of gluttony and greed, but expressions of sexual freedom need to remain hidd en behind the closed doors of the private mind. Sex is the one excess that American's will not emotionally tolerate and has become the national poster child for decadent behavior. It is the commodity of locker room talk and bathroom humor that is never brought into mixed company in the light of day. In Las Vegas it is expected that people will drink, gamble, and stay out all night. Family, friends, and society will excuse these violations of their personal norms. However, exploring the seamy underbelly of the sex trade would be

National Savings Essay Example for Free

National Savings Essay â€Å"National saving can be used domestically or internationally. Explain the basis of this statement, including the benefits to the nation of each use of its saving. † First of all, let’s understand the concept of national savings. In economics, a countrys national savings is the sum of private savings (i. e. personal savings) plus the business savings (i. e. undistributed corporate profits) and public savings (i. e. tax revenues less public expenditure). (economicswebinstitute. org, 2003) (Wikipedia. org, 2008). So in simple words, what people save i. e. hen they avoide to consume all their income, is called personal savings. These savings can remain on the bank accounts for future use. For the economy as a whole, national saving is the portion of the nation’s income not used for private and public consumption. Just as for people, saving for the national economy is the act of setting some of current income aside for the future instead of spending it for current consumption. (Gao. gov, 2001). So the savings left in bank accounts are an important part of money. This money could be used by banks, which can decide to finance businesses. The amount of money used for investment depends on the deposits, which banks receive. So an increase of personal savings and/or corporate profits could increase investment. Companies which do not distribute a certain part of its corporate profits, will keep that money in bank accounts also for future business opportunities. Domestic investment could be investment in new factories and equipment, which can increase productivity of the nation’s workforce. The increased productivity, in turn, will lead to higher wages and greater economic growth over the long term. Gao. gov, 2001). So we come to the first conclusion that if national savings increase, a country through its banks could invest more in its economy and finance more projects and support the economy. In general, more national saving will increase a nation’s capacity to produce more goods and services and generate higher income in the future. (Gao. gov, 2001). This phenomenon has been seen in a couple of Asian countries, where the saving rate of households was very high like in Russia, Japan and China, which were able to industrialize quickly. It seems also that there is a close association between national savings and domestic investment in developing countries. These countries are in desperate need for cash to invest in infrastructure and boost its economy including industry, service, etc. Before going to the international market and asking for loans, these countries will first of all make use of every penny that they can find in their banks. So one of the main findings, is that national saving provides resources for a nation to invest domestically. Traditionally, there has been a strong relation between domestic savings and investment ratios. feweb. vu. nl, 2009) The question now is: will these resources be used only in the country itself or could they be used elsewhere. In a closed economy the national savings will definitely be reinvested in the domestic economy. But this is only in theory, since nowadays we can not really find a 100% closed economy anymore! There are countries that have high net saving surpluses and which need to invest it. These countries are sometimes too small to be able to offer the right investment opportunities for this huge liquidity. Countries in the Arabian Peninsula like Qatar, UAE or Kuwait are the best example. In addition, capital is getting very mobile and can be moved easily from one country to another and invested abroad. (wikipedia. org, 2008). With all that money floating around looking for an investment, it doesnt seem that domestic savings are all that important any more. (socrates. berkeley. edu, 2011). Let’s elaborate more on the benefits of investing the national savings abroad? We agree that the sum of national saving and saving borrowed from abroad represents the total amount of resources available for investment. This investment could be used to purchase capital goods like plant, equipment, software, houses, and inventories, by businesses and governments. (socrates. berkeley. edu, 2011). So what are the benefits of investing the national savings abroad? Will this really lead to improving domestic economy and increase the wealth of the people? An investment abroad does indeed increase the nation’s wealth and will generate income. This income could be again reinvested in the domestic country or abroad. One of the very obvious examples is the economy of the GCC countries. Qatar is one of the smallest and wealthiest countries in the world. Its main wealth comes from oil and gas, which accounts for more than 90% of its GDP. Qatar invested huge billions in its domestic economy (infrastructure, refineries, ports, real estate, preparation for world cup 2022, etc). It still has huge amount of money, which could be invested strategically. It currently, invests billions of petrodollars in all 5 continents. It has bought shares in big companies in all kind of industries (oil and gas, banks, luxury, airlines, soccer etc). By doing so, it will even help other companies and countries invest in successful businesses and boost their economies. The other countries probably have national savings which are lower than the needed domestic investment. They will borrow from foreign savers (in this case Qatar) to compensate the difference. Qatar will also repatriate this money or even reinvest it. This is a way to create more wealth to Qatar and the Qatari people of the next generations. A similar phenomenon is seen in other GCC countries, Singapore or Norway which have the so called sovereign wealth funds, that move huge amount of money from one place to another searching for the best investment opportunities. National savings is beneficial for each nation,, which needs to invest in its domestic economy. It’s also important for other nations, which borrow the money in the international capital market. By doing so, they can make use of the capital flows to invest in their economies and pay back the loans. So in total the world economy is more dynamic. Huge amount of money go to where the investment opportunities are. As a conclusion, we can say that national savings and the resulting investment have huge implications on the wealth of a nation and of course on the well being of people in current and future generations.

Risk Management of Terminal Development at Airport

Risk Management of Terminal Development at Airport Dissertation Objectives Investigate the problems at the terminal 5 opening, especially with the baggage handling system despite extensive simulated testing using thousands of bags and more than two thousand volunteers in the run up to the opening of T5 Identify the necessary risk strategies to be considered for such mega-projects, the benefits of such approaches, taking into account previous failed and successful projects, and any lessons to be learnt Discuss the implementation approach adopted by BAA and the risk associated with this approach Provide formative evaluation summarising key findings and conclusion based on evidence gathered from research T5 Synopsis The terminal 5 project in addition to being a statement of intent for the future of British aviation was built with the aim of improving customer experience and to exhibit Heathrow as a world class international airport. The baggage handling system at T5 was designed to be the largest baggage handling system in Europe for a single terminal. The system consists of a main baggage sorter and a fast track system. The system was designed by an integrated team from BAA, BA and Vanderlande Industries of the Netherlands, with the aim of handling both intra-terminal and inter-terminal luggage. Its processing capacity was intended to be 70,000 bags a day. Bags are meant to undergo several processes on the way through the system, these include; automatic identification, explosives screening, fast tracking for urgent bags, sorting and automatic sorting and passenger reconciliation. The scheduled completion and opening date was March 2008, and T5 was on time and on budget. This was a remarkable achievement especially in a sector where project delays and vast overspends are commonplace (the Millennium dome, Wembley stadium and the Scottish Parliament buildings were all opened late and cost a lot more than the original estimate). However, on its first day in operation, T5s bespoke baggage system was affected by technical software problems, which led to a number of issues, such as cancelled flights, lost baggage, and substantial delays, but more importantly, BAs challenge were its people issues and integrating teams of staff. Initial reports suggest that the day one issues were less to do with technology issues and more to do with inadequate staff training, and this was not just for one group of people but at all levels. Below is a summary of its problems on the opening day: Hundreds of staff found it difficult finding the staff car park entrance Check-in staff struggled with their systems, these problems ranged from very simple tasks such as logging into the baggage system to complex tasks Security personnel who were totally ignorant of their new roles and had to be taken through new procedures in the morning in front of passengers Ground staff and crews and ground staff getting lost in the huge building Baggage handlers struggled to get a hang of the new baggage system Baggage truck drivers got lost within the terminal and needed directions to the aircraft Baggage drivers and handlers could not get luggage from the conveyors to the gates On nine occasions, inspectors from the department of transport had managed to bypass security checks during trials of the terminals new systems and that the terminals alarm system was not working properly Going through these problems therefore suggest that the entire problem was down to lack of adequate training or simply inappropriate appraisal of risk involved. This is very surprising as this was a very high profile project and taking into account that this was a simple 3 team process get baggage, take baggage to aircraft and load baggage onto aircraft. Training System Testing Prior to Opening Based on initial interviews with BAs CIO, it would suggest that the human elements were given the importance it required. BAs CIO, Paul Coby told CIO UK [in March 2007] â€Å"the IT work to support such a large-scale, new-build project was also going well. â€Å"Devices are deployed, connections are being integrated and 2007 will be testing year. The airline is moving onto the T5 systems, so they run for a year ready to operate at the new terminal when it opens in 2008†. According to XXXXX, in the run up to the opening of T5 there were a series of overnight baggage-systems tests using thousands of bags, up to 2000 volunteers and full trials of the check-in procedure for all the IT systems. According to the spokesman for Vanderlande Industries, in testing the baggage handling system, emulation models were utilized broadly to test the low-level controls software, while computer programs took the place of the baggage handling system, and which behave (almost) the same as the part they replace. The report also suggests that for the high-level controls software, the emulation model was broadened by connecting the loose individual models into a large integrated system in which the physical equipment was replaced by a number of interconnected emulation models. According to a number of the volunteers who tested the system prior to its opening commented that the demos were extremely impressive and felt the system was ready in advance of its opening. T5 System Simulation Prior to Opening According to the spokesman for Vanderlande Industries, low-level emulation models were utilized in place of the physical transport equipment in each of the conveyor lines. The low and high level models that were developed produced the same electrical outputs in response to the same electrical inputs as their corresponding physical equivalent (motors, photo-electric cells, barcode scanners, etc), which in the view of both the software developers and management of BA, proof of extensive system testing. System interaction was facilitated with the use of control panels, and with the right frequency, set of bags or multiple bags were generated. During the testing, the conveyor motors were stopped and started utilizing different scenarios in order to generate as much errors as possible with the hope of fixing them. The spokesman also stated that the transport time between two photocells in emulation was equal to the actual time using the real equipment. The same measurement also applied to the total transport time. In addition, during testing the T5 project, over 90 individual low-level emulation models were created as individual models were integrated into 5 different configurations. A separate team spent 4800 hours on building and testing these emulation models. Questions: Training Testing But the first set of questions now has to be asked: how adequate was the tests and training were carried out in relation to T5s baggage systems in advance of the opening? What were the results? What were the problems revealed? and what steps were taken to resolve the problems revealed? Were the tests re-run and, if so, what was the result? Was the right implementation strategy adopted? Or would it not have been better to open Terminal 5 on a phased basis, to make sure that all its systems were working before going fully operational? The second set of questions to be asked would be: knowing that extensive simulation testing was carried out on the baggage system successfully; doesnt that then suggest that carrying out simulated testing without the real customers is inadequate? With regards to the people issues, what sort of dry runs were carried out? If they were indeed adequate, why were the opening day hiccups not identified? Where there extra staff or volunteers in anticipation of potential glitches? If yes were these trained adequately? For every eventuality or possible scenario, what were the contingency plans? In spite of the extensive testing carried out on the baggage system and the confidence which this would have placed on top management, from the experience on the opening day, we can conclude that in reality, the prospects of operating an airport terminal of such magnitude and scale would require more than simulated testing as the operations are virtually impossible to fully replicate. This then suggests that the risk management utilized by the BA was not robust to take the people issues into account. Good risk management might have come to the conclusion, if there was the possibility of failure. Risk Management: Definitions In order to manage risks we have to understand what a risk is. Smith and Merrit (2002) said that three essential aspects of risk are uncertainty, loss and time, see Figure 1. Uncertainty: A project manager has to identify as many uncertainties as possible. A risk may or may not happen. This inherent uncertainty cannot be eliminated, but it can be made little clearer by clarifying the probability of occurrence of the risk, to get at better understanding of the consequences and alternatives if the risk occurs and determine the factors that influence the magnitude and likelihood of occurrence of the particular risk. This means that an uncertainty can never be completely eliminated, but it can be reduced to a level the project find tolerable. This means that even with the best plans there cannot be any guarantees that there will be no surprises [3]. Loss: A risk is always something that involves some kind of loss. If there is no loss possible, then the project is not concerned about the risk, because it cannot compromise the project [3]. Time: Associated with every risk there is a time where the risk no longer exists. Either the risk has occurred and the loss has been suffered or the potential problems that could cause the risk have been resolved and no longer pose a threat. It is important to know when this time has arrived so the risk can be removed from the agenda [3]. Among writers and in the literature there are differences in the meaning of risk management and risk analysis. Frosdick (1997) says that there are no clear views of the differences and what one writer defines as risk management another writer is calling it risk analysis. Frosdick‘s own view is that he separates them by saying that risk analysis is the sum of the processes of risk identification, estimation and evaluation and risk management is about planning, monitoring and controlling activities that are produced by the risk analysis activity. The Association for Project Management (Chapman, Simister 2004) definition of risk analysis is similar to Frosdick‘s, they have however divided the risk analysis into two stages. The first stage is called the Qualitative Analysis and it is where risks are identified and subjectively assessed. These identified risks are then analysed in terms of e.g. cost and time estimates and that is called the Quantitative Analysis. Just like for Frosdick it is then followed by the risk management process. In their definition it is the process of formulating responses, both proactive and reactive ones. Pennock Haimes (2001) said that risk management could be represented in six steps, three each for risk assessment/analysis and risk management, where each step is a question. Risk assessment/analysis What can go wrong? Identify as many risks as possible. The risks can be of any kind financial, time, resources etc. and no risk is too small to not be included [3]. What is the likelihood for the risk to occur? Try to measure how likely, or unlikely, it is for the risk to occur. Maybe some risks are dependent on each other [3]. What are the consequences? What will be the impact on the project if the risk occurs, is it a minor risk or maybe a stopping fault that endangers the whole project [3]. Risk management What can be done and what options are available? How to decrease the chance of a risk occurring, for example get more resources or have them readily available [2,3]. What are the tradeoffs in term of all costs, benefits and risks among the available options? For every risk there is somewhere a limit for how costly measures one can put in, where there is no economy in putting in more measures. Often the budget is not enough to eliminate all risks therefore one must choose which risks to put more emphasis on [2,3]. What are the impacts on current decisions on future options? [3] The official definition provided by Professor James Garven, University of Texas at Austin is from the American Risk and Insurance Association: Risk management is the systematic process of managing an organizations risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law. It consists of the planning, organizing, leading, coordinating, and controlling activities undertaken with the intent of providing an efficient pre-loss plan that minimizes the adverse impact of risk on the organizations resources, earnings, and cash flows. Another definition given by Larry Krantz, Chief Executive of Euro Log Ltd in the UK, states that A risk is a combination of constraint and uncertainty. We all face constraints in our projects, and also uncertainty. So we can minimise the risk in the project either by eliminating constraints (a nice conceit) or by finding and reducing uncertainty []. The objectives of risk management/analysis The Association for Project Management (Chapman, Simister 2004) defines Risk Management/Analysis as a process designed to remove or reduce the risks that threaten the achievement of project objectives. Properly undertaken it will increase the likelihood of successful completion of a project in terms of cost, time and performance objectives. PMBOK (PMBOK Guide, 2004) describes it similarly where they say that the objectives of project management are to increase the probability and impact of positive effects and decrease the probability and impact of events adverse to project objectives. Kendrick (2003) list seven benefits on the use of risk management: Project Justification: Project risk management is undertaken primarily to improve the chances that a project will achieve its objectives. While there are never any guarantees, broader awareness of common failure modes and ideas that make projects more robust can significantly improve the odds of success. The primary goal of project risk management is either to develop a credible foundation for each project, showing that it is possible, or to demonstrate that the project is not feasible so that it can be avoided, aborted, or transformed [1]. Lower Costs and Less Chaos: Adequate risk analysis reduces both the overall cost and the frustration caused by avoidable problems [4]. The amount of rework and of unforeseen late project effort is minimised. Knowledge of the root causes of the potentially severe project problems enables project leaders and teams to work in ways that avoid these problems. Dealing with the causes of risk also minimises fire-fighting and chaos during projects, much of which is focused short-term and deals primarily with symptoms rather than the intrinsic sources of the problems [1]. Chadbourn (1999) describes it similarly when he likened the uncertainties to chaos, where a poorly designed project could be described as a room full of mousetraps, each with a ping pong ball [5]. Before you know it, someone not under your control tosses in the first ball, thus mayhem and chaos erupts [5]. In the ideal project the mousetraps are gone. In their place there is a network of dominos, where each action and reacti on could be foreseen [5]. It is within the role of organisations to try and identify these mousetraps and replace them with an orderly string of dominos [5]. Project Priority and Management Support: Support from managers and other project stakeholders and commitment from the project team are more easily won when projects are based on thorough, understandable information [11]. High-risk projects may begin with lower priority, but a thorough risk plan, displaying competence and good preparation for possible problems, can improve the project priority [11]. Whenever you are successful in raising the priority of your project, you significantly reduce project risk—by opening doors, reducing obstacles, making resources available, and shortening queues for services [11]. Project Portfolio Management: Achieving and maintaining an appropriate mix of ongoing projects for an organisation uses risk data as a key factor. The ideal project portfolio includes both lower- and higher-risk projects in proportions that are consistent with the business objectives [13]. Fine-Tuning Plans to Reduce Risk: Risk analysis uncovers weaknesses in a project plan and triggers changes, new activities, and resource shifts that improve the project. Risk analysis at the project level may also reveal needed shifts in overall project structure or basic assumptions [14]. Establishing Management Reserve: Risk analysis demonstrates the uncertainty of project outcomes and is useful in setting reserves for schedule and/or resources. Risky projects really require a window of time (or budget), instead of a single-point objective. While the project targets can be based on expectations (the most likely versions of the analysis), project commitments should be established with less aggressive goals, reflecting overall project risk. The target and committed objectives set a range for acceptable project results and provide visible recognition of project risk [18]. Project Communication and Control: Project communication is more effective when there is a solid, credible plan. Risk assessments also build awareness of project exposures for the project team, showing how painful the problems might be and when and where they might occur. This causes people to work in ways that avoid project difficulties. Risk data can also be very useful in negotiations with project sponsors. Using information about the likelihood and consequences of potential problems gives project teams more influence in defining objectives, determining budgets, obtaining staff, setting deadlines, and negotiating project changes [18]. Risk Assessment Risk Control There are two stages in the process of Project Risk Management, Risk Assessment and Risk Control. Risk Assessment can take place at any time during the project, though the sooner the better. However, Risk Control cannot be effective without a previous Risk Assessment. Similarly, most people tend to think that having performed a Risk Assessment, they have done all that is needed. Far too many projects spend a great deal of effort on Risk Assessment and then ignore Risk control completely [19]. Risk Assessment has three elements: Identify Uncertainties In this element, the entire project plans are explored, with special focus on areas of uncertainty [20]. Analyse Risks In this element, the requirement is to specify how the areas of uncertainty will have an impact on the performance of the project, either in duration, cost or meeting the users requirements [20]. Prioritise Risks At this stage the requirement is to establish which of the Risks identified should be eliminated completely [20]. This step is only is carried out due to the potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention [20]. In the same way, Risk Control has three elements, as follows: Mitigate Risks According to Mobey et al (2002), risk mitigation would include taking the necessary actions that are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan [20]. Plan for Emergencies For all those Risks which are deemed to be significant, have an emergency plan in place before it happens [19]. Measure and Control This involves tracking the effects of the risks identified and managing them to a successful conclusion [19]. Different strategies There are different strategies and methods that have different approaches toward risk management. JISC (Joint Information Systems Management) says that the focus for risk management should be on risks related to the particular project, not project management in general (http://www.jisc.ac.uk/proj_manguide15.html). The overall goal according to Kendrick (2003) for risk management in a single project is to establish a credible plan consistent with business objectives and then to minimise the range of possible outcomes. That is why risk management in a project is about identifying potential risks, analyse the ones that have the greatest likelihood of occurring, grade their different levels of impact on the project and define a plan of how to avoid the risk and if it occurs how to reduce its impact (Heldman, 2005). Smith Merrit (2001) sees risk strategy as a five step process. Figure 3 shows the flow through the five-step process and lists deliverables from each step: Step 1: Identify risks that you could encounter across all facets of the project [28]. Step 2: Analyse these risks to determine what is driving them, how great their impact might be, and how likely they are [28]. Step 3: Prioritise and map the risks so that you can choose those most important to resolve [28]. Step 4: Plan how you will take action against the risks on this short list [28]. Step 5: On a regular basis, monitor progress on your action plans, terminate action plans for risks that have been adequately resolved, and look for new risks [28]. Frosdick (1997) also mentioned Strutt‘s, definition of the concept of risk analysis that is a seven stage process. Systematic assessment (item by item question every part of the system) [13]. Identification of risks [13]. Assessment of risks (frequencies and consequences) [13]. Establish acceptable/tolerable levels of risk [13]. Evaluate the risks. Are they acceptable? Can they be reduced and at what cost? Determine whether the risks are as low as reasonably practicable [13]. Determine risk reduction measures where appropriate [13]. Risk Assessment Evaluation There are many ways and different techniques to evaluate what the risks are, what the effect they have on the project and what measures can be put in if the risks should occur [19]. Risk assessment is by most people divided into two areas, Quantitative Risk Analysis and Qualitative Risk Analysis. Quantitative In its most basic form the formula for risk quantification is: à ¢Ã¢â€š ¬Ã¢â‚¬ ¢Rate of occurrenceà ¢Ã¢â€š ¬Ã¢â‚¬â€œ multiplied by the à ¢Ã¢â€š ¬Ã¢â‚¬ ¢impact of the eventà ¢Ã¢â€š ¬Ã¢â‚¬â€œ = risk. Methods based on this method are often called à ¢Ã¢â€š ¬Ã¢â‚¬ ¢expected value analysisà ¢Ã¢â€š ¬Ã¢â‚¬â€œ and include models like Annualized Loss Expectancy (ALM), the Courtney formula, the Livermore Risk Analysis Methodology (LRAM) and Stochastic Dominance (Snyder, Rainer Jr., Carr 1991). The advantages of Quantitative Risk Analysis methodologies are that they are good at identifying the most critical areas that, if something happens, will have the largest impact on the project. There are also disadvantages to Quantitative Risk Analysis. When one measures the probability of damage to the project the quantitative approach tends to average the events leading up to a problem (Snyder, Rainer Jr, Carr 1991). Qualitative Qualitative methods attempts to express risks in terms of descriptive variables rather than an economic impact. These approaches are based on the assumption that certain threat or loss of data cannot be appropriately expressed in terms of dollars or pounds and that precise information is impossible to obtain. These methodologies include Scenario Analysis/Planning, Fuzzy Metrics and questionnaires (Snyder, Rainer Jr., Carr 1991). The advantages of Qualitative Risk Analysis methodologies are that they save time, effort and expense over quantitative methods. This is because assets do not need exact values in dollars or pounds nor do threats need to have exact probabilities. It is also a valuable methodology in identifying significant weaknesses in a risk management portfolio. There are disadvantages with this method as well. Qualitative Risk Analysis is inexact, the variables used (e.g. low, medium and high) must be understood by all parties involved (Snyder, Rainer Jr., Carr 1991). Risks Reduction Once risks have been identified and evaluated they have to be responded to in some way. Wideman (1992) lists seven basic responses on identified risks: Recognised but no action taken (absorbed as a matter of policy) Avoided (by taking appropriate steps) Reduced (by an alternative approach) Shared (with others, e.g., by joint venture) Transferred (to others through contract or insurance) Retained and absorbed (by prudent allowances) Handled by a combination of the above Dorfman (1997) says that all techniques to manage the risk fall into one or more of these four major categories (remembered as the 4 Ts): Tolerate (aka Retention) Treat (aka Mitigation) Terminate (aka Elimination) Transfer (aka Buying Insurance) Bliss (2005) listed these five types of similar risk responses as Dorfman and Wideman. Risk avoidance: Also known as risk removal or risk prevention, risk avoidance involves altering the original plans for the project so that particularly risky elements are removed. It could include deciding not to perform an activity that carries a high risk. Adopting such avoidance techniques may seem an obvious way to deal with all risks. However, often the areas of the project that involve high risks are also the areas of the project that potentially contain the highest worth or the best value for money. Avoiding such risks may also result in removing potentially the best bits of a resource, and an alternative strategy that retains these risks may be more appropriate [13]. Risk reduction: Risk reduction or risk mitigation involves the employment of methods that reduce the probability of a risk occurring, or reducing the severity of the impact of a risk on the outcome of the project. The loss of highly skilled staff is a considerable risk in any project and not one that can be totally avoided. Suitable risk mitigation could involve the enforcement of a notice period, comprehensive documentation allowing for replacement staff to continue with the job at hand and adequate management oversight and the use of staff development programmes to encourage staff to stay [20]. Risk transfer: Risk transfer moves the ownership of the risk to a third party normally by contract. This also moves the impact of the risk away from the project itself to this third party [20]. Risk deferral: The impact a risk can have on a project is not constant throughout the life of a project. Risk deferral entails deferring aspects of the project to a date when a risk is less likely to happen. For example managing the expectations users have about the content and delivery of a resource can be time-consuming, one way to reduce this risk is by not making a web resource available until user testing is complete [20]. Risk retention: Whilst a certain number of the risks to the project originally identified can be removed by changing the project plan or dealt with by transferring the responsibility of the risk to third parties inevitably certain risks have to be accepted as a necessary part of the project. All risks that have not been avoided or transferred are retained or accepted risks by default [20]. Previous Successful Project: St Pancras International Rail Station According to XXXXXX, before St Pancras International rail station was opened; a number of days were devoted to testing all the systems and processes, using an army of thousands of volunteer passengers. These tests were carried out much before the opening day, thus providing enough time to resolve issues that might have occurred during testing [26]. By carrying out the testing in phases much long before the opening, members of staff were able to familiarize themselves with the systems and get actual hands-on experience before the station was opened to Eurostar traffic. Dry-runs were carried out as well with the vital lessons were learnt and adjustments made before exposing paying customers to the St Pancras experience. Inevitably the result was that on the opening day, everything went without glitches on the first day of international service [26]. Previous Failed Project: Denver International Airport The Denver International Airport was scheduled to open on October 31, 1993 with all three of its concourses fully running on the BAE automated baggage handling system that. On February 28, 1995, the new airport finally opened. Its opening came sixteen months late. The automated baggage system was supposed to improve baggage handling by using a computer tracking system to direct baggage contained in unmanned carts that run on a track. BAE systems presented the City of Denver with a proposal to develop â€Å"the most complex and automated [and integrated] baggage system ever built. Original target opening date for the airport was (delayed seven times over the next three months). City of Denver invited reporters to observe the first test of the baggage system without notifying BAE. This was a public disaster! Reporters saw piles of disgorged clothes and other personal items lying beneath the Telecars tracks. Lots of mechanical and software problems plagued the automated baggage handling system. When the system was tested, bags were misloaded, sent to different routes, and fell out of automated telecarts, thus causing the system to jam. The automated baggage system still continued to unload bags even though they were jammed on the conveyor belt, because the photo eye at this location could not detect the pile of bags on the belt and hence could not signal the system to stop. Main Lessons One of the lessons BA and BAA might have been learnt from the Denver project, was that BAE actually built a prototype of the automated baggage handling system in a 50,000 sq. ft. warehouse near its manufacturing plant in Texas. But as similar to the T5 project, there was no evidence of adequate training and the results from simulation testing has been proven to be different to a real world scenario with real customers. I addition, research also shows that BAE had given an initial estimate of at least a year to test the system and get the system up and running, but United airlines and the other stakeholders pressed for a much shorter timeframe. City of Denver got the same story from technical advisers to the Franz Joseph Strauss airport in Munich (that less complicated system had taken 2 years testing and was running 24 hours a day for 6 months before the airport opened. Risks recognised early in the Project Very large scale of the project. Enormous complexity. Newness of the technology. Large number of entities to be served by the system. The high degree of technical and project definition uncertainty. Risk Identification PMBOK (PMBOK Guide, 2004) lists five tools and techniques for risk identific Risk Management of Terminal Development at Airport Risk Management of Terminal Development at Airport Dissertation Objectives Investigate the problems at the terminal 5 opening, especially with the baggage handling system despite extensive simulated testing using thousands of bags and more than two thousand volunteers in the run up to the opening of T5 Identify the necessary risk strategies to be considered for such mega-projects, the benefits of such approaches, taking into account previous failed and successful projects, and any lessons to be learnt Discuss the implementation approach adopted by BAA and the risk associated with this approach Provide formative evaluation summarising key findings and conclusion based on evidence gathered from research T5 Synopsis The terminal 5 project in addition to being a statement of intent for the future of British aviation was built with the aim of improving customer experience and to exhibit Heathrow as a world class international airport. The baggage handling system at T5 was designed to be the largest baggage handling system in Europe for a single terminal. The system consists of a main baggage sorter and a fast track system. The system was designed by an integrated team from BAA, BA and Vanderlande Industries of the Netherlands, with the aim of handling both intra-terminal and inter-terminal luggage. Its processing capacity was intended to be 70,000 bags a day. Bags are meant to undergo several processes on the way through the system, these include; automatic identification, explosives screening, fast tracking for urgent bags, sorting and automatic sorting and passenger reconciliation. The scheduled completion and opening date was March 2008, and T5 was on time and on budget. This was a remarkable achievement especially in a sector where project delays and vast overspends are commonplace (the Millennium dome, Wembley stadium and the Scottish Parliament buildings were all opened late and cost a lot more than the original estimate). However, on its first day in operation, T5s bespoke baggage system was affected by technical software problems, which led to a number of issues, such as cancelled flights, lost baggage, and substantial delays, but more importantly, BAs challenge were its people issues and integrating teams of staff. Initial reports suggest that the day one issues were less to do with technology issues and more to do with inadequate staff training, and this was not just for one group of people but at all levels. Below is a summary of its problems on the opening day: Hundreds of staff found it difficult finding the staff car park entrance Check-in staff struggled with their systems, these problems ranged from very simple tasks such as logging into the baggage system to complex tasks Security personnel who were totally ignorant of their new roles and had to be taken through new procedures in the morning in front of passengers Ground staff and crews and ground staff getting lost in the huge building Baggage handlers struggled to get a hang of the new baggage system Baggage truck drivers got lost within the terminal and needed directions to the aircraft Baggage drivers and handlers could not get luggage from the conveyors to the gates On nine occasions, inspectors from the department of transport had managed to bypass security checks during trials of the terminals new systems and that the terminals alarm system was not working properly Going through these problems therefore suggest that the entire problem was down to lack of adequate training or simply inappropriate appraisal of risk involved. This is very surprising as this was a very high profile project and taking into account that this was a simple 3 team process get baggage, take baggage to aircraft and load baggage onto aircraft. Training System Testing Prior to Opening Based on initial interviews with BAs CIO, it would suggest that the human elements were given the importance it required. BAs CIO, Paul Coby told CIO UK [in March 2007] â€Å"the IT work to support such a large-scale, new-build project was also going well. â€Å"Devices are deployed, connections are being integrated and 2007 will be testing year. The airline is moving onto the T5 systems, so they run for a year ready to operate at the new terminal when it opens in 2008†. According to XXXXX, in the run up to the opening of T5 there were a series of overnight baggage-systems tests using thousands of bags, up to 2000 volunteers and full trials of the check-in procedure for all the IT systems. According to the spokesman for Vanderlande Industries, in testing the baggage handling system, emulation models were utilized broadly to test the low-level controls software, while computer programs took the place of the baggage handling system, and which behave (almost) the same as the part they replace. The report also suggests that for the high-level controls software, the emulation model was broadened by connecting the loose individual models into a large integrated system in which the physical equipment was replaced by a number of interconnected emulation models. According to a number of the volunteers who tested the system prior to its opening commented that the demos were extremely impressive and felt the system was ready in advance of its opening. T5 System Simulation Prior to Opening According to the spokesman for Vanderlande Industries, low-level emulation models were utilized in place of the physical transport equipment in each of the conveyor lines. The low and high level models that were developed produced the same electrical outputs in response to the same electrical inputs as their corresponding physical equivalent (motors, photo-electric cells, barcode scanners, etc), which in the view of both the software developers and management of BA, proof of extensive system testing. System interaction was facilitated with the use of control panels, and with the right frequency, set of bags or multiple bags were generated. During the testing, the conveyor motors were stopped and started utilizing different scenarios in order to generate as much errors as possible with the hope of fixing them. The spokesman also stated that the transport time between two photocells in emulation was equal to the actual time using the real equipment. The same measurement also applied to the total transport time. In addition, during testing the T5 project, over 90 individual low-level emulation models were created as individual models were integrated into 5 different configurations. A separate team spent 4800 hours on building and testing these emulation models. Questions: Training Testing But the first set of questions now has to be asked: how adequate was the tests and training were carried out in relation to T5s baggage systems in advance of the opening? What were the results? What were the problems revealed? and what steps were taken to resolve the problems revealed? Were the tests re-run and, if so, what was the result? Was the right implementation strategy adopted? Or would it not have been better to open Terminal 5 on a phased basis, to make sure that all its systems were working before going fully operational? The second set of questions to be asked would be: knowing that extensive simulation testing was carried out on the baggage system successfully; doesnt that then suggest that carrying out simulated testing without the real customers is inadequate? With regards to the people issues, what sort of dry runs were carried out? If they were indeed adequate, why were the opening day hiccups not identified? Where there extra staff or volunteers in anticipation of potential glitches? If yes were these trained adequately? For every eventuality or possible scenario, what were the contingency plans? In spite of the extensive testing carried out on the baggage system and the confidence which this would have placed on top management, from the experience on the opening day, we can conclude that in reality, the prospects of operating an airport terminal of such magnitude and scale would require more than simulated testing as the operations are virtually impossible to fully replicate. This then suggests that the risk management utilized by the BA was not robust to take the people issues into account. Good risk management might have come to the conclusion, if there was the possibility of failure. Risk Management: Definitions In order to manage risks we have to understand what a risk is. Smith and Merrit (2002) said that three essential aspects of risk are uncertainty, loss and time, see Figure 1. Uncertainty: A project manager has to identify as many uncertainties as possible. A risk may or may not happen. This inherent uncertainty cannot be eliminated, but it can be made little clearer by clarifying the probability of occurrence of the risk, to get at better understanding of the consequences and alternatives if the risk occurs and determine the factors that influence the magnitude and likelihood of occurrence of the particular risk. This means that an uncertainty can never be completely eliminated, but it can be reduced to a level the project find tolerable. This means that even with the best plans there cannot be any guarantees that there will be no surprises [3]. Loss: A risk is always something that involves some kind of loss. If there is no loss possible, then the project is not concerned about the risk, because it cannot compromise the project [3]. Time: Associated with every risk there is a time where the risk no longer exists. Either the risk has occurred and the loss has been suffered or the potential problems that could cause the risk have been resolved and no longer pose a threat. It is important to know when this time has arrived so the risk can be removed from the agenda [3]. Among writers and in the literature there are differences in the meaning of risk management and risk analysis. Frosdick (1997) says that there are no clear views of the differences and what one writer defines as risk management another writer is calling it risk analysis. Frosdick‘s own view is that he separates them by saying that risk analysis is the sum of the processes of risk identification, estimation and evaluation and risk management is about planning, monitoring and controlling activities that are produced by the risk analysis activity. The Association for Project Management (Chapman, Simister 2004) definition of risk analysis is similar to Frosdick‘s, they have however divided the risk analysis into two stages. The first stage is called the Qualitative Analysis and it is where risks are identified and subjectively assessed. These identified risks are then analysed in terms of e.g. cost and time estimates and that is called the Quantitative Analysis. Just like for Frosdick it is then followed by the risk management process. In their definition it is the process of formulating responses, both proactive and reactive ones. Pennock Haimes (2001) said that risk management could be represented in six steps, three each for risk assessment/analysis and risk management, where each step is a question. Risk assessment/analysis What can go wrong? Identify as many risks as possible. The risks can be of any kind financial, time, resources etc. and no risk is too small to not be included [3]. What is the likelihood for the risk to occur? Try to measure how likely, or unlikely, it is for the risk to occur. Maybe some risks are dependent on each other [3]. What are the consequences? What will be the impact on the project if the risk occurs, is it a minor risk or maybe a stopping fault that endangers the whole project [3]. Risk management What can be done and what options are available? How to decrease the chance of a risk occurring, for example get more resources or have them readily available [2,3]. What are the tradeoffs in term of all costs, benefits and risks among the available options? For every risk there is somewhere a limit for how costly measures one can put in, where there is no economy in putting in more measures. Often the budget is not enough to eliminate all risks therefore one must choose which risks to put more emphasis on [2,3]. What are the impacts on current decisions on future options? [3] The official definition provided by Professor James Garven, University of Texas at Austin is from the American Risk and Insurance Association: Risk management is the systematic process of managing an organizations risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law. It consists of the planning, organizing, leading, coordinating, and controlling activities undertaken with the intent of providing an efficient pre-loss plan that minimizes the adverse impact of risk on the organizations resources, earnings, and cash flows. Another definition given by Larry Krantz, Chief Executive of Euro Log Ltd in the UK, states that A risk is a combination of constraint and uncertainty. We all face constraints in our projects, and also uncertainty. So we can minimise the risk in the project either by eliminating constraints (a nice conceit) or by finding and reducing uncertainty []. The objectives of risk management/analysis The Association for Project Management (Chapman, Simister 2004) defines Risk Management/Analysis as a process designed to remove or reduce the risks that threaten the achievement of project objectives. Properly undertaken it will increase the likelihood of successful completion of a project in terms of cost, time and performance objectives. PMBOK (PMBOK Guide, 2004) describes it similarly where they say that the objectives of project management are to increase the probability and impact of positive effects and decrease the probability and impact of events adverse to project objectives. Kendrick (2003) list seven benefits on the use of risk management: Project Justification: Project risk management is undertaken primarily to improve the chances that a project will achieve its objectives. While there are never any guarantees, broader awareness of common failure modes and ideas that make projects more robust can significantly improve the odds of success. The primary goal of project risk management is either to develop a credible foundation for each project, showing that it is possible, or to demonstrate that the project is not feasible so that it can be avoided, aborted, or transformed [1]. Lower Costs and Less Chaos: Adequate risk analysis reduces both the overall cost and the frustration caused by avoidable problems [4]. The amount of rework and of unforeseen late project effort is minimised. Knowledge of the root causes of the potentially severe project problems enables project leaders and teams to work in ways that avoid these problems. Dealing with the causes of risk also minimises fire-fighting and chaos during projects, much of which is focused short-term and deals primarily with symptoms rather than the intrinsic sources of the problems [1]. Chadbourn (1999) describes it similarly when he likened the uncertainties to chaos, where a poorly designed project could be described as a room full of mousetraps, each with a ping pong ball [5]. Before you know it, someone not under your control tosses in the first ball, thus mayhem and chaos erupts [5]. In the ideal project the mousetraps are gone. In their place there is a network of dominos, where each action and reacti on could be foreseen [5]. It is within the role of organisations to try and identify these mousetraps and replace them with an orderly string of dominos [5]. Project Priority and Management Support: Support from managers and other project stakeholders and commitment from the project team are more easily won when projects are based on thorough, understandable information [11]. High-risk projects may begin with lower priority, but a thorough risk plan, displaying competence and good preparation for possible problems, can improve the project priority [11]. Whenever you are successful in raising the priority of your project, you significantly reduce project risk—by opening doors, reducing obstacles, making resources available, and shortening queues for services [11]. Project Portfolio Management: Achieving and maintaining an appropriate mix of ongoing projects for an organisation uses risk data as a key factor. The ideal project portfolio includes both lower- and higher-risk projects in proportions that are consistent with the business objectives [13]. Fine-Tuning Plans to Reduce Risk: Risk analysis uncovers weaknesses in a project plan and triggers changes, new activities, and resource shifts that improve the project. Risk analysis at the project level may also reveal needed shifts in overall project structure or basic assumptions [14]. Establishing Management Reserve: Risk analysis demonstrates the uncertainty of project outcomes and is useful in setting reserves for schedule and/or resources. Risky projects really require a window of time (or budget), instead of a single-point objective. While the project targets can be based on expectations (the most likely versions of the analysis), project commitments should be established with less aggressive goals, reflecting overall project risk. The target and committed objectives set a range for acceptable project results and provide visible recognition of project risk [18]. Project Communication and Control: Project communication is more effective when there is a solid, credible plan. Risk assessments also build awareness of project exposures for the project team, showing how painful the problems might be and when and where they might occur. This causes people to work in ways that avoid project difficulties. Risk data can also be very useful in negotiations with project sponsors. Using information about the likelihood and consequences of potential problems gives project teams more influence in defining objectives, determining budgets, obtaining staff, setting deadlines, and negotiating project changes [18]. Risk Assessment Risk Control There are two stages in the process of Project Risk Management, Risk Assessment and Risk Control. Risk Assessment can take place at any time during the project, though the sooner the better. However, Risk Control cannot be effective without a previous Risk Assessment. Similarly, most people tend to think that having performed a Risk Assessment, they have done all that is needed. Far too many projects spend a great deal of effort on Risk Assessment and then ignore Risk control completely [19]. Risk Assessment has three elements: Identify Uncertainties In this element, the entire project plans are explored, with special focus on areas of uncertainty [20]. Analyse Risks In this element, the requirement is to specify how the areas of uncertainty will have an impact on the performance of the project, either in duration, cost or meeting the users requirements [20]. Prioritise Risks At this stage the requirement is to establish which of the Risks identified should be eliminated completely [20]. This step is only is carried out due to the potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention [20]. In the same way, Risk Control has three elements, as follows: Mitigate Risks According to Mobey et al (2002), risk mitigation would include taking the necessary actions that are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan [20]. Plan for Emergencies For all those Risks which are deemed to be significant, have an emergency plan in place before it happens [19]. Measure and Control This involves tracking the effects of the risks identified and managing them to a successful conclusion [19]. Different strategies There are different strategies and methods that have different approaches toward risk management. JISC (Joint Information Systems Management) says that the focus for risk management should be on risks related to the particular project, not project management in general (http://www.jisc.ac.uk/proj_manguide15.html). The overall goal according to Kendrick (2003) for risk management in a single project is to establish a credible plan consistent with business objectives and then to minimise the range of possible outcomes. That is why risk management in a project is about identifying potential risks, analyse the ones that have the greatest likelihood of occurring, grade their different levels of impact on the project and define a plan of how to avoid the risk and if it occurs how to reduce its impact (Heldman, 2005). Smith Merrit (2001) sees risk strategy as a five step process. Figure 3 shows the flow through the five-step process and lists deliverables from each step: Step 1: Identify risks that you could encounter across all facets of the project [28]. Step 2: Analyse these risks to determine what is driving them, how great their impact might be, and how likely they are [28]. Step 3: Prioritise and map the risks so that you can choose those most important to resolve [28]. Step 4: Plan how you will take action against the risks on this short list [28]. Step 5: On a regular basis, monitor progress on your action plans, terminate action plans for risks that have been adequately resolved, and look for new risks [28]. Frosdick (1997) also mentioned Strutt‘s, definition of the concept of risk analysis that is a seven stage process. Systematic assessment (item by item question every part of the system) [13]. Identification of risks [13]. Assessment of risks (frequencies and consequences) [13]. Establish acceptable/tolerable levels of risk [13]. Evaluate the risks. Are they acceptable? Can they be reduced and at what cost? Determine whether the risks are as low as reasonably practicable [13]. Determine risk reduction measures where appropriate [13]. Risk Assessment Evaluation There are many ways and different techniques to evaluate what the risks are, what the effect they have on the project and what measures can be put in if the risks should occur [19]. Risk assessment is by most people divided into two areas, Quantitative Risk Analysis and Qualitative Risk Analysis. Quantitative In its most basic form the formula for risk quantification is: à ¢Ã¢â€š ¬Ã¢â‚¬ ¢Rate of occurrenceà ¢Ã¢â€š ¬Ã¢â‚¬â€œ multiplied by the à ¢Ã¢â€š ¬Ã¢â‚¬ ¢impact of the eventà ¢Ã¢â€š ¬Ã¢â‚¬â€œ = risk. Methods based on this method are often called à ¢Ã¢â€š ¬Ã¢â‚¬ ¢expected value analysisà ¢Ã¢â€š ¬Ã¢â‚¬â€œ and include models like Annualized Loss Expectancy (ALM), the Courtney formula, the Livermore Risk Analysis Methodology (LRAM) and Stochastic Dominance (Snyder, Rainer Jr., Carr 1991). The advantages of Quantitative Risk Analysis methodologies are that they are good at identifying the most critical areas that, if something happens, will have the largest impact on the project. There are also disadvantages to Quantitative Risk Analysis. When one measures the probability of damage to the project the quantitative approach tends to average the events leading up to a problem (Snyder, Rainer Jr, Carr 1991). Qualitative Qualitative methods attempts to express risks in terms of descriptive variables rather than an economic impact. These approaches are based on the assumption that certain threat or loss of data cannot be appropriately expressed in terms of dollars or pounds and that precise information is impossible to obtain. These methodologies include Scenario Analysis/Planning, Fuzzy Metrics and questionnaires (Snyder, Rainer Jr., Carr 1991). The advantages of Qualitative Risk Analysis methodologies are that they save time, effort and expense over quantitative methods. This is because assets do not need exact values in dollars or pounds nor do threats need to have exact probabilities. It is also a valuable methodology in identifying significant weaknesses in a risk management portfolio. There are disadvantages with this method as well. Qualitative Risk Analysis is inexact, the variables used (e.g. low, medium and high) must be understood by all parties involved (Snyder, Rainer Jr., Carr 1991). Risks Reduction Once risks have been identified and evaluated they have to be responded to in some way. Wideman (1992) lists seven basic responses on identified risks: Recognised but no action taken (absorbed as a matter of policy) Avoided (by taking appropriate steps) Reduced (by an alternative approach) Shared (with others, e.g., by joint venture) Transferred (to others through contract or insurance) Retained and absorbed (by prudent allowances) Handled by a combination of the above Dorfman (1997) says that all techniques to manage the risk fall into one or more of these four major categories (remembered as the 4 Ts): Tolerate (aka Retention) Treat (aka Mitigation) Terminate (aka Elimination) Transfer (aka Buying Insurance) Bliss (2005) listed these five types of similar risk responses as Dorfman and Wideman. Risk avoidance: Also known as risk removal or risk prevention, risk avoidance involves altering the original plans for the project so that particularly risky elements are removed. It could include deciding not to perform an activity that carries a high risk. Adopting such avoidance techniques may seem an obvious way to deal with all risks. However, often the areas of the project that involve high risks are also the areas of the project that potentially contain the highest worth or the best value for money. Avoiding such risks may also result in removing potentially the best bits of a resource, and an alternative strategy that retains these risks may be more appropriate [13]. Risk reduction: Risk reduction or risk mitigation involves the employment of methods that reduce the probability of a risk occurring, or reducing the severity of the impact of a risk on the outcome of the project. The loss of highly skilled staff is a considerable risk in any project and not one that can be totally avoided. Suitable risk mitigation could involve the enforcement of a notice period, comprehensive documentation allowing for replacement staff to continue with the job at hand and adequate management oversight and the use of staff development programmes to encourage staff to stay [20]. Risk transfer: Risk transfer moves the ownership of the risk to a third party normally by contract. This also moves the impact of the risk away from the project itself to this third party [20]. Risk deferral: The impact a risk can have on a project is not constant throughout the life of a project. Risk deferral entails deferring aspects of the project to a date when a risk is less likely to happen. For example managing the expectations users have about the content and delivery of a resource can be time-consuming, one way to reduce this risk is by not making a web resource available until user testing is complete [20]. Risk retention: Whilst a certain number of the risks to the project originally identified can be removed by changing the project plan or dealt with by transferring the responsibility of the risk to third parties inevitably certain risks have to be accepted as a necessary part of the project. All risks that have not been avoided or transferred are retained or accepted risks by default [20]. Previous Successful Project: St Pancras International Rail Station According to XXXXXX, before St Pancras International rail station was opened; a number of days were devoted to testing all the systems and processes, using an army of thousands of volunteer passengers. These tests were carried out much before the opening day, thus providing enough time to resolve issues that might have occurred during testing [26]. By carrying out the testing in phases much long before the opening, members of staff were able to familiarize themselves with the systems and get actual hands-on experience before the station was opened to Eurostar traffic. Dry-runs were carried out as well with the vital lessons were learnt and adjustments made before exposing paying customers to the St Pancras experience. Inevitably the result was that on the opening day, everything went without glitches on the first day of international service [26]. Previous Failed Project: Denver International Airport The Denver International Airport was scheduled to open on October 31, 1993 with all three of its concourses fully running on the BAE automated baggage handling system that. On February 28, 1995, the new airport finally opened. Its opening came sixteen months late. The automated baggage system was supposed to improve baggage handling by using a computer tracking system to direct baggage contained in unmanned carts that run on a track. BAE systems presented the City of Denver with a proposal to develop â€Å"the most complex and automated [and integrated] baggage system ever built. Original target opening date for the airport was (delayed seven times over the next three months). City of Denver invited reporters to observe the first test of the baggage system without notifying BAE. This was a public disaster! Reporters saw piles of disgorged clothes and other personal items lying beneath the Telecars tracks. Lots of mechanical and software problems plagued the automated baggage handling system. When the system was tested, bags were misloaded, sent to different routes, and fell out of automated telecarts, thus causing the system to jam. The automated baggage system still continued to unload bags even though they were jammed on the conveyor belt, because the photo eye at this location could not detect the pile of bags on the belt and hence could not signal the system to stop. Main Lessons One of the lessons BA and BAA might have been learnt from the Denver project, was that BAE actually built a prototype of the automated baggage handling system in a 50,000 sq. ft. warehouse near its manufacturing plant in Texas. But as similar to the T5 project, there was no evidence of adequate training and the results from simulation testing has been proven to be different to a real world scenario with real customers. I addition, research also shows that BAE had given an initial estimate of at least a year to test the system and get the system up and running, but United airlines and the other stakeholders pressed for a much shorter timeframe. City of Denver got the same story from technical advisers to the Franz Joseph Strauss airport in Munich (that less complicated system had taken 2 years testing and was running 24 hours a day for 6 months before the airport opened. Risks recognised early in the Project Very large scale of the project. Enormous complexity. Newness of the technology. Large number of entities to be served by the system. The high degree of technical and project definition uncertainty. Risk Identification PMBOK (PMBOK Guide, 2004) lists five tools and techniques for risk identific