Literature Review of Value at Risk Essay Example | Topics and Well Written Essays - 750 words

Literature Review of Value at Risk - Essay Example Modern financial institutions are careful to estimate the risk in relation to the magnitude of the asset and are careful to assess the levels of risk apparent from the credit quality of the company and the risk caused by the particular product. ( Hsaio 2008) . Modern Credit Risks are no longer defined by outright exposure and are currently calculated by a popular method of the Value at Risk (VaR)This method estimates the maximum amount of loss possible in a portfolio subject to certain periodic intervals and has its advantage of being comparative in nature, i.e it will allow the financial institutions in question to allocate capital more efficiently.(Chance 1979).These methods employ the risk level models of capital , which are used to estimate the profitability of capital, like the risk-adjusted capital (RORAC) or risk-adjusted return on capital (RAROC) and such models today play a pivotal rile in the management of risks inherent in the management of financial institutions. In credit risk calculation VaR or Value at risk is a single numerical estimate which is an indicator of the possible maximum loss of a portfolio over a given time horizon at a certain confidence level.This methodology developed as a response to the financial disasters in the decade of the 1990s and have obtained an increasingly important role in risk management (market, credit and operational).The attraction of using VaR for credit risk assessment thus lies in the fact that it is able to provide a single quantity that states the overall market risks faced by an institution. The criticisms have however stemmed from a recognized lack of coherence in the VaR methods and its failure to account for losses beyond a certain level and does not give due credit to the advantages of diversification by not taking into account sub-additivity. Various VaR models currently dominate the literature.These include the historical or (empirical) approach (see Van Der Vaart 1998),the Gaussian approach, the extreme value theory approach (which through the block maxima method (BMM) and the peak over threshold (POT), focuses on variables above a given threshold Also relevant here are the interest rate risks which are related to the relative value of an interest-bearing asset diminishing due to a rise in the interest rate. It can be calculated by a variety of ways to give an estimate as to how changing interest rates are impacting upon a bank's portfolioThese include the "market value of portfolio equity" method which uses market value of the assets,analysis of the shifts within the Yield curve ,the Value at Risk method, and measuring irregularities within the interest sensitivity gap of assets and liabilities. (Bower 1984). There are many main models for measuring credit risk and differ by the period at which they were used .Value at Risk (VaR) is one of the most modern methods of measuring credit rate risk and is an integral part of the modern market risk measurement framework and it aims at expressing the total market risk as a single number, i.e. to summarize the expected maximum loss over a target horizon within a given confidence interval.

Project Financial Risk Management followed in IT industry enhances the Research Paper

Project Financial Risk Management followed in IT industry enhances the success rates of Projects delivered - Research Paper Example Financial Risk Management in IT Introduction Risks management is in many ways the process of identification, assessment and prioritization of risks, which is then followed by the coordination of all economic resources necessary for the elimination or minimization, monitoring, and control of the probable impacts of uncertain events. It has been found that, risk can come from uncertainties in financial markets, legal liabilities, project failures, accidents, credit risks (Macomber 2003, p. 2). Studies indicate that, there are various project management standards, which have been under development in the project management institute, actuarial societies, ISO standards, and the national institute of standards and technology (Hodgson 2003, p.1). The approaches and objectives of hazard supervision vary greatly dependent on the hazard administration technique applied in the setting of a scheme administration.. In other studies however, hazard administration includes the ranking of the essen tial developments; hazards with the extreme loss are handled first and then the other hazard are handled in a descendent mode in order of precedence. It is pointed out that intangible management usually identifies new types of risks that have about a hundred percent probability but the management ignores because most organizations lack identification capabilities to handle such cases (King 2003, p. 2). It is recorded that relationship risk emanate when inefficient ways of collaboration is experienced. This type of hazard is known to reduce the efficiency of information workforces, effectiveness, service, excellence, product value, and excellence of earnings at the end. Thus, risk management is a subject or process that needs all manner of care to be successful. Literature review From organizational perspective, risks arise most often when businesses pursue opportunities in face of uncertainties, while being compelled by capabilities and cost. In most cases, a challenge comes when it comes to the process of finding a position based on the two dimensions, as it represents in essence itself a risk profile that may be appropriate for the initiative; acceptable to both internal and external stakeholders of the business in question. Studies affirm that, hazard and hazard administration are premeditated in nature. Regarding, information and technology studies show that, software projects have been recognized to be high-risk ventures, which are prone to many failures. Some studies argue that there are mainly two classes of risks; generic risks that are common to all projects, and project specific risks. In many cases, some of these hazards are easy to recognize and regulate or accomplish. However, in some cases, other risks are less obvious and thus very difficult to make predictions on their likelihood to occur and the impact they may cause at that time (Levine 2004, p. 32). The complication and difficulty in predictions comes because of numerous project proportions; structure, size, complexity, composition, novelty, long planning, and execution horizons. All these have a common influence on the modest of the scheme at the end; hus, any indeterminate discrepancy in this has fiscal implications. Therefore, risk management in information technology, especially software

Traditional Monoclonal Antibodies and Recombinant Antibodies

Traditional Monoclonal Antibodies and Recombinant Antibodies Introduction: Antibody is a special molecule that present in our bodies to fight against infections and stimulate immune response. Typical antibody is a Y shaped molecule consists of two H (heavy) and two (light) chains. Two antigen-binding fragments (Fabs) are linked with a constant region (Fc)(Brekke and Sandlie 2003). After the discovery of murine monoclonal antibodies produced by hybridoma cells developed by Kohlor and Milstein(Kohler and Milstein 1975), the role of monoclonal antibodies in therapeutics and clinical diagnostics are increasingly important in the last three decades (Laffly and Sodoyer 2005). The term monoclonal antibody is defined as an antibody molecule which is monospecific and derived from a single B cell clone. Results in using fully murine monoclonal antibodies in therapeutics are not ideal and problems aroused in triggering unwanted human immune responses. These problems force the generation of recombinant antibodies in the replacement of traditional monoclonal antibodies. Tailor-made recombinant antibodies fragments increase flexibility both in immunotherapy and immunodiagnostics. The application of minimal form of functional antibodies single-chain antibodies (scFvs) are the most popular form of recombinant antibodies fragments as diagnostic agents (Hagemeyer et al. 2009). In this assignment, the comparison between traditional monoclonal antibodies and recombinant antibodies as therapeutics agents and diagnostics tools will be discussed. From the example of tragedy TGN 1412, the potential risk of using recombinant antibodies in therapeutic agents should not be ignored. Finally, future perspective of recombinant antibodies in gene therapy and using polyclonal antibodies as novel immunotherapeutic strategy will be discussed. Theoretically, probably any kind of monoclonal antibodies can be produced with the aid of hybridoma technique. The continuous culture of hybridoma cells creates an inexhaustible supply of monoclonal antibodies in the laboratories by cell culture or rodent(Nelson, Reynolds et al. 2000). Its highly specificity, stability and homogeneity are ideal for diagnostics and in therapeutic purposes. After the introduction of the first FDA approved drugs OKT3 launched into the market in 1986, the results of using fully murine monoclonal antibodies in human was not promising (Chatenoud, Baudrihaye et al. 1986; Chatenoud, Jonker et al. 1986). This is because murine originated monoclonal antibodies triggered several immunogenic responses in human body. One of the problems arise is human anti-mouse antibodies (HAMA) or anti-globulin antibodies (HAGA) response (DeNardo, Bradt et al. 2003; Presta 2006) generated against the administrated murine antibodies. Studies showed that around 30-75% of patients with solid tumors and relapsed B-cell malignancies developed HAMA response after exposure to murine antibodies (Smith, Nelson et al. 2004; Majidi, Barar et al. 2009). The activation of HAMA response is mainly due to the host antibodies generated against the idiotopes of the administered murine antibodies. Moreover, rapid clearance of murine Abs shortens its serum half-life and relatively ineffective to trigger cytotoxic effect (e.g. ADCC and CDC) compared to human antibodies hindered murine Abs as therapeutics agents (Presta 2006). Based on the above unresolved problems, with the aid of genetic engineering, murine monoclonal antibodies are modified to become less immunogenic and enhance potency in therapeutics and diagnostics. Three different types of recombinant antibodies are generated: chimeric, humanized and human antibody. In chimerization, the murine variable region is fused with the human constant region forming chimeric antibodies(Presta 2006). This modification imitates the human immune system. Although chimeric antibodies is less immunogenic but may trigger human anti-chimeric antibody responses (HACA)(Baert, Noman et al. 2003). Further maturation technique is humanization (hyperchimeric). In this technique, only the complementarity determining regions (CDRs) from the murine antibody was grafted into a human constant and variable regions (Smith, Nelson et al. 2004). By resurfacing, reshaping and hyperchimerisation of hyperchimeric antibody, the antibody binding affinity improved. Although the above me thods minimize immunogenicity, but immune response result of xenografting may occur. Finally, human antibodies can be generated by transgenic mice and in vitro combinatorial libraries (Brekke and Loset 2003; Brekke and Sandlie 2003; Presta 2006). Antibodies which generated under this method are expected to be identical to human antibodies with clinical significant without any side effects. One of the examples in combinatorial library approach for the selection of antibodies is by phage display technology in which antibody variables domain are expressed as fusion protein as coated on the surface of the bacteriophages. Under combinatorial library approaches and transgenic mice, the chance of getting fully human antibodies are higher when compared to hybridoma and chimeric antibody technologies. In addition, single-chain variable fragment (scFv) and Fab fragment can be isolated (Brekke and Loset 2003; Brekke and Sandlie 2003). Therapeutics application Fc portion in an intact antibody trigger effector function which is undesirable for therapeutic applications. Therefore, for a desirable antibodies design for cytokine inactivation or receptor blockage, the main considerations of antibody design are: size, tissue penetration, distribution, half-life, effector function, affinity, stability and immunogenicity. scFv and Fab fragments are preferred as choice of preference when compared to traditional antibodies because of smallest in size, high binding affinity, specificity, good tissue penetration and reducing immunogenicity due to HAMA response. scFv and Fab antibodies have a shorter half-life than whole antibodies and this drawback can be overcome by PEGylation. In addition, the attachment of PEGylation of murine monoclonal antibody reduces HAMA response of the host after administration(Laffly and Sodoyer 2005). Applications of monoclonal antibodies are vastly employed in therapeutic agents (e.g. treatment of cancer) and in clinical diagnostic (e.g. histopathological diagnosis). Humanized mAbs (transgenic mice) (resurfacing, reshaping and hyperchimerisation, etc) Phage display technology (Fabs and Fvs) In recent years MAbs have become very important commercial reagents, and currently contribute to over 30% of biopharmaceuticals in development and production. To date, 10 different MAbs have achieved FDA approval, with others in phase III trials.4 Applications Antibody conjugates (Majidi, Barar et al. 2009) Unconjugated mAbs (Majidi, Barar et al. 2009) rAbs for cancer therapy immunohistology genetic immunotherapy(Pelegrin, Gros et al. 2004) scFv for diagnostics tools (size, immunosensor, inhibition of imnflammation and complement system) (Hagemeyer, von Zur Muhlen et al. 2009) Problems polyclonal vs monoclonal therapeutics (Haurum 2006) TGN1412 incident (Self and Thompson 2006) References: Baert, F., M. Noman, et al. (2003). Influence of immunogenicity on the long-term efficacy of infliximab in Crohns disease. N Engl J Med 348(7): 601-608. Brekke, O. H. and G. A. Loset (2003). New technologies in therapeutic antibody development. Curr Opin Pharmacol 3(5): 544-550. Brekke, O. H. and I. Sandlie (2003). Therapeutic antibodies for human diseases at the dawn of the twenty-first century. Nat Rev Drug Discov 2(1): 52-62. Chatenoud, L., M. F. Baudrihaye, et al. (1986). Restriction of the human in vivo immune response against the mouse monoclonal antibody OKT3. J Immunol 137(3): 830-838. Chatenoud, L., M. Jonker, et al. (1986). The human immune response to the OKT3 monoclonal antibody is oligoclonal. Science 232(4756): 1406-1408. DeNardo, G. L., B. M. Bradt, et al. (2003). Human antiglobulin response to foreign antibodies: therapeutic benefit? Cancer Immunol Immunother 52(5): 309-316. Hagemeyer, C. E., C. von Zur Muhlen, et al. (2009). Single-chain antibodies as diagnostic tools and therapeutic agents. Thromb Haemost 101(6): 1012-1019. Haurum, J. S. (2006). Recombinant polyclonal antibodies: the next generation of antibody therapeutics? Drug Discov Today 11(13-14): 655-660. Kohler, G. and C. Milstein (1975). Continuous cultures of fused cells secreting antibody of predefined specificity. Nature 256(5517): 495-497. Laffly, E. and R. Sodoyer (2005). Monoclonal and recombinant antibodies, 30 years after. Hum Antibodies 14(1-2): 33-55. Majidi, J., J. Barar, et al. (2009). Target therapy of cancer: implementation of monoclonal antibodies and nanobodies. Hum Antibodies 18(3): 81-100. Nelson, P. N., G. M. Reynolds, et al. (2000). Monoclonal antibodies. Mol Pathol 53(3): 111-117. Pelegrin, M., L. Gros, et al. (2004). Monoclonal antibody-based genetic immunotherapy. Curr Gene Ther 4(3): 347-356. Presta, L. G. (2006). Engineering of therapeutic antibodies to minimize immunogenicity and optimize function. Adv Drug Deliv Rev 58(5-6): 640-656. Self, C. H. and S. Thompson (2006). How specific are therapeutic monoclonal antibodies? Lancet 367(9516): 1038-1039. Smith, K. A., P. N. Nelson, et al. (2004). Demystifiedrecombinant antibodies. J Clin Pathol 57(9): 912-917.

Maurice Sendak’s Where the Wild Things Are, In the Night Kitchen, and O

Maurice Sendak’s Where the Wild Things Are, In the Night Kitchen, and Outside Over There The three titles of Maurice Sendak’s famous picture book trilogy, Where the Wild Things Are, In the Night Kitchen, and Outside Over There, name what Judith Butler calls â€Å"zones of uninhabitability,† places of abjection that form the borders of the self as both its constitutive outside and its intimate interior. These are dangerous places in the geography of childhood, places where the child’s very life and sense of self is threatened. More frightening still, they are present places, places that exist in the same time that the child inhabits, rather than the once upon a mythical time of fairy tales and legends. Hence they are places that beckon the child to trespass the boundaries of their current lived social and material landscapes and explore. What does happen where the wild things are? What goes on in the night kitchen? What fascinations lurk outside over there? Indeed because they are the mysterious places belonging specifically to childhood, Max, Mickey, and Ida negotiate these places such that they are more comfortable and empowered within these borderlands than they are on the outside. Max becomes King of the Wild Things, Mickey is the hero of the night kitchen, and Ida rescues her sister from the goblins that inhabit â€Å"outside over there.† Even though the protagonist of each book is different, there is nonetheless the sense that this trilogy tells a developmental story, a story of the ways in which a clean and proper social body emerges or is constituted through certain exclusions, and how that which has been abjected returns in both threatening and joyful guises. Thus a reading of these stories as a developmental narrative where... ... embodiment that must be worked through in childhood—fantasies of cannibalistic consumption, of the morph-ability of bodies, of infantile sexuality—in order to construct the lived body of adulthood. But as Sendak understands, these fantasies never completely go away, but always return to haunt or thrill the adult subject as terror and jouissance. Works Cited: Butler, Judith. Bodies That Matter: On the Discursive Limits of â€Å"Sex.† New York: Routledge, 1993. Kristeva, Julia. â€Å"Place Names.† Desire in Language: A Semiotic Approach to Literature and Art. Ed. by Leon S. Roudiez. New York: Columbia UP, 1980. Powers of Horror. Trans. by Leon S. Roudiez. New York: Columbia UP, 1982. Sendak, Maurice. In the Night Kitchen. New York: Harper & Row, 1970. Outside Over There. New York: Harper & Row, 1981. Where the Wild Things Are. New York: Harper & Row, 1963.

Boredom †What Can Teens Do About It Essay

I have heard it time and again â€Å"I am bored! â€Å". These words have came from the mouths of many teenagers. Sure, we have the libraries, the parks, the internet cafes, the malls all around us. Yet, we still hear many teenagers around us saying that they long for something completely different than the aforementioned – something that caters more to their interests. So what can we do for these bored teenagers? You see, we have all the facilities etc. From bars to reacreational areas, places offering live music, a countless amount of shopping malls. Yet, teenagers are still bored. Thus I think it is crucial to ask the young people would like to do, then officials can plan their activities and build the venues accordingly. If we don’t, we will face the risk of continually seeing teens loitering around at the back alley or even committing crimes. More town meetings and conferences involving teenagers is vital to planning activities that they will enjoy. To simply assume that these adolescents will benefit from certain activities without asking them first will leave the place with empty centers and businesses that alienate many teens. For example, business catering to teen hobbies could be set up to host events for teenagers. Perhaps they could create some kind of contest, that would offer various skatebored equipments and apparel as prizes. The contest could include what many teenagers would enjoy: Music and Food. This way, instead of wasting money to build expensive venues to provide â€Å"entertainment† to curb teenagers’ boredom, the money could be spent on setting up activities that can guarantee success as they cater to the wants of the teens through the survey, therefore this could be done for these bored teens. As the world grows, the technology advances and companies like Apple come out with creative new devices like iPhones and iPads. When teens get caught up by these addictive trends of using iPad and iPhone, they would love to access them and use the interesting applications everyday. However, eventually their interest does not last as they would get tired of doing the same thing of staring into the iPhone or iPad screen. Instead of investing time into things that are not of much productivity, and does not help them develop any useful skill, they could first try to be creative and explore their artistic side is really great when they have nothing else to do. They could think of what things in life are really exciting or interesting to them, and think of a way they could incorporate some aspect of those things into their alone time. Once they start doing something creative,they can always go back to it, and they will never be bored. For example, they could take some free time to learn how to play a music instrument, in particular an easier one that you could easily learn by themselves at home which would be a guitar. This would help them develop an appreciation for music of they could learn well and it would bring out the more artistic side of them, instead of wasting time and getting bored from blindly following the trends of using electronic devices. Doing anything creative like learning an instrument will be beneficial to your growth as a person, it will broaden your skills and perspective on life, and it will also be fun. It begins with a recognition that every circumstance, every activity, contains within it the potential to yield value, either to us or to someone else. If we insist on always being passively entertained by life, we will find ourselves bored by much of it. On the other hand, if we can transform that expectation into a determination to make an effort to create value at every moment, we can begin to make even the most mundane experience interesting. For example, we can start up a conversation with a friend and know more about them which would enhance the friendship between the both of them. One minute you will be bored ad the next minute you will be busy talking with your friend to kill time. Talking also makes us forget about the time passing without our realisation. This also allows us to be engaged in something rather than staring into space, doing nothing which would benefit them in one way or another. Talking enhances communication skills and at least, one can bond more with her friends which would make one less bored. Engaged in the conversation, new facts about one another rise up to create a stronger bond between them. This would benefit one rather than doing nothing and feeling bored. Another way could be to eliminate boredom by looking for any interesting or purposeful activity in which you will feel energetic and less bored. A question that one may like to consider would be to think of how the activity will benefit one befoe doing something when one feels bored. Communication would make one more open-minded and an extrovert. In conclusion, there are many ways to escape boredom. But the problem here is that teenagers now do not know how to kill time. If they invest enough time to do something worthwhile such as learning how to play a musical instrument or enhancing their communication skills by conversing with a friend, they will not find themselves getting bored. Teenagers should engage in activities that they know will entertain them. For example, an avid reader can find time to visit the library rather than staying at home and watch television or do something unproductive. Thus, teenagers should know themselves and what they like and take part in activities that interest them. This will solve the problem of teenagers being bored all the time.

Mitsubishi Marketing

The article entitled ‘Mitsubishi cuts prices’ was written by Peter Roberts, and was found in The Australian Financial Review website, dated April 28, 2006 (which can be accessed at www.afr.com). The marketing concept used in the article is that of the pricing-cutting employed by Mitsubishi in its attempt to increase sales for their new products launch. PRICE-CUTTING Price-cutting is rampant in the car manufacturing industry where the only established price in the channel is the one at which the manufacturer sells. Specifically, Yadin stated that price-cutting ‘is a marketing technique involving temporary reductions in the price of a product or service, aimed at increasing market share’ (2000:300) The concept of price-cutting as a strategy means to lower prices as compared to the original price set mainly in order to increase sales (Wilmshurst and Mackay 2002:279). Alternatively, price-cutting may be used as a deliberate pull strategy in order to achieve lower costs by expanding sales. A company’s attitude to price-cutting, according to Baker (2000:63), should be influenced by its relative position in a particular market. In Roberts’ article, this marketing concept is depicted when the Australian car maker made massive price cuts across its range, as a direct response to its blunder in the company’s launch pricing strategy, particularly in the locally made 380 model. The introductory paragraph immediately pointed this out, and in the later part of the article showed how the firm was able to do this, which is by shaving dealer margins and negotiating better supply prices from Mitsubishi in Japan. In relation to the article and the way the price-cutting concept has been discussed in the lectures and in the text book, the two are comparatively alike because of the latter’s discussion of using the price-cutting strategy in already established companies, which is reflective of Mitsubishi’s position in the automobile manufacturing industry. In the same way, Mitsubishi used the price cutting concept in order to respond to excess capacity, falling market share, and dominate market through lower costs, just what the discussions in the initiating price changes similarly pointed out. The lecture notes also implied that customers are responsive to price cutting as long as the perception of brand and product value remains unchanged, which is what the article points out as the expectations of Mitsubishi regarding its increase in sales. In the automobile industry where the market dictates the selling price, this price cut is imperative of Mitsubishi. WORKS CITED Baker, M 2000, Marketing Theory: A Student Text, Thomson Learning, London. Wilmshurst, J & Mackay, A 2002, The Fundamentals and Practice of Marketing, Butterworth-Heinemann, Jordan Hill, Oxford. Yadin, D. (2002). The International Dictionary of Marketing, Kogan Page Limited, London. Â  

How a Bill becomes Law essays

How a Bill becomes Law essays THE CALIFORNIA STATE LEGISLATIVE PROCESS This paper deals with how bills in the state of California become laws, otherwise known as the Legislative Process. It will trace the process of a bill from the inception of an idea, to the outcome on a particular bill. Since I am majoring in Electronics Technology, Computer Repair here at American River College, I have chosen a bill related to that field. This bill is Assembly Bill 1710, Liability, and computer failures. The failure being referred to deals with year 2000 date change problem, or Y2K as it has been come to known. The Y2K problem is that of information processing using the incorrect date as a parameter. In order to save on hard disk space and the size (number of bytes or kilobytes) of software, it was decided to only refer to the YEAR part of the date without the '19'. Therefore, the date would read as follows: dd/mm/yy (e.g. 02/12/98). On the turn of the century the date parameter will read as follows: 03/01/00 and the software will misinterpret it as the 3rd of January 1900 and not 2000. This style of programming was adapted and has been used for the past 30 years and up until now. Most financial software purchased by financial institutions was developed using the Cobol (Common Business Oriented Language) with the date parameter used incorrectly or only applicable in the 20th century (using the last two digits of the year). This makes most of the worlds financial software inadequate and incorrect for the new millenium. How is that? The date parameter is used (in the incorrect format) in various crucial calculations such as calculating interest on bonds and pension funds. Hence, 30 years of programming needs to be corrected in a 6th of the time! This is a global task of greater magnitude than ever imagined. Basically all the programming of the last 30 years needs to be corrected in time for the turn of the century. It becomes even more interesting as it ...