Basel committee's risk categories in relation to financial Essay

Basel committee's risk categories in relation to financial instituitions in relation to financial and non financial organisations - Essay Example In banks, there is a possibility for financial data to disappear. Financial information on loans given, repaid, capital, withdrawals and deposits made can be stolen by the employees or simply disappear due to poor technological procedures. The Basel Committee identifies that internal loss of data can occur due to poor risk management processes, new technological methods and upcoming business activities. Basel Committee identifies that a company is not able to have the right documentations in its accounts if it has loss of data. This means that its profit and loss margins will be under estimated. This is dangerous to the company as it will not reveal the real amount of capital used to carry out the activities (Basel, 2006, pp. 141-153). Case studies on non-financial organisations reveal that they are at a risk of internal fraud. This is so because they also use money or capital in purchasing their materials for their use. The case studies revel that non financial organisations mainly undergo the risk internal fraud by making misstatements on the financial statements. This does not indicate the true financial state of the organisations. The case study reveals that both financial and non-financial organisation can show fraud by looking at the growth in terms of their revenue and how it keeps changing. The margin of their growth of revenue is not very consistent. For a company to know where it lies in the financial market, the growth change in revenue is supposed to be a bit consistent. It is not supposed to have big margins. According to Erickson’s and other scholars, the audit sector is normally not able to detect fraud because of the lack of understanding of the organisational environments they are working o n (Erickson, 2001, pp.166-193). According to the studies made on Basel Committee, external fraud occurs is mainly done against the organisations. It undergoes external fraud due to misinformation from its clients in

Pythagorean Quadratic Speech or Presentation Example | Topics and Well Written Essays - 250 words

Pythagorean Quadratic - Speech or Presentation Example Ahmed has half of a treasure map, which indicates that the treasure is buried in the desert 2x + 6 paces from Castle Rock. Vanessa has the other half of the map. Her half indicates that to find the treasure, one must get to Castle Rock, walk x paces to the north, and then walk 2x + 4 paces to the east. If they share their information, then they can find x and save a lot of digging. What is ‘x’? Since the Pythagorean Theorem is given by c2 = a2 + b2 then, each of the expressions ‘x’, ‘2x + 4’, and ‘2x + 6’ representing the sides of the right triangle which encloses the route to the buried treasure may be plugged into the Pythagorean equation such that (2x + 6)2 = x2 + (2x + 4)2 where ‘2x + 6’ paces refers to the measure of the longest side. Then expanding the binomials (2x + 6)2 and (2x + 4)2 yields 4x2 + 24x + 36 and 4x2 + 16x + 16, respectively. Upon combining like terms in the compound equation formed, the resulting equation turns out quadratic with x2 - 8x - 20 = 0. By factoring the trinomial, x2 - 8x - 20 becomes the product (x - 10) * (x + 2). Through zero-factor property, each factor may be equated to zero to have x - 10 = 0 and x + 2 = 0, correspondingly. Solving completely, ‘x’ can be isolated on one side of each equation, becoming x = 10 and x = -2. It is logical to use positive values, so in this case, take x = 10. This means from Castle Rock to the place where the treasure is buried, Ahmed can walk 2*(10) + 6 or 26 paces to access the treasure or Vanessa can walk 10 paces heading north first then 2*(10) + 4 or 24 paces going east to be brought to the treasure spot. Apparently, ‘Pythagorean Theorem’ proves useful in solving the specified problem which may be put into an illustration of a closed three-sided figure. Since there are distances covered northward and eastward, a