Thursday, November 30, 2017

A Publicly Traded Bank




            Banks are considered to be some of the highly leveraged high-risk takers. In the event of a miscalculation, the repercussions can be dreadful and result to enormous losses or closure of the bank (Perez, 2014). Banks are exposed to risk all the time. It is the price they pay for the desire to realize profits. The risks occur due to predictable and unpredictable events in the financial market and the economy. They may also occur due to staff oversight, which causes loss in staff principles. When a risk occurs, the intrinsic value of the bank is abridged. The paper will look at operational, system and people risk encountered by Wells Fargo and how they can be mitigated.
Operational Risk
            As per the Basel commission, operational risk is the peril associated with inadequate or disastrous interior procedures, individuals or structure or from peripheral occurrences (Perez, 2014). Operational risk is expanded to incorporate legal risk. However, it is exceptional of strategic and reputational risks.
            Banks experience operational risk in all their undertakings. Such risks may include activities such as incorrect clearing of wrong financial documents and incorrect stamping of an order in the transaction end. Operational risks are vulnerable and occur in almost all the departments in the bank.
Causes of Operational Risk
            Exhausting all the causes of operational risks is difficult (Perez, 2014). However, it is possible to come up with a generalized approach to operational risk. It is mostly a result of individuals, equipment, and procedure risk. At times, people may become incompetent and misuse the power given to them by the bank. They place the bank at a risk. Technological systems may also fail due to activities such as hacking or program error. Such misfortunes may occur anytime and can result in a loss to the bank. Errors in processes may also arise when handling, conveying and repossessing data. It results in an inaccurate outcome that exposes the bank to the risk of a loss.
Technology Risks
            As a bank, Wells Fargo has not been exceptional to technological risks. Just like other banks, it has been exposed to the challenge of customer security management. Over time, the bank has introduced online banking services and communication. It has opened up space for the introduction of security related challenges with criminals seeking to exploit the online banking sector.
            Wells Fargo has been a natural target due to its scope and the severity of customer data and possessions. It has continued to experience malicious attacks that allow for the creation of systems that provide data such as communication data. It allows individuals to relay messages among themselves with a belief that they are doing it to each other over a private and secure line. However, hackers may intercept the communication system leading to sharing of critical information.
Peoples Risk
            Individuals operate bank systems and activities. Incompetency may lead to the exposure of a bank to unwanted risks that may lead to financial and reputational loss to the bank (Perez, 2014). The individuals may also misuse the powers accorded to them by the bank.
            Wells Fargo has been exposed to people risk. At one time, the bank’s sales agents opened accounts for customers without their consent. All this was aimed at meeting the sales targets the set by the bank for its staff. They were opened using unauthorized customer information and signatories. Such activities expose the bank to the risk of fraudulent exercises. People may use them as an avenue to carry out criminal activities such as money laundering. Upon its exposure, the bank suffered reputational harm. The good public image of the bank had been tainted.
Mitigating Risks
Operational Risk
            Wells Fargo mitigates its operational risks by conducting a set of processes. They include reporting, identification of the risk, control assessment, likelihood and severity, monitoring, mitigation planning and execution (Perez, 2014). They are all aimed at ensuring all emerging risks are identified and addressed.
Technology Risk
            Wells Fargo has invested in technological security. It has adapted to the use of malware which is a software aimed at damaging the systems that operate without the consent of the owner. It ensures that no unwanted infiltration into the system is allowed making communications secure.
Peoples Risk
            Wells Fargo trains its staff on the best methods of operation. They are made to understand the moral and professional requirements. They get to understand the risk the bank is exposed to as a result of their misdoings.
Eradication of the Risks
            It is difficult to have a complete eradication of the risks. Individuals are always prone to human error (Perez, 2014). Technology is always changing. A secure system today may not be secure tomorrow. Banks need to remain informed of the recent changes in technology to device systems that will ensure they avoid emerging risks.
            In conclusion, banks cannot be risk-free. They will always be subject to attacks from individuals and system with the intention of damaging their systems to make money. It is up to the bank to ensure that its systems are secure.


                                                                      Reference
Perez, S. (2014). What You Need to Know about Banking Risk. Retrieved from https://beta.marketrealist.com/2014/09/must-know-thorough-look-defining-banking-risk


Wednesday, November 29, 2017

Business Ethics



 Business Ethics
Business ethics refers to the application of values associated with ethics to the business behavior.  Notably, to be able to understand the implementation of good ethical practices in organizations employees and managers need to familiarize themselves with different types of ethical issues, which face businesses today. The paper will discuss ethical issues that are not trending and the associated challenges.
Social Networking
Social media sites are the most used network sites. Despite being unable to curb social networking, many problems may arise from workers accessing websites such as Twitter and Facebook (Bernstein, 2016). Remarkably, these may greatly involve potential confidentiality breach, misuse of company resources and time, conflict of interest, damage to the reputation of the company, and disclosure of the private information. Organizations can address the issue through the creation of policies, which show clearly the appropriate use of social media and the expectations of how these sites can be utilized professionally in order to meet their objectives in the organization.
Surveillance and Privacy
Bearing in mind the high rise of technology surveillance, businesses greatly face the balancing challenge of individual employee privacy in the protection of the health of the companies they work in (Bernstein, 2016). The employers need this technology implemented for many reasons, which include limiting legal liabilities, recovering lost communications, ensuring that workers adhere to the policies of the company and protecting sensitive information. However, these aspects come at the expense of relinquishing individuals’ privacy. The problem can be solved by encouraging employee participation in the policies, writing the policies, and offering complete disclosure on the tools and methods involved in the surveillance use of technology.
Transparency
Sometimes earlier, transparency simply meant owning a mistake. As these practices remain to be important, the transparency concept has now expanded. Its meaning has grown to refer to the act of being forthright in every aspect both negative and positive in the practices of a company (Bernstein, 2016). In order to ensure transparency in companies, the leaders should emphasize of the practice of transparency in all facets of their activities and operations, which include internal culture, employee conduct, and corporate objectives.
Child Labor
Despite numerous corporations trying to handle and eliminate the issues or challenges of child labor, these defilements still persevere in some companies. Remarkably, this in particular occurs in large enterprises where the leaders are usually far removed and distanced from the manufacturing and production process and several related ground-level operations. Businesses are associated with willful ignorance as they only handle issues and challenges when they arise and fix them as an alternative of undertaking proactive approaches (Bernstein, 2016).  In order to battle this challenge, it is advisable for companies to be committed both to the public and private policies associated with child labor.
Environment Protection
The basic reputation of big organizations participating in ecologically sustainable applies is common understanding and knowledge. Organizations should equalize their goal to gain profits with adopting to processes and operation that are maintainable. The main areas they should observe include poisonous wastes, pollution, nuclear and chemical tumbles, deforestation, and global warming contributions. Companies seeking to solve these issues should establish alternative generation of energy, express corporate responsibilities to the public and their partners, and participate in cost-benefit studies or analysis on the protection of the environment (Bernstein, 2016).
In conclusion, answers to business ethics depend on how companies conduct themselves. The employees and the managers have to exhibit moral values and the executives should understand what is expected of them as leaders. Since the importance of business ethics may not be downgraded in the current business world, organizations need to be encouraged to embrace ethical practices.











References
Bernstein, R. (2016). 5 Current ethical issues in business. Business Ethics. Retrieved from https://online.shorter.edu/business/current-ethical-issues-in-business/

Democracy and Civil Disobedience in the United States



Democracy and Civil Disobedience in the United States
Civil disobedience is the professed, active refusal to observe certain commands, demands, and laws of the either the government or any other international power. Forms of exercising civil disobedience are often nonviolent or passive means. One of the notable incidences that civil obedience was witnessed is when the United States’ reputable figure Mahatma Gandhi organized a defiant march to protest against the British government’s rule in United States that saw the monopolization of salt (Thoreau 1). Thoreau's Civil Disobedience ideas regarding civil disobedience insist on the need for the prioritization of humanity over the dictates of the government and the law. In particular, Thoreau criticizes the American policies, social institutions, the Mexican versus American war, and slavery (Thoreau 1). It is worth noting that the main purpose of civil disobedience is to influence different government policies and legislation by employing nonviolent mechanisms such nonpayment of taxes, picketing, and boycotting, among other practices.
Henry Thoreau put it forth so succinctly that the American Civil Rights movement that was formed by Americans 1960s is a notable example of a course that employed civil disobedience (Thoreau 1). Through this, Thoreau becomes an icon to be remembered for his art in protesting. Through the acts of people like Gandhi, we openly see the true definition of being a triumphant civil disobedience activist. However, Banksy’s importance in civil disobedience has been robustly disputed; since he does very little in trying to become an activist through street artistry. Such prosecuted treatment gave a footstool for the rise of graffiti artists like Banksy whose desire was to see to it that the commoners attain salvation from the government’s mistreatment. The only thing he lacks is an unwavering conscience to sustain him through the robust phase of civil disobedience. Despite being pessimistic about the whole idea, Banksy’s works can be seen throughout walls where he criticizes government actions in both images and text. For some substantial time to come, Banksy’s works are expected to rival political overtones across the nation.
As an underground artist, Banksy is renown globally for his protesting arts which he utilizes less effectively in changing a state he considers to be a contentious social climate. The art he projects on walls across numerous streets can only amuse masses in the form of social awareness with no other tangible benefits being felt. Due to his ironic fame, the ethical messages that are left anonymously become overshadowed and this affects his support over particular potency within the nation. So far, Banksy has done very little to try and alter the state of things; he only projects the obvious in his art. He ought to emulate the likes of Gandhi and Martin Luther King Jr. in their struggle of championing civil disobedience in acts if triumphant activism.
In recent years, civil disobedience against the republican candidate in Kansas capitol, Brownback has been one of the longest acts of civil disobedience. His agenda sought to spend on education and social services, privatization of the entire Medicaid system, abolition of art funding, scrapping teachers unions, a move that was expected to engender significant draconian cuts and torpedo the entire budget. These move evokes the question regarding the state of democracy in the United States with regard to campaign promises and other agendas that have often been employed by politicians. The purpose of this paper is to explore United States’ democracy in the United States and civil obedience.
Discussion
The state of democracy in the United States
Even as the United States celebrates the achievements in the separation of powers to exercise checks and balances, this system has created allowance for some powerful groups to influence the government; hence, safeguarding their interests. Here, the participation of interest groups has been dominant. Interest groups are the organization of people having policy goals and work in the political process in promoting such goal. Examples of such groups are powerful financial institutions and individualistic groups such as N.K.A and the A.A.R.P (Curray 2). The interest groups work in lobbying the government by hiring representatives that advocate on behalf of the interest of the groups. Whereas the interest groups were traditionally considered pivotal in separating powers, this does not hold any longer. Interest groups now influence policies in leadership, in many ways, especially ensuring that their self-vested interests are achieved at the expense of the powerless majority (Curray 2).
The House has been considered as a mere approver to the regulations by the executives, instead of exercising checks and balances. A Substantial amount of power has been delegated to the executive. Indeed, the eventuality has been the creation of the unlimited prerogatives that are exercised in the name of people when the real situation is that most decisions are made to protect the self-vested interests of those in power. Yet, even as United States celebrates achievements in democracy, it is still undisputable that the president continues to wield a lot executive powers. In particular, this has been depicted by Obama administration (Curray 3).   For instance, Obama has often been argued to interrupt the white house meeting by introducing an issues that have never been on the agenda, citing that the administration required the aggressive utilization of executive powers to overcome the opponents (Curray 4).
The president has been criticized for striving to implement decisions without the approval from the congress. Some of the policies that Obama has adopted include creation of jobs for the veterans, preventing the shortage of drugs, raising the standards of fuel economy and preventing domestic violence. Obama has often emphasized that he bypasses the law makers, asserting that he would continue implementations by himself even when the congress declines to approve. Obama has stated that executive actions would limit the possibilities for his election for the second term. One of the decisions that elicited sharp reaction was to use his recess appointment powers to install officials that had been objected by the congress (Curray 5). Obama has been widely criticized over his approaches of concentrating many powers in his presidential office. Others have contended that the move by Obama to exercise presidential powers in passing decision is not new in history. It had been used by his predecessors on various occasions, yet it is legally bound by the constitution. Regardless of these, such a situation negates the reason for democracy.
Crown it all, United States law and its foreign policies have found itself in conflict with the international law. For instance, in 2003, in the in the invasion of Iraq, United States was labeled as a country that was above the international law. The question is whether democracy has to do with the violation for the international law. The answer is simple, a desirable democracy is that which is bound by the external and internal laws, creating allowance of the perpetuation of power not only within its boundaries, but also across within the global contexts, and that includes leading by example.
In conclusion, the American exceptionalism thesis, as far as democracy is concerned, is disapproved. Occupy Wall Street reveals that the US and the countries it criticizes for lagging in democracy, such as protest prone Egypt and Syria are not any different. Secondly, even as the United States celebrates the achievements in the separation of powers to exercise checks and balances, this system has created allowance for some powerful groups to influence the government to safeguard self-vested interests at the expense of the powerless majority. House of Representatives no long exercises the separation-of-power responsibility because it often supports the executive. Even worse, the president wields a lot power in the executive processes. Lastly, what is the position of liberal, democratic America if its foreign policies do not reflect democracy? Undoubtedly, it is a fading democracy (Curray 7).
Factors Contributing to Civil Disobedience
Several authors have supported this finding. For instance, the United States’ elections are always never fair. They are marred with incidences of political corruption involving suppression of civil right activists to support and protect the interest of the government and other elite members in government. The author notes that elections have been unable to address issues of civil disobedience through elections as powerful politicians would recruit a few individuals to bribe voters to lure them to support them. The operations are always networked operations that involve the use of the police officers (Ross 12).
The elite groups successfully achieve their political goals by muting the opponents. Ideally, this group of people owns the media and it is able to gate-keep, and censor the voices of the opponents so that the audience does not hear them. In doing so, they are able to use the same media to their advantage by popularizing their ambitions to the public (Ross 12). The manifestos the parties provide rarely represents the will of the people — instead, it results from concessions of the elite groups in United States and beyond the borders, the special interest groups. Therefore, by virtue of this position, they are able to influence the developments in governance by using their resource and influence (Ross 12).
The account of limited mentality is borne on lack of awareness on political participation. It also happens that the powerful employee different tactics to whitewash the voters to support them in protecting their vested interested. The powerful elite groups who have access to resources are able to manipulate the media and spread negative propaganda against certain, less powerful politicians, rendering them less popular (Ross 12).
Conclusion
In conclusion, this research paper sought to inquire why it is still difficult to get rid of the caste system in democratic republics such as United States. Many elections, however transparent, have often served to fortify and serve the interests of a few, powerful classes of people — at the expense of the majority. While the literature relevant to the subject existed, it did not adequately answer the subject question. Nevertheless, it brought into light various themes that are crucial in extending the discussions and helping conceptualize the challenge of democratic systems. The relevant literature notably touched on the areas such as the nature democracy and challenges, and the accounts of the challenge. In the end, literature presented some significant theoretical and empirical discussions that happen to be critical in unearthing the gap in knowledge and providing a foundation to approach the subject.







Works Cited

Thoreau David, Civil Disobedience. 2017. Retrieved on December 1, 2017 from http://www.sparknotes.com/philosophy/civildisobedience/section2.rhtml

Curray, Marin. How Can Power Be Limited By The Constitution? 2012. Web. December 1, 2017. <http:// www.ourcivilisation.com/cooray/btof/chap174.htm>
Ross, Dorothy. The Origin of American Social Sciences and Exceptionalism. Cambridge University Press. 1991. Print.