Company Risk Avoidance Plan

Risk management is an essential aspect of modern business aimed at ensuring the profitability of diverse ventures for the business owners. In this report the discussion presented will focus risk avoidance strategies that can be used in the management of companies, avoidance of risks associated with securities regulations, avoidance of risks associated with accountant liability and avoidance of agency associated risk.Advertising We will write a custom report sample on Company Risk Avoidance Plan specifically for you for only $16.05 $11/page Learn More According to Oren, Risk Avoidance involves setting of margins and thresholds that are used to avoid unacceptable risk where acceptability limits are typically established by experts (2001). In the management of companies risk avoidance may be as a result of poor decision making. For managers interested in mitigating risks one approach could be the use of decision analysis tools (Oren, 2001). These tools will provide several scenarios taking into consideration objective and subjective information as well as the decision maker’s preference. The tool can then be used to identify the best alternative. It has been reported that the approach has been successfully implemented in various decision making contexts such as product development decisions, assessment of investment options, etc. Another approach that can be used by management with a view to Risk Avoidance is to enlist the services of regulatory bodies. BGP technology is a biotechnology company and as such the products produced pose some degree of risk to the public. Regulatory bodies such as the Food and Drug Administration (FDA) perform a set of expert designed tests that are highly reputable (Oren, 2001). The FDA approval seal on the company products is one essential component that management can use to avoid legal risks associated with products. Upon approval of a product in case of any complaints about the drug the company can share the blame with the FDA. The environmental protection Agency (EPA) can also be called upon by management to carry out inspection on facilities and provide certification on emission levels and toxic waste management (Oren, 2001). With regards to regulation of securities the management of the company can avoid risk by implementing strategies such as hedging. Hedging is a strategy that avoids risk by spreading the risk or financial consequence associated with a particular risk (Oren, 2001). In this approach the management will make an investment portfolio that selects companies whose trading outcomes are correlated so as to reduce the overall variability. An area of risk avoidance that has been the cause of much debate in recent years is the degree of liability a company should commit to in the case of a company agent. In the scandals that saw companies such as Enron fall, investors lost huge sums owing to the poor decisions by the auditors and the company directors. Followin g such losses constructs such as proportionate liability have been established to avoid risks associated with company agents (Faure, 2009).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As a result of such actions it has been observed that many firms have stopped provision of audit services within high risk business categories (Linville, 2002). This scenario has led to a situation where on very knowledgeable and well capitalized firms are ready to risk undertaking audit activities. These new regulations have further raised the costs associated with auditing. One advantage of such measures is that they have led to a decline in litigation against firms with deeper pockets that were typically the target of litigation in earlier times (Faure, 2009). This is possibly through the increased motivation by agents to fully comply with industry regulations thus leaving very little room for error. N evertheless despite the disadvantage of increased cost the proportionate liability regulation has helped in regulating industry players with regards to compliance. For successful implementation of the proportionate liability entity the various agencies associated with a business entity must be properly classified. An agent is a vehicle that can be used to perform a specific function on behalf of the business entity. Categories that typically are categorized as agents include legal services, accounting services, trading companies, etc (Peterson, 2007). In light of current legislation in the SEC, agents and principals are required to comply with specific regulations in a view to protection of client interests. It has been established that for the agency to perform their duties well adequate incentives must be offered to ensure that the agent does not under perform (Peterson, 2007). This suggests that to avoid risk selection of agents should be done with care and results from the regul atory bodies within those industries used to confirm performance criteria. In addition to hedging with regards to investment on the stock market another possible solution that could be used in the avoidance of risk by BGP technology is making improvements in the Business Process Management (BPM) cycle. BPM is an essential aspect that can be used to improve the competitive advantage by ensuring the smooth flow of all business processes. A biotechnology company such as BGP is likely to be involved in manufacturing. Through appropriate analysis of the supply chain adjustments can be made to ensure product prices are maintained and profitability is sustained (Muehlen Ho, 2006). An example of improvement of the business processes in this case could involve the use of hedging in the supply chain. It is likely that the cost of raw materials fluctuates and affects the cost of the finished products.Advertising We will write a custom report sample on Company Risk Avoidance Plan specific ally for you for only $16.05 $11/page Learn More Just as in agriculture a hedge fund can be established using a suitable price for raw material (Oren, 2001). This fund thus acts as a buffer protecting the company from changes in prices. This can ensure that the company can withstand the risk associated with increases in cost of raw material. Though the material provided in this report is not conclusive, it attempts to highlight various risk avoidance schemes. These schemes are among several risk avoidance schemes that can be used in addressing issues related to management, securities, accountant liability and agency associated suits. References Faure, M. (2009). Tort Law and Economics. Massachusetts: Edward Elgar Publishing Limited. Linville, M (2002). CPAs’ Awareness of Litigation Risk. Academy of Accounting and Financial Studies Journal, 6(3), 11-21. Muehlen, M. Z. Ho, D. T. (2006). Risk Management in the BPM Lifecycle. Business Process Management Workshops, 454-466. Oren, S. (2001). Market based Risk Mitigation: Risk Management vs. Risk Avoidance. White House OSTP/NSF Workshop on Critical Infrastructure Dependencies, 1-10. Peterson, C. L. (2007). Preemption, Agency Cost Theory, and Predatory Lending by Banking Agents: Are Federal Regulators Biting off More than they can chew? American University Law Review, 56(3), 515-549.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This report on Company Risk Avoidance Plan was written and submitted by user Tony Valenzuela to help you with your own studies. 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Emotion vs The Intellect, The Heart vs The Mind Essays

Emotion vs The Intellect, The Heart vs The Mind Essays Emotion vs The Intellect, The Heart vs The Mind Paper Emotion vs The Intellect, The Heart vs The Mind Paper Over the generations as academia and civilization have transformed, changed, and grown there has always been a tear down the hearts and minds of this worlds greatest scholars. Questions of whether to follow the heart, its emotions and instincts, or the mind, and its intellect, land close to the hearts of anybody involved in academics. In a Merriam-Webster dictionary emotion is defined as 1 a : the affective aspect of consciousness : feeling b : a state of feeling c : a psychic and physical reaction (as anger or fear) subjectively experienced as strong feeling and physiologically involving changes that prepare the body for immediate vigorous action. 1 Websters dictionary defines the emotion as a sort of sixth sense, a human reaction to an action, feeling. Emotion, is related to instincts, and is an important factor in the survival of humans. However, this same dictionary defines the intellect as 1 a : the power of knowing as distinguished from the power to feel and to will : the capacity for knowledge b : the capacity for rational or intelligent thought especially when highly developed2. Intellect is thus the ration seeking part of human thought. The manner in which one may differentiate between an impulse and judiciousness is through the intellect. One may ask if this means the intellect reigns supreme over emotion, yet I disagree. The debate between emotion and intellect is not a new one. In The Future of Illusion, Freud comments on the issue in respect to instincts. He articulates, We may insist, as much as we like that the human intellect is weak in comparison with human instincts, and be right in doing so. But nevertheless there is something peculiar about this weakness. The voice of the intellect is a soft one, but it does not rest until it has gained a hearing. Ultimately, after endlessly repeated rebuffs, it succeeds. This is one of the few points in which one may be optimistic about the future of mankind, but in itself it signifies not a little. And one can make it a starting-point for yet other hopes. The primacy of the intellect certainly lies in the far, far, but still probably not infinite, distance. (Freud, 92, 1928) In this passage Freud states clearly states that the human intellect does not have as much force behind it as human instincts, emotion and instincts come from a heart while facts, lacking passion, are all that finance the intellect. The power in the intellect is, however, in its ability to continue deeper, into a vast abyss of the unknown and undiscovered. Freud believed this abyss not to be infinite, due to the ability to have an answer for everything. While none has achieved this, but were they to, there would be no more answers beyond that, creating an end for all answers. However, this does not mean that intellect is absolute, due to the manner in which knowledge is flawed there is still room for instincts, even in Freuds eyes3. The topic of emotion as opposed to intellect, feeling vs. act, is often a heavy and heated topic. There are those whose lives center around the following of instincts to the extreme, such as Hindu sadhus in India and other spiritual seekers across the seven continents. There are also those who follow their intellects to the maximum, without using and having any interest in emotion, seemingly more common in academic circles than the former. Being a nihilist one would think Nietzsches ideas on the concepts of emotion are fairly disheartening, to any believer in the importance of emotion. His perceptions of the intellect are at times surprising and immensely interesting. In a passage from What is the Meaning of Ascetic Ideals, the third essay in On the Genealogy of Morals, Nietzsche comments on the intellect from a very different and unusual angle, for a nihilist. He begins the segment by influencing against pure reason, absolute spirituality, and knowledge itself. He urges toward understanding and contemplating a diversity of ideas, in order to gain a greater understanding as a collective. A little further along in a passage he declares, There is only a perspective of seeing, only a perspective knowing; and the more affects we allow to speak about one thing, the more eyes, different eyes, we can use to observe one thing, the more complete will our concept of this thing, our objective, be. But to eliminate the will altogether, to suspend each and every affect, supposing we were capable of this -what would that mean but to castrate the intellect? - (Nietzsche, 119) Nih ilism as a doctrine deems traditional values and ideals as unsubstantiated, and survival or existence as futile and useless. This is a very interesting vantage point. Throughout the writing of Nietzsche the necessity to take others ideas and opinions into account is underlined. In this section were told that without the ideas of the other ours cannot possibly be so strong. In affect, if we do not take those who disagree into account we may very well castrate our intelligence, our intellect. Nietzsche insists that we not take any one opinion as superlative, whether it is abundantly positive or negative, yet to browse and discuss in order to understand an issue more fully. The style of philosophy of which Nietzsche partakes in is which views perspective as a tool for infinite understanding. Similar to those who believe in Karma, Freidrich Nietzsches beliefs center on each particular situations perspective and which side of the situation or problem you are on, though he does not comment on Karma in any of his works. Darwin, in The Origin of Species, brings the importance of several vantage points rather than a supreme emotion or intellect into light. He pronounces the human intellect as inappreciable, microscopic or negligible4. The intent behind Darwins statement on this matter is that humans are well, just as the clichi goes, only human. Yes, that statement refers to both intellect as well as emotion. Human lives, and their understandings, are imperfect. Darwin is an expert on the varied species as a growing, changing, mechanism. His expertise noticed in The Voyage of the Beagle5 that the intellect became far keener when his subject back passionately excited about something, both passion and excitement being emotionally charged. Thus the argument for either intellectually based or emotionally based supremacy is at fault. When the question is what do I think of the Oedipus complex, of course one searches within their intellect for a greater understanding of the concept. When an old companion sends a letter, upon its reception ones heart, and more emotional side are contacted. However, what happens when and issue is not solely in the court of your heart or intellect? Unfortunately there is no supreme answer of which to follow, just as there is no supreme answer as which is more accurate, the heart or mind. Just as Nietzsche suggests, as mankind ventures deeper into the 21st century, we must attempt to see situations with our heart and minds, together. Whether the topic is politics, compassion, or hatred, as people we will have a obligation and ability to call on and utilize both heart and mind into use.