A risk assessment for FDI Research Paper Example | Topics and Well Written Essays - 1750 words

A risk assessment for FDI - Research Paper Example The present study would focus on risk management that centers on adopting methodical and steady strategies to administer all of the IT functions threats facing an organization. This paper identifies the problems facing FDI, such as cutbacks spearheaded by the CEO in the IT department in terms of budget and personnel, and which have resulted to a political infighting, whereby the top management of FDI is split on whether there needs to be cutbacks in internal IT functions in favor of outsourcing, or maintaining it as the core of the business. The mitigation strategies identified for FDI problems comprises, hiring an intermediary consulting firm that is independent of the internal politics that are going on concerning the state of IT functions. Moreover, the setting up of an audit committee would help to direct and check the internal functional transaction. Thus, they will be responsible for assessing business and IT functions risks. Furthermore, groups or concern parties will be desig nated as central points in the administering and directing of the organization risk assessment procedures. In addition, the paper elaborates on the important risks issues concerning IT functions when it comes to outsourcing. Finally, the paper presents the risk assessment for the company and validates the claims that IT functions outsourcing is presenting the organization with risk on IT outsourcing. Introduction Risk assessment, is the procedure of scheming quantitatively the probable damage plus monetary outlay, resulting from threats, susceptibility and by incidents impacting the collection of IT assets of an organization (Tipton & Nozaki, 2011). Information technology risk management is the essential process which aids organizations to attain new business transformations, future savings in IT and their IT systems, along with a rising reliance on delivery within the organization information systems. However, the adoption of IT functions and systems has resulted in risks related t o ICT, like strategic risks, operational risks, as well as technological risks (Bahli & Rivard, 2003). Therefore, IT risks management approaches and strategies, need to be developed and implemented within organizations. Accordingly, before implementing any action that would reduce the internal IT functions of an organization, there needs to be a coherent IT risk management entails IT governance, plus information security governance being developed. The aim of this paper is to conduct a risk assessment for FDI, in order to make a compelling case as to what value the IT department brings over that of an integrator that can provide services at 40 percent less annual cost. Discussion Organizational Asset Firstly, the major organizational asset for Fast Distribution, Inc. is information, and the firm has an extensive and expansive data center which helps in keeping pace with issues, such as S&P averages. Therefore, the organization information system helps the organization to collect kno wledge, in order to be utilized effectively. Secondly, the firm brand is a major organizational asset, especially after being recognized by Forbes magazine. Thirdly, innovation pushed forward by the well-honed management is also a critical organizational asset. Then there is human capital, whereby the company has over 3200 experienced and consistent employees. Organizational Risks One of the major risk associated with diminishing internal IT services in favor of outsourcing for FDI, is its exposure to vulnerability in security and strategic capability, especially from the CEO suggestion of an open market. Notably, there is always the possibility that one of the outsourcing company personnel or

The effect of the U.S. Subprime Crisis to the China commercial banks Dissertation

The effect of the U.S. Subprime Crisis to the China commercial banks in 2008-2013 - Dissertation Example A careful analysis of the sub-prime crisis reveals that it was created from the slump in housing prices that created a ‘bubble’ of expectations among investors. By the end of third quarter of 2007, the prices of underlying assets declined drastically and the value of mortgage based securities was higher than asset. This motivated investors to default on mortgages as they felt that actual worth of asset is not worth repayment. The depressing effect was amplified further by securitization of assets. The impact of sub-prime crisis was not limited to US banks but almost all commercial banks and financial institutions around the world that had considerable exposure in US Mortgage Backed Securities (MBS) were either affected directly or indirectly from the subprime crisis. In order to rescue the financial market, the US Federal Reserve responded swiftly through cutting key monetary policy interest rates and also extended financial support to mortgage lenders and house buyers w ho were defaulted or would seemingly default. The objective of the study is to reveal the effect of the U.S. Subprime Crisis to the China commercial banks in 2008-2013. In order to achieve objective the study covers the literature review and theoretical framework of the topic. Research design has been done with the intention of selecting appropriate methodology and data collection analysis. Moreover the data analysis will help to get the findings of the project. After interpreting the research findings, finally the study ends with conclusion, recommendations and reflections. Background of the Study Freddie Mac and Fannie Mae was together accountable for almost half of the mortgage market in US which is valued to be worth over US$ 10 trillion. The many previous studies have also found that the government of China is among the top five international holders of Fannie Mae and Freddie Mac long-term debt. The Bank of China announced that it had Freddie and Fannie bonds worth $7.5 billion at the end of August 2008 after cutting its holdings by 25 percent. The country’s largest commercial lender, ICBC stated that at the end of August 2008 it held bonds in Freddie and Fannie debt worth $465 million in addition to $2.2 billion in mortgage backed securities issued by the US companies. The second largest