January 27th, 2010 by admin
Recently, Societe Generale announced that they suffered losses of 4.9 billion euros, equivalent to 7.1 billion dolar/3.7 billion pounds. Fraud is committed by one in Paris is trader Jerome Kerviel and a fraud with the largest value of all time However, before Kerviel in fact there have been several fraud cases in the world that produce large losses. Here are the stories about fraud committed by a trader-trader in the world. Generally, this fraud caused by negligence of the company’s risk management: Read the rest of this entry »
January 26th, 2010 by admin
In every business, we always face the risk factor. Thus, to overcome the challenges to existing business and make good risk management, a risk management culture needs to be applied in daily activities.
Why Risk Management Culture
Risk management culture is something very important, because it allows everyone in the organization to always be `aware` and be alert to the risk management activities. Risk organizational culture has made a proactive risk management. Risk has always been an important focus, periodically evaluated, and measured its impact on business. Starting from the employees, executives, shareholders, until the regulator must understand that risk is an important factor to consider in every action and decision making. Read the rest of this entry »
December 4th, 2009 by admin
In a world full of uncertainty, one way you can help protect us from risk is Life Insurance. Insurance is one form of risk control is done by way of transfer / transfer of risk from one party to the other party in this case is the insurance company. Life insurance to manage risk by moving the impact the loss of an individual to a group and share the losses experienced by the individual to all members of the group. Let us recall the basic understanding about the Insurance that may be helpful in planning your finances better.
Understanding insurance
According to Article 246 KUHD stated that “insurance or coverage is an agreement by which a person committed themselves to an insured, by accepting a premium, to replace him because a damage or loss of expected benefits that may be suffered because of an event that is not necessarily”. Another notion that insurance is a transfer of risk from the first party to another party. Controlled by the delegation of legal rules and the application of the principles and teachings that are universally adhered to by the first party or other parties. In terms of economics, insurance is a collection of funds that can be used to cover or pay compensation to people who suffered losses. Read the rest of this entry »
November 30th, 2009 by admin
In our life we often hear the term ‘risk’, especially in the economic conditions are still deeply affected this global crisis. Risk is something we have to face in this life. Various kinds of risks such as fire, hit by another vehicle on the road, hit by flooding in the rainy season and so on, can cause us to lose if not anticipated from the beginning. Let us know or recall things related risks can be utilized in order to anticipate and manage the situation well, especially in running your business.
Asset Definition
Asset is anything which has a trading value or economic value. An asset can be tangible (visible, for example: cars, houses, land, a cow, plant, etc.) or intangible (can not be seen, for example: the talent and abilities). Insurance business aimed at protecting the economic value of these assets. Human life is a very valuable asset that can bring in revenue. These assets also face risks such as death, illness or disability caused by accident. Risks such as disability and death make a person unable to earn income. This resulted in the parties that depended on him, such as family difficulties. Read the rest of this entry »
November 30th, 2009 by admin
Monte Carlo simulation until now regarded as the best simulation predicts the risk for its accuracy. How the origins of this simulation, the mechanism and its use in the financial world? Credit invention Monte Carlo method is often given to Stanislaw Ulam, a Polish mathematician. Ulam is known as the man who designed the hydrogen bomb with Edward Teller in 1951. Meanwhile, he himself found the Monte Carlo method in 1946 while taking into account the probability of winning solitaire card game. On the other hand, in the world of finance and financial mathematics, Monte Carlo method is very useful to do a valuation and analysis of the various instruments and portfolio investment. This method allows simulation of various factors that affect the value of uncertainty, so that then can determine the average value. Read the rest of this entry »