My Position On A Healthcare Or Social Issue Essay

My Position On A Healthcare Or Social Issue - Essay Example ld be afforded quality healthcare is the main concern and how to go about it when most of these individuals are employed secretively without contributions to major healthcare services. From a personal view, I believe illegal immigrants should be granted the same quality healthcare provisions as the American citizen regardless of their financial or career status. There are many risks associated with hospitals and clinical environments when dealing with illegal immigrants, as many diverse demographics of immigrants do not have access to the same variety of healthcare providers as those who contribute weekly to such programs through their place of employment. The risks include non-payment after services have been rendered or simply having this group exploit the system through fraudulent activities. Even though there are failsafes to prevent this, in areas of the country where there are concentrated populations of immigrants, this becomes a significant concern especially for the self-practicing physician networks that rely on timely revenues from patients. Illegal immigrants, especially certain ethnic groups, have large family networks either domestically-born or travelling as a group into the country without governmental support. Poor wages and lack of access to quality healthcare providers, such as Health Alliance Plan or Blue Care Network, bring into question whether or not these large family groups will be pursuing medical treatment on an ongoing basis as part of preventative care services. There is already over-crowding in certain clinical environments which puts tremendous strain on physicians and patients alike, thus these immigrants pose risks to the general community population. However, the reason I feel so strongly about the importance of providing healthcare to this group, regardless of their socio-economic backgrounds, is due to my personal beliefs on the ethical value of human beings. The American healthcare system is one of the most advanced in the

Controls for Outflows Essay Example | Topics and Well Written Essays - 500 words

Controls for Outflows - Essay Example This will ensure that the employees are paid according to the amount of work done and will prevent payment for hours not worked for. The employees must sign the time card every day and a supervisor must subsequently approve the card. After approving the time card, the supervisor should then forward the records to the payroll department for preparation of the salaries. Secondly, the Apollo limited must ensure that their personnel department records all the information regarding the new employees, removal of names of employees whose contracts have been terminated, and adjustment of all variations in the employee pay rate. A supervisor must also approve these changes before the information is taken to the payroll department. Third, the payroll department must maintain all deductions that are made on employees’ remuneration for example loan repayment, taxation and any other deductions that are made. A different employee must be give the mandate to recomputed the deductions and make any corrections or anomalies. The employees should the sign the payroll form for all the deductions made on their salaries. After all the deductions are calculated, the payroll department prepares a multicopy payroll register with information from the time card and information on payroll record where all deductions are indicated on employees pay (Romney & Steinbart, 2006). Another form is then prepared indicating gross pay, all deduction, net pay, and the employees take this form home as pay slip. A different employee then recomputes the gross pay and deductions to make any correction reacquired before the employees are paid. The payroll department sends the payroll register to the accounts payable department where a voucher is prepared on each pay slip received. The department then prepares the required cheques, which are sent to the

Albinism Essay Example for Free

Albinism Essay Albinism Background Information Albinism is a genetic disorder which affects the amount of melanin produced, in a person’s skin, hair, or eyes. Oculocutaneous albinism, Ocular albinism, and Hermansky-Pudlak syndrome are other names for this genetic disorder. The disorder affects mostly men, because it is a recessive gene. Females are usually carriers. Albinism does not affect any specific ethnic or religious group. Symptoms/ Effects This Genetic Disorder affects the eyes, skin, or hair’s pigmentation. If an organism has albinism, it has little or no color in a specific part of its body. Albinistic skin burns easily. People with this disorder have to take special precautions to avoid sunburns and diseases such as skin cancer. Most types of Albinism also affect the eyes. Symptoms affecting the eyes include Crossed eyes, Light sensitivity, Rapid eye movements, Vision problems, and functional blindness. Albinistic people may have to limit their outdoor activities to avoid too much exposure to the sun. This disorder itself is not life threatening. However albinism affects many animals’ camouflage, and makes them easy prey. A human’s life span can be shortened by lung disease or bleeding problems from a form of Albinism, Hermansky-Pudlak Syndrome. Testing/ Diagnostics This disorder can be detected simply by looking for pale or unnatural colored eyes, hair, or skin. To make sure, scientists use genetic tests to affirm that a person has albinism. Ophthalmologists also conduct electroretinograms to detect any optical problems. Causes Albinism is a recessive gene that can only be inherited. It is not sex-linked. Treatments Albinism cannot be cured, but it a person with albinism can wear colored contacts or sunglasses to comfort and protect their eyes. They can wear sun block and stay indoors to protect their skin. Name: Vivian Ray (Vivia)? Age: 17? Gender: F? Appearance: There, you see her first thing you notice when you see Vivia, is her grace. From her delicate structure to her fluid motions, she is elegant and nimble. Vivia has dark black/brown hair pulled into a messy bun with an ornate pen sticking out of it. She has overgrown bangs, that fall into her face. She has an odd way of talking, she looks at you straight in the eyes with her bright grey irises, while speaking with long embellished sentences in a melodic voice. Vivia does not appear to be intimidating or weak. But at the same time, both. She holds herself tall and her eyes seem be a portal to her her inner depths.? Abilities/Talents: Vivia once ice-skated and did ballet. She is moderately athletic. Vivia’s main talent is writing. She often walks around in the park trying to find the perfect word to decribe the leaves slowly falling down, or the prints in the snow. She has her own column in the Elwood High newspaper called â€Å"On the Bright Side†? Basic Likes/Dislikes:? Likes: Vivia like things that are well though out, poems, artwork, and anything else. She loves sour things, and is often sucking a lemon head. When asked her favorite color she thinks of her late mother’s grey eyes (the only trait she inherited from her mother) and replies without hesitation, grey. She loves fruit and would pick it over any other dessert, likes listening to instrumental music . She also likes to reread her dog-eared copies of Shakespeare in her free time.? Dislike: The number one thing Vivia dislikes is being wrong. She does not like the uncertainty and indecisiveness she often suffers from. She also does not like people who stereotype and make assumptions about her. She tends to not work as hard if she is forced to do something instead of herself choosing to do something. Vivia also absolutely hates suspense, and has yet to read a full mystery without skipping to the end.? Personality: Vivia, is usually not the loudest person, and often simply listens in the background. However, her writing truly shows who she is, and wants to be. She is often caught dreaming about what would happen if her life were different. She has a temper if you annoy her enough to find it. She can be stubborn, and is very fair.? Background Information: As a senior at Aberle High, Vivia is being pressured into making the big decision as to what career path she should choose. Her father is pushing her toward a doctorate, while she would rather become an author.? Relationships: Vivia’s mother was a journalist and died in a car accident while driving to the scene of er next story. She lives with her father and little brother. She loves her father and wants to make him proud. There, you see her, leaning against a tree

Psychopathy or Antisocial Personality Disorder in Adults

Psychopathy or Antisocial Personality Disorder in Adults Forensic Assessment of Adults II Psychopathy or Antisocial Personality Disorder Explain the relevance of assessing for psychopathy or antisocial personality disorder in an adult forensic population, as well as the reasons for assessing for psychopathy or antisocial personality disorder. According to the FBI, 1% of the general population in male prisons, 1/3% of male offenders are considered having an antisocial personality disorder, and 10-20% of male offenders are psychopaths (Hare, Ph.D. FBI, et al., 2012). It is believed that psychopathy may be the result of genetics and how the person was raised. The Diagnostic and Statistical Manual of Mental Disorders (DSM) has no diagnosis for psychopathy, yet it is one of five items that define an antisocial personality disorder (Hare, Ph.D. FBI, et al., 2012). Dr. Robert Hare and the FBI believe that psychopathy is the â€Å"most dangerous of any personality disorder (Hare, Ph.D. FBI, et al., 2012)†. Not all psychopaths are criminals or commit criminal acts, and are not violent (Hare, Ph.D. FBI, et al., 2012). One of the reasons for the importance of assessing and diagnosing psychopathy are the symptoms. Psychopaths, also known as sociopaths, are charming, manipulative, have a lack of remorse and a lack of empathy towards others, and have no conscience. They are known to commit violent and serious crimes in a callous remorseless manner. They are selfish, self-centered, feel entitled, do not accept responsibility for the actions, and have an inflated sense of self-worth. They are conniving and won’t hesitate to lie for their own benefit, since they are pathological liars to begin with. They are predatory by nature, have an inflated ego and need to have power and control in all situations. Psychopaths that kill usually plan and calculate the crime in order to maintain their sense of power and control, and the killer usually feels no emotion or remorse. When caught, they blame the victim for the reason they were killed. Drs. Porter, ten Brinke, Wilson, and the FBI state that: â€Å"Psychopathic sex offenders are 2.43 times more likely to be released than their non-psychopathic counterparts, while psychopathic offenders charged with other crimes are 2.79 times more likely to be released.Their acting ability can enable them to frequently manipulate and persuade members of a parole board to release them approximately 2.5 times faster than other offenders up for parole, despite their longer list of offenses and elevated risk (Porter, ten Brinke, Wilson FBI)†. Yet the severity of a psychopath’s condition can vary from other psychopaths. Clinical psychologists have found that psychopathology ranges from those with a lot of psychopathic traits (a full cluster of traits) to those who have less psychopathic traits (milder cluster of traits). They base this by looking at the patients behavioral patterns within their lifetime. Another reason for the importance of assessing psychopathy is to gain a better understanding of psychopathy and in gaining that understanding, it allows forensic psychologists to create treatment strategies for psychopaths. Since psychopaths are skilled manipulators and pathological liars, getting true and accurate information from them can be difficult and frustrating, and by better understanding them, forensic psychologists can also create a specific questioning strategy for law enforcement when they are questioning a psychopath. Law enforcement and forensic psychologists must fully understand psychopaths, identify them, understand the harm and damage they do, and what can be done to treat them effectively. Describe when and where in the adjudicative process assessment for psychopathy or antisocial personality disorder may be used, using specific examples. As juveniles, psychopathic traits become visible, especially during an adjudicative assessment. These include poor control of behavior and early behavior problems, juvenile delinquency, committing a variety of different crimes, impulsive actions, irresponsibility, lack of guilt, no remorse, have no realistic goals to accomplish, and a need for more and more stimulating action within their lives. Assessments to diagnose psychopathy in juveniles are commonly used when the juvenile defendants have a history of mental illness. The sooner juveniles are assessed and diagnosed the better mental health services, community services, and long-term treatment programs they can receive. Even with adults, assessment and diagnosis of psychopathy can help to identify their needs and how to treat them, and can help with future screening and intake in prisons. Explain how assessing for psychopathy or antisocial personality disorder may influence a case outcome, using specific examples. Psychopathological patients with a fuller cluster of traits put society at risk due to their ability to skillfully manipulate others, including authorities. Many psychopaths have manipulated the court and have gotten reduced sentences, and if they were unsuccessful in that endeavor, they have skillfully manipulated to have their sentences appealed in high courts of law (Hà ¤kkà ¤nen-Nyholm, H., PhD. Hare, R.D., PhD, 2009). Some famous psychopathic killers are: Theodore â€Å"Ted† Bundy, John Wayne Gacy, Jr., Edward â€Å"Ed† Theodore Gein, Jeffrey Dahmer, Albert Fish, Andrei Chikatilo, Richard Ramirez, Albert DeSalvo, Joel Rifkin, Edmund Kemper, Gary Ridgeway (Green River Killer), Arthur Shawcross, and Robert Pickton. Many of these men appeared normal, but had psychopathic traits that were diagnosed only after they had become killers. For Example, John Wayne Gacy, Jr., had been married and divorced twice, had two children (a boy a girl), had his own business, was a community leader and vice-president of the Springfield, Illinois Jaycees, and often performed as a clown for many community children functions—yet he killed 33 men and boys, burying many under the floors of his home he shared with his mother. Ted Bundy went to law school, studied Chinese, worked for the Republican National Convention, worked on GovernorDaniel J. Evanss reelection campaign, and volunteered on a suicide h otline in Seattle—yet he killed 26-38 (possibly more) women, and was convicted and sentenced to death in Florida for killing 5 women and 1 young girl. As Dr. Martha Stout, PhD., pointed out in her book â€Å"The Sociopath Next Door: The Ruthless Versus the Rest of Us (2005), Sociopaths look like everyone else—they can be your neighbor, family member, friend, or someone famous, and you would never even know it (Stout, 2005). The MacDonald Triad, also known as the Homicidal Triad or the Triad of Sociopathy, are three behavioral traits (arson, bedwetting and cruelty to animals) that together or two of the traits combined are believed to be indicators of potential future violence or a psychopathic personality/antisocial personality disorder. While the MacDonald Triad has not been subsequently validated by psychologists and researchers, it is often used by law enforcement and taught in schools, and remains an influential theory of crime. The Psychopathy Checklist- Revised (PCL-R) was developed using a 20 item list, a 3 point scale and the results rate the full extent of a person’s psychopathic tendencies, and it helps to assess what the risks or harming other people are due to the patients psychopathic PCL-R results. It is often used in court cases to assess the defendants’ mental health. Yet despite everything, there has yet to be found a way to effectively treat those who are psychopaths.

Alls Well That Ends Well as Fairy Tale and Morality Play :: Alls Well That Ends Well Essays

All's Well That Ends Well as Fairy Tale and Morality Play Shakespeare employed two ancient story-telling forms in writing All's Well That Ends Well. One, the fairy tale, he inherited from his source. The other, the morality play, he worked into the story. The type of fairy and folk tales of which All's Well That Ends Well is an example are known as Virtue stories. These are composed of two major sections: The Healing Of The King and The Fulfillment Of The Tasks. These tales can be found in the early literature of cultures the world over and have two qualities in common: the cleverness and devotion of the woman sent by her husband to perform the tasks, and the husband's immediate acceptance of the fulfillment of the tasks as evidence of the wife's courage and love. The Healing Of The King in All's Well is a variation of a common popular theme: a hero wins the hand of the king's daughter by performing a difficult task, in which failure will cost him his life. Boccaccio and Shakespeare add interest by switching the genders of the characters. Shakespeare also drew on the morality plays, a popular medieval theatrical form in which characters representing good and evil struggle for the soul of the hero. In All's Well Shakespeare has created similar relationships by adding the character of Parolles. Parolles acts as Vice personified, and Helena acts as Divine Grace. Together they struggle for the soul of Bertram, unredeemed man. Shakespeare carefully weaves these two forms together at two major points in the action. Helena's healing of the king operates on the level of fairy tale and carries hints of the miraculous as well. Lafeu calls it "A showing of a heavenly effect in an earthly actor." At the end of the play, Bertram's acceptance of Helena fits the Virtue story form. It also reflects the point in morality plays when unredeemed man, burdened by sin and about to be carried off to the everlasting torments of hell, calls for mercy. However, unlike the characters in morality plays and fairy tales, Shakespeare's characters are realistic in their motivations and behavior. Can a fairy tale work in the complex lives of real people?

The African Athena Controversy Essay -- Ancient History

With the absence of certainty, competitive plausibility is a realistic approach to trying to determine the influences that the Egyptians and Phoenicians had on the Ancient Greeks. Since the publication of the Bernal’s Black Athena volumes I and II, a great debate has surfaced. There is no question that the Egyptians and Phoenicians had an influence on the Greek culture, the questions that are being disputed is the exact nature of the relationship and what period of time this relationship existed. After reading the three articles presented, I have come to agree with Martin Bernal and his Revised Ancient Model of Greek origins. At one time Egypt was accepted as European, but that status began to erode and in the 1790’s Egypt was regarded as an African Nation. Prior to the 1820’s the most widely accepted theory of the origins of Greece was the Ancient Model. In this model, primitive tribes, Pelasigians, and others inhabited Greece. In certain regions of Greece, the Egyptians and Phoenicians settled, built cities, and civilized the natives. The Phoenicians were credited with having introduced the alphabet while the Egyptians taught the Pelasgians about irrigation (Bernal, p. 7). It was during this period, the Northern European scholars began to cast doubt on the colonization of ancient Greece by the Egyptian and Phoenicians and their cultural development of that time (Bernal, p. 7). â€Å"Historiographical developments cannot be linked to the availability of any evidence† (Bernal, p. 7). Sadly, there were some great discoveries found after the models changed, but they were ignored, like Jean-Francois Champollion findings, he had begun to decipher the hieroglyphics during 1820’s, the decipherment of cuneiform, and the first arc... ...ilization and led me to agree with Bernal’s Revised Ancient Model. References Berlinerblau, J. (1999). The Aryan Models. Heresy in the University: The Black Athena controversy and the reponsibilities of American intellectuals [Portfolio reading set]. Retrieved from University of Massachusetts at Boston: http://www.UMB.edu Bernal, M. (2001). Introduction Black Athena writes back [Portfolio reading set]. Retrieved from University of Massachusetts at Boston: http://www.UMB.edu Lefkowitz, M. R. (1996). Ancient history, Modern Myths. Black Athena Revisited [Portfolio reading set]. Retrieved from University of Massachusetts at Boston: http://www.UMB.edu The African Athena Controversy [Portfolio reading set]. (2012, June). Retrieved from University of Massachusetts at Boston, CEHD, CLA, CPCS, CSM, and CNHS Writing proficiency evaluation (WPE): http://www.UMB.edu The African Athena Controversy Essay -- Ancient History With the absence of certainty, competitive plausibility is a realistic approach to trying to determine the influences that the Egyptians and Phoenicians had on the Ancient Greeks. Since the publication of the Bernal’s Black Athena volumes I and II, a great debate has surfaced. There is no question that the Egyptians and Phoenicians had an influence on the Greek culture, the questions that are being disputed is the exact nature of the relationship and what period of time this relationship existed. After reading the three articles presented, I have come to agree with Martin Bernal and his Revised Ancient Model of Greek origins. At one time Egypt was accepted as European, but that status began to erode and in the 1790’s Egypt was regarded as an African Nation. Prior to the 1820’s the most widely accepted theory of the origins of Greece was the Ancient Model. In this model, primitive tribes, Pelasigians, and others inhabited Greece. In certain regions of Greece, the Egyptians and Phoenicians settled, built cities, and civilized the natives. The Phoenicians were credited with having introduced the alphabet while the Egyptians taught the Pelasgians about irrigation (Bernal, p. 7). It was during this period, the Northern European scholars began to cast doubt on the colonization of ancient Greece by the Egyptian and Phoenicians and their cultural development of that time (Bernal, p. 7). â€Å"Historiographical developments cannot be linked to the availability of any evidence† (Bernal, p. 7). Sadly, there were some great discoveries found after the models changed, but they were ignored, like Jean-Francois Champollion findings, he had begun to decipher the hieroglyphics during 1820’s, the decipherment of cuneiform, and the first arc... ...ilization and led me to agree with Bernal’s Revised Ancient Model. References Berlinerblau, J. (1999). The Aryan Models. Heresy in the University: The Black Athena controversy and the reponsibilities of American intellectuals [Portfolio reading set]. Retrieved from University of Massachusetts at Boston: http://www.UMB.edu Bernal, M. (2001). Introduction Black Athena writes back [Portfolio reading set]. Retrieved from University of Massachusetts at Boston: http://www.UMB.edu Lefkowitz, M. R. (1996). Ancient history, Modern Myths. Black Athena Revisited [Portfolio reading set]. Retrieved from University of Massachusetts at Boston: http://www.UMB.edu The African Athena Controversy [Portfolio reading set]. (2012, June). Retrieved from University of Massachusetts at Boston, CEHD, CLA, CPCS, CSM, and CNHS Writing proficiency evaluation (WPE): http://www.UMB.edu

Aspen Tech case study Essay

History and Overview †¢Ã¢â‚¬ ¯ Specialized in the development of simulation software for customer in process manufacturing industries †¢Ã¢â‚¬ ¯ Advanced System for Process Engineering (ASPEN) project conducted at the Massachusetts Intitutes of Technology (MIT) in Cambridge Massachusetts, from 1976 to 1981 †¢Ã¢â‚¬ ¯ Founded in 1981 by Dr. Larry Evans, a professor of chemical engineering at MIT †¢Ã¢â‚¬ ¯ Larry Evans†leadership in the development and application of integrated systems for modeling, simulation and optimization of industrial chemical process History and Overview †¢Ã¢â‚¬ ¯ In 1982 its first year of operations, AspenTech lost USD565,000 on sales of USD182,000 †¢Ã¢â‚¬ ¯ Over next 13 years AspenTech’s sales grew rapidly as it became a major payer in the process simulation segment of the software industry. †¢Ã¢â‚¬ ¯ 1995 company earned net income $5.4 million on sales $57.5 million. AspenTech estimated that it commanded 50% of the simulation market for chemical sector. †¢Ã¢â‚¬ ¯ 1995, it employed 417 people of which 265 ware based in the US and the remainder in office in 5 countries. History and Overview †¢Ã¢â‚¬ ¯ AspenTech went public in USDD31 million IPO which included a USD 18 Million primary offering and USD 13 Million secondary offering : –†¯ to finance further R&D –†¯ to acquire externally developed technologies –†¯ to allow early investors to monetize their holdings in the company, †¢Ã¢â‚¬ ¯ Feb1995, Aspentech conducted a $23 million public offering, which included a USD 1 million primary offering and USD 22 million secondary offering. †¢Ã¢â‚¬ ¯ 1995, AspenTech was the only one of the firms that specialized in simulation programs for chemical petroleum, and petrochemicals industries that was publicly traded. Products (versi makalah) †¢Ã¢â‚¬ ¯Aspen Plus Aspen Plus is the most popular product a steady state modeling system built around the core technology This product accounted 48% of sales in 1995 †¢Ã¢â‚¬ ¯Speed UP It was AspenTech’s dynamic process modeling product commercialized in 1986 by Prosys Tecknology that AspenTech purchased in 1991 †¢Ã¢â‚¬ ¯Max It is a less powerful version of Aspen Plus †¢Ã¢â‚¬ ¯Advent A software to optimize the tradeoff between capital expenditures for energy saving heat exchangers and the energy saving realized   Product Portfolio (versi makalah) †¢Ã¢â‚¬ ¯ Properties PLUS It is a database of chemicals properties underlying its other products, popular with customers ~ developed in-house modeling software †¢Ã¢â‚¬ ¯ Other modules –†¯ offers to the customers ~ license separately –†¯ use with its other products to model subsystems used in highly specialized chemicals processing application. Product Portfolio (versi web) †¢Ã¢â‚¬ ¯Process Engineering – – – – – – – – Process simulation Chemicals (10 products : AspenPlus) Process simulation Oil&Gas (8 products : AspenHYSYS) Process simulation Refining (11 products : Aspenadsim+) Process simulation Batch/Pharma (8 products :Aspenproperties) Model Deployment (3 products : AspenModelrunner) Equipment modeling (8 products :AspenAcol+) Basic Engineering (2 products :AspenKbase) Economic Evaluation (3 products : Aspn Icarus Project Manager) †¢Ã¢â‚¬ ¯Advance Process Control (14 products : Aspen Apollo, Aspen IQ) †¢Ã¢â‚¬ ¯Planning & Scheduling (10 products : Aspen Advisor, Aspen MBO) †¢Ã¢â‚¬ ¯Supply & Distribution (3 products : Aspen Retail) †¢Ã¢â‚¬ ¯Production Management & Execution (16 products : Aspen 0server) Sales & Marketing †¢Ã¢â‚¬ ¯1995, licensed to more than 450 companies ~ chemical industry and 350 univerities †¢Ã¢â‚¬ ¯The selling cycle for process modelling software was long (6-12 months) †¢Ã¢â‚¬ ¯AspenTech charged a premium over competitors products, raise licensing fees three times (1998-1995)~10% †¢Ã¢â‚¬ ¯Customer loyalty –†¯ Over 90% renewed their software –†¯ 1994 : 34% revenue from software renewal; 34% from expansion from existing customer †¢Ã¢â‚¬ ¯United States : –†¯ Directs sales force –†¯ Earned combination of salary & commission †¢Ã¢â‚¬ ¯Sales subsidiaries : UK, Japan, HongKong, Brussels –†¯ Serve local & regional markets via directs sales forces †¢Ã¢â‚¬ ¯Licensed software for a non-cancelable term ~ 3 or 5 years †¢Ã¢â‚¬ ¯Charge : –†¯ annual fee x license term (year) –†¯ Interest rate 9.5% – 11% currently 12% †¢Ã¢â‚¬ ¯Customer were more likely to buy software priced in local currency Risk Exposure 1.†¯ Foreign Exchange Risk – – – – sell software in local currencies  installment from three-to-five years creates foreign exchange exposure exchange rate fluctuations 52% revenue generated from foreign company with following revenues figures: †¢Ã¢â‚¬ ¯ Europe 31% †¢Ã¢â‚¬ ¯Asia 12% †¢Ã¢â‚¬ ¯Other countries 9% †¢Ã‚  In United State 48%. Risk exposure are might be applicable :Transaction Exposure (High) most the costumer operated outside of US Translation Exposure (Low) convert foreign currency financial statements into a single currency (USD). Risk Exposure 2. Interest Rate Risk (low) –†¯ AspenTech debt using US dollar currency fix interest rate and mid term (3years) –†¯ place a seasonal line-of-credit facility with a New England Bank Risk Exposure 3.†¯Credit Risk –†¯Ã‚  Credit risk (default risk) in high exposure level 2 sources probability trigger this risk: growing rapidly customer choose to defer payment of their license over the life of the contract Ex: AspenTech was liable for $ 4,6 million of this amount under limited recourse agreement Unwilling (Low) most of the customers are a loyal customer Unable (High) depend on the type of business of customer Liquidity Risk many of its customers chose to defer payment of their licenses over the life of the contract the company usually experienced an operating cash shortfall Ex: the firm booked revenue of USD57.5 million, yet receive cash payments directly from customers of only $38.5 million (66.96%). Management Risk Perform by AspenTech Foreign Exchange Risk eliminated all sales transaction exposure arising from foreign currency denominated license contract inline with its risk management policy by doing hedging : –†¯ Sale non USD installment receivable for USD –†¯ forward currency agreement Credit Risk –†¯ AspenTech has not managed the risk of the uncollectible installment –†¯ The contract with GE and Sanwa in selling the account receivable has limited recourse agreement   Liquidity Risk –†¯ To manage its liquidity risk in order to cover their day to day operation, AspenTech sell its receivable to GE and Sanwa and other financial institution. –†¯AspenTech also has debt to Massachusetts Capital Resources –†¯ placed a seasonal line of credit facility with New England bank. Recommendation AspenTech’s should reexamine the firm risk management policies and practices in light of the changes : –†¯ over the past year AspenTech’s international sales had remained a substantial portion of its revenues –†¯ the firm international expenses had increase a slightly faster rate than its international revenue –†¯ AspenTech had gone from private company into a publicly traded company AspenTech’s should review and determine an acceptable level of risk. It involves determining reasonable level of risk in-line with appropriate opportunity to gain Recommendation Net Foreign Exchange Exposure (Operational Hedging) AspenTech’s Value at Risk, 1995 (95% confidence level) UK Pound German DM Belgian Franc Japanese Yen Expenses in local currency 3,129 722 158,223 414,793 Monthly Std. Deviation 2.90% 2.80% 2.70% 3.00% Exchange Rate* 1.5873 0.6711 0.0326 0.0106 Total *Average exchange rate (U.S. dollar per unit of foreign currency) over fiscal year 1995 VaR $238 22 230 218 $707 AspenTech’s Net Foreign Exchange Exposure (‘000) by Currency, 1995 Cash Inflows UK Pound German DM Belgian Franc Japanese Yen Current Sales 1,724 1,015 308,984 Prior Sales 981 577 175,781 Cash Outflows Expenses 3,129 722 158,223 414,793 AspenTech should hedge only the net exposure †¢Ã¢â‚¬ ¯ Net foreign exchange exposure in German and Japan †¢Ã¢â‚¬ ¯ Forward contract for Belgian’s operating expense Net Exposure (424) 870 (158,223) 69,972 Recommendation Liquidity & Credit Risk –†¯ AspenTech should look other possibility to deal with other financial institution to increase their bargaining position to GE and Sanwa With higher bargaining position, AspenTech can get lower cost and better position in managing their credit risk –†¯ Maximize in selling long term receivable first Recommendation Others Hedging Instrument : –†¯ Plain-Vanilla Options give the buyer of the option the right but not the obligation to buy (call) or sell (put) a specific amount of currency at a predetermined strike price (exchange rate High cost –†¯ Average-Rate Options †¢Ã¢â‚¬ ¯ Spot rate are calculated as an average over a period †¢Ã¢â‚¬ ¯ Transaction possible during the expiry period at several predetermined dates †¢Ã¢â‚¬ ¯ Strike rate can be fixed or floating –†¯ Knock-in/knock-out Options †¢Ã¢â‚¬ ¯ Does not provide full protection †¢Ã¢â‚¬ ¯ The key is in determining the barrier rate †¢Ã¢â‚¬ ¯ Low cost –†¯ Cross-currency transactions –†¯ Foreign currency money-market borrowing Recommendation †¢Ã¢â‚¬ ¯ Others Hedging Instrument : –†¯ Cross-currency transactions †¢Ã¢â‚¬ ¯ transaction basically does not provide ability to hedge or secure any risk †¢Ã¢â‚¬ ¯ provide probability of arbitrage if there is a difference between cross rate and indirect rate. –†¯ Foreign currency money-market borrowing †¢Ã¢â‚¬ ¯ Borrowing in the money market, rather difficult to use since the company need to determine level of debt that matched with its cash inflow from other matched currency