Take The Pickle Challenge

1 The critical challenge facing banks and regulators under Basel II: improving risk management through implementation of Pillar 2 Simon Topping Hong Kong Monetary Authority 28 September 2004 GARP Asia Pacific Convention 2 Implementation of Basel II in Hong Kong • Hong Kong is one of the first jurisdictions to publish detailed implementation plans for Basel II • Re Pillar 1, we will allow institutions to choose between standardised approach, foundation IRB and advanced IRB for credit risk, and between basic indicator approach and standardised approach (not AMA) for operational risk; we will also allow smaller institutions to choose a “basic” approach • Institutions can now plan accordingly. The first big question is whether - and when – to adopt IRB • But focus is now shifting to a second key consideration – what plans to make in relation to “Pillar 2” risks 3 Main objectives of Pillar 2 • Ensure that banks have adequate capital to support all the material risks in their business ⇒ More comprehensive recognition of risk, including risks not covered (e.g. interest rate risk in the banking book) or not adequately covered (e.g. credit concentration risk) under Pillar 1 • Encourage banks to develop and use better risk management techniques ⇒ Focus on banks’ capital planning and risk management capabilities (not just on setting of capital) 4 Four Pillar 2 Principles • Principle 1 : Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels (i.e. CAAP) • Principle 2 : Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies • Principle 3 : Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require so • Principle 4 : Supervisors should seek to intervene at early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank 5 Principle 1 • Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels • Banks must be able to demonstrate that chosen internal capital targets are well founded and that these targets are consistent with their overall risk profile and current operating environment. In assessing capital adequacy, bank management needs to be mindful of the particular stage of the business cycle in which the bank is operating. Rigorous, forward-looking stress testing that identifies possible events or changes in market conditions that could adversely impact the bank should be performed. Bank management clearly bears primary responsibility for ensuring that the bank has adequate capital to support its risks 6 The five main features of a rigorous process for assessing capital adequacy • Board and senior management oversight • Sound capital assessment • Comprehensive assessment of risks • Monitoring and reporting • Internal control review 7 Fundamental elements of sound capital assessment • Policies and procedures designed to ensure that the bank identifies, measures, and reports all material risks • A process that relates capital to the level of risk • A process that states capital adequacy goals with respect to risk, taking account of the bank’s strategic focus and business plan • A process of internal controls, reviews and audit to ensure the integrity of the overall management process 8 Existing supervisory framework CAMEL rating system Risk-based Take The Pickle Challenge Take The Pickle Challenge Bởi: Joe Tye “Blaming, whining, deflecting accountability, risk aversion, and resistance to change are but a handful of symptoms of the adversity-beaten individual and organization More serious indicators include individual and collective helplessness, organizational turnover, and general stagnation.” Paul Stoltz: Adversity Quotient at Work The emotional climate of a workplace is determined by what you expect and what you tolerate, and over time what you tolerate will dominate what you say you expect A positive workplace culture begins with intolerance for toxic emotional negativity As I said in my book The Florence Prescription: From Accountability to Ownership: “One toxically negative person can drag down morale and productivity of an entire work unit.” When everyone on a work unit makes a good faith effort to break the complaining habit (and yes, it is a habit) it changes everything I know of one 12-person hospital department where someone brought in a pickle jar and, in a good-humored way, they started fining each other a quarter for every instance of toxic emotional negativity They raised more than $80 in one month – and you know they didn’t catch them all! Both patient satisfaction and employee engagement went from the bottom quartile to the top ten percent almost overnight Wherever you work, I can promise you this: if I could wave a magic wand over your organization and for 30 days there would be no bitching, moaning, whining and complaining (the other BMW Club!), you would never go back Just as we will never again tolerate people lighting cigarettes in the workplace, you would quickly appreciate how nice it is to work in a place that is free of toxic emotional negativity In fact, you might even use the word miracle to describe the transformation The Pickle Challenge™ is taking on a life of its own! All across the country we’re hearing about singing pickles, dancing pickles, pickle piñatas, pickle pledge boards, Pickle Pledge(tm) fundraisers, signs designating pickle-free workspaces (the way we used to designate certain areas as smoke-free zones), and pickle-free pins, buttons, and t-shirts 1/2 Take The Pickle Challenge I think there are two reasons the Pickle Challenge has gotten such traction The first is simply that it is such a great visual metaphor We can all visualize the chronic complainer and gossip who looks like he or she was suckled on a dill pickle instead of a pacifier The second reason is far more important – because people are finding that it works At both the level of the individual trying to cultivate a happier and more positive mental attitude and of the employee group working to foster a more collegial and supportive workplace environment, The Pickle Challenge and the simple promise included in The Pickle Pledge can have a literally miraculous effect 2/2 Activity 2.3: Identifying the Business Challenge and Vision Statement The business challenge and the vision statement provide direction for gathering and analyzing business requirements. You will develop both the business challenge and the vision statement to help guide you through the remaining activities in this course. In this activity, you will participate in small groups to identify the business challenge for Ferguson and Bardell, Inc. Then the entire class will compare business challenges and develop a common business challenge that all of the groups will use in class for the rest of the course. Next, again working in groups, you will create a vision statement that addresses the business challenge. Then the entire class will compare vision statements and develop a common vision statement that all of the groups will use for the rest of the course. Objectives After completing this activity, you will be able to: ! Identify a business challenge. ! Create a preliminary vision statement. Before You Begin This activity consists of small group tasks and class discussion. Materials To complete this activity, you will need: ! The Ferguson and Bardell, Inc. case study in Appendix 1. ! Flip-chart paper and markers. Time to complete this activity: 50 minutes 10 Activity 2.3: Identifying the Business Challenge and Vision Statement Exercise 1: Identifying the Business Challenge ! State the business challenge (15 minutes) 1. Participate in small groups as assigned by the instructor. 2. Review the Ferguson and Bardell, Inc. case study in Appendix 1. 3. Write a paragraph that describes the business challenge. Be concise. Your business challenge should identify details from the case study. Identify specific performance problems, technologies, processes, or systems. Think about who your audience will be in preparing the perceived business challenge. Use terms that are meaningful, understandable, and precise. 4. Write the business challenge in the space below. 5. Duplicate your business challenge on a piece of flip-chart paper. Activity 2.3: Identifying the Business Challenge and Vision Statement 11 ! Develop a common business challenge for the entire class (10 minutes) 1. Choose an individual to present the group’s business challenge to the class. 2. Compare each business challenge to find similarities and differences. 3. In class discussion, choose a common business challenge. The class can either choose a business challenge developed by one group or combine business challenges from several groups. 4. Write the final business challenge in the space below. You will use this in the next exercise and future activities. 12 Activity 2.3: Identifying the Business Challenge and Vision Statement Exercise 2: Developing the Vision Statement ! Develop the vision statement (15 minutes) 1. Participate in small groups as assigned by the instructor. 2. Review the business challenge developed by the class in Exercise 1. 3. Review the Ferguson and Bardell, Inc. case study. 4. MATH REVIEW for Practicing to Take the GRE ® General Test Copyright © 2003 by Educational Testing Service. All rights reserved. EDUCATIONAL TESTING SERVICE, ETS, the ETS logos, GRADUATE RECORD EXAMINATIONS, and GRE are registered trademarks of Educational Testing Service. MATH REVIEW The Math Review is designed to familiarize you with the mathematical skills and concepts likely to be tested on the Graduate Record Examinations General Test. This material, which is divided into the four basic content areas of arithmetic, algebra, geometry, and data analysis, includes many definitions and examples with solutions, and there is a set of exercises (with answers) at the end of each of these four sections. Note, however, this review is not intended to be compre- hensive. It is assumed that certain basic concepts are common knowledge to all examinees. Emphasis is, therefore, placed on the more important skills, concepts, and definitions, and on those particular areas that are frequently confused or misunderstood. If any of the topics seem especially unfamiliar, we encourage you to consult appropriate mathematics texts for a more detailed treatment of those topics. TABLE OF CONTENTS 1. ARITHMETIC 1.1 Integers 6 1.2 Fractions 7 1.3 Decimals 8 1.4 Exponents and Square Roots 10 1.5 Ordering and the Real Number Line 11 1.6 Percent 12 1.7 Ratio 13 1.8 Absolute Value 13 ARITHMETIC EXERCISES 14 ANSWERS TO ARITHMETIC EXERCISES 17 2. ALGEBRA 2.1 Translating Words into Algebraic Expressions 19 2.2 Operations with Algebraic Expressions 20 2.3 Rules of Exponents 21 2.4 Solving Linear Equations 21 2.5 Solving Quadratic Equations in One Variable 23 2.6 Inequalities 24 2.7 Applications 25 2.8 Coordinate Geometry 28 ALGEBRA EXERCISES 31 ANSWERS TO ALGEBRA EXERCISES 34 3. GEOMETRY 3.1 Lines and Angles 36 3.2 Polygons 37 3.3 Triangles 38 3.4 Quadrilaterals 40 3.5 Circles 42 3.6 Three-Dimensional Figures 45 GEOMETRY EXERCISES 47 ANSWERS TO GEOMETRY EXERCISES 50 4. DATA ANALYSIS 4.1 Measures of Central Location 51 4.2 Measures of Dispersion 51 4.3 Frequency Distributions 52 4.4 Counting 53 4.5 Probability 54 4.6 Data Representation and Interpretation 55 DATA ANALYSIS EXERCISES 62 ANSWERS TO DATA ANALYSIS EXERCISES 69 ARITHMETIC 1.1 Integers The set of integers, I, is composed of all the counting numbers (i.e., 1, 2, 3, . . .), zero, and the negative of each counting number; that is, I = , , , , , , , , .3 2 10123 :? Therefore, some integers are positive, some are negative, and the integer 0 is neither positive nor negative. Integers that are multiples of 2 are called even integers, namely , , , , , , , , 6420246 :? All other integers are called odd integers; therefore , , , , , , , 531135 :? represents the set of all odd integers. Integers in a sequence such as 57, 58, 59, 60, or − 14, − 13, − 12, − 11 are called consecutive integers. The rules for performing basic arithmetic operations with integers should be familiar to you. Some rules that are occasionally forgotten include: (i) Multiplication by 0 always results in 0; e.g., (0)(15) = 0. (ii) Division by 0 is not defined; e.g., 5 ÷ 0 has no meaning. (iii) Multiplication (or division) of two integers with different signs yields a negative result; e.g., ((8)-=-7) 56 and ()()  =-12 4 3 (iv) Multiplication (or division) of two negative integers yields a positive result; e.g., ()( ) =512 60 and ()() - =24 38 The division of one integer by another yields either a zero remainder, some- times called “dividing evenly,” or a positive-integer remainder. For example, 215 divided by 5 yields a zero remainder, but Institut C.D. HOWE Institute commentary NO. 367 Long-Term Care for the Elderly: Challenges and Policy Options Policy reforms in long-term care will require methods to contain costs, to fairly divide these costs between care recipients and taxpayers, and to get more value for money in a sector that will feature prominently in future health policy debates. Åke Blomqvist and Colin Busby $12.00  978-0-88806-887-3  0824-8001 (print);  1703-0765 (online) E s s e n t i a l P o l i c y I n t e l l i g e n c e | C o n s e i l s i n d i s p e n s a b l e s s u r l e s p o l i t i q u e s I N S T I T U T C . D . H O W E I N S T I T U T E Finn Poschmann Vice-President, Research Commentary No. 367 November 2012 Health Policy C.D. Howe Institute publications undergo rigorous external review by academics and independent experts drawn from the public and private sectors. e Institute’s peer review process ensures the quality, integrity and objectivity of its policy research. e Institute will not publish any study that, in its view, fails to meet the standards of the review process. e Institute requires that its authors publicly disclose any actual or potential conicts of interest of which they are aware. In its mission to educate and foster debate on essential public policy issues, the C.D. Howe Institute provides nonpartisan policy advice to interested parties on a non-exclusive basis. e Institute will not endorse any political party, elected ocial, candidate for elected oce, or interest group. As a registered Canadian charity, the C.D. Howe Institute as a matter of course accepts donations from individuals, private and public organizations, charitable foundations and others, by way of general and project support. e Institute will not accept any donation that stipulates a predetermined result or policy stance or otherwise inhibits its independence, or that of its sta and authors, in pursuing scholarly activities or disseminating research results. The Institute’s Commitment to Quality About The Authors Åke Blomqvist is an Adjunct Research Professor at Carleton University and Health Policy Scholar at the C.D. Howe Institute. Colin Busby is a Senior Policy Analyst at the C.D. Howe Institute. The Study In Brief As Canada’s society ages, more personal care and health support will be needed for people who, either as a consequence of disability or aging, require assistance to function independently. As this happens, policymakers face the daunting challenge of balancing the scal burden on taxpayers with the need to ensure that all individuals with long-term needs receive proper care. But this is a challenge best confronted immediately, before the rst wave of babyboomers begins to draw heavily on long-term care programs in about 15 years’ time. In light of this challenge, policymakers must tackle two major policy questions. First, should governments take more responsibility for nancing long-term care to bring this part of the healthcare system closer to the principle of universal coverage that currently applies to physician and hospital services? In other words, what are the right shares of public and private coverage in long-term care? Second, how could governments fund long-term care more eciently, to get better value for the increasing amount of money they allocate to such care and to reduce costs in the healthcare system as a whole? In an environment where tax rates are projected to rise because of demographics and growing health costs, the cost to .. .Take The Pickle Challenge I think there are two reasons the Pickle Challenge has gotten such traction The first is simply that it is such a great visual metaphor We can all visualize the. .. mental attitude and of the employee group working to foster a more collegial and supportive workplace environment, The Pickle Challenge and the simple promise included in The Pickle Pledge can have... or she was suckled on a dill pickle instead of a pacifier The second reason is far more important – because people are finding that it works At both the level of the individual trying to cultivate