Definition and Examples of Epiplexis

In rhetoric, epiplexis is an interrogative figure of speech in which questions  are asked in order to rebuke or reproach rather than to elicit answers. Adjective:  epiplectic. Also known as  epitimesis and percontatio. In a broader sense, epiplexis is a form of argument in which a speaker attempts to shame an opponent into adopting a particular point of view. Epiplexis, says  Brett Zimmerman, is clearly a device of vehemence. . . . Of the four kinds of rhetorical questions [epiplexis, erotesis, hypophora, and ratiocinatio] . . ., perhaps epiplexis is the most devastating because it is used not to elicit information but to reproach, rebuke, upbraid (Edgar Allan Poe: Rhetoric and Style, 2005). Etymology From the Greek, strike at, rebuke Examples and Observations Epiplexis a more specific form of [a rhetorical question] where a lament or an insult is asked as a question. Whats the point? Why go on? Whats a girl to do? How could you? What makes your heart so hard? When, in the Bible, Job asks: Why died I not from the womb?  why did I not give up the ghost when I came out of the belly? its not a real question. Its epiplexis. Epiplexis is the puzzled grief of Why, God? Why? in Miss Saigon; or it is the bemused disdain in the film Heathers that  prompts the question: Did you have a brain tumor for breakfast?(Mark Forsyth,  The Elements of Eloquence: Secrets of the Perfect Turn of Phrase.  Penguin, 2013)Let us not assassinate this lad further, Senator. You have done enough. Have you no sense of decency, sir, at long last? Have you left no sense of decency?(Joseph Welch to Senator Joseph McCarthy at the Army-McCarthy Hearings, June 9, 1954)Are we children of a lesser God? Is an Israeli teardrop worth more than a drop of Lebanese blood?†(Lebanese Prime Minister Fouad Siniora, July 2006)O how little a thing is all the greatness of man, and through how false glasses doth he make shift to multiply it, and magnifie it to himselfe?(John Donne, Devotions Upon Emergent Occasions, 1624)You think what I do is playing God, but you presume you know what God wants. Do you think thats not playing God?(John Irving, The Cider House Rules, 1985)Ah, sorry to interrupt you there, Bobbo, but I gotta ask you a quick question. Now, when you were born, nay, spawned by the Dark Prince himself, did that rat bastard forget to give you a hug before he sent you along your way?(Dr. Cox in the television program Scrubs, 2007)Canst thou with impious obloquy condemnThe just Decree of God, pronounct and sworn,That to his only Son by right endudWith Regal Scepter, every Soule in HeavnShall bend the knee, and in that honour dueConfess him rightful King?(Abdiel addressing Satan in Paradise Lost by John Milton) Epiplexis in a Restaurant Review Guy Fieri, have you eaten at your new restaurant in Times Square? Have you pulled up one of the 500 seats at Guy’s American Kitchen Bar and ordered a meal? Did you eat the food? Did it live up to your expectations?Did panic grip your soul as you stared into the whirling hypno wheel of the menu, where adjectives and nouns spin in a crazy vortex? When you saw the burger described as Guy’s Pat LaFrieda custom blend, all-natural Creekstone Farm Black Angus beef patty, LTOP (lettuce, tomato, onion pickle), SMC (super-melty-cheese) and a slathering of Donkey Sauce on garlic-buttered brioche, did your mind touch the void for a minute? . . .How did nachos, one of the hardest dishes in the American canon to mess up, turn out so deeply unlovable? Why augment tortilla chips with fried lasagna noodles that taste like nothing except oil? Why not bury those chips under a properly hot and filling layer of melted cheese and jalapeà ±os instead of dribbling them with thin needles of pepperoni and cold gray clots of ground turkey? . . .Somewhere within the yawning, three-level interior of Guy’s American Kitchen Bar, is there a long refrigerated tunnel that servers have to pass through to make sure that the French fries, already limp and oil-sogged, are also served cold?(Pete Wells, As Not Seen on TV.  The New York Times, November 13, 2012) Epiplexis in Shakespeares Hamlet Have you eyes?Could you on this fair mountain leave to feed,And batten on this moor? Ha! have you eyes?You cannot call it love; for at your age The heyday in the blood is tame, its humble,And waits upon the judgment: and what judgmentWould step from this to this? Sense, sure, you have,Else could you not have motion; but sure, that senseIs apoplexd; for madness would not err,Nor sense to ecstasy was neer so thralldBut it reserved some quantity of choice,To serve in such a difference. What devil wastThat thus hath cozend you at hoodman-blind?Eyes without feeling, feeling without sight,Ears without hands or eyes, smelling sans all,Or but a sickly part of one true senseCould not so mope.O shame! where is thy blush?(Prince Hamlet addressing his mother, the Queen, in Hamlet by William Shakespeare) ​​The Lighter Side of Epiplexis Whats with you, kid? You think the death of Sammy Davis left an opening in the Rat Pack?(Dan Hedaya as Mel in Clueless, 1995)Does Barry Manilow know  that you raid his wardrobe?†(Judd Nelson as John Bender in The Breakfast Club, 1985)Have you no shame, coming in as Gandhi and stuffing yourself with Buffalo wings? Why didnt you come as FDR and go around with crazy legs?(George Segal as Jack Gallow in Halloween, Halloween.  Just Shoot Me!  2002)

Fiscal Policy and Government Debt Example

Essays on Fiscal Policy and Government Debt Statistics Project Fiscal Policy and Government Debt Introduction The topic for the study is the impact of fiscal policy and government debt on the economic growth of an economy. This topic has been chosen owing to the fact that fiscal policy and government debts are subjected to several debates in the contemporary world. At the same time, fiscal policy and government debts are also identified to have considerable implication on the economic condition of a country. Over the years, the global economic environment has constantly faced with radical challenges, which have significantly influenced the ability of the nations across the world to sustain the level of competitiveness1. In order to address the challenges as well as to remain competitive and attain stable GDP growth rate, countries have been involved in using the macroeconomic tool such as fiscal policy to cope up with the existing and the emerging economic challenges. Notably, it has been argued that fiscal policy offers the economist of the cou ntries with an effective tool that enables the countries to overcome the challenges imposed by the sluggish economic growth and economic uncertainties as witnessed during economic recession. Likewise, government debt is considered to have severe impact on the GDP growth rate of an economy and at the same time, it has been subjected to several contentions and controversies2. In this regard, many economists have argued that government debt is an effective tool that paves a way for attaining success and prosperity of a nation in the long run. On the other hand, the detractors of the government debts have strongly argued that government debts merely increase the burden for a country in the future and at the same time’ these debts have minimum impact on securing prosperous nation3. In order to validate the various debates regarding the positive and negative implication of fiscal policy and government debts, hypothesis has been formulated with dependent variable ‘Tax cut and increased government debt’ and independent variable ‘economic condition’. The hypothesis is reflected below: H0: The tax cut and increased government debt secure a prosperous economic condition for the future generation H1: The tax cut and increased government debt do not secure a prosperous economic condition for the future generation The specific equation based on OLS model is provided hereunder. ∑Yi – (Xi)2 Yi is the actual value Xi is the predicted value OLS Equation: Must take the form of: DEF/GDPit=A + PRIRE/GDPit +cDUMit + d(DUM)()PRIRE/GDP)it +e it i=1†¦Ã¢â‚¬ ¦..N; t= 1†¦Ã¢â‚¬ ¦.T The above-documented equation intends to establish the relationships between the tax cut and government debt with a percentage of GDP. Wherein, I = year, and t is denoted as (DEF/GDPit) to the value of government expenditure (as a percentage of GDP), corresponding to the same year – denoted as (PRIRE/GDP)it. Dependent Variable Y: GDP at market prices Independent Variable YG: Growth rate per GDP per capita Y0: Initial GDP at market price GEGE: General expenditure of government on education GEGH: General expenditure of government on health GEGOHC: General expenditure of government on Housing and Community amenities GEGOEP: General expenditure of government on Environment Protection GEGPOS: General expenditure of government on Public Order and Safety Data Source(s) of data and variable definitions The data necessary for conducting the research were collected from the secondary sources. In this regard, the observation method was applied. Notably, the data pertaining to deficits, spending as well as tax along with the growth in 100 countries across the world were obtained. The data gathered from the source provided relevant information regarding the research subject matter. The data reflecting the macroeconomic condition of a country were primary collected for the research study. Data Manipulations Required Before Estimation The data were gathered from the 100 different countries revealed few interesting facts. The data presented the percentage of variable of the countries. Correspondingly, the variables that were taken into the consideration for the accomplishment of the research goals are mentioned above. Accordingly, it can be determined that there are numerous independent variables as the fiscal policy and government are ascertained to have significant impact on the above stated independent variables. Economic Model Consumption Function Ct= ÃŽ ±0 + ÃŽ ±1 Yt Import Function Mt= ÃŽ ²0 + ÃŽ ² 1Yt Identity Equation Yt=Ct+It+Gt+Et-Xt t= 1,2,†¦100 Econometric Model Ct= ÃŽ ±0 + ÃŽ ±1 Yt +U 1t Mt= ÃŽ ²0 + ÃŽ ² 1 Yt +U 2t Yt=Ct+It+Gt+Et-Xt Where, Ut is an error term t= 1,2,†¦,100 Critical Assessment of Data Table 1 illustrates the descriptive statistics of the variables that were used in the estimation of the anticipated outcome of the data gathered from the 100 countries across the world. According to the data obtained from the descriptive statistics, it has been observed that per capita income (YG) grew at about 2.2% per annum. In addition, it has been further determined from the analysis of the statistics that spending of the government on public health (GEGH) is 5.840. In addition, it has been observed that Initial GDP at market price (Y0) was 18209.75. General expenditure of government on Environment Protection (GEGOEP) grew at 0.629. General expenditure of government on Public Order and Safety (GEGPOS) was reckoned 1.476. The study enabled a critical evaluation of the impact on fiscal policy and government debt on the growth and prosperity of a country. Accordingly, the descriptive statistics revealed that there are lagged impact of the fiscal policy on the growth and prosperity o f a country. The study revealed that a country with strong financial position has greater possibility of attaining growth and prosperity. On the other hand, financial instability and increased government debt have minimum opportunity to secure prosperity of a country. Fig: 1Mean Fig: 2 Standard Deviation Tables 1 Variable Mean Std Deviation Minimum Maximum YG: 2.191 2.236 -6.968 13.28 Y0 18209.8 5976.567 8000 29800 GEGE: 5.529 1.284 2.5 8.2 GEGH: 5.84 1.288 0.9 7.7 GEGOHC: 0.933 0.584 0.1 6.3 GEGOEP: 0.629 0.288 0.1 1.5 GEGPOS: 1.476 0.495 0.001 2.8 References Klaus Adam, "Government Debt and Optimal Monetary and Fiscal Policy." (Mannheim University and CEPR, 2010), 2-29. Salim Furth, â€Å"Stimulus or Austerity?" Fiscal policy in the Great Recession and European Debt Crisis. (Heritage Foundation, 2014), 40-63. William Easterly, "Fiscal Policy and Economic Grouth: An Empirical Investigation ." deu.edu. October. Accessed September 24, 2014. http://kisi.deu.edu.tr/yesim.kustepeli/w4499.pdf.

Cosmetics and Lush Company free essay sample

In the following part, the background of LUSH Company and its products will be given. Company background History LUSH is an internationally recognized cosmetics retail corporation producing and selling handmade beauty products. With its roots in the 1970s, LUSH Company has grown to over 700 shops in 43 countries by 2011 (lush. co. uk). In the early 1970s, Mark Constantine, the original founder together with Elizabeth Weir established wholesale soaps and cosmetics company Constantine Weir which began to be The Body Shop’s main supplier of soaps and cosmetic products (Evans, 2009). In 1988, the company launched a new enterprise—Cosmetics To Go headquartered in Poole, Dorset, UK. They sold their natural products through The Body Shop and the mail order business. However, due to some unfortunate events and a major recession at the end of the 1980s, this company went bankrupt. But the bankruptcy didn’t let Mark give up his career. In 1994, Mark restarted his business in Poole and renamed his company ‘LUSH’ (Evans, 2009). From then on, this company began to be popular throughout the world. By 2012, there are 22 LUSH shops in France. Company value LUSH produces fresh-made soaps, shower gels, shampoos, lotions for the hair, face and body with 100% vegetarian recipes. The concepts of â€Å"ecological† and â€Å"green† are shared by LUSH Company, which include a major concern for the environment, a wish to reduce packaging and wastes, a desire to build an environmentally sustainable business. The company prefers solid rather than liquid products as they can be cut and wrapped in grease-proof paper without any plastic bottles (Evans, 2009). As the â€Å"we believe† statements illustrate on its websites, â€Å"We believe†¦in making effective products from fresh, organic fruit and vegetables, in buying ingredients only from companies that do not commission tests on animals and in testing our products on humans,† etc. The company values focus on freshness, safety, no animal testing and sustainability of resources in general. 2. Situation analysis Macro Environmental Analysis Political environment Lush Company launched in France can face great chances. Firstly, the future for natural cosmetics companies is bright. The European Union has published the Cosmetics Products Regulation (1223/2009) which will go into effect on July 11, 2013 (Steinberg, 2010). This regulation will focus more on product safety to protect human health which is in consistence with LUSH Company’s value. Besides, it will create a legal standard on natural cosmetics to protect its industry. Secondly, France and United Kingdom maintained a fairly close relationship during these years. Nicolas Sarkozy, the French President said Britain and France have never been so close and he wanted a new â€Å"brotherhood† between the two countries (Porter, 2008). This friendly relationship guarantees a stable political environment for the development of LUSH Company in France. However, despite the great opportunities for LUSH Company, some threats cannot be ignored such as the company tax in France. The rate of company tax depends on the turnover and capital structure of the business. At present, the individual income tax rate increased to 40% and the corporate tax rate are progressive up to 33. 33%. The sales tax/VAT rate reached 19. 60% (Tax rates, 2010). Economic environment France is a very attractive cosmetics market due to its strong economy. The following parts illustrate the economic opportunities for LUSH Company. First of all, France has a High-income economy and is the second-largest trading nation in Western Europe. The World Economic Forum ranked France 18th out of 139 countries in terms of competitiveness and 4th in terms of infrastructure. Besides, GDP is known as the best index for measuring country’s economy. A country with a better state of economy will be beneficial for launching business. According to CIA (2012), The GDP (purchasing power parity) increased from $2. 48 trillion in 2009 to $2. 214 trillion in 2011. The real growth rate of GDP is 1. 7% in 2011 compared with 1. 4% in 2010 and -2. 6% in 2009. Meanwhile, the imports rose from $588. 4 billion in 2010 to $684. 6 billion in 2011. In accordance with French branch of the market research firm NPD, the cosmetics market in France grew by 3% in 2011 to reach 2. 9 billion euros (Premium Beauty News, 2012). Furthermore, the French government has taken a number of measures to support French small and medium sized enterprises during the current financial crisis. For example, in 2008, the French government announced a EUR 22billion plan and signed an agreement with the Federation of French Banks to support these companies (Brown, 2009). Therefore, French economic environment is advantageous for LUSH Company to entry the French cosmetic market. Nevertheless, according to International Money Fund (IMF, 2011), the current account balance of France has gradually worsened from a surplus to a moderate deficit—largely because of rising labor costs. Wages have grown faster than other European Countries while total factor productivity growth has increased relatively slow. Besides, France has been struggling with high unemployment rates for decades. In 2011, the unemployment rate hits a 12-year high and stands at 9. 8% (Financial times, 2011). Thus, LUSH Company should pay attention to the economic threats mentioned above to ensure a healthy cosmetic industry. Social-Cultural environment The social-cultural environment exerts a big influence on French cosmetics market. In this part, 2 important social opportunities will be discussed, namely changes of values and population. In terms of changes of values, the cosmetics market is going green nowadays. Today’s customers are enthusiastic about products made by the companies which take responsibility for social ethical issues and the environment. The natural cosmetics in French market grew significantly due to rising consumer awareness of chemicals in cosmetics and toiletries (Organic Monitor, 2006). Many media reports published the health risks associated with chemicals in conventional products. For instance, a TV documentary in 2005 highlighted the possible danger of synthetic substances such as parabens in skin care products (Organic Monitor, 2006). As a result, customers focus more on health and turn to natural products with plant extracts and natural ingredients and a minimal level of synthetic compounds. In terms of changes of population, France has an aging population, thus, customers are eager to maintain a healthy skin by using natural cosmetics. Furthermore, based on Hofstede’s cultural typology, the French people dislike taking risks. Every decision has to be analysed carefully before being taken, which also result in a high power distance. French people are individualists; they may buy products only for their use. And they work rather alone, which make an intense competition among many companies. France is a feminine society which share female characteristics, thus, French people may pay more attention on what they eat and what they put on their skin. Technological environment Technology has become the driving force of business innovation. Today’s customers are increasingly using the Internet and social media as an information platform for exchanging views. With the growth of e-commerce, LUSH products are available online, which also makes contributions to its total sales. In addition, in order to remain competitiveness in the market, the cosmetics companies have to advance the technology continuously. For example, Estee Lauder Company has applied innovative cell vector technology to produce anti-aging skin care products (Bowler). Nowadays, there are 3 major technologies applied in cosmetics industry, namely Biology engineering technology, Nano technology and the natural plant extraction technology. These 3 technologies are well developed in France with lower costs. The cosmetics company aims to produce more natural products with those high techonologies. Market analysis Customer analysis—Targeting Firstly, LUSH’s target is women from 18 years of age and above market, belonging to a middle class or upper class so that they can have more disposable income to purchase specialty products. LUSH’s second target is men between 20 and 55 years old belong to both classes. Additionally, Customers should have knowledge about environment, sustainability and animal rights issues to have a more detailed understanding about LUSH brand. Competitor analysis The main competitors in natural cosmetics market are Yves Rocher, L’Occitane and The Body Shop. Yves Rocher is a French brand focus on botanical beauty. L’Occitane which comes from France is an international retailer of body and face. The company’s values are: â€Å"Authenticity and naturalness†, â€Å"Effectiveness and pleasure† and â€Å"Respect and responsibility† (l’occitane. com, 2012). The Body Shop, regarded as the biggest competitor will be analysed carefully in this part. The Body Shop, founded in 1976, it was the first main retailer in UK to focus on natural ingredients that were ethically sourced and not tested on animals. In 2006, it was sold to the cosmetics giant L’Oreal (Guardian, 2011). This company sells naturally-inspired products for the body, face and hair etc. It rewards the customers a Love Your Body card which offers a package of benefits including 10% off all purchases for a year and up to ? 20 of free products (Guardian, 2011). LUSH is similar to The Body Shop in many ways. For instance, both offer similar products such as soaps, creams etc. Both persist on the same value of ethical sourcing with no testing on animals and environmentally-friendly production techniques. But in terms of size and scale, the Body Shop occupies the first place, while in terms of social media engagement, LUSH Company trumps The Body Shop (Esposito, 2010). According to a in-depth analysis of the Facebook page of these two companies, the Body Shop Facebook page adopts a more official tone of engagement, announcing special offers to promote its products. The LUSH facebook adopts a more personal and conversational approach. The separate group called Lush Times enables the customers to post pictures of them using the products, drawings and reviews, therefore building a deeper and close relationship with the customers (Esposito, 2010). 3. Marketing objectives LUSH Company aims to gain a modest growth in total retail sales with an ncrease of 5% till December 2012. Refresh and review a series of products to ensure at least 30% of the target shows likelihood to buy. Enhance awareness of LUSH core brand and its unique values. Build loyalty to brand products to ensure at least 15% of the target becomes repeated buyers. Expand more LUSH shops in France with approximately 3 shops every year. 4. Recommendation of marketing strategy Differentiation and positioning Product innovation There are many innovative products such as bath ballistics, solid body tints, dusting powders, massage bars, shower jellies and solid perfumes. LUSH takes â€Å"food† as the theme of its handmade bath products, some products are shaped like cakes but you are not supposed to eat them. The products are made of raw organic ingredients that have little or no preservatives. â€Å"Freshness† is a distinguished feature of LUSH. LUSH products are handmade in factories throughout the world, they are made in small batches according to the orders from each store to guarantee the freshness of the product. Thus, the products will not be older than four months and have a shelf life of only 14 months (Lush. co. uk, 2012). Lush company sticks to solid principle to develop solid products which don’t need preservatives or much packaging such as solid shampoos, solid conditioners, soaps, solid massage bars and solid bath oils, etc. It is better for the environment (Lush. co. uk, 2012). One of the characteristic that differentiate Lush from its competitors such as The Body Shop is handmade. Lush prefer people in big kitchens to make the products rather than by industrial machines. There is transparency in detailed labels to tell you when the products were made and who made it. As you walk along the street where there is a lush shop, you can smell the fragrances from far. When you pass by the window, you realize that this is the place diffusing the pleasant fragrance onto the street, and then you enter the shop naturally. This is the charm of Lush shop. Besides, Lush can cut the soaps to size depending on how much the customer wants. So the soaps are sold by weight. Based on the differentiation of Lush Company, the positioning of Lush will be the fresh handmade cosmetics focusing on natural characteristics of beauty with high ethical values and high customer relationship quality. 4Ps Strategies Pricing strategy Pricing is a significant strategic tool as it can position the products. Lush offers customers with good value. Approximately 65% of the products are selling under $10. The most popular soaps should sell between $4 to $6. In general, LUSH products usually priced less compare with other cosmetics companies like the Body Shop but more than the price of local supermarkets. Besides, Lush Company can offer good discount for people by giving a loyalty card with a 10% off. Place stategy Since Lush is doing business in 43 countries, they can adopt a multi-channel strategy with different outlets distributing which can lead to less delivery charges. They can run a mail order operation and sell its products online. With a wide range of products, they can use a mail order catalogue for cross-selling products for the existing customers. In addition, the Lush stores should locate in primes areas such as high end business and shopping area. Promotion strategy There are many promotion means for Lush. Firstly, Lush can use in-store advertising to advertise their products as well as celebrity endorsement. The influence of celebrities cannot be ignored. If the idols show interest in one particular product, their funs would follow the taste. Also lush can print advertisement on fashion magazines, doing advertisement on popular TV shows, talk show and online advertising with online media such as Facebook and Twitter etc. Secondly, word-of-mouth will be one way of seeping into the market. In this case, customers love our brand and they share the Lush experience with their friends or families. A good reputation is important for personal recommendations. Thirdly, lush can rely on public relations to build a good reputation for its brand by doing charity. For instance, Lush as created the Charity Pot body lotion aims to raise money and awareness about charities (Lush. com, 2012). Furthermore, with the development of e-commerce, it is effective for Lush to start their online sales through its official website. Product strategy In terms of environmentally friendly packaging, the transparency of detailed labels is needed. The products are â€Å"naked† or only use recycled plastic and paper bags. Besides, Lush can offer free gift for potential customers or offer loyalty cards to build close relationships with customers. Additionally, good customer service is important. The staffs in Lush should be patient enough to educate the customers about their products and the value of their company. For example, what is the expiry date of one product? Does the product involve natural and organic ingredient? Does the product include preservatives? Etc. 5. Conclusion In conclusion, there is no denying that there are some threats exist in the market, however, France has a strong economy and stable political environment to ensure a sustainable development of cosmetics market. Besides, the changing of values of public and the need for natural and organic cosmetics can stimulate the sales of natural products. Therefore, French market is really attractive for LUSH Company. Although the competitor the Body Shop occupy the first place in terms of scale and size, LUSH can differentiate itself by introducing innovative products and become quite popular as the fresh handmade cosmetics. Furthermore, in order to expand Lush’s market share, Lush continues to offer customers good values, advertising the products by celebrity endorsement, word-of-mouth advocacy, sticking to the environmentally friendly packaging, establishing close relationships with customers by offering loyalty cards and free gifts. Green and natural products are the mainstay of the LUSH Company as this brand focusing on using fresh organic fruits and vegetables, natural essential oils and safe synthetics to produce their products. Also, the policy of no animal testing for any of the product ingredients is highlighted by LUSH Company. Based on these long-standing commitments to the environment, LUSH embrace their cores values and gain the trust from their customers.

Risk Management and Project Management

Introduction In a perfect business environment, any goals that are set for an investment are achieved as per book. However, in real life, the actual returns often fall short of anticipations due to unforeseen uncertainties. In business, these uncertainties are known as risks and have the potential to affect the performance of any enterprise.Advertising We will write a custom research paper sample on Risk Management and Project Management specifically for you for only $16.05 $11/page Learn More Furthermore, certain scenarios that occur due to the risks can result in closure of the business, especially when huge losses are incurred. As a result, investors and business researchers have developed ways of reducing deviation of actual returns from targeted returns. This practice is known as risk management. It is involved with identification and analysis of risks and acting appropriately to mitigate them by making feasible decisions. Depending on factors such as risk appetite among others, the level of response can vary significantly. However, some managers tend to perceive that risk management only involves setting of rules that are mandatory to employees. Although the rules can enable reduction of the existing risk exposures, sometimes they harden detection of new threats that can pose devastating effects to the firm. For example, the credit crisis that occurred between 2007 and 2008 led to huge losses that led to termination of banks. This situation compelled many financial institutions to put risk management models in place to prevent recurrence of such situations in the future. This essay provides an insight into risk management and its implications on project management. Evolution of Risk Management To understand the contemporaneous and future of risk management, it is necessary to understand why corporates started mitigating risks by investing heavily in identification of the effects that they had on their investments. How did ris k management start? Simona-Iulia (2014) reveals that the field of insurance management that existed before the 1970s focused on identifying and assessing business risks. However, it was inadequate to meet the demands of business world that was evolving rapidly. As a result, there was a need to come up with new forms of management to focus on a variety of business security besides insurance. This urge led to development of risk management in the mid-1970s to focus on areas that were not covered by insurance such as electronic commerce, employment practices, offshore outsourcing, and environmental degradation among others. This field grew rapidly until the 1980s when it was recognised as a vital component of strategic planning in companies.  McShane, Nair, and Rustambekov (2011) posit that risk management involves identification of risks that are faced by corporations with a view of formulating apt decisions that enable effective business operations. It provides suitable frameworks for controlling various risks that are encountered by business organisations.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Previously, risk management only emphasised on the downside effect of the business uncertainties. However, current practices are aimed at addressing both the negative and positive effects of risks on businesses. This knowledge enables managers to avoid losses from negative exposures whilst seeking the best opportunities that accompany risks depending on factors such as economic growth, strategic position, and political stability. Chief risk officers (CRO) head risk management departments in corporates. According to McShane et al. (2011), the CRO is charged with a responsibility of managing risks in five general categories that are itemised below: Business risks. These are flaws exist within the industry in which a business operates. Operational risks. The u ncertainties come up directly from the organisation’s primary operations that are associated with shortcomings such as human errors or machinery malfunction. Legal risks. The organisation is a legal entity. For that reason, there should be proper planning of alleviating risks that pose potential lawsuits to the organisation. Credit risks. These are uncertainties that involve debtors and/or creditors to the organisation Market risks. The market poses some of the most challenging fears to the organisation. Abrupt price fluctuations can lead to sharp rise or fall in profits. A good example is the current oil price slump that has shed off more than 45-percent of its value within a span of 6 months. Other risks that are associated with the market include interest and exchange rates. Theoretical Concepts of Risk Management and their Implementation After the identification and assessment of the risks, the organisation should adopt suitable models to prevent and/or minimise their ef fects on its operations and profitability. Concepts that have been developed by various economists enable organisations to minimise the risks substantially. The theories are grouped into four major categories. Retention Sharing Avoidance Reduction Risk Avoidance This concept involves circumventing projects and/or activities that pose impending risks to the organisation. According to Prokop and Pfeifer (2013), it is better to avoid projects that are likely to cause harm to business operations. For instance, consider a real estate developer who is looking for a piece of land with a view of building rental houses. In the process, the developer comes across a prime property that is being offered at a good price in spite of certain ownership and/or pollution lawsuits that have been filed against the entity. In such a case, it is advisable to avoid the risk, rather than owning the entity together with the lawsuits that can bring about losses of revenue and time value of money in the nea r future of the prospective project (Prokop Pfeifer, 2013). Risk Reduction This concept entails minimising the exposure to risks by cutting down the activities that are likely to bring about shortcomings in the course of business operations. A project is a combination of many activities that are aimed at achieving a common goal. However, Perrenoud, Lines, and Sullivan (2014) posit that each activity can have its own risks that can be either endurable or excruciating. Instead of facing all these shortcomings, the organisation can decide to reduce the intolerable risks. No single activity can pose all negative risks to a project. However, consideration of an activity that poses negative risks to the organisation, then it benefits should outweigh its impending losses. There is a need to evaluate the value of the positive risk as opposed to the negative one in an attempt to formulate a feasible decision that enables determination of the worth of the risk (Perrenoud et al., 2014).Advert ising We will write a custom research paper sample on Risk Management and Project Management specifically for you for only $16.05 $11/page Learn More For instance, consider a scenario where an office is under fire and all the documents in it are at a risk of burning down to ashes. Assuming the presence of a water extinguisher in the office, will you use it to put off the fire and bear the risk of wetting the documents or will you let the fire consume everything in the office? In this case, a need to weigh options arises. The best option will be to put off the fire using the water extinguisher to damage the documents partially rather than letting the fire destroy them. Briefly, the risk is reduced by choosing a less undesirable outcome as opposed to picking out an utterly objectionable decision (Perrenoud et al., 2014). The application of the above scenario in a real project results in incurrence of some extra costs for the project in an attempt to reali se its success (Perrenoud et al., 2014). Companies reduce risks by outsourcing parts of the projects to other firms that specialise on the particular type of undertaking that seems unfeasible to them. For instance, in the oil exploration industry, the drilling company rarely handles the transportation of rigs from one site to another. However, it outsources this part of the job to firms that have specialised in the transportation of the machines. They have the better capacity and expertise to handle such work than that of the drilling company. As a result, the drilling company has to pay the transportation companies. This situation results in incurrence of an additional cost to the exploration cost, which is much better than risking loss and/or destruction of the rigs during the transportation process. Perrenoud et al. (2014) reveal that outsourcing is a very powerful and practical way of reducing the project risks. Risk Sharing Simona-Iulia (2014) posits that ‘a problem share d is a problem half-solved’. This saying is widely used in social life to encourage people to speak out of their problems to seek assistance. According to Simona-Iulia (2014), this strategy can also be applied in risk management. Risk sharing involves convergence of two or more parties with a view of improving coordination of the benefits and/or losses that arise from tentative activities in a business. They also consolidate the methods of risk management of the individual firm. As a result, it is an effective way of reducing the burden of loss that can emerge of from the risk (Simona-Iulia, 2014).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, there is a need for organisations to share high-risk opportunities that can bring about good returns. Independent undertaking of such opportunities results in financial catastrophes in the event that the risk occurs. Consequently, organisations that are faced with high-risk business opportunities should look for interested partners who have better capacities to undertake such projects (Simona-Iulia, 2014). In such situations, the parties enter an agreement that specifies liability roles and benefits of each organisation in case the risk occurs. The idea behind this theoretical model is to share the cost of risk. The organisations also benefit from the positive outcomes of risk when it occurs. According to Prokop and Pfeifer (2013), risk sharing does not only occur between firms that come together to work on a project jointly. Insurance companies also offer risk covers. The focus of insurance firms on organisations is to share unforeseen risks that can occur in the course of a business. When an organisation is insured against a certain risk such as fire or political instability, it can comfortably pursue its activities without the fear of incurring unbearable losses that can lead to closure. However, this undertaking requires adherence to the policies of insurance firms to meet all the precautionary measures that qualify the organisation to be awarded an insurance cover (Prokop Pfeifer, 2013). The first step before you start your project is to get in touch with an insurance company to obtain a policy to protect it against unforeseen risks. Although meeting premium insurance requirements mostly seem expensive, the probability of knowing the fate of the project is always very low regardless of the risk forecasting measures that are put in place to detect future financial trends (Amin, 2014). Risk Retention Amin (2014) reveals that risk retention is a theoretical model that is applied in organisations in case they face the consequences of unplanned bus iness occurrences that have the likelihood of causing losses. This strategy is an important part of risk management that any organisation should take into consideration. A good example of risk retention is found in the case of the BP oil spill that arose from offshore drilling in 2010. Although the CEO had put strict rules in place to ensure that the company reduced any kind of risks, the catastrophic event happened abruptly and unexpectedly. In such cases, the organisation has to accept the risks and the accompanying losses that come along with them. The lessons that are gathered from such situations should be taken as lessons to make better decisions pertaining to risk assessment and management in future to prevent their recurrence (Amin, 2014).  According to Amin (2014), sometimes organisations are aware of the risks but the cost of mitigating them are too high for them to accept the impending losses. For instance, a country such as Syria that has experienced a relatively long period of political stability abruptly succumbed to a civil war in an attempt to oust the sitting president. Many companies that had their businesses in the country faced a challenge of obtaining insurance cover at the onset of the war that led to destruction of multi-billion dollar properties. The war has continued for several years. Consequently, an organisation that has insurance cover will most likely pay very high premiums for a business that has been destroyed. In this case, it is advisable to retain the risk that occurs in course of the business operations (Amin, 2014). Key Challenges in Risk Management Anderson, Christ, Dekker, and Sedatole (2014) posit that risk management is not ‘a walk in the park’. It has some key challenges that risk managers have to deal with both at the project level and at the strategic levels. These challenges are itemised below. Project/Operational Level Risk management is paramount to the success of a project. However, overemphasising the process of accomplishing the goals can have negative effects on the project (Anderson et al., 2014). Spending too much time on the assessment of the potential risk identified can also cause costly delays to the organisation. According to Anderson et al. (2014), such situations can render the project unviable. At times, projects need to be executed quickly and appropriately to solve specific problems. However, if the period that is needed to implement a solution expires, then the project needs to be stopped. If the process of risk management took long to be completed, it results in project delays. This situation leads to incompletion of a project. As a result, the organisation succumbs into losses (Anderson et al., 2014). Another challenge is the abrupt changes in the nature of risks. This situation leads to emergence of new risks that are not anticipated. A good example of such risk is the Malaysian Airlines flight MH307 that went missing in the middle of a journey. The risk wa s not planned regardless of its occurrence in the course of the business activity. In a similar case, the ANA Boeing 787 that indicated some smoke from its left wing while on the parking bay due to battery problems led to grounding of other 787 airliners worldwide for several months. The airline did not expect such a risk airlines since it had been operating for a long time while using the same batteries. This situation led to unanticipated losses to the company. Unforeseeable risks cause delays in projects once they occur. Elsewhere, they ruin the entire project process in ways that are not even controllable by the best risk managers (Anderson et al., 2014). Strategic/Corporate Level These are the boardroom challenges (Anderson et al., 2014). The primary sources of these challenges are the managers of the organisation who fail to allocate funds and resources to enable identification and assessment of future risks. Such managers fail to focus on the threats that certain projects pos e to the company. Instead, they put more emphasis on the benefits of the projects to the organisation. A risk manager who has insufficient resources to handle challenges is likely to bring an organisation down (Prokop Pfeifer, 2013). Generalisation of risks is also another challenge that faces many organisations. In project management teams, members have their own perceptions about risks. However, majority of them usually underestimate the impact of the impending risks on the organisation (Anderson et al., 2014). This situation usually leads to failure of projects; hence, the organisation incurs huge losses. As a result, risk managers should be in a position to assess feasible decisions that are perceived as valid by the team members to avoid generalised solutions that can result in unsuccessful projects (Prokop Pfeifer, 2013). Risk Management Strategies and Plans The strategies that are used by different organisations to manage risks largely depend on three factors namely risk ap petite, tolerance, and capacity (Anderson et al., 2014). Risk appetite refers to the amount of uncertainty that an entity is willing to accept. According to McShane et al. (2011), it is the attitude of the entity towards taking risks. A low risk investment fund will most likely compel an organisation to invest in secure government bonds unlike a high-risk fund that will engage the entity in superior frequency trading (McShane et al., 2011). On the other hand, risk tolerance is the quantitative value that shows the extent of uncertainty that an entity is willing to take in all its projects. Not anything above that level of risk the entity will be willing to risk any further. Lastly, risk capacity strategies determine the amount of improbability that the organisation can manage without adversely affecting its operation. Liquid entities have capacities to take high risks (McShane et al., 2011). Effective Project Risk Models Scenario planning This project model of planning against risk is used for projects that have a life of more than five years. It analyses long-term risks in broader perspectives such as economic growth, political stability and technological advancements. McShane et al. (2011) reveal that the factors that have the biggest impact on the project are selected to assess the probability of different outcomes. The outcomes are combined in an attempt to choose the plausible ones that guide the formulation of feasible project goals. Scenario planning also provides exit strategies that can be applied in case the outcomes become unfavourable for the project. This situation enables maintenance of the organisations profitability (Prokop Pfeifer, 2013). War-gaming Prokop and Pfeifer (2013) reveal that organisations operate in competitive environments that sometimes lead to emergence of price wars or other activities that counter their expectations. Such situations pose some risks to the organisations. To alleviate such challenges, teams are chosen to identi fy short-term changes that competitors are likely to undertake to gain competitiveness in the market. This strategy enables managers to formulate apt decisions that are aimed at mitigating the risks that are posed to them by their competitors (Prokop Pfeifer, 2013). Conclusion Assumption of risks can have tremendous effects on the operations of an organisation. Therefore, there is a need for organisations to adopt apt decisions towards risk management. For instance, the 2007-2008 financial meltdowns were caused by banks that failed to manage their risks appropriately. These situations result in worldwide recessions. This state of affairs shows how simple ignorance such as failure to acknowledge the importance of risk management can be costly not only to the organisation but also to the external environment. People are likely to think twice before they take certain foods because of the harm they can cause to their health. In a similar manner, organisations need to assess the risks t horoughly. Consequently, resources should be allocated appropriately to overcome risks. Risk management departments should be created within the organisations. Such measures facilitate the achievement of the organisation’s goals. Reference List Amin, Z. (2014). Operational Risk Modelling and Management. Journal of Risk Insurance, 81(4), 969-73. Anderson, S.W., Christ, M.H., Dekker, H.C., Sedatole, K.L. (2014). The Use of Management Controls to Mitigate Risk in Strategic Alliances: Field and Survey Evidence. Journal of Management Accounting Research, 26(1), 1-32. McShane, M. K., Nair, A., Rustambekov, E. (2011). Does Enterprise Risk Management Increase Firm Value? Journal of Accounting, Auditing Finance, 26(4), 641-58. Perrenoud, A., Lines, B., Sullivan, K. (2014). Measuring risk management performance within a capital programme. Journal of Facilities Management, 12(2), 158-71. Prokop, J., Pfeifer, D. (2013). How do you Deal with Operational Risk? A Survey of Risk Manage ment Practices in the German Insurance Sector. Journal of Risk Management in Financial Institutions, 6(4), 444-54. Simona-Iulia, C. (2014). Comparative Study Between Traditional and Enterprise Risk Management – A Theoretical Approach. Annals of The University of Oradea, Economic Science Series, 23(1), 276-82. This research paper on Risk Management and Project Management was written and submitted by user Anaya Tate to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.