The Human Factors Analysis Crash of Pinnacle Airlines Flight 3701 Essay Example For Students

The Human Factors Analysis: Crash of Pinnacle Airlines Flight 3701 Essay The Human Factors Analysis: Clang of Pinnacle Airlines Flight 3701. The aircraft accident study and analysis, look into all processs and challenges affecting air power safety issues. From a human factor point of view, most air power accidents are attributed to human-machine mistakes. Integrating psychological scientific discipline and safer environments into a multidisciplinary attack improves the extenuation procedure. Underscoring the belongingss of human factors, influence, restrictions, and applications in air power industry could present new ways to extenuate human mistake. Correlating human factors in aircraft accidents evolved the ability to break the safety procedure in a work environment. We will write a custom essay on The Human Factors Analysis: Crash of Pinnacle Airlines Flight 3701 specifically for you for only $16.38 $13.9/page Order now Another term in human factors is the rule of work public presentation and situational consciousness. In both instances, they present a challenge to the air power industry. Work public presentation and deficiency of situational consciousness can be classified as knowing and unwilled mistake. Unintentional mistake is attributed to the bad cognitive judgement and action. Equally good as knowing mistake, which correspond to the misdemeanor of safety patterns and processs. To extenuate human mistake, critical stairss to advance safety patterns, procedures, and good determination devising is implemented. But, keeping the effectivity of a safety direction system, particularly aviation safety, proactive communicating and human interactions can forestall or pull off the figure of safety-related air power accidents and incidents. The function of human factors in air power encompasses a broad scope of proficient and mechanical failures. But, understanding the human mistake and its belongingss represents a challenge to the air power industry. Even now, to extenuate human factor in a on the job environment a important behavioural analysis can beef up the extenuation procedure. As a general attack, air power industry uses the subjects of cognitive scientific discipline to understand the logical thinking behind the human mistake. Pinnacle Airlines Flight 3701: Events and Findingss. Human factors and the ergonomic undertaking analysis in air power constitute a great per centum of all major air power accidents. Depending on the accident fortunes, human mistake is identified as a conducive factor. It is critical that the research worker place the likely causes accident for a future safety mention. In add-on, the accident probe requires a thorough study that includes the primary findings, actions, and recommendation. Let analyze the â€Å"Crash of Pinnacle Airlines Flight 3701, Jefferson City, Missouri October 14, 2004. The flight was runing under the 14 Code of Federal Regulations ( CFR ) Part 91† ( National Transportation Safety Board, 2007, p. 1 ) . At 2215:06 Pinnacle Airlines flight 3701 crashed into a residential country of Jefferson City, Missouri. Both engines flamed out when the pilot induced an aerodynamic stall and were unable to re-start. The captain and first officer ( OF ) were killed in the clang. During the acclivity, the captain induced three offprint pitched up manoeuvres doing an increase on the pitch angle and a perpendicular burden. ( National Transportation Safety Board, 2007, pp. 12, parity. 1 ) The flight informations entering system ( FDR ) showed that the pilot engaged in inordinate pitch airplane-nose-down ( AND ) and airplane nose-up ( ANU ) manoeuvres. Between 2127:15 and 2127:17, the FDR information confirmed the automatic pilot was disengaged during the 2nd ANU manoeuvre at 15,000 pess. A few seconds subsequently and at 24,600 pess, the aircraft was on a degree flight place. A 3rd pitch-up manoeuvre was followed after the degree flight place ensuing in an increase on the pitch angle and perpendicular burden. During the air traffic control ( ATC ) transcript alteration, â€Å"the aircraft maximal climb rate of 41,000 pess was cleared by the ACT. Further transcript analysis revealed that at the maximal ascent rate, the aircraft perpendicular velocity was approximative 500 fpm† ( National Transportation Safety Board, 2007, pp. 14, parity. 1-3 ) . .u13da94bf9cd2cab140f70e19a0a0ace5 , .u13da94bf9cd2cab140f70e19a0a0ace5 .postImageUrl , .u13da94bf9cd2cab140f70e19a0a0ace5 .centered-text-area { min-height: 80px; position: relative; } .u13da94bf9cd2cab140f70e19a0a0ace5 , .u13da94bf9cd2cab140f70e19a0a0ace5:hover , .u13da94bf9cd2cab140f70e19a0a0ace5:visited , .u13da94bf9cd2cab140f70e19a0a0ace5:active { border:0!important; } .u13da94bf9cd2cab140f70e19a0a0ace5 .clearfix:after { content: ""; display: table; clear: both; } .u13da94bf9cd2cab140f70e19a0a0ace5 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u13da94bf9cd2cab140f70e19a0a0ace5:active , .u13da94bf9cd2cab140f70e19a0a0ace5:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u13da94bf9cd2cab140f70e19a0a0ace5 .centered-text-area { width: 100%; position: relative ; } .u13da94bf9cd2cab140f70e19a0a0ace5 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u13da94bf9cd2cab140f70e19a0a0ace5 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u13da94bf9cd2cab140f70e19a0a0ace5 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u13da94bf9cd2cab140f70e19a0a0ace5:hover .ctaButton { background-color: #34495E!important; } .u13da94bf9cd2cab140f70e19a0a0ace5 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u13da94bf9cd2cab140f70e19a0a0ace5 .u13da94bf9cd2cab140f70e19a0a0ace5-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u13da94bf9cd2cab140f70e19a0a0ace5:after { content: ""; display: block; clear: both; } READ: Inspector Calls Essay SummaryBetween 2152:22 and 2124:36, the cockpit voice recording equipment ( CVR ) indicated the flight crew recognize the aircraft maximal height and the crew decided to go on at 41,000 pess. The CVR besides revealed the ACT concerns at that height. After the 2nd pitch-up manoeuvre, â€Å"the FDR information showed an increase in the angle of onslaught ( AOA ) from 7a? ° to 12a? ° and shortly after to a decrease of -20a? °Ã¢â‚¬  ( National Transportation Safety Board, 2007, pp. 15, parity. 1-5 ) . After the aircraft entered an aerodynamic stall, the FDR and CVR informations recorder the dual engine failure after the unsuccessful recovery from the stall place. About 2201:5 the pilots initiate the subsidiary power unit ( APU ) bleed air restart. Between 2203:09 and 2208:17, the engine failure continued and the crew was forced to fall at a rate of 1,500 pess per minute. About two proceedingss subsequently, the air traffic accountant asked the pilots perform a landing attack to the closest airdrome. The traffic accountant cleared Pinnacle Airlines Flight 3701 to the closest airdrome, runway 30 at Jefferson Memorial Airport ( JEF ) . At 2214:02, after interchanging the set downing attack information with the air traffic accountant, the crew realized the failed attack. About 2214:53 and 2215:00, the CVR recorded the aircraft concluding attack at.58 maritime stat mis ( NM ) and at an height of 930 pess. Seconds subsequently, the low terrain dismaying sound and six second after the aircraft impacted the land. Brief great sum-up of the accident fortunes in a well-supported organize and logical mode. Primary findings: place the factors lending to the job, accurate inside informations with external beginnings. From a human factor point of view. Aircraft accident study composing and analysis. Accident probe processs and challenges. Critical idea affecting air power safety issues.-p.12 Recommendations1 Clearly province the important of the job and relevant constructs, theories, results prediction that supports immediate actions to decide the job, outside beginnings. Kd ; flkd FAA actions on the recommendations. Primary air power safety issues associated with the accident. Alternate actions ( 2 each-advantage and disad ) : attack to work out the job, ground for alternate advantages and disadvantages and give the cause for contemplation on the consequence of implementing one or the other. K ; deciliter Industry Executions of the Recommendations. Status of the recommendations and what has been done since the accident to forestall return. Reason is clear. Advantages and disadvantages are thought arousing. Answer the inquiry. â€Å"What if we tried something wholly different? † A determination to implement could likely merely be made and strongly defended without permission. Fks ; dfks ; . ( Last Name, Year ) Mentions Last Name, F. M. ( Year ) . Article Title.Journal Title, Pages From To. Last Name, F. M. ( Year ) .Book Title.City Name: Publisher Name. National Transportation Safety Board. F.M. ( January 9, 2007 ) . Crash of Pinnacle Airlines Flight 3701 Bombardier CL-600-2B19, N8396A Jefferson City, Missouri October 14, 2004, p.1. Retrieved hypertext transfer protocol: //www.ntsb.gov/doclib/reports/2007/AAR0701.pdf Footnotes 1 Tables Table 1 Column Head Column Head Column Head Column Head Column Head Row Head 123 123 123 123 Row Head 456 456 456 456 Row Head 789 789 789 789 Row Head 123 123 123 123 Row Head 456 456 456 456 Row Head 789 789 789 789 Note: Figures Figure 1. For more information about all elements of APA data format, delight confer with the APA Style Manual, 6th Edition.

Winning ugly in Kosovo essays

Winning ugly in Kosovo essays NATOs Strategy in Kosovo was an effective means to accomplish their diplomatic and military goals. Their strategy was effective in demonstrating the resolve of NATO and their ability to build and maintain a lasting alliance between NATO and non-NATO members in the region. In all, 19 non-NATO countries are part of the KFOR operation in Kosovo. The strategy used by NATO had four primary strategic goals. First, stop all military action and the immediate ending of violence against the Albanians. Second, withdrawal of Serb military, police and paramilitary forces from Kosovo. Third, the unconditional and safe return of all refugees and displaced persons with unhindered access to them by humanitarian aid organizations. Finally, the establishment of a political framework for Kosovo on the basis of the Rambouillet Accords, in conformity with international law and the Charter of the United Nations (Ugly p.198). In addition to the above stated objectives, it is imperative to maintain sound diplomatic relations between the United States, the UN and Russia throughout the operation. To stop the military actions taken by Serb forces, NATO began a large-scale air campaign. Tactical and strategic strikes yielded immediate and long-term effects on the Serbian war machine. Strikes on tactical targets, such as artillery and field command and control headquarters, had an immediate effect in disrupting attacks and ethnic cleansing efforts of the Serbs. Strikes against strategic infrastructure targets, such as Yugoslav military and police forces headquarters, other government ministries and refineries, had a longer-term and broader impact on the Serb military machine. In three months, the alliance flew just over 38,000 combat sorties, including 10,484 strikes. Serb forces were on the defense and could no longer conduct ethnic cleansing operations or effective attacks on KLA forces. The Serb war industry was degraded by at least 50...

Success Essay Example | Topics and Well Written Essays - 500 words

Success - Essay Example Success can either be a process or spontaneous although in most cases, success is considered as a process. Someone would be considered successful if they feel satisfied with the results of their work. Success may be prompted by hard work or smart work. In most cases, success is regarded as riches and accusation of vast wealth in the society. Anyone who possesses a lot of money and can command most of the things such as a country’s economy is considered to be a successful person regardless of other failures in life. There is however other forms of success which are not largely regarded in the society provided the man deemed successful is not rich. Success requires a lifelong journey of endurance and determination for it to become real and it is worth noting that it is not an easy journey. Unless one puts extraordinary pressure and decides to do above average activities without giving up, success cannot be inevitable. Passionate life may result into high level of success and the refore an individual should invest in passion as a way of spearheading success. Success requires a lot of strength and change of behavior into a positive way towards achieving greater heights. It is believed that success requires that an individual associates only with people and resources that can catapult them to the higher level.

Kurds and they are Stateless Nation Essay Example | Topics and Well Written Essays - 1250 words

Kurds and they are Stateless Nation - Essay Example This final element of independence or sovereignty is definitive of the modern conception of a state and makes the ultimate difference between being a state and being stateless. It is a common misconception to regard a nation and a state as synonymous but this is a product of a statist bias which gives partiality to recognized states over stateless nations including national minorities. There must be recognition of the presence of a plurality of states in relation to â€Å"stateless nations and their diaspora† (Baubock 310). The stability of states is an important aspect in ensuring the peace and order within a nation. The history of a state must be well-defined and transcend the co-existing history of certain regimes. This will provide for a thorough grasp to differentiate regimes from the actual state. Boundaries are equally susceptible in determining stability as those in power are usually the ones who impose themselves to take over public office. Support from the internatio nal community is necessary in order to preserve territorial integrity. Frequently, it is those states recognized in international affairs that enjoy support from other nations (Meadwell 273). The reality of the existence of substates that configure the entire dimension of understanding what a state is has been around for many generations. Most have been cultivated and subsisted for generations that dates back even prior to the establishment of the state as recognized in international world affairs. The comprehension of nationalism and belongingness cannot be delineated to a clear sense of limiting nationality to the constrictive term as defined by the United Nations in its quest to avoid statelessness. This was extensively discussed by the body of nations through the United Nations High Commission for Refugees (UNHCR) to tackle the problems that are encountered by refugees in conflicted areas (Balaton-Chrimes 2). But this concentrates on a more personal level through a discourse in the dilemmas encountered by individuals because of their condition as stateless. In a broader sense, nationalism entails a certain degree of belongingness and a commonality in culture and identity that simply declaring one to be a citizen of a particular country by birth or by blood does not equate to its full appreciation by the essence of what it implicates. This recognition from the international community gives the very life to the existence of the state. It also provides the creation of a country and its consequent statehood as well as affords it the capacity to partake in the international forum and exercise its rights as a nation. On the contrary, without the elements to make up a state certain groups that fundamentally comprise a state become dubbed as stateless for comparative purposes. These groups of people who generally have a stake in a particular territorial portion and with accompanying leaders lack sovereignty because they have no independence and are often assimilat ed in recognized states. This is where the Kurds as a stateless nation has been enduring their status as a massive group of people moving toward the elusive autonomy that they have been elusively seeking for decades and had made them among the most pronounced stateless nation in the world. The Kurds have been

Global Transport Providers Essay Example for Free

Global Transport Providers Essay The ocean carriers transport providers have introduced the Advanced Transport Communications System (ATCS). The trucker uses a GPS enabled cell-phone to enter information about the truck which is then received in the carriers and shippers systems of tracking. They report when they pick up and deliver the cargo using the first and last mile to track the cargo. This form of tracking has been introduced by the Port of Oakland, the Bay Area World Trade Centre and a group of technology partners and it reduces traffic congestion, air pollution and saves on time. However, one realizes that the rest of the journey is not tracked as only the first and last mile of the journey are reported. The cargo therefore can get lost on its way to the destination point. The freight forwarders provide a tracking system that allows the importer to place orders through the web. There is use of Pangaea which is a system that automates the process. It connects the freight forwarders, importers, exporters and the custom brokers through the web. It informs them on the progress made by the cargo through the forwarders offices placed all over the world. There is also the added advantage of line/part tracking feature offered by Pangaea which allows one to re-order, approximate position and also the arrival date of cargo, contents of the containers and retrieval of line item detail (http://www. pangaeaworld. com/product-linepartaspx). It also has the ability to operate at a multi-national level using multi-lingual employees in their offices. This then opens up the market where they would operate their businesses and those of the customers. The Marine Association of the Port of New York/New Jersey started the testing of the Automated Secure Vessel Tracking System(ASVT)in 2002. this system was developed by the Secure Assets Reporting Services (SARS) of Bellevue Washington. By using this tracking system, the parties involved will be able to locate their vessels worldwide on both ocean transit and on inland waterways.. The information on location and movement of the cargo carrying ship is available by the use of an encrypted password on the internet. The Secured Assets Reporting Services uses multiple satellite sources thus increase the ability of tracing the cargo at sea. The information can also be shared with the state and federal Homeland Security agencies thus increasing the ability to trace cargo when on transit and reduce chances of its getting lost. Advantages and disadvantages When using ocean carriers, there are various advantages and disadvantages. When used efficiently, there is reduction of cot as it carries more cargo thus more is under surveillance at a go. By using cell-phones to track cargo it makes it easier as anyone can do so from any part of the world. The major disadvantage of this system is the fact that it only checks when the cargo is picked up or delivered. It does not extend to when the cargo is on transit. Also it is specific phone brands that can be used for this tracking system. The major advantage of the freight is that it is available over the internet. It also keeps the parties involved informed of position of the cargo as this is done via internet. It is also operated at multinational level with offices in all market locations. The major disadvantage of freight forwarders is that it is very costly due to long distance shipping thus limiting ability of a small scale establishment to operate internationally. It also makes the tracking of the cargo expensive as it is done over a longer distance. The other major disadvantage is tat it does not cover the journey if one is not connected to the web. The port tracking system is designed to track the cargo on transit while revealing this information to a specific person only thus increasing security of who gets the information. The cargo is also tracked at sea by use of satellite whereby by using multiple satellite sources, the information is constantly available. The disadvantages are the requirements to have a computer system and ability to use it also a lot of manpower is needed to run the system. Recommendations Based on the research done and the information gotten, the best company for DD is the port tracking system. The rationale behind this conclusion is because the port tracking system has a way of tracking the cargo even at sea. This enables one to know at which point a specific cargo is. Also the fact that there are multiple satellite sources ensures that breakdown of one does not lead to loss of cargo. Each satellite source confirms the others information and nay anomaly is quickly noticed. By giving a password that is used to get the information from the internet means that information is not tampered with. It also ensures that only the relevant authority gets the information. By getting the information on exact position it means one can be able to conduct their sales with more precision. This is because delivery date is predictable on approximation. Finally, the disadvantages faced are also to be found in the other systems. The man power required is same as in the other systems and use of computers is also to be found in the freight forwarders while being substituted by cell phones in ocean carriers systems. Reference: Buxbaum P. A, 2007. Port Equipment and Technology – Tracking Last Mile Data. http://www. bawtc. com/tradenews-details-asp? partnerID=ArticleID=13317

Study on Financial Statements and Ratios of Banks

Study on Financial Statements and Ratios of Banks 4.0 Introduction The data analysis chapter has been divided into two parts. In the first part, I have tried to do some sort of quantitative analysis. The first part is based on the financial statements and key ratios of both the chosen banks. Again it was broken down into sub-points like the analysis of data before recession and after recession. Some key ratios were calculated, compared and analysed from the financial data of last 10 years for both the banks. The second part of this chapter is a mixture of literature review data analysis and some points were written with reference to the analysis done in first part in my own words. 4.1 Analysis of Data Derived from Financial Statements and Ratios 4.1.1 Bank Status before Recession After Recession To be able to answer our research questions it is imperative to look at the two companies data from financial statements, this will reveal the risks inherent in each banks operation. The analysis utilizes data from the financial statements of the banks under review from year 2005 to 2010 just before recession started. While the two banks have similarities in risk management RBS use pounds while HSBC use dollars as the basis currency in the books of accounts, while this may hinder the analysis especially quantitative analysis the general data increase and decrease is an important aspect sufficient for this study. 4.2 Financial Position of RBS 4.2.1 Financial Position of RBS before recession (2004-2005, 2005-2006, 2006-2007) The Royal Bank of Scotland turnover had been on steady increase, in the financial year ending December 2007 the turnover was  £30,366 million; in 2005 the turnover was  £25902 million while in the year ending 2006 turnover increased to  £28002 million. In 2005 operating profits were  £7936 million while in 2006 operating profits increased marginally to  £9186 and in 2007  £9807 million. Profits before tax has been on steady increase from  £7936million in 2005 to  £9186 and  £9832 million in 2006 and 2007 million respectively. 4.2.2 Financial Position of RBS After Recession (2007-2008, 2009-2010) The turnover for year 2008 was  £25868 Million and finally the turnover for the year ending December 2009 was  £38690 million. In but in 2008 and 2009 losses of  £40836 and  £2595 were recorded respectively, this was after recession started. The full details for the full year 2010 results have not been announced but the first half results profits had increased by 44% to  £3950 million. Table 1 Royal Bank of Scotland Profit and loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005  £millions  £  £  £  £  £  £ Turnover 38690.0 25868.0 30366.0 28002.0 25902.0 Operating Profit Q3 726 -2595 -40836.0 9807 9186 7936 Profits before tax -2595 -40836.0 9832.0 9186.0 7936.0 Source; RBS website 4.3 Financial Positions of HSBC 4.3.1 Financial Positions of HSBC before recession On the other hand the turnovers for HSBC on the financial years under review were as follows; year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in terms of operating profits, the group managed $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007. 4.3.2 Financial Positions of HSBC After recession The group managed a turnover of $ 88571 million and $ 78631 million in 2008 and 2009 accounting periods respectively. HSBC recorded $ 22709 million profit in 2007; however the profits declined substantially to $7646 million in 2008 and $ 5298 in 2009 again profits were affected as recessionary fears started. In third quarter of 2010 the profits increased marginally. Table 2 HSBC Profit and Loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005 $millions $ $ $ $ $ $ Turnover 78631 88571 87601 70070 61704 Operating Profit 5298 7646 22709 21240 20966 Profit before tax 7079 7079 9307 24212 20086 20966 Source: HSBC website 4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for last 10 years In the next few pages, I have tried to present the data in tables, graphs and charts. Some of the data was presented and calculated for last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and compared for both the banks. Net Interest Margin Return on equity Capital adequacy Liquidity ratio Non-performing assets ratio Loans Turnover ratio Loans to Assets ratio Gross Yield on Earning Assets (GYEA) Table 3 HSBC Ratio Analysis in percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 3.25 3.09 3.05 2.00 3.4 2.04 2.60 2.54 2.24 ROE 11.1 12.3 11.21 9.62 11.60 12.25 11.2 15.6 13.21 Capital Adequacy 11.50 11.60 11.75 10.89 10.97 11.01 11.12 11.31 11.63 Liquidity ratio 2.20 2.50 3.62 4.21 5.31 6.54 1.23 1.11 2.15 Nonperforming assets ratio 2.17 2.27 2.12 2.14 2.16 2.14 2.11 2.01 2.00 Loans Turnover ratio 66.2 55.2 25.10 29.2 54.0 59.1 67.12 74.21 76.45 Loans to Assets ratio 0.60 0.40 0.22 0.15 0.12 0.113 0.21 0.28 0.32 GYEA 5.21 4.60 4.49 4.36 4.24 4.42 4.68 4.29 3.26 Source: Data glanced from HSBC website and did personal analysis. Figure 4 HSBC ratio analyses (Note: all the figures are in percentage) Table 4 RBS Ratio analysis as a percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 1.97 1.76 1.70 1.75 1.83 1.91 2.01 2.03 1.92 ROE 12 11.5 11.4 9 9.6 9.12 14 11.2 10 Capital Adequacy 12.51 11.44 11.95 12.98 11.72 11.10 12.21 13.11 13.23 Liquidity Ratio 3.21 2.42 3.21 5.22 3.23 3.29 2.23 2.11 3.15 Nonperforming Assets Ratio 11.1 14.1 16.1 12.15 12.11 12.10 11.11 11.01 10.10 Loans Turnover Ratio 66.9 45.25 44.15 39.2 44.0 49.12 57.21 63.32 66.00 Loans to Assets Ratio 1.56 1.45 1.35 1.40 1.19 0.20 0.89 0.46 0.56 GYEA 3.33 4.6 2.12 4.06 4.12 3.28 2.86 2.92 2.45 Source: Data glanced from RBS website and did personal analysis Fig. Comparison of the two banks PL data Generally over the years the turnover of the two banks has been increasing but the increase in HSBC turnover has been moderate while that of RBS has been steep. HSBC has managed to remain profitable for the period of analysis showing that the company has been able to mitigate the risks well as compared to RBS. RBS made substantial operating losses amounting to 2595 million in 2009 and had to be supported by the government as a result of subprime mortgage crisis. The data show that HSBC has adopted prudent management even though profits declined, the ratios show the group has maintained strong capital base Findings During the two years before year 2009 and after the two banks were adversely affected by economic condition. The profit and loss analysis from the two banks show that HSBC has been able to tackle liquidity risks well as it has been able to maintain profitability through out even during the recession on the other hand RBS was affected and made losses in 2007, 2008 and 2009 but the half year available indicate the bank has returned to profitability after the government support. The profitability before tax is shown in the figure below. Figure 5 Source: Data glanced from RBS and HSBC websites and did personal analysis Note: HSBS figures are in million dollars while figures for RBS are in million pounds. 4.5 Literature Review Data Analysis This dissertation presents the underlying strategies and approaches applied by the top UK banks in learning the differences between HSBC and Royal Bank of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst case financial scenario. To compare their financial, business and operational risks concern will create a bigger picture. The aim is to determine which between the two banks has a better and effective approach and strategy in the risk-reduction initiatives (Drew Michael, et al., 1996) Banks in United Kingdom have relied upon a proven system of strong liquidity risk management. This has been in existence for over three years now and since the system was started banks have made it a priority to update their systems of risk management to keep abreast with the changing demands of the society and technological innovations associated with risk management. Financial stability is easily achieved by following less complicated process and that is to stick to the rules and created in less difficult way that whenever you try to explain it to a customer or client. The grasp of the policy will then be easily absorbed (Issing, 2004). The liquidity risk management of most United Kingdom has been seen to be strong and responsive whenever banks experience risks. Banks have to ensure that they exercise prudent risk management to be able to provide customer satisfaction, but some of the banks are less committed to the task to minimize their exposure to risks. It can be costly to the bank and expose the bank to court cases, licence cancellation by the supervisory authorities and customers withdrawing from the bank. The only way to do this is to create a reliable system of liquidity risk management (Issing, 2004). Risk management actions count the most in the future and especially in setting the reputation of the banks. Extra effort is required in creating policies that will withstand the effect of any risks. Being able to communicate the recent risk situation among the team members will help a lot in the resolution and in effectively carrying out the regulations which they intended to implement for the banks organization. A manifestation of a high level of activity would spell a lot of difference compared to those who lag behind due to poor management risk planning (Kahf Homud, 1998). An effective liquidity risk management is able to make anticipations on the occurrence of future risks. There is also a type of liquidity risk management that can only provide satisfactory level of service or performance, however, it possess certain weakness though very insignificant, it may still deliver anticipated results like those managements that are strong since it only manifest very minor signs ineffectiveness (Bank of England 2007). HSBS and the Royal Bank of Scotland are not just the top banks in United Kingdom they are the two banks that show an impressive liquidity risk management. This record could be very much proven by the profits earned annually and the impression they make among their customers is excellent and they never settle for anything less. The two banks have applied similar systems although HSBC is the bank that shows the most impressive and effective strategy/ approach against a liquidity risk. They always make sure to protect not only their money but also protect the welfare of their customers and intend to move with them and manage their finances by avoiding incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the institution until the time they become part of a much growing and impressive banking industry (Bank of England 2007). In the last two years HSBC only experienced short term recession only, they had prepared for the recession, through management and the fact that they had experienced a crisis before and had rectified it by creating a frame work that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned recently where the bank doubled its half-year profits by posting  £7 billion as at August 2010, this is at a time when smaller banks were feeling the effects of recession. Analysts have seen the capabilities of the bank base from their well-managed systems and strategies. They had already expected such things to happen so there is nothing surprising about that (Goodway, 2007). The banks have taken all necessary precautions and the management maintains optimism that in case of risks they will find a way out. The way the two banks react to problems is always quick thus they are able to find real time solutions. This strategy is a good way of keeping loyal customers. The primary goal is to offer consistency in performance whether the nature of the transaction differs or not, this is exemplified by the HSBC spirit of being consistent and reliable in every possible way. One of the ways that the banks have avoided the risks is to anticipate the risks thus making in advance plans. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks preparation of the recession in the last two years the bank made adequate plans and adopted prudent lending, adopted technology and minimized operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC operates inn flexible economies, this has been explained by looking at the diversity of the markets it operates, and this gave the bank diversity as not all markets experienced recession. HSBC reaction to risks is a testimony to its objective to effectively handle risks, one such objective identified in the study was is to create liquidity through making an arrangement to leaseback or sell assets whenever loans are defaulted (Goodway, 2007) On the other hand, the Royal Bank of Scotland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008). Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the needs of the customer; the bank has also created a buffer to protect the bank in times of recession. In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers needs were addressed as soon as possible and assured clients that their accounts with the bank were safe. The Royal Bank of Scotland has not seen changes in sub-prime related write downs, the bank has remained stable. During the recession the bank still managed  £ 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements. When making a comparison between the two banks, they differ on how they carry out their risk strategies but have similar characteristics. 4.5.1 Implications of recession on house mortgage and corresponding subprime losses HSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their home due to the effect of recession, some of the options are leaseback and sales. In terms risk management HSBC has adopted a different approach when it comes to helping customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007); the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank. On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the straightforward approach where a customer mortgage application is approved decisively, this ensures the payments are as flexible as possible. The bank has also limited the bank charges it can attach to an account thus creating customer satisfaction. 4.5.2 Bank Strategies and Policies Applied The effectiveness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are recognized the management needs to assess the risks and careful interpretation of the consequences. If the management do not carefully assess the crisis, then the risk might probably worsen until it can no longer be helped (RBS, 2011). The loan modification adopted by HSBC may not work as it is difficult to find a common ground. It may also not be possible to carry out assessment and evaluation. The Royal Bank of Scotland has minimized its risk exposure by allowing the straightforward method, thus the bank is able to assess the qualification of each customer. 4.5.3 Criteria for house mortgage loan allocation Both banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on individual application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeting the customer needs such as unforeseen circumstances. The current criteria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines. It can be very well taken into account that the system used by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliability of the system utilized by the two chosen banks as they encounter inevitable risks in global economic environment. A study of the HSBC system shows how well they have managed risks that have placed other banks in receivership. The study helps to understand the important issues needs to be tackled by a bank to manage risks successfully. The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk assessment. These two risks take place when an improper assessment is made (Newman, 2006). Strong and reliable management organization has been used as a tool to help the banks strengthen and arrive to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications. The banks initiative is to push the participation of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been carefully checked (Banks, 2003). Extensive study on the feasibility of the issue in addressing the effectiveness of system implemented in the banking institution. In the previous discussion, regarding the imposition of law affecting banking system, the European banks are known to be sanctioned under a strict regulation whereby giving them less control over their own management. The variability in the solution technique being employed by either HSBC or the Royal Bank of Scotland cannot simply be the solution to this problem. It is the way they approach the problem with a system proven by time. The HSBC and the Royal Bank of Scotland have several financial planning portfolios in helping the customers reach their goals. The two banks have manifested expertise in providing the most expert advice on planning and investing. They consider it as their responsibility to provide their customer with the best advice available and have to be right and fitting to their customers needs. They exert and commit themselves as they go the extra mile of keeping their customers for a lifetime by answering and addressing quickly their customers growing demands and they have never failed to do so (Newman, 2006). The banks will not wait in vain but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating confidence and trust with the customers. No wonder these two banks were voted top United Kingdom banks (Duttweiler, 2009). The assessment of the policy utilized by these two banks operates as a measure that monitors whether a prescribed risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The design of the policy has been able to achieve the appropriate strategy, though require the framework and the funding capacity be adequately met by the funding institution. The design as a result, gives the customer the assurance and the security as they are given the key role and part in developing the system. The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the strategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank. Various important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimize damages brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks. Chapter 6 Conclusions and Recommendations 6.1 Conclusions While the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession. Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts. The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government ownership reduces the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations. After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks therefore to ensure the bank is protected from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements. The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed. When the risk management policies that each of the banks under consideration is evaluated, HSBC possess the most formidable liquidity risk management policy implementation well articulated in the banks reaction to the recession. The study established that the liquidity risk management plays an important role in monitoring the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies. Since the two banks have applied similar systems; HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their money also they make sure that they protect the welfare of their customers. The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide access to almost all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are equally as competent and committed to a strong liquidity risk management (Casu Molyneux, 2001). However, this study was limited to the top two banks it is recommended that in order to understand liquidity risk a study should be conducted not only on those two banks but also on those ranked at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or particular areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a clearer view. The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system within the bank by good risk management policies that serve as its foundation. A discussion on the importance of liquidity risk management policy has been explored using policies as the guidelines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach. Royal Bank of England has been analysed and the responsibility it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom. The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks provide the most expert advice on planning and investing. An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study established that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must adhere to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle. In order to protect their earnings the banks have to institute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk management policies. Many banks were severely affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment existing in 2010 the financial year under review. Customers are concerned with the risk management practises of their banks this is because it also determines the availability of credit and all necessary bank products that they need. 6.2 Recommendations The banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and planned well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had. The need to pursue vigorous risk management policies is important than before, while management decisions influence the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run smoothly the banks and predict future risk will determine the bank that emerges from recession stronger. From the data analyzed while turnover for the banks increased the operating profits were affected by the recession. Like HSBC did RBS need to leverage on technology to reduce operating losses. 6.2.1 Recommendations on Managing liquidity through Organizational structure and Governance It is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are exposed to are identified and placed in respective risk category, then the risks are communicated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks face including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate. A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. R Study on Financial Statements and Ratios of Banks Study on Financial Statements and Ratios of Banks 4.0 Introduction The data analysis chapter has been divided into two parts. In the first part, I have tried to do some sort of quantitative analysis. The first part is based on the financial statements and key ratios of both the chosen banks. Again it was broken down into sub-points like the analysis of data before recession and after recession. Some key ratios were calculated, compared and analysed from the financial data of last 10 years for both the banks. The second part of this chapter is a mixture of literature review data analysis and some points were written with reference to the analysis done in first part in my own words. 4.1 Analysis of Data Derived from Financial Statements and Ratios 4.1.1 Bank Status before Recession After Recession To be able to answer our research questions it is imperative to look at the two companies data from financial statements, this will reveal the risks inherent in each banks operation. The analysis utilizes data from the financial statements of the banks under review from year 2005 to 2010 just before recession started. While the two banks have similarities in risk management RBS use pounds while HSBC use dollars as the basis currency in the books of accounts, while this may hinder the analysis especially quantitative analysis the general data increase and decrease is an important aspect sufficient for this study. 4.2 Financial Position of RBS 4.2.1 Financial Position of RBS before recession (2004-2005, 2005-2006, 2006-2007) The Royal Bank of Scotland turnover had been on steady increase, in the financial year ending December 2007 the turnover was  £30,366 million; in 2005 the turnover was  £25902 million while in the year ending 2006 turnover increased to  £28002 million. In 2005 operating profits were  £7936 million while in 2006 operating profits increased marginally to  £9186 and in 2007  £9807 million. Profits before tax has been on steady increase from  £7936million in 2005 to  £9186 and  £9832 million in 2006 and 2007 million respectively. 4.2.2 Financial Position of RBS After Recession (2007-2008, 2009-2010) The turnover for year 2008 was  £25868 Million and finally the turnover for the year ending December 2009 was  £38690 million. In but in 2008 and 2009 losses of  £40836 and  £2595 were recorded respectively, this was after recession started. The full details for the full year 2010 results have not been announced but the first half results profits had increased by 44% to  £3950 million. Table 1 Royal Bank of Scotland Profit and loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005  £millions  £  £  £  £  £  £ Turnover 38690.0 25868.0 30366.0 28002.0 25902.0 Operating Profit Q3 726 -2595 -40836.0 9807 9186 7936 Profits before tax -2595 -40836.0 9832.0 9186.0 7936.0 Source; RBS website 4.3 Financial Positions of HSBC 4.3.1 Financial Positions of HSBC before recession On the other hand the turnovers for HSBC on the financial years under review were as follows; year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in terms of operating profits, the group managed $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007. 4.3.2 Financial Positions of HSBC After recession The group managed a turnover of $ 88571 million and $ 78631 million in 2008 and 2009 accounting periods respectively. HSBC recorded $ 22709 million profit in 2007; however the profits declined substantially to $7646 million in 2008 and $ 5298 in 2009 again profits were affected as recessionary fears started. In third quarter of 2010 the profits increased marginally. Table 2 HSBC Profit and Loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005 $millions $ $ $ $ $ $ Turnover 78631 88571 87601 70070 61704 Operating Profit 5298 7646 22709 21240 20966 Profit before tax 7079 7079 9307 24212 20086 20966 Source: HSBC website 4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for last 10 years In the next few pages, I have tried to present the data in tables, graphs and charts. Some of the data was presented and calculated for last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and compared for both the banks. Net Interest Margin Return on equity Capital adequacy Liquidity ratio Non-performing assets ratio Loans Turnover ratio Loans to Assets ratio Gross Yield on Earning Assets (GYEA) Table 3 HSBC Ratio Analysis in percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 3.25 3.09 3.05 2.00 3.4 2.04 2.60 2.54 2.24 ROE 11.1 12.3 11.21 9.62 11.60 12.25 11.2 15.6 13.21 Capital Adequacy 11.50 11.60 11.75 10.89 10.97 11.01 11.12 11.31 11.63 Liquidity ratio 2.20 2.50 3.62 4.21 5.31 6.54 1.23 1.11 2.15 Nonperforming assets ratio 2.17 2.27 2.12 2.14 2.16 2.14 2.11 2.01 2.00 Loans Turnover ratio 66.2 55.2 25.10 29.2 54.0 59.1 67.12 74.21 76.45 Loans to Assets ratio 0.60 0.40 0.22 0.15 0.12 0.113 0.21 0.28 0.32 GYEA 5.21 4.60 4.49 4.36 4.24 4.42 4.68 4.29 3.26 Source: Data glanced from HSBC website and did personal analysis. Figure 4 HSBC ratio analyses (Note: all the figures are in percentage) Table 4 RBS Ratio analysis as a percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 1.97 1.76 1.70 1.75 1.83 1.91 2.01 2.03 1.92 ROE 12 11.5 11.4 9 9.6 9.12 14 11.2 10 Capital Adequacy 12.51 11.44 11.95 12.98 11.72 11.10 12.21 13.11 13.23 Liquidity Ratio 3.21 2.42 3.21 5.22 3.23 3.29 2.23 2.11 3.15 Nonperforming Assets Ratio 11.1 14.1 16.1 12.15 12.11 12.10 11.11 11.01 10.10 Loans Turnover Ratio 66.9 45.25 44.15 39.2 44.0 49.12 57.21 63.32 66.00 Loans to Assets Ratio 1.56 1.45 1.35 1.40 1.19 0.20 0.89 0.46 0.56 GYEA 3.33 4.6 2.12 4.06 4.12 3.28 2.86 2.92 2.45 Source: Data glanced from RBS website and did personal analysis Fig. Comparison of the two banks PL data Generally over the years the turnover of the two banks has been increasing but the increase in HSBC turnover has been moderate while that of RBS has been steep. HSBC has managed to remain profitable for the period of analysis showing that the company has been able to mitigate the risks well as compared to RBS. RBS made substantial operating losses amounting to 2595 million in 2009 and had to be supported by the government as a result of subprime mortgage crisis. The data show that HSBC has adopted prudent management even though profits declined, the ratios show the group has maintained strong capital base Findings During the two years before year 2009 and after the two banks were adversely affected by economic condition. The profit and loss analysis from the two banks show that HSBC has been able to tackle liquidity risks well as it has been able to maintain profitability through out even during the recession on the other hand RBS was affected and made losses in 2007, 2008 and 2009 but the half year available indicate the bank has returned to profitability after the government support. The profitability before tax is shown in the figure below. Figure 5 Source: Data glanced from RBS and HSBC websites and did personal analysis Note: HSBS figures are in million dollars while figures for RBS are in million pounds. 4.5 Literature Review Data Analysis This dissertation presents the underlying strategies and approaches applied by the top UK banks in learning the differences between HSBC and Royal Bank of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst case financial scenario. To compare their financial, business and operational risks concern will create a bigger picture. The aim is to determine which between the two banks has a better and effective approach and strategy in the risk-reduction initiatives (Drew Michael, et al., 1996) Banks in United Kingdom have relied upon a proven system of strong liquidity risk management. This has been in existence for over three years now and since the system was started banks have made it a priority to update their systems of risk management to keep abreast with the changing demands of the society and technological innovations associated with risk management. Financial stability is easily achieved by following less complicated process and that is to stick to the rules and created in less difficult way that whenever you try to explain it to a customer or client. The grasp of the policy will then be easily absorbed (Issing, 2004). The liquidity risk management of most United Kingdom has been seen to be strong and responsive whenever banks experience risks. Banks have to ensure that they exercise prudent risk management to be able to provide customer satisfaction, but some of the banks are less committed to the task to minimize their exposure to risks. It can be costly to the bank and expose the bank to court cases, licence cancellation by the supervisory authorities and customers withdrawing from the bank. The only way to do this is to create a reliable system of liquidity risk management (Issing, 2004). Risk management actions count the most in the future and especially in setting the reputation of the banks. Extra effort is required in creating policies that will withstand the effect of any risks. Being able to communicate the recent risk situation among the team members will help a lot in the resolution and in effectively carrying out the regulations which they intended to implement for the banks organization. A manifestation of a high level of activity would spell a lot of difference compared to those who lag behind due to poor management risk planning (Kahf Homud, 1998). An effective liquidity risk management is able to make anticipations on the occurrence of future risks. There is also a type of liquidity risk management that can only provide satisfactory level of service or performance, however, it possess certain weakness though very insignificant, it may still deliver anticipated results like those managements that are strong since it only manifest very minor signs ineffectiveness (Bank of England 2007). HSBS and the Royal Bank of Scotland are not just the top banks in United Kingdom they are the two banks that show an impressive liquidity risk management. This record could be very much proven by the profits earned annually and the impression they make among their customers is excellent and they never settle for anything less. The two banks have applied similar systems although HSBC is the bank that shows the most impressive and effective strategy/ approach against a liquidity risk. They always make sure to protect not only their money but also protect the welfare of their customers and intend to move with them and manage their finances by avoiding incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the institution until the time they become part of a much growing and impressive banking industry (Bank of England 2007). In the last two years HSBC only experienced short term recession only, they had prepared for the recession, through management and the fact that they had experienced a crisis before and had rectified it by creating a frame work that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned recently where the bank doubled its half-year profits by posting  £7 billion as at August 2010, this is at a time when smaller banks were feeling the effects of recession. Analysts have seen the capabilities of the bank base from their well-managed systems and strategies. They had already expected such things to happen so there is nothing surprising about that (Goodway, 2007). The banks have taken all necessary precautions and the management maintains optimism that in case of risks they will find a way out. The way the two banks react to problems is always quick thus they are able to find real time solutions. This strategy is a good way of keeping loyal customers. The primary goal is to offer consistency in performance whether the nature of the transaction differs or not, this is exemplified by the HSBC spirit of being consistent and reliable in every possible way. One of the ways that the banks have avoided the risks is to anticipate the risks thus making in advance plans. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks preparation of the recession in the last two years the bank made adequate plans and adopted prudent lending, adopted technology and minimized operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC operates inn flexible economies, this has been explained by looking at the diversity of the markets it operates, and this gave the bank diversity as not all markets experienced recession. HSBC reaction to risks is a testimony to its objective to effectively handle risks, one such objective identified in the study was is to create liquidity through making an arrangement to leaseback or sell assets whenever loans are defaulted (Goodway, 2007) On the other hand, the Royal Bank of Scotland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008). Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the needs of the customer; the bank has also created a buffer to protect the bank in times of recession. In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers needs were addressed as soon as possible and assured clients that their accounts with the bank were safe. The Royal Bank of Scotland has not seen changes in sub-prime related write downs, the bank has remained stable. During the recession the bank still managed  £ 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements. When making a comparison between the two banks, they differ on how they carry out their risk strategies but have similar characteristics. 4.5.1 Implications of recession on house mortgage and corresponding subprime losses HSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their home due to the effect of recession, some of the options are leaseback and sales. In terms risk management HSBC has adopted a different approach when it comes to helping customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007); the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank. On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the straightforward approach where a customer mortgage application is approved decisively, this ensures the payments are as flexible as possible. The bank has also limited the bank charges it can attach to an account thus creating customer satisfaction. 4.5.2 Bank Strategies and Policies Applied The effectiveness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are recognized the management needs to assess the risks and careful interpretation of the consequences. If the management do not carefully assess the crisis, then the risk might probably worsen until it can no longer be helped (RBS, 2011). The loan modification adopted by HSBC may not work as it is difficult to find a common ground. It may also not be possible to carry out assessment and evaluation. The Royal Bank of Scotland has minimized its risk exposure by allowing the straightforward method, thus the bank is able to assess the qualification of each customer. 4.5.3 Criteria for house mortgage loan allocation Both banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on individual application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeting the customer needs such as unforeseen circumstances. The current criteria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines. It can be very well taken into account that the system used by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliability of the system utilized by the two chosen banks as they encounter inevitable risks in global economic environment. A study of the HSBC system shows how well they have managed risks that have placed other banks in receivership. The study helps to understand the important issues needs to be tackled by a bank to manage risks successfully. The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk assessment. These two risks take place when an improper assessment is made (Newman, 2006). Strong and reliable management organization has been used as a tool to help the banks strengthen and arrive to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications. The banks initiative is to push the participation of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been carefully checked (Banks, 2003). Extensive study on the feasibility of the issue in addressing the effectiveness of system implemented in the banking institution. In the previous discussion, regarding the imposition of law affecting banking system, the European banks are known to be sanctioned under a strict regulation whereby giving them less control over their own management. The variability in the solution technique being employed by either HSBC or the Royal Bank of Scotland cannot simply be the solution to this problem. It is the way they approach the problem with a system proven by time. The HSBC and the Royal Bank of Scotland have several financial planning portfolios in helping the customers reach their goals. The two banks have manifested expertise in providing the most expert advice on planning and investing. They consider it as their responsibility to provide their customer with the best advice available and have to be right and fitting to their customers needs. They exert and commit themselves as they go the extra mile of keeping their customers for a lifetime by answering and addressing quickly their customers growing demands and they have never failed to do so (Newman, 2006). The banks will not wait in vain but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating confidence and trust with the customers. No wonder these two banks were voted top United Kingdom banks (Duttweiler, 2009). The assessment of the policy utilized by these two banks operates as a measure that monitors whether a prescribed risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The design of the policy has been able to achieve the appropriate strategy, though require the framework and the funding capacity be adequately met by the funding institution. The design as a result, gives the customer the assurance and the security as they are given the key role and part in developing the system. The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the strategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank. Various important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimize damages brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks. Chapter 6 Conclusions and Recommendations 6.1 Conclusions While the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession. Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts. The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government ownership reduces the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations. After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks therefore to ensure the bank is protected from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements. The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed. When the risk management policies that each of the banks under consideration is evaluated, HSBC possess the most formidable liquidity risk management policy implementation well articulated in the banks reaction to the recession. The study established that the liquidity risk management plays an important role in monitoring the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies. Since the two banks have applied similar systems; HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their money also they make sure that they protect the welfare of their customers. The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide access to almost all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are equally as competent and committed to a strong liquidity risk management (Casu Molyneux, 2001). However, this study was limited to the top two banks it is recommended that in order to understand liquidity risk a study should be conducted not only on those two banks but also on those ranked at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or particular areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a clearer view. The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system within the bank by good risk management policies that serve as its foundation. A discussion on the importance of liquidity risk management policy has been explored using policies as the guidelines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach. Royal Bank of England has been analysed and the responsibility it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom. The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks provide the most expert advice on planning and investing. An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study established that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must adhere to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle. In order to protect their earnings the banks have to institute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk management policies. Many banks were severely affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment existing in 2010 the financial year under review. Customers are concerned with the risk management practises of their banks this is because it also determines the availability of credit and all necessary bank products that they need. 6.2 Recommendations The banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and planned well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had. The need to pursue vigorous risk management policies is important than before, while management decisions influence the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run smoothly the banks and predict future risk will determine the bank that emerges from recession stronger. From the data analyzed while turnover for the banks increased the operating profits were affected by the recession. Like HSBC did RBS need to leverage on technology to reduce operating losses. 6.2.1 Recommendations on Managing liquidity through Organizational structure and Governance It is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are exposed to are identified and placed in respective risk category, then the risks are communicated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks face including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate. A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. R

Child Abuse for Human Sexuality Class Essay

This was a very sad documentary. It’s sad that a child ever goes through something like that. It’s sad that because of abuse from someone else, they feel they need to abuse others. It’s sad that they don’t know how to love or let others love them. I wish that things were different in this world. I know it happens a lot though. I’ve seen and heard about several cases like this and even met some of the children; because my aunt worked for Head Start (they work with CPS), and because a couple of my ex-boyfriends were in situations like this. One of their adopted parents was a foster parent to several children who came from abusive parents. Also I live three houses down from a family with quite a few foster children. I’ve also had a few friends that were abused when they were little and then adopted. One of these friends had to go through a lot of therapy and counseling for some of the emotional scaring. This helped, but would never make him forget what had happened to him. He was not a very trusting or loving person toward anyone, and could be very aggressive and abusive if provoked even by the smallest thing. Self-esteem is one of the most important things a child can have and get from their caregivers, and it is also a very hard thing to change from negative to positive. When parents are abusive the child almost definitely will have a negative self-esteem. This causes life long problems for any child. This world is a scary place and to think that some children are born into families where they can’t feel safe makes it a sad place too. I wish things were different, but since they aren’t we just have to hope that we can help as many people as possible and get children out of these situations as soon as possible.

Kant Moral Law Theory Essay

â€Å"Two things fill the mind with ever new and increasing admiration and awe the oftener and more steadily we reflect on them: the starry heavens above me and the moral law within me.† – Kant (1788), pp, 193, 259 Immanuel Kant introduced and initiated his ‘moral law theory’ in the late 18th century. The doctrine in question sought to establish and constitute a supreme or absolute principle of morality. Kant disputes the existence of an ‘ethical system’, whereby moral obligations are obligations of ‘purpose’ or ‘reason’. The accuracy of actions [i.e. the rightness or wrongness of an individual deed] is determined by its configuration and conformity with regard to ‘moral law’. Evidently, according to Kant, an immoral transaction is invariably contemplated as an illogical or unreasonable occurrence or action. The supreme moral principle is a consistent â€Å"working criterion† that proves to be â€Å"practically helpful and theoretically enlightening† when used by rational agents as a guide for making personal choices (Kant VI). A supreme guiding moral principle must carry with it an absolute necessity and be done out of duty to the moral law in order to be free from corruption. Kant believed in a fair and impartial law. He accredited and affirmed the presence of an objective moral law that we, as humans, were/are able to identify with through the process of reasoning. Kant argued that we are able to recognise and distinguish moral law, without making reference to the possible consequence or outcome. Immanuel Kant declared a differentiation between statements [i.e. posteriori and priori] that he believed to coincide with moral law. A posteriori statement is one that is based on experience of the material world. In opposition, a priori statement requires no such knowledge; it is known independent of the phenomenal world. Furthermore, Kant continued to make additional distinctions with regard to analytic and synthetic statements. An analytic statement, he claims, is one that by its very nature is necessarily true, as the predicate is included within the definition of the subject. Example: – [â€Å"all squares have four sides†]. The previous statement is of an analytic nature, as the predicate, i.e. the square having four sides, is implicit and is part of the definition of the subject – [â€Å"square†]. An analytic statement is necessarily true – true by its own authority, and is purely explicative, as it tells us nothing new about the subject. In contrast, a synthetic statement is one in which the predicate is not included in the definition of the subject, and thus is not necessarily true. A synthetic statement also tells us something new about the subject. Prior to Kant, it was widely accepted that there were only two types of statement: a priori analytic and a posteriori synthetic. Kant accepted these two statements although believed there to be a third: a priori synthetic statement. These are statements that are known independent of experience that may or may not be true. Kant claimed that these priori synthetic principles are inherent within us and therefore subsequently form the basis of all moral decision making. Kant’s theory is based on and is primarily concerned with the aspect of ‘duty’. Kant believed and promoted the notion that to act morally is one’s ‘duty’, and one’s ‘duty’ is to act and proceed in accordance to the principles of moral law. Due to this, Kant’s theory is categorised and distinguished as a ‘deontological argument’. A deontological theory is one that maintains the moral rightness or wrongness of an action and depends on its fundamental qualities, and is independent of the nature of its consequence – â€Å"Duty for duty’s sake†. This perspective can be viewed in contrast to the beliefs and ‘rules’ associated and belonging to teleological arguments, i.e. utilitarianism. Immanuel Kant argued that moral requirements are based on a standard of rationality he dubbed the â€Å"Categorical Imperative. The categorical imperative has derived from the initial belief and notion that humans base their moral judgment on pure reason alone. This view can be viewed in contrast to a ‘morality theory’, which assumed/s that human’s actions are guided by emotions or desires. Example: When deciding what I ought to say to a friend who is distraught. Rationale would dictate that I give sensible advice, whereas my emotions may impulsively tell me to give comfort and sympathy. The categorical imperative declares and differentiates between obligatory and forbidden actions, and places further emphasis on the notion of ‘duty’. This statement can be strengthened through the following quotation – [â€Å"All in imperatives command either hypothetically or categorically†¦ If the action would be good simply as a means to something else, then the imperative is hypothetical; but if the action is represented as a good in itself†¦ then the imperative is categorical.†]. Example: If someone tells me that they will buy me dinner if I give them a lift into town, then this is a conditional action and would fall into the hypothetical imperative category. Conversely, if I think that I should give my friend a lift into town with no other agenda (i.e. she will not buy me dinner because of it), then this is a categorical imperative because it is independent of my interest and could apply to other people as well as myself. There are three principles of the categorical imperative: * Universal law; * Treat humans as ends in themselves; * Act as if you live in a kingdom of ends. 1. The categorical imperative is [â€Å"Do not act on any principle that cannot be universalised†]. In other words, moral laws must be applied in all situations and all rational beings universally, without exception. 2. [â€Å"Act that you treat humanity, both in your own person and in the person of every other human being, never merely as a means, but always at the time as an end.†] – The previous statement declares that we must never treat people as means to an end. You can never use human beings for another purpose, to exploit or enslave them. Humans are rational and the highest point of creation, and so demand unique treatment. 3. The quotation [â€Å"So act as if you were through your maxim a law-making member of a Kingdom of ends†] states Kant’s belief in the fact that humans should behave as though every other individual was an ‘end’. In conclusion, it is arguable that the categorical imperative possesses a sense of authority with regard to what actions are permitted and forbidden under Kant’s moral law theory.

Using Music to Teach English Essays

Using Music to Teach English Essays Using Music to Teach English Essay Using Music to Teach English Essay 2.3 Previous Research Studies have shown that learning and thinking visually instead of verbal which is the traditional culture of learning, has improved the rate of understanding and mastering a language. Thus a change in teaching strategy should be required in the Malaysian curriculum. Educators need to concentrate more on teaching visually hence students will learn visually which will create a long term memory. In terms of mathematics, students dont just watch the teacher, they practically do the mathematics which improves their mathematical prowess (West, 1997). The strategy concentrates on learning through interactive visual music. An ideas is first settled in the mind and then words are absorbed later (West, 1997). This shows that if a teacher just teaches a language through visual music, a student first gets the idea of what English language is all about and then gets the specific words that may be explained. If a teacher just teaches without imagery or audio music a student might also not grasp th e words or message the teacher is conveying, Teaching with Music in the Classroom Previous research have shown that teaching using music in English lessons improves learning but with different level of success. Ana (2016) shows how music affects students who may have varying level of prior knowledge of the English language as they acquire descriptive and procedural knowledge. When prior knowledge of English is low, use of music whether audio or visual, is better for understanding facts that are descriptive than lessons undertaken by the use of written texts only. However, understanding facts that are procedural does not indicate any difference between the use of music and written texts. Students whose prior knowledge level is high, show a significant improvement in both procedural and descriptive knowledge when music is used compared to written texts only (Ana, 2016). Shens et al. (2009) research showed that learners with varying levels of prior knowledge perform differently to different teaching presentations for attaining learning tasks. They argued that there i s a meaningful interconnection between the influence of visual design and prior knowledge of students in regard to learning in a situation where visual music is used. If the motions in the visual music are inconsistent, it might distract the learning process of a student and in such a case audio music will be better. Another research indicated that, Giving out visual control of music improves learning, specifically in males (Claudia, 2002). Kleinman et al. (1999) assessed the effects of certain visual properties in improving learning. They found out that visual music which is graphically colored created more effect on the learning process of a student than black and white visuals. Although, Myatt et al. (1999) found out that quite a number of participants prefer colored visuals, but there is no compelling comparison between the quantity or quality of learning and understanding not unless color is correlated to the content to be taught. The research goes ahead to indicate that young students prefer visuals which are simple while older students prefer visuals which are complex. Regardless of the age group, simple visuals are always more effective than complex visuals (Myatt et al., 1999). The types of visuals students prefer to view do not necessarily facilitate their learning process. Mayer et al. (1996) differentiated the application of summarized interactive media consisting of a series of defined demonstrations describing the sequence in a procedure, with a summarized text comprising of 600 words. The knowledge retained and transferred in different quantity of texts and multimedia summary was also analyzed. The conclusion indicates that verbal is less productive than multimedia. The results show that shortened summaries are more effective specifically when words and demonstrations through visuals are used together. The participants in this research had inferior standard of prior knowledge of the lesson. The researchers believed that the results would be different if experienced learners had participated. This research shows that, music is more effective in inexperienced students in a specific subject. It also shows that, incorporating both visual and verbal illustration method simplifies mental intermediaries in learning. Current Research in English Language Teaching Alex (2016) acknowledged the cognitive styles applied by learners and their experience in language. The research compared the use of texts and visuals only and use of text only teaching materials. Inexperienced learners with lingual cognitive styles performed best when text and visuals were used simultaneously. The inexperienced learners with imagery cognitive styles performed best with the use of texts only. The outcomes were different with the expected findings. However, generally learners portrayed better performance in test scores when using text and visual simultaneously. Moreover, inexperienced learners from both learning approaches classifications portrayed greater performance in test results than skilled learners. The comparison in results between inexperienced learners and experienced learners correlate with findings form a research carried out by Chanlin (1998). Difference in the types of visuals used in teaching were studied by Simone (2016) found out that there is no significance difference in accomplishments by learners exposed by various visual mapping methods. Although the duration in which learners were exposed to the respective visual embellished instructional treatments influenced learning results. Learners who were given the opportunity to learn according to their own speed performed better than those who were stipulated the specific time to learn. Previous research finds out that use of optic components in educating and understanding produce positive outcomes. For learners to benefit from visual enhancements, teachers should have skills that involve imagery language and techniques of visual teaching. Therefore, teachers should be guided on the appropriate ways to use visuals music and audio which will be effective in learning. Outcomes of the effect of optic articulacy in English lessons can be studied further through educators assessing and evaluating their modern use of music and comparing the music content of lessons and academic achievements of the students. More study to establish mechanisms that quantify a persons level of music articulacy, constituting the ability to create and interpret optic communication and expression which is fundamental in assessing the general effect on students education. Moreover, the labeling of probable interconnections among other variables such as demographic traits and educational approach is required for an extensive research of the idea of music optic and audio articulacy. Using Songs for Teaching English 2.4 Theoretical Framework The table below shows the theoretical framework of this research. The sequence will be indicated from top to bottom. Dual Coding Theory Independent Variables: Music Dependent Variables: English Language Krashens Monitor Model Figure 2.4.1: Theoretical Framework This research has adopted Dual Coding theory. Dual Coding theory indicates that oral and visual information are each prepared adversely undergoing exclusive methods with the brain establishing contrasting models for information prepared in each channel. This theory is a linking framework for both speaking and reading. When learners comprehend the written information, dual coding theory claims that the learners access phonological and orthographic information to identify words in the texts. In terms of variables, there are two variables which are independent and dependent variables. In this research visual and audio music is the independent variable while using music in teaching and learning English is the dependent variable. Music can portray the culture of a certain language in the recent history (Clara, 2016). Music does not only improve teaching, but it also enhances learning. Aristotle one of the Greek philosophers stated that, thinking is impossible without image (Benson, 1997). This is in the case of visual music. Images with meaning resulted into characters in alphabets (West, 1997). This research adopts the monitor model of Krashen. The monitor model of Krashen has depicted five hypotheses (Krashen, 1983). The first hypothesis is the Learning or Acquisition hypothesis which claims that there are two absolute processes of development of the second language: the learned order and acquired order. The second one, is the Natural order hypothesis which states that the acquirement of grammatical anatomy follows a natural order which can be predicted. The third one is the Monitor hypothesis which suggests that the correlation between learning and acquisition and explains the influence of learning on acquisition. The fourth is the Input hypothesis which explains how the student obtains a second language. It just defines the process of second language acquisition by a learner. The fifth is the Affective hypothesis which represents Krashens opinion that a few affective variables which play a useful but deliberate character in acquisition of second language. These variables comprise of: anxiety, self confidence and motivation. Modern Method of Teaching English 2.5 Summary Teaching is not as easy as conveying and imparting knowledge to learners. In the teaching career, teachers encounter many students with contrasting learning styles, academic requirements and characteristics on daily basis. Therefore, in consideration of teachers personalization, individualization and localization of their teaching, so that it can harmonize with every student, various abilities and expertise in teaching and a lot of classroom experiences are required. Students participation and engagement is the main aspect in attaining the teaching itself (Clara, 2016). Due to this, tools and strategies adopted to help in teaching play a key role in creating an interest of students in learning. They will engage actively in teaching and learning process if they are attracted to the English lesson. Using music in English lessons is one strategy to attract students attentiveness. In accordance to dual coding theory, when information is double coded, the chances of being retrieved, memorized and applied are high. Dual coding theory also hypothesizes that that images and words activate the mental processing in various ways. Moreover, some of the research such as the ones undertaken by Kleinman (1999) and Mayer (1996) authenticated the positive impact created by Dual Coding Theory. With all the assertions, it is now certain that the of music whether visual or audio enhance English teaching and learning which the Malaysian curriculum should adopt for better communication and understanding of the language.