Strawberry DNA Extraction Lab Formal Write Up

Purpose : This lab was conducted in order to show and analyze the way DNA is extracted.Hypothesis: If the lab is conducted properly then we should be able to view a visible amount of DNA from the strawberry and detergent mixture.Variables: The independent variable in this experiment is the strawberry mixture while the dependent variable is the amount of DNA extracted.Procedure-summary: Place a strawberry in a plastic baggy filled with the detergent mix and crush the strawberry, mixing the pulp with the detergent mix thoroughly, pour the detergent mixture into the funnel. Let the liquid from the mixture drain into the beaker then add the ethanol to the mixture.Data:Observations- The ethanol sat on top of the detergent due to its lighter density. Bubbles started rising as soon as the ethanol was added durn turning the liquid cloudy. The DNA grouped rapidly, taking no longer than two to three minuets total before slowing down and seeming to stop grouping. The DNA itself looked like sput um or phlegm, and was easily extracted from the mixture and sticky to the touch. When the DNA was extracted from the test tube and the mixture was stirred, more DNA started to collect at the top.Analysis:-As the strawberry is physically mashed into the detergent the cells are broken down and opened. The ethanol is else dense than the mixture and draws the now accessible DNA to the surface where it is viewable.-In comparing the extraction of strawberry DNA compared to human DNA, given a sample of the same amount of cells, there would be more DNA extracted from the strawberry for it has eight sets of chromosomes while humans just have two sets.-In real world situations DNA extraction would be used in something as complex as a murder investigation, in which DNA would have to be extracted to match a perpetrator to the evidence, or as simple as a pregnancy test.-A single cotton thread can not be seen from 100 feet away, but thousands of cotton threads together in a rope would be visible. The same applies to DNA in this experiment. A single double helix is hard to view even with the most complex of microscope, but when thousands of sticky little DNA strands bind together in the ethanol solution they become visible to the human eye.-Based on prior knowledge I know that the extraction of human DNA from mussel tissue is quite similar to the extraction of DNA from a strawberry and also ethanol based. That fact is to be expected for really there is no major cellular difference between strawberries and humans minus the fact that one is plant and the other is animal. Both are eukaryotic.Conclusion:In the experiment, DNA was successfully extracted from a strawberry, demonstrating the process a real life scientists would possibly extract DNA from cells. The lab was intact successful for the group and I were able to extract a visible amount of DNA from the mixture.There was really no source of error in this lab due to its simplicity. I feel in order to improve this lab, we sh ould compare the amount of strawberry DNA to another fruit like a banana or kiwi. I personally learned the physical process of DNA extraction as well as what DNA looks like.

Fraud Risk Management

Fraud risk management A guide to good practice 1 This guide is based on the fi rst edition of Fraud Risk Management: A Guide to Good Practice. The fi rst edition was prepared by a Fraud and Risk Management Working Group, which was established to look at ways of helping management accountants to be more effective in countering fraud and managing risk in their organisations. This second edition of Fraud Risk Management: A Guide to Good Practice has been updated by Helenne Doody, a specialist within CIMA Innovation and Development.Helenne specialises in Fraud Risk Management, having worked in related fi elds for the past nine years, both in the UK and other countries. Helenne also has a graduate certifi cate in Fraud Investigation through La Trobe University in Australia and a graduate certifi cate in Fraud Management through the University of Teeside in the UK. For their contributions in updating the guide to produce this second edition, CIMA would like to thank: Martin Birch FCMA, MBA Director – Finance and Information Management, Christian Aid.Roy Katzenberg Chief Financial Offi cer, RITC Syndicate Management Limited. Judy Finn Senior Lecturer, Southampton Solent University. Dr Stephen Hill E-crime and Fraud Manager, Chantrey Vellacott DFK. Richard Sharp BSc, FCMA, MBA Assistant Finance Director (Governance), Kingston Hospital NHS Trust. Allan McDonagh Managing Director, Hibis Europe Ltd. Martin Robinson and Mia Campbell on behalf of the Fraud Advisory Panel. CIMA would like also to thank those who contributed to the fi rst edition of the guide. About CIMACIMA, the Chartered Institute of Management Accountants, is the only international accountancy body with a key focus on business. It is a world leading professional institute that offers an internationally recognised qualifi cation in management accounting, with a full focus on business, in both the private and public sectors. With 164,000 members and students in 161 countries, CIMA is committed to upho lding the highest ethical and professional standards of its members and students.  © CIMA 2008. All rights reserved.This booklet does not necessarily represent the views of the Council of the Institute and no responsibility for loss associated to any person acting or refraining from acting as a result of any material in this publication can be accepted by the authors or publishers. Acknowledgements Fraud risk management: a guide to good practice 2 Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Fraud – its extent, patterns and causes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 1 What is fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 2 The scale of the problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. 3 Which businesses are affected? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. 4 Why do people commit fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1. 5 Who commits fraud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1. 6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk management – an overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 1 Wh at is risk management? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 2 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. 3 The risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2. 4 Establish a risk management group and set goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 5 Identify risk areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 6 Understand and assess the scale of risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2. 7 Develop a risk response strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 8 Implement the strategy and allocate responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 9 Implement and monitor suggested controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 10 Review and refi ne and do it again . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 11 Information for decision making . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2. 12 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Fraud prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 1 A strategy to combat fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3. 2 Developing a sound ethical culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 3. 3 Sound internal control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 1 Detection methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 4. 2 Indicators and warnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 4. 3 Tools and techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 4. 4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Responding to fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 1 Purpose of the fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 2 Corpor ate policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 5. 3 Defi nition of fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 4 Roles and responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 5. 5 The response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 5. 6 The investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 5. 7 Organisation’s objectives with respect to dealing with fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 8 Follow-up action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 5. 9 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 1 2 3 4 5 3 Appendices Appendix 1 Fraud and the law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Appendix 2 Examples of common types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Appendix 3 Example of a risk analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Appendix 4 A sample fraud policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Appendix 5 Sample whistleblowing policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Appendix 6 Examples of fraud indicators, risks and controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Appendix 7 A 16 step fraud prevention plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Appendix 8 Outline fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Appendix 9 Example of a fraud response plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Appendix 10 References and further reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Appendix 11 Listed abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Figures Figure 1 Types of internal fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Figure 2 The fraud triangle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Figure 3 The CIMA risk management cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Figure 4 Anti-fraud strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Figure 5 Ethics advice/services provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Figure 6 Meth ods of fraud detection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Case Studies Case study 1 Fraud doesn’t involve just money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Case study 2 Size really doesn’t matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Case study 3 A breach of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Case study 4 Management risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Case study 5 A fi ne warning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Case study 6 Vet or regret? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Case study 7 Tipped off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Case study 8 Risk or returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Case study 9 Reporting fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Case study 10 TNT roots our fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 4 5 Periodically, the latest major fraud hits the headlines as other organisations sit back and watch, telling themselves that ‘it couldn’t happen here. ’ But the reality is that fraud can happen anywhere. While only relatively few major frauds are picked up by the media, huge sums are lost by all kinds of businesses as result of the high number of smaller frauds that are committed. Surveys are regularly carried out in an attempt to estimate the true scale and cost of fraud to business and society. Findings vary, and it is diffi cult to obtain a complete picture as to the full extent of the issue, but these surveys all indicate that fraud is prevalent within organisations and remains a serious and costly problem. The risks of fraud may only be increasing, as we see growing globalisation, more competitive markets, rapid developments in technology, and periods of economic diffi culty. Among other fi ndings, the various surveys highlight that: organisations may be losing as much as 7% of their annual turnover as a result of fraud †¢ corruption is esti mated to cost the global economy about $1. 5 trillion each year †¢ only a small percentage of losses from fraud are recovered by organisations †¢ a high percentage of frauds are committed by senior management and executives †¢ greed is one of the main motivators for committing fraud †¢ fraudsters often work in the fi nance function †¢ fraud losses are not restricted to a particular sector or country †¢ the prevalence of fraud is increasing in emerging markets. Introduction Despite the serious risk that fraud presents to business, any organisations still do not have formal systems and procedures in place to prevent, detect and respond to fraud. While no system is completely foolproof, there are steps which can be taken to deter fraud and make it much less attractive to commit. It is in assisting organisations in taking such steps that this guide should prove valuable. The original guide to good practice was based on the work of CIMA’s Fraud and Ri sk Management Working Group that was established as part of the Institute’s response to the problem of fraud. Since the publication of the original guide, we have continued to see high rofi le accounting scandals and unacceptable levels of fraudulent behaviour. This second edition of the guide includes updates to refl ect the many changes in the legal environment and governance agenda in recent years, aimed at tackling the ongoing problem of fraud. The guide starts by defi ning fraud and giving an overview of the extent of fraud, its causes and its effects. The initial chapters of the guide also set out the legal environment with respect to fraud, corporate governance requirements and general risk management principles. The guide goes on to discuss the key components of an anti-fraud strategy nd outlines methods for preventing, detecting and responding to fraud. A number of case studies are included throughout the guide to support the text, demonstrating real life problems th at fraud presents and giving examples of actions organisations are taking to fi ght fraud. Fraud risk management: a guide to good practice Management accountants, whose professional training includes the analysis of information and systems, can have a signifi cant role to play in the development and implementation of anti-fraud measures within their organisations. This guide is intended to help management accountants in that role and will also be seful to others with an interest in tackling fraud in their organisation. The law relating to fraud varies from country to country. Where it is necessary for this guide to make reference to specifi c legal measures, this is generally to UK law, as it would be impossible to include references to the laws of all countries where this guide will be read. It is strongly advised that readers ensure they are familiar with the law relating to fraud in their own jurisdiction. Although some references may therefore not be relevant to all readers, the general principles of fraud risk management will still apply and rganisations around the world are encouraged to take a more stringent approach to preventing, detecting and responding to fraud. 6 7 Defi nition of fraud The term ‘fraud’ commonly includes activities such as theft, corruption, conspiracy, embezzlement, money laundering, bribery and extortion. The legal defi nition varies from country to country, and it is only since the introduction of the Fraud Act in 2006, that there has been a legal defi nition of fraud in England and Wales. Fraud essentially involves using deception to dishonestly make a personal gain for oneself and/or create a loss for another. Although defi nitions vary, ost are based around these general themes. Fraud and the law Before the Fraud Act came into force, related offences were scattered about in many areas of the law. The Theft Acts of 1968 and 1978 created offences of false accounting, and obtaining goods, money and services by decept ion, and the Companies Act 1985 included the offence of fraudulent trading. This remains part of the Companies Act 2006. There are also offences of fraud under income tax and value-added tax legislation, insolvency legislation, and the common law offence of conspiracy to defraud. The Fraud Act is not the only new piece of legislation.Over the last few years there have been many changes to the legal system with regard to fraud, both in the UK and internationally. This guide focuses mainly on UK requirements, but touches on international requirements that impact UK organisations. In the UK, the Companies Act and the Public Interest Disclosure Act (PIDA) have been amended and legislation such as the Serious Crimes Act 2007 and the Proceeds of Crime Act 2002 (POCA) have been introduced. Internationally the Sarbanes-Oxley Act 2002 (Sarbox) has been introduced in the United States (US), a major piece of legislation that affects not only companies in the US ut also those in the UK and othe rs based all over the globe. Further information on these pieces of legislation can be found in Appendix 1. As well as updating the legislation in the UK, there have been, and will continue to be, signifi cant developments in the national approach to combating fraud, particularly as we see implementation of actions resulting from the national Fraud Review. Appendix 1 gives further information on the Fraud Review. There are also many law enforcement agencies involved in the fi ght against fraud in the UK, including the Serious Fraud Offi ce, the Serious Organised Crime Agency SOCA), the Financial Services Authority (FSA), and Economic Crime Units within the police force. Different types of fraud Fraud can mean many things and result from many varied relationships between offenders and victims. Examples of fraud include: †¢ crimes by individuals against consumers, clients or other business people, e. g. misrepresentation of the quality of goods; pyramid trading schemes †¢ em ployee fraud against employers, e. g. payroll fraud; falsifying expense claims; thefts of cash, assets or intellectual property (IP); false accounting †¢ crimes by businesses against investors, consumers and employees, e. g. i nancial statement fraud; selling counterfeit goods as genuine ones; not paying over tax or National Insurance contributions paid by staff †¢ crimes against fi nancial institutions, e. g. using lost and stolen credit cards; cheque frauds; fraudulent insurance claims †¢ crimes by individuals or businesses against government, e. g. grant fraud; social security benefi t claim frauds; tax evasion †¢ crimes by professional criminals against major organisations, e. g. major counterfeiting rings; mortgage frauds; ‘advance fee’ frauds; corporate identity fraud; money laundering †¢ e-crime by people using computers and technology to commit crimes, e. . phishing; spamming; copyright crimes; hacking; social engineering frauds. 1. 1 Wh at is fraud? 1 Fraud: its extent, patterns and causes Figure 1 Types of internal fraud Cash Non-cash Financial Non-fi nancial Confl icts of interest Bribery and extortion Asset misappropriation Fraudulent statements Corruption Internal fraud Fraud risk management: a guide to good practice 8 The fi nal of the three fraud categories is corruption. This includes activities such as the use of bribes or acceptance of ‘kickbacks’, improper use of confi dential information, confl icts of interest and collusive tendering. These types of internal fraud are summarised n Figure 1. Surveys have shown that asset misappropriation is the most widely reported type of fraud in UK, although corruption and bribery are growing the most rapidly. Further information on common types of internal fraud, and methods by which they may be perpetrated, is included in Appendix 2. This guide focuses on fraud against businesses, typically by those internal to the organisation. According to the Associa tion of Certifi ed Fraud Examiners (ACFE), there are three main categories of fraud that affect organisations. The fi rst of these is asset misappropriations, which involves the theft or misuse f an organisation’s assets. Examples include theft of plant, inventory or cash, false invoicing, accounts receivable fraud, and payroll fraud. The second category of fraud is fraudulent statements. This is usually in the form of falsifi cation of fi nancial statements in order to obtain some form of improper benefi t. It also includes falsifying documents such as employee credentials. 9 1. 2 The scale of the problem There have been many attempts to measure the true extent of fraud, but compiling reliable statistics around fraud is not easy. As one of the key aspects of fraud is deception, it can be diffi cult to identify and urvey results often only refl ect the instances of fraud that have actually been discovered. It is estimated that the majority of frauds go undetected and, even wh en a fraud has been found, it may not be reported. One reason for this may be that a company that has been a victim of fraud does not want to risk negative publicity. Also, it is often hard to distinguish fraud from carelessness and poor record keeping. Although survey results and research may not give a complete picture, the various statistics do offer a useful indication as to the extend of the problem. There can be no doubt that fraud is prevalent within organisations nd remains a serious issue. PricewaterhouseCooper’s Global Economic Crime Survey (PwC’s survey) in 2007 found that over 43% of international businesses were victims of fraud during the previous two years. In the UK, the fi gures were higher than the global average, with 48% of companies having fallen victim to fraud. Some surveys put the fi gures much higher. For example, during 2008, Kroll commissioned the Economist Intelligence Unit (EIU) to poll nearly 900 senior executives across the world. The EIU found that 85% of companies had suffered from at least one fraud in the past three years1. This fi gure had risen from 80% in a imilar poll in 2007. KPMG’s Fraud Barometer, which has been running since 1987, has also shown a considerable increase in the number of frauds committed in the UK in recent years, including a 50% rise in fraud cases in the fi rst half of 2008. According to the UK report of PwC’s survey, the average direct loss per company over a two year period as a result of fraud has risen to ? 1. 75 million, increasing from ? 0. 8 million in the equivalent 2005 survey. These fi gures exclude undetected losses and indirect costs to the business such as management costs or damage to reputation, which can be signifi cant. Management costs lone were estimated to be on average another ? 0. 75 million. Participants of the ACFE Report to the Nation 2008 (ACFE report) estimated that organisations lose 7% of their annual revenues to fraud. It is diffi cult to put a total cost on fraud, although many studies have tried to. For example an independent report by the Association of Chief Police Offi cers (the ACPO) in 2007 revealed that fraud results in losses of ? 20 billion each year in the UK. The World Bank has estimated that the global cost of corruption and bribery is about 5% of the value of the world economy or about $1. 5 trillion per year. It is thought that these stimates are conservative, and they also exclude other types of fraud such as misappropriation of assets. While it may be impossible to calculate the total cost of fraud, it is said to be more signifi cant than the total cost of most other crimes. According to the Attorney General in the UK, fraud is an area of crime which is second only to drug traffi cking in terms of causing harm to the economy and society2. 1 Kroll Global Fraud Report, Annual Edition 2008/2009 2 Attorney General’s interim report on the government’s Fraud Review, March 2006 Fraud risk managemen t: a guide to good practice 10 Case study 1 Fraud doesn’t just involve moneyCounterfeiting is one example of fraud that can have extremely serious consequences. Technology is ever improving, making it easier for counterfeiters to produce realistic looking packaging and fool legitimate wholesalers and retailers. Counterfeiting is a potentially lucrative business for the fraudster, with possibilities of large commercial profi ts, and it is a problem affecting a wide range of industries including wines and spirits, pharmaceuticals, electrical goods, and fashion. However, there are often many victims affected by such a fraud and not just the business that has been duped or had their brand exploited.For some, the outcome of counterfeiting goes way beyond fi nancial losses and can even be fatal: †¢ In late 2006, 14 Siberian towns declared a state of emergency due to mass poisonings caused by fake vodka. Around 900 people were hospitalised with liver failure after drinking indu strial solvent that was being sold as vodka. This is not a one off problem and sales of fake alcohol have been known to kill people. †¢ Also in 2006, a counterfeit product did result in more tragic consequences. At least 100 children died after ingesting cough syrup that had been mixed with counterfeit glycerine.The counterfeit compound, actually a dangerous solvent, had been used in place of more expensive glycerine. The manufacturing process had been sourced to China and the syrup passed through trading companies in Beijing and Barcelona before reaching its fi nal destination in Panama. The certifi cate attesting to the product’s purity was falsifi ed and not one of the trading companies tested the syrup to confi rm its contents along the way. It is thought that the number of deaths is likely to be much higher than the 100 cases that have been confi rmed. Fraud is often mistakenly considered a victimless rime. However, fraud can have considerable social and psychologic al effects on individuals, businesses and society. For example, when a fraud causes the collapse of a major company, numerous individuals and businesses can be affected. In addition to the company’s own employees, employees of suppliers can be affected by the loss of large orders, and other creditors, such as banks, can be indirectly affected by huge losses on loans. Consumers have to pay a premium for goods and services, in order to compensate for the costs of fraud losses and for money spent on investigations and additional security.Taxpayers also suffer due to reduced payments of corporation tax from businesses that have suffered losses. Fraud drains resources, affects public services and, perhaps of more concern, may fund other criminal and terrorist activity. According to the Fraud Review, fraud is a major and growing threat to public safety and prosperity. Case study 1 demonstrates just how much of a threat fraud can be to public safety and that there truly are victims of fraud. 11 1. 3 Which businesses are affected? Fraud is an issue that all organisations may face regardless of size, industry or country. If the rganisation has valuable property (cash, goods, information or services), then fraud may be attempted. It is often high profi le frauds in large multi-national organisations that are reported on in the media and smaller organisations may feel they are unlikely to be a target of fraudsters. However, according to the ACFE report, small businesses (classifi ed as those with less than 100 employees) suffer fraud more frequently than large organisations and are hit by higher average losses. When small companies are hit by large fraud losses, they are less likely to be able to absorb the damage han a larger company and may even go out of business as a result. The results of PwC’s survey showed that companies reporting fraud were spread across many industries, with at least a quarter of the respondents in any one industry suffering from f raudulent incidents. Industries suffering the highest average losses were insurance and industrial manufacturing. Losses in the fi nancial services industry, a sector frequently in the press and one with which fraud is often associated, were actually below average. Even not-for-profi t organisations are not immune to fraud, with government institutions nd many charities falling victim to unscrupulous fraudsters. As one director working in the international development and aid sector has pointed out, ‘In my sector, fraud is not a possibility, it is a reality and we are always dealing with a number of suspicious incidents on a more or less permanent basis. ’ PwC’s survey also revealed that incidences of fraud were highest in companies in North America, Africa and Central and Eastern Europe (CEE), where more than half of the companies reported fraud. It was lowest in the Western European region, although the UK was uch higher than the average for this region, with l evels of fraud similar to those in CEE. The EIU poll commissioned by Kroll in 2007 found that respondents in countries such as India and China have seen a signifi cant increase in the prevalence of corporate fraud in the last three years and this trend is likely to increase in businesses operating in emerging markets3. Although fraud is prevalent across organisations of all sizes and in all sectors and locations, research shows that certain business models will involve greater levels of fraud risk than others. The control environment hould be adjusted to fi t with the degree of risk exposure. Further guidance on risk assessment and controls is given in later chapters. 3 Kroll Global Fraud Report, Annual Edition 2007/2008 Fraud risk management: a guide to good practice 12 Case study 2 Size really doesn’t matter From a family affair†¦ A member of a small family business in Australia committed a $2m fraud, costing profi ts, jobs and a great deal of trust. The business owner s became suspicious when they realised that their son in law used the company diesel card to buy petrol for his own car.On closer scrutiny, they soon uncovered a company cheque for $80,000 made payable to the son in law’s personal account. BDO’s Brisbane offi ce discovered that the cheque and the fuel were just the tip of a vast iceberg. The company’s complex accounts system allowed the son in law to disguise cheques payable to himself as creditor payments. He then became a signatory and took ever larger cheques. He claimed that the poor cash fl ow was due to losses in one particular division which the family therefore closed, creating redundancies and losing what was in truth a successful business.The costs of ineffi cient accounting systems and undue trust can be massive. Every business should protect itself with thorough controls and vigilance. Adapted from ‘FraudTrack 5 Fraud: A Global Challenge’ published by BDO Stoy Hayward †¦ to a major corporate scandal WorldCom fi led for bankruptcy protection in June 2002. It was the biggest corporate fraud in history, largely a result of treating operating expenses as capital expenditure. WorldCom (now renamed MCI) admitted in March 2004 that the total amount by which it had misled investors over the previous 10 years was almost US$75 billion (? 2 billion) and reduced its stated pre-tax profi ts for 2001 and 2002 by that amount. WorldCom stock began falling in late 1999 as businesses slashed spending on telecom services and equipment. A series of debt downgrades raised borrowing costs for the company, struggling with about US$32 billion in debt. WorldCom used accounting tricks to conceal a deteriorating fi nancial condition and to infl ate profi ts. Former WorldCom chief executive Bernie Ebbers resigned in April 2002 amid questions about US$366 million in personal loans from the company and a federal probe of its accounting practices.Ebbers was subsequently charged with conspir acy to commit securities fraud and fi ling misleading data with the Securities and Exchange Commission (SEC) and was sentenced to 25 years in prison. Scott Sullivan, former Chief Financial Offi cer, pleaded guilty to three criminal charges and was sentenced to fi ve years in prison. Ultimately, losses to WorldCom shareholders were close to US$180 billion and the fraud also resulted in the loss of 17,000 jobs. The SEC said that WorldCom had committed ‘accounting improprieties of unprecedented magnitude’ – proof, it said, of the need for reform in the regulation of corporate ccounting. Adapted from CIMA Offi cial Learning System, Management Accounting Risk and Control Strategy 13 1. 4 Why do people commit fraud? There is no single reason behind fraud and any explanation of it needs to take account of various factors. Looking from the fraudster’s perspective, it is necessary to take account of: †¢ motivation of potential offenders †¢ conditions unde r which people can rationalise their prospective crimes away †¢ opportunities to commit crime(s) †¢ perceived suitability of targets for fraud †¢ technical ability of the fraudster expected and actual risk of discovery after the fraud has been carried out †¢ expectations of consequences of discovery (including non-penal consequences such as job loss and family stigma, proceeds of crime confi scation, and traditional criminal sanctions) †¢ actual consequences of discovery. A common model that brings together a number of these aspects is the Fraud Triangle. This model is built on the premise that fraud is likely to result from a combination of three factors: motivation, opportunity and rationalisation. Motivation In simple terms, motivation is typically based on either reed or need. Stoy Hayward’s (BDO) most recent FraudTrack survey found that greed continues to be the main cause of fraud, resulting in 63% of cases in 2007 where a cause was cited. Other causes cited included problems from debts and gambling. Many people are faced with the opportunity to commit fraud, and only a minority of the greedy and needy do so. Personality and temperament, including how frightened people are about the consequences of taking risks, play a role. Some people with good objective principles can fall into bad company and develop tastes for the fast life, which empts them to fraud. Others are tempted only when faced with ruin anyway. Opportunity In terms of opportunity, fraud is more likely in companies where there is a weak internal control system, poor security over company property, little fear of exposure and likelihood of detection, or unclear policies with regard to acceptable behaviour. Research has shown that some employees are totally honest, some are totally dishonest, but that many are swayed by opportunity. Rationalisation Many people obey the law because they believe in it and/or they are afraid of being shamed or rejected by eople the y care about if they are caught. However, some people may be able to rationalise fraudulent actions as: †¢ necessary – especially when done for the business †¢ harmless – because the victim is large enough to absorb the impact †¢ justifi ed – because ‘the victim deserved it’ or ‘because I was mistreated. ’ Figure 2 The fraud triangle Motivation Opportunity The fraud triangle Rationalisation Fraud risk management: a guide to good practice 14 Case study 3 A breach of trust A good example of the fraud triangle in practice is the highly publicised case of the secretary that stole over ? . 3 million from her bosses at Goldman Sachs. Motivation There were some suggestions that Joyti De-Laurey originally started down her fraudulent path because of fi nancial diffi culties she found herself in before starting work at the investment bank. De-Laurey had previously run her own sandwich bar business, but it was closed down due to ins uffi cient fi nances. According to her defence, De-Laurey’s ‘fi rst bitter experience of fi nancial turmoil coincided with a novel introduction to a Dallas-type world where huge, unthinkable amounts of money stared her in the face, day in and day out. The motive behind the fraud was primarily greed though, with De-Laurey spending her ill gotten gains on a luxury lifestyle, including villas, cars, jewellery, designer clothes and fi rst class holidays. De-Laurey has even admitted that she did not steal because she needed to, but because she could. She explained that she fi rst started taking money simply to fi nd out if she could get away with it. She says that it then became ‘a bit addictive’ and that she ‘got a huge buzz from knowing they had no idea what I was doing. ’ Opportunity In terms of opportunity, De-Laurey’s bosses trusted her and held her in high regard.She had proved herself indispensable, on both business and personal fronts , and was given access to their cheque books in order to settle their domestic bills and personal fi nances. A little over a year after starting at Goldman Sachs, De-Laurey began forging her bosses’ signatures on personal cheques to make payments into her own accounts. Realising she had got away with it, De-Laurey continued to steal money by issuing forged cheques and making false money transfers. Before long she was forging signatures on a string of cash transfer authorities, siphoning off up to ? 2. million at a time from supposedly secure New York investments. Rationalisation De-Laurey was able to rationalise her actions by convincing herself that she had earned the money she stole. De-Laurey believed that she deserved the plundered amounts as a just reward for her dedication, discretion and loyalty, and claims that she had the consent of her bosses to take money in return for her ‘indispensable services’. The fact that they were so rich they did not even noti ce the money was missing, only served to fuel De-Laurey’s fraudulent activities. She justifi ed her actions through the belief that her bosses had cash to spare.According to De-Laurey; ‘They could afford to lose that money. ’ Caught out After four years of siphoning off vast amounts of money, De-Laurey was eventually caught when her boss at the time decided to make a six-fi gure donation to his former college. He took a look at his bank accounts to see if he could cover the donation and was surprised to fi nd the balance on the accounts so low. He investigated further and realised that large sums had been transferred to an unknown account. De-Laurey was the obvious suspect. By this time, De-Laurey had actually stolen around ? 3. 3 million from this particular boss.De-Laurey was the fi rst woman in the UK to be accused of embezzling such a large sum and, after a long and high profi le trial in 2004, she was sentenced to seven years imprisonment. Various sources in cluding The Guardian, The Times, The Independent and the BBC News 15 One of the most effective ways to tackle the problem of fraud is to adopt methods that will decrease motive or opportunity, or preferably both. Rationalisation is personal to the individual and more diffi cult to combat, although ensuring that the company has a strong ethical culture and clear values should help. These methods and principles are developed further in later hapters of this guide. 1. 5 Who commits fraud? Different types of fraudster Fraudsters usually fall into one of three categories: 1 Pre-planned fraudsters, who start out from the beginning intending to commit fraud. These can be short-term players, like many who use stolen credit cards or false social security numbers; or can be longer-term, like bankruptcy fraudsters and those who execute complex money laundering schemes. 2 Intermediate fraudsters, who start off honest but turn to fraud when times get hard or when life events, such as irritation at being passed over for promotion or the need to pay for care for a family ember, change the normal mode. 3 Slippery-slope fraudsters, who simply carry on trading even when, objectively, they are not in a position to pay their debts. This can apply to ordinary traders or to major business people. In 2007, KPMG carried out research on the Profi le of a Fraudster (KPMG survey), using details of fraud cases in Europe, India, the Middle East and South Africa. The ACFE carried out similar research on frauds committed in the US. These surveys highlight the following facts and fi gures in relation to fraudsters: †¢ perpetrators are typically college educated white male most fraudsters are aged between 36 and 55 †¢ the majority of frauds are committed by men †¢ median losses caused by men are twice as great as those caused by women †¢ a high percentage of frauds are committed by senior management (including owners and executives) †¢ losses caused by managers are ge nerally more than double those caused by employees †¢ average losses caused by owners and executives are nearly 12 times those of employees †¢ longer term employees tend to commit much larger frauds †¢ fraudsters most often work in the fi nance department, operations/sales or as the CEO. The ACFE report also found that the type of person ommitting the offence depends on the nature of the fraud being perpetrated. Employees are most likely to be involved in asset misappropriation, whereas owners and executives are responsible for the majority of fi nancial statement frauds. Of the employees, the highest percentage of schemes involved those in the accounting department. These employees are responsible for processing and recording the organisation’s fi nancial transactions and so often have the greatest access to its fi nancial assets and more opportunity to conceal the fraud. Fraud risk management: a guide to good practice 16 Case study 4 Management riskIn 2007, a major British construction fi rm suffered from extensive fraud committed by management at one of its subsidiaries. Accounting irregularities dating back to 2003 were said to include systematic misrepresentation of production volumes and sales by a number of senior fi gures at the division. Management at the subsidiary attempted to cover their behaviour by selling materials at a discounted price and the fraud went undetected for several years despite internal and external audits. The irregularities were eventually uncovered by an internal team sent to investigate a mismatch between orders and sales.Following an initial internal investigation, a team of external experts and the police were brought in to identify the full extent of malpractice. The investigation found that the organisation was defrauded of nearly ? 23 million, but the fraud was said to cost the company closer to ? 40 million due to the written down value of the business and factoring in the cost of the investigation. The managing director of the subsidiary was dismissed, another manager faced disciplinary action and fi ve others left before disciplinary proceedings could be commenced. Civil proceedings were ruled out on the basis that osses were unlikely to be recovered. Operations at the centre of the incident had to be temporarily closed and more than 160 jobs were cut at the business. In addition to individual fraudsters, there has also been an increase in fraud being committed by gangs of organised criminals. Examples include false or stolen identities being used to defraud banks, and forms of e-fraud exploiting the use of internet by commercial businesses. SOCA is responsible for responding to such threats, with the support of the victim organisations. 1. 6 Summary A major reason why people commit fraud is because they are allowed to do so.There are a wide range of threats facing businesses. The threat of fraud can come from inside or outside the organisation, but the likelihood that a frau d will be committed is greatly decreased if the potential fraudster believes that the rewards will be modest, that they will be detected or that the potential punishment will be unacceptably high. The main way of achieving this must be to establish a comprehensive system of control which aims to prevent fraud, and where fraud is not prevented, increases the likelihood of detection and increases the cost to the fraudster. Later chapters of this guide set out some of the easures which can be put in place to minimise fraud risks to the organisation. Before looking specifi cally at fraud risk, the guide considers risk management in general. Risk management is defi ned as the ‘process of understanding and managing risks that the entity is inevitably subject to in attempting to achieve its corporate objectives’ (CIMA Offi cial Terminology, 2005). For an organisation, risks are potential events that could infl uence the achievement of the organisation’s objectives. Risk management is about understanding the nature of such events and, where they represent threats, making positive plans to mitigate them. Fraud s a major risk that threatens the business, not only in terms of fi nancial health but also its image and reputation. This guide is primarily focused on managing the risk of fraud, but fi rst, this chapter looks at more general aspects of risk management and corporate governance. 17 2 Risk management – an overview Risk management is an increasingly important process in many businesses and the process fi ts in well with the precepts of good corporate governance. In recent years, the issue of corporate governance has been a major area for concern in many countries. In the UK, the fi rst corporate governance report and code of best practice s considered to be the Cadbury Report in 1992, which was produced in response to a string of corporate collapses. There have been a number of reports since, covering provisions around areas such as exec utive remuneration, non-executive directors, and audit committees. The principles of these various reports have been brought together to form the Combined Code on Corporate Governance (Combined Code). The Combined Code was fi rst introduced in 1998 and among other matters, calls for boards to establish systems of internal control and to review the effectiveness of these systems on a regular basis. UK isted companies are required to provide a statement in their annual reports confi rming that they comply with the Combined Code, and where they do not, they must provide an explanation for departures from it (the ‘comply or explain’ principle). The assessment of internal controls should be included in the report to shareholders. The Combined Code is reviewed regularly and the most recent version was published in June 2008. Following the original introduction of the Combined Code, the Turnbull Committee was set up to issue guidance to directors on how they should assess and report on their review of internal controls. TheTurnbull Committee made it clear that establishment of embedded risk management practices is key to effective internal control systems. The Turnbull guidance was fi rst published in 1999 and revised in 2005. In the revised report (sometimes referred to as Turnbull 2) there is now a requirement for directors to give explicit confi rmation that any signifi cant failings or weaknesses identifi ed from the review of effectiveness of internal controls have been, or are being, remedied. 2. 1 What is risk management? 2. 2 Corporate governance Fraud risk management: a guide to good practice 18 The Financial Reporting Council is responsible for aintaining and reviewing the Combined Code, although the Combined Code is annexed to the rules of the UK Listing Authority, which is part of the FSA. The FSA is responsible for ensuring that listed companies provide the appropriate ‘comply or explain’ statement in their annual report. While the guidance is generally applicable to listed companies, the principles are relevant to all organisations and have been widely used as a basis for codes of best practice in the public and not-for-profi t sectors. Fraud risk management practices are developing along the same lines. Many other countries have also produced reports on orporate governance, usually accompanied by codes of best practices. For example, South Africa has had the King Report (version I and now II) since 1994, Malaysia has had its Code of Corporate Governance in place since 2000 and Sri Lanka issued the Rules on Corporate Governance as part of its Listing Rules in January 2007. Corporate governance requirements in the US are now largely set out within the Sarbox legislation, further details on which are provided at Appendix 1. As previously mentioned, these requirements extend beyond the US, capturing any company that is SEC listed and its subsidiaries. Some other countries have lso introduced a statutory appr oach to corporate governance, such as that in the US, although none are currently as comprehensive. A number of international organisations have also launched guidelines and initiatives on corporate governance, including the Organisation for Economic Co-operation and Development (OECD) and the European Commission. An example of a growing area of corporate governance is IT governance, which has developed in light of rapid and continuing advances in information technology. The following box gives more information on IT governance. IT Governance IT governance is about ensuring that the rganisation’s IT systems support and enable achievement of the organisation’s strategies and objectives. It encompasses leadership, organisational structures, businesses processes, standards and compliance. There are fi ve specifi c drivers for organisations to adopt IT governance strategies: †¢ regulatory requirements e. g. IT governance is covered by the Combined Code and Turnbull gu idance in the UK †¢ increasing intellectual capital value that the organisation has at risk †¢ alignment of technology with strategic organisational goals †¢ complexity of threats to information security †¢ increase in the compliance requirements of nformation and privacy-related regulation. A key benefi t of an effective, integrated IT governance framework is the integration of IT into the strategic and overall operational approach of an organisation. There are a series of international Information Security (IS) standards that provide guidance on implementing an effective IT governance framework, known as the ISO 27000 series. For example, ISO/IEC 27001 defi nes a set of IS management requirements in order to help organisations establish and maintain an IS management system. The standards apply to all types of organisation regardless of size or sector.They are particularly suitable where the protection of information is critical to the business, for example in t he fi nance, health and public sectors, and for organisations which manage information on behalf of others, such as IT outsourcing companies. ISACA also offers a series of IS standards and certifi cation. ISACA is a leading global association in the IT governance and control fi eld. With a network across more than 160 countries, its IS standards are followed by practitioners worldwide. Figure 3 The CIMA risk management cycle Controls assurance Controls assurance is the process whereby controls are eviewed by management and staff. There are various ways to conduct these exercises, from highly interactive workshops based on behavioural models at one end of the spectrum to pre-packaged self audit internal control questionnaires at the other. These models all include monitoring and risk assessment among their principal components. 19 The risk management cycle is an interactive process of identifying risks, assessing their impact, and prioritising actions to control and reduce risks. A n umber of iterative steps should be taken: 1 Establish a risk management group and set goals. 2 Identify risk areas. Understand and assess the scale of risk. 4 Develop a risk response strategy. 5 Implement the strategy and allocate responsibilities. 6 Implement and monitor the suggested controls. 7 Review and refi ne the process and do it again. 2. 3 The risk management cycle Identify risk areas Review and refi ne process and do it again Implementation and monitoring of controls Implement strategy and allocate responsibilities Understand and assess scale of risk Develop risk response strategy Information for decision making Establish risk management group and set goals Fraud risk management: a guide to good practice 20 2. Establish a risk management group and set goals A risk management group should be established whose task it is to facilitate and co-ordinate the overall risk management process. Possible members of the group could include a chief risk offi cer, a non executive direc tor, fi nance director, internal auditor, heads of planning and sales, treasurer and operational staff. Depending on the size and nature of the organisation, the risk management group may be in the form of a committee who meet from time to time. The risk management group will promote the understanding and assessment of risk, and facilitate the evelopment of a strategy for dealing with the risks identifi ed. They may also be responsible for conducting reviews of systems and procedures to identify and assess risks faced by the business, which include the risk of fraud, and introducing the controls that are best suited to the business unit. However, line managers and their staff may also be involved in the risk identifi cation and assessment process, with the risk management group providing guidance. 2. 5 Identify risk areas Each risk in the overall risk model should be explored to identify how it potentially evolves through the organisation.It is important to ensure that the risk is c arefully defi ned and explained to facilitate further analysis. The techniques of analysis include: †¢ workshops and interviews †¢ brainstorming †¢ questionnaires †¢ process mapping †¢ comparisons with other organisations †¢ discussions with peers. Once risks have been identifi ed, an assessment of possible impact and corresponding likelihood of occurrence should be made using consistent parameters that will enable the development of a prioritised risk analysis. In the planning stage, management should agree on the most appropriate defi nition and number of categories to be used when ssessing both likelihood and impact. The assessment of the impact of the risk should not simply take account of the fi nancial impact but should also consider the organisation’s viability and reputation, and recognise the political and commercial sensitivities involved. The analysis should either be qualitative or quantitative, and should be consistent to allow compa risons. The qualitative approach usually involves grading risks in high, medium and low categories. Impact The assessment of the potential impact of a particular risk may be complicated by the fact that a range of possible outcomes may exist or that the risk may occur number of times in a given period of time. Such complications should be anticipated and a consistent approach adopted which, for example, may seek to estimate a worst case scenario over, say, a 12 month time period. Likelihood of occurrence The likelihood of a risk occurring should be assessed on a gross, a net and a target basis. The gross basis assesses the inherent likelihood of the event occurring in the absence of any processes which the organisation may have in place to reduce that likelihood. The net basis assesses the likelihood, taking into account current conditions and processes to mitigate he chance of the event occurring. The target likelihood of a risk occurring refl ects the risk appetite of the organisa tion. 2. 6 Understand and assess the scale of risk 21 Where the net likelihood and the target likelihood for a particular risk differ, this would indicate the need to alter the risk profi le accordingly. It is common practice to assess likelihood in terms of: †¢ high – probable †¢ moderate – possible †¢ low – remote. An example of a risk analysis is contained in Appendix 3. The resulting document is often referred to as a risk register. The overall risk registers at organisational nd operational levels should include the risk of fraud being perpetrated. Some organisations also prepare detailed fraud risk registers that consider possible fraudulent activity. The fraud risk register often directs the majority of proactive fraud risk management work undertaken by an organisation. Analysing fraud risks Fraud risk is one component of operational risk. Operational risk focuses on the risks associated with errors or events in transaction processing or ot her business operations. A fraud risk review considers whether these errors or events could be the result of a deliberate act designed to benefi t the perpetrator.As a result, fraud risk reviews should be detailed exercises conducted by teams combining in depth knowledge of the business and market with detailed knowledge and experience of fraud. Risks such as false accounting or the theft of cash or assets need to be considered for each part of the organisation’s business. Frequently, businesses focus on a limited number of risks, most commonly on thirdparty thefts. To avoid this, the risks should be classifi ed by reference to the possible type of offence and the potential perpetrator(s). Fraud risks need to be assessed for each area and process of the business, for example, cash payments, ash receipts, sales, purchasing, expenses, inventory, payroll, fi xed assets and loans. Fraud risk management: a guide to good practice 22 2. 7 Develop a risk response strategy Once the ri sks have been identifi ed and assessed, strategies to deal with each risk identifi ed can be developed by line management, with guidance from the risk management group. Strategies for responding to risk generally fall into one of the following categories: †¢ risk retention (e. g. choosing to accept small risks) †¢ risk avoidance (e. g. stopping sale of certain products to avoid the risk to occurring) †¢ risk reduction (e. g. hrough implementing controls and procedures) †¢ risk transfer (e. g. contractual transfer of risk; transferring risks to insurers). Before strategies are developed, it is necessary to establish the risk appetite of the organisation. Risk appetite is the level of risk that the organisation is prepared to accept and this should be determined by the board. The appetite for risk will infl uence the strategies to be developed for managing risk. It is worth noting that a board’s risk appetite may vary for different types of risk and over tim e. For example, the board may have a low risk tolerance on compliance and egulatory issues, but be prepared to take signifi cant strategic risks. The board may also reduce their risk appetite as the external environment changes, such as in times of recession. 2. 8 Implement the strategy and allocate responsibilities The chosen strategy should be allocated and communicated to those responsible for implementation. For the plan to be effective it is essential that responsibility for each specifi c action is assigned to the appropriate operational manager and that clear target dates are established for each action. It is also important to obtain the co-operation of those esponsible for the strategy, by formal communication, seminars, action plans and adjustments to budgets. The chosen strategy may require the implementation of new controls or the modifi cation of existing controls. Businesses are dynamic and the controls that are in place will need to be monitored to assess whether or n ot they are succeeding in their objectives. The risk management group should be empowered to monitor the effectiveness of the actions being taken in each specifi c area, as these can be affected by internal and external factors, such as changes in the marketplace or the introduction of new computer systems. . 10 Review and refi ne and do it again All of the elements outlined above form part of an iterative cycle where risk management is continually reviewed and developed. As the cycle continues, risk management should increasingly become embedded in the organisation so that it really becomes part of everyone’s job. 2. 11 Information for decision making Risk management should form a key part of the organisation’s decision-making process. Information is gathered at all stages of the risk management cycle and this information should be fed into the decision-making mechanisms. For more information on risk management, please refer o CIMA’s publication Risk Management : A guide to good practice. 2. 9 Implement and monitor suggested controls 23 There are risks in most situations. Risk management is an important element of corporate governance and every organisation should review their risk status and develop their approach as described in the CIMA Risk Management Cycle in 2. 3 to 2. 11 above. Managing the risk of fraud is the same in principle as managing any other business risk. First, the potential consequences of fraud on the organisation need to be understood, using the principles set out in this chapter. The risks should then be reduced by developing nd implementing an anti-fraud strategy across the organisation. This is best approached systematically, both at the organisational level, for example by using ethics policies and anti-fraud policies, and at the operational level, through introduction of controls and procedures. The following chapters expand on the fraud risk management process in the context of an antifraud strategy. 2. 12 Summar y Fraud risk management: a guide to good practice Given the prevalence of fraud and the negative consequences associated with it, there is a compelling argument that organisations should invest time and resources towards tackling fraud.There is, however, sometimes debate as to whether these resources should be committed to fraud prevention or fraud detection. Fraud prevention Based on the earlier discussion aroun

Bebop Jazz and its Influence

Bebop was a revolutionary sound that captivated the audience due largely to the new found creative freedom of musical expression allowed by extensive improvisation. According to John Andrews (1998), Bop marked the point at which both the musicians and their audience came widely conscious that Jazz was an art form. Andrews also goes on to mention that bebops mall focus was for people to seriously listen, instead of dancing. After bebop other styles of Jazz developed, such as progressive Jazz, cool jazz, and hard bop. These three styles of Jazz, In the pollen of many people, imparted a substantial influence on current jazz, and will likely impact future generations as well. Bebop is a style of Jazz developed in the early sass as a means to revolt against big band music. Big band music required large groups of players. As a consequence, the musicians were required to follow simpler, highly structured, written arrangements. At the time, many musicians resented the lack of freedom to improvise and the reliance upon written arrangements, so they created bebop, a new style of Jazz. Bebop was vastly deferent than swing band music. It had faster tempos, complex harmonies, elaborate melodies and a rhythm section. According to _Americas Musical Landscape-? a typical bebop combo consisted of a trumpet, saxophone, double bass, piano, and percussion. Due in part to the smaller number of performing Caucasians, bebop music allowed for more freedom of expression and imagination than in big band music.Improvisation was a key feature. While much of big band music was designed to indulge the audiences desire to dance, bebop Jazz is for people who want to sit down and listen to the music. At first, many people enjoyed listening to bebop simply because it was something new and exciting. However, many people, particularly musicians, prefer bebop because of its sophistication and complexity. Some Jazz musicians felt they needed something different and preferred to play bebop Instead of swing Jazz to demonstrate their improvisational skills.Musicians such as saxophonist, Dizzy Gillespie; trumpeter, Charlie Parker; and plants, Theologies Monk; stand out as examples of creative giants who through their virtuosity, were able to achieve an innovative sound that wound into their musical presentations, more important than dancing or chatting ove r simple background music. In a way, bebop was a new genre unto itself, more akin to Jazz than big band music. Because it is essentially the basis for most contemporary Jazz styles, listeners will hear the enduring influence of bebop in most Jazz forms that have followed it.Progressive Jazz, cool Jazz, and hard bop are three styles to have evolved from bebop jazz. It is likely that these three Jazz styles, as well as others, embedded with the underlying roots of bebop will have an ongoing influence on future Jazz musicians. No one can speak for all musicians, many may prefer to play older well-established, classic Jazz, but certainly there are a substantial number of musicians that prefer playing the avian-garden styles, who will carry the flag of bebop for future generations.Bebop was a revolutionary and exciting sound that changed the world of Jazz in the asss and continues to influence Jazz styles today. At its advent, bebop was a way for jazz musicians to break away from the confines of big band music, wh ich did not allow for much improvisation or freedom of musical expression. Bebop pioneers such as Charlie Parker, Dizzy Gillespie, and Theologies Monk helped pave the way for other jazz musicians, allowing them to shed their restrictive chains of structured big band music and to elevate the level of improvisational genius that bebop allows.

Fall of usher's house Essay Example | Topics and Well Written Essays - 500 words

Fall of usher's house - Essay Example Readers are made to perceive the personality and the deteriorating mental condition of Usher through the narrator’s eyes. The fall of the House of Usher is a story in which the narrator exercises an immense control over readers. The narrator never even by chance drops in irrelevant or loose facts that may be used by readers to construct a parallel understanding of their own. Right from the very start, the narrator constructs an image of Usher, which appears to the unsuspecting readers as utterly strange and spooky. In fact, the narrator goes on to build on these personality attributes of Usher, by conveying a personal understanding of him, through the spectacles of his childhood recollections. The whole idea is to highlight the utter ominous nature of the house of Usher and Usher’s mysterious relation to this rotting and isolated property. Instead of extending to readers a guided tour through the narrative, the narrator rather makes them a partner in his own personal st ock of fears and apprehensions, as he says, â€Å"with the first glimpse of the building, a sense of insufferable gloom pervaded my spirit (Poe 1).† Each new facet of Usher’s personality revealed by the narrator further strengthens this feeling of dread. It is a fact that people seldom fear those things that they can clearly see and understand. So to make the story more intimidating, disturbing and horrid, the narrator makes it a point to stun the readers’ understanding by bombarding it with a range of sensations, fears and visions. The details provided by the narrator, like the gloomy and dark atmosphere in the house, the tattered and dusty furniture, and his dread that he has entered another world tend to build on a mood of awe, fear and expectation. Moreover, in case of Madeline, the narrator allows readers only an apparition like brief glimpse of her, as he conveys, â€Å"I regarded her with an utter astonishment not unmingled with dread (Poe 1).† The narrator exploits

Sandra Backlund's life and fashin design Coursework

Sandra Backlund's life and fashin design - Coursework Example The Swedish designer, Sandra Backlund, was born in 1975 in Stockholm where she lives even today. While she wanted to be a hairstylist when she was about 10, her grandmother regular taught her how to knit. As she grew up, she always considered it a conscious decision to start what her mother often praised her of being excellently talented; handicrafts. She attributes the absence of fascinating fashion to buy as an adolescent as a key factor that motivated her to create her own clothes from the ideas taught by her grandmother. Her desire to express herself artistically further motivated her to join the Beckmans College. In 2004, Backlund graduated from Beckmans College in Stockholm and later that year, sought financial assistance from friends and family to set up her individual eponymous label from where she has been working round-the-clock since then. After setting up the eponymous label in 2004, Backlund fully became exposed to the world of art winning many accolades thereafter. For instance, she was crowned the winner of the Grand Prix in the De Monde & Photographie in Hyeres international festival in France, and the British Fashion Council awarded her the NewGen sponsorship in 2009 as asserted by Battista. In 2010, Backlund extended her success by winning the Swedish Elle Award.Backlund’s success left decriers and supporters flabbergasted. Despite the challenges she faced being in an industry that was previously perceived to be chauvinistic, Backlund sojourned on attracting the awe of the international fashion community.

Conflict in America Legalizing Marijuana Research Paper

Conflict in America Legalizing Marijuana - Research Paper Example During the previous government, this drug was illegal; however, when Obama’s government took power, it legalized marijuana and several states followed suit. This did not amuse the federal government, who were opposed to the move; it criticized the act and even went forth to pronounce legal action on those states and people found trading marijuana. Since this is an issue that may threaten national stability in the United States, it can be resolved by having the two bodies harmonize and come up with the best solution, rather than living with disputes. Keywords: Marijuana, State Laws, Federal Laws Every new government in the US comes with its own laws that favor it; the laws made reflect the promises of the new government and its political party. During the reign of President George W. Bush between the years 2001 to 2009, the government had enforced laws against marijuana. It took actions against those who dealt with the drug. However, when the government of President Obama took office, there was a different approach on marijuana; the government no longer took actions against those who were trading on the drug. According to Morgan (2011), the attorney general announced that the government was no longer going to deal with issues of marijuana peddling anymore. The announcement caused a lot of uproar from those who did not support the idea. The memorandum by the attorney general acknowledged the presence of conflict on marijuana between the federal and the state laws. As at present, the federal laws prohibit all deals on marijuana and according to the US drug enforcement administration, marijuana lacks a safe way of using it and has a high potential of becoming abused (Morgan, 2011). On the other hand, the state laws do not conform to the federal laws. An example of this is California, which became the first state to legalize marijuana, and 15 other states soon followed it. The many conflicts surrounding marijuana are not only found at federal and state domain s. This issue is also present in the medical domain; there are two contrasting arguments of medics concerning marijuana, with one group arguing that the use of marijuana has no effect to the body and the other arguing that it has effects. The American thoracic society reported that most marijuana users had no increased lung infections, while the British lung foundation had filed a report in 2002 citing the adverse effects of marijuana in the human body (Morgan, 2011). Conflict on marijuana is a major issue and of great concern. The greatest effect to Obama’s government is in the political arena. This is because most of those who are opposed to the move could use this chance to ambush an attack to the government, especially given that during the reign of the Republican Party, Marijuana was banned. Democrats’ risk losing their popularity among anti-marijuana citizens and organizations. Most international organizations and nations classify marijuana as a drug and in most countries, its use and trade is prohibited and punished by law. Permission by American government to its citizens to trade and use marijuana offers risks to the country; these include risks of losing reputation amongst international communities among others. In the New York Times, Savage (2012) informs that, â€Å"Several had cautioned that the issue had raised several legal and complex issues†. The complex issues were based on international antidrug

THEMES IN U.S. & WORLD HISTORY Essay Example | Topics and Well Written Essays - 750 words - 2

THEMES IN U.S. & WORLD HISTORY - Essay Example Diffusion refers to the process through which cultural items such as styles, ideas, values, and languages spread among individuals either within a single culture or from one culture to the other. Egyptian religion, for instance, is one of the most prominent symbols of Ancient Egypt. Primeval Egypt is one of the most powerful ancient civilizations that had a huge influence on the world. The king, or the Pharaoh, had the ultimate authority over both religious and political matters. Ancient Egyptians were able to exert influence to the world with their religion through the process of transcultural diffusion. This entailed sharing religious values with members of other culture during their interactions in areas such as business, education, and intermarriages. Historical diffusion of the Egyptian religion is one of the best examples of how human beings living in different parts of the world are connected throughout human history. The Egyptian religion, for instance, was able to expand to other places and parts of the world through traders, immigrants, missionaries, and warriors. The Egyptian religion was able to diffuse through the chariot as people moved from one place to the other. Missionaries and traders in the 13th century travelled around the world sharing religious views. Other communities adopted the Egyptian religion and incorporated some of the elements of the religion in their own culture. They did not, however discard their own religious views totally, but only took certain elements of the religion. This led to mixed religious views, which were common during the 13th century as people from different communities interacted. Historical characteristic of Egyptian religion such as religious beliefs and values can be found in other ancient communities such as among the Greeks, Chines and some parts of Europe. The two most significant geographical or environmental factors that contributed to expansion and development of the US are the Gold Rush

Plain English Movement Term Paper Example | Topics and Well Written Essays - 1000 words

Plain English Movement - Term Paper Example Some of the features that differentiate plain language document from traditional ones are: properly organized format, effective wordings, and simple sentences. Plain English (PE) offers several advantages to us over traditional form of English. PE gives information to the readers in the form that is easy for them to understand. It uses straight small sentences and commonly understood words. The core objective is to communicate with clarity and precision. The communication has been a necessity ever since people came on this planet. Hundreds of languages evolved over time for the needs of communication across different parts of the world. Many languages died down for the varied reasons. One of the prime reasons for the death of some of the established languages has been its complexities that are difficult to grasp by the masses. Sanskrit, the ancient language of India and the mother of more than 20 current Indian languages, is a glaring example that proves my point. The language died o n its own and gave birth to several modern Indian languages. The question may come to our minds that why so it happened? The reasons are not far and wide. People naturally tend to choose a language for communication that is easy, simple, straight and concise. Precisely for these reasons, language naturally evolves over time to meet above criteria. Compare the Shakespearean English with the English that evolved during last century. Nobody prefers to speak and write in the classic style of English now, which was in vogue during a few centuries back. The phenomena still continues and the English is still evolving for people neither have time nor an inclination to read long complex sentences. It is a common experience that given the long sentences quite often we need to read them twice or more to extract the gist. If the same sentences are broken into smaller versions then those can be understood in less time and efforts. The term plain language was first used in the US in the early 195 0s. In 1998, Bill Clinton issued a memorandum to the heads of executive departments and agencies asking them to use plain language in government Writing. The objective was to make government more responsive and understandable in its communication to the public. He clearly stated that plain language saves time, effort and money. He informed that plain language informs public with clarity that what the government is doing. Plain language texts have simple everyday words except necessary technical words, the active voice and short sentences. Kimble, Joseph (2005) has been highly critical of federal statutes drafting which just does not serve the purpose for which they have been made. Currently, PE is used by many Federal departments and agencies use plain language in their communication with public. Some of them are Federal Aviation Administration (FAA), Federal Register, Health and Human Services (HHS), Veteran’s Benefits Administration (VBA), National Institutes of Health (NIH ). Not only government but private sector also is taking deep interest in spreading plain language. The countries such as UK, Canada, and Australia are also taking keen interest in plain language implementation programs. The stark differences between PE document and traditional business documents are clarity, understandability, conciseness in conveying the information without beating around the bush. Common people are able to grasp the information at their level without taking help from others. Plain Language

Philosophy of Small Groups Research Paper Example | Topics and Well Written Essays - 1250 words - 1

Philosophy of Small Groups - Research Paper Example In the recent times, increased diversity in the workplace has perpetuated the desire for workers to work cooperatively and collective in groups in pursuit for accomplishment of organizational goals and objectives. Even so, not all groups that are formed in an organization become effective. Apparently, group effectiveness has become integral in most organizations today. This has bolstered the significance of group effectiveness skills which include proper interpersonal communication skills, ability to diffuse conflicts, teamwork, appreciation for diversity and negotiation skills, among others (Campion, Medsker & Higgs, 2001). There is increased prevalence of organizations to adopt work groups or teams aimed at curbing a full gamut of challenges that have marred today’s business environments. As much as most groups work, a good number of them are not usually effective. The may be attributed to a plethora of reasons. Indeed, some groups lack or posses a low unity of purpose. So to speak, a group that is not committed to a common objective or a group whose objectives are not meaningful to each and every member of the group may not be effective at all. According to Argris (2010), such a group may be characterized by low performance as the members have no collective obligations towards achievement of common objectives. More often than not, Poor relationships among a group may also render the group ineffective. In this regards, a group whose members maintain poor relationships with each other within and outside the group, may not effectively achieve their goals. Such a group may be prone to conflicts and this may lower the commitment of members to the group and have adverse effects on ultimate performance. Lack of proper delegation of responsibility may also cost a group’s effectiveness. As such, if the members to a certain group are not assigned to specific responsibilities with the aim of

Pavement Design Term Paper Example | Topics and Well Written Essays - 500 words

Pavement Design - Term Paper Example The Structural Number is a value that applies to the overall  pavement structure, but for a complete design it is a prerequisite to get from this value to the individual layer thicknesses. This is handled using an equation of the type shown: and can be adapted to any number of pavement layers, since each expression (such as a2D2M2) in the formula corresponds to a single layer, so that the variables in the expression correspond to the characteristics of that layer. The subscript number used in the expression simply indicates which layer is meant, with the numbering beginning at the top of the pavement structure. The variables represent the following: The layer and drainage coefficients are values that should reflect characteristics of the material used to construct that pavement layer. The thicknesses of the individual layers are effectively what is used to design equation, and the Structural Number, to figure out. Since the layer coefficient represents the strength of the material, this is the primary variable that factors in the type of material to use for each layer. For design purposes, layer coefficients are typically determined empirically based on the performance of the material. Agencies often set specific layer coefficient values for commonly used materials as a standard design policy. Some typical layer coefficient values are:Hot mix asphalt – 0.44, road mix (low stability) – 0.20, aggregate base – 0.13, engineered fill – 0.10 Since the layer coefficient can be affected by material properties as well as the position of the layer in which the material will be used, in some cases different values might be appropriate for local conditions. A drainage coefficient is a value assigned to a pavement layer that represents its relative loss of strength due to  drainage characteristics  and exposure to moisture saturation. Layers that

Victory at a price Essay Example for Free

Victory at a price Essay I ran my small pale hand shaking in the bitter winter wind, gently down his left hind leg. It felt smooth and strong, there was no sign of the recent injury. I felt a great sense of relief. It was going to be alright. Luxembourg turned his head with a white blaze down it to his mouth, towards me and gently moved his big hooves out of my way. He seemed to sense that I was nervous and touchy. It was the night before the big race. I sighed deeply; I stood to lose everything, the stables, the horses and the staff. We had not made any money for such a long time. Our lives depended on winning the second race tomorrow at Kempton Park. I woke up to the early morning sun streaming through my upstairs bedroom window. I was eager and excited but I still had some concerns that in a couple of hours, when the race finishes, he would come back safe and sound but I would be over the moon if Luxembourg was to win. It was not to long before I drove the enormous horse box, fifty five miles up to Kempton Park Racecourse on the outskirts of London, where he would be having his first run on the Racecourse just approaching two years Monday week. I was just going through the gate which said Horseboxes in big, bold and black writing engraved on the white board next to the gate. I had to show the security pass to get through. Every part of my body was trembling and shivering with anxiety and hope that Luxembourg the cute and chocolate coloured would come back safely and we would get a big run out. I was hoping in a few hours time all my hard work with staff with this horse would pay off today with a place or a win. I was shivering, I was growing colder and colder with hope, but most of all anxiety, I had now got Goosebumps running up my arms and legs, everywhere. A cold anxiety filled hour of bitter coldness has just passed; I walked the horse out into the pre parade ring. I put the saddle on tightly so it would not move as he was running the race. He was number 9, it was my lucky number, I thought could this be my lucky day today. Luxembourg and I walked round the pre parade ring a couple of times before we went into the dreaded parade ring. The atmosphere was electrifying. There were a couple of 100 people watching us, only us in the pre parade because all the other entrants had already made their way to the parade ring. My heart was in my mouth. We walked through the plastic gates through to the parade ring. There were a couple of thousand people watching us because we were the last horse to go through. I could feel Luxembourg tensing up and scared, there were lots and lots of people watching him. We walked round and round the huge parade ring. I heard a voice faintly; he said number nine looks fit and healthy. I thought to myself that must be a good sign if other people think he is fit. The first bell rang deafeningly, it meant the jockeys were to come out and mount up onto the horse. Paddy came out jogging; he came over and talked to us. He said Go from the front, see how it goes. I went over to the horse with Paddy, I gave him a leg up, and we were the first mounted up. I walked out to the course holding the horse reigns as if I was walking a dog. I said Good Luck to Paddy and let the reigns go. Luxembourg was off, his glistening coat shining in the beaming bright sun. His picturesque face standing out with the long and lovely white blaze standing out on his chocolate coloured coat. He made his way down to the 2 mile start by Swinley Bottom. I went to my place high up in the gigantic stand in front of the massive course; I was surrounded by about three million people watching the race. I was shivering and trembling. Theyre off Luxembourg went off in the lead by about ten lengths clear of the rest of the horses. A mile gone Luxembourg still ahead but the rest of the field have just come back to him. As Luxembourg came past the winning post for the first time, I shouted as loud as I could COME ON PADDY. He was going the best out of the other eight who were being nudged along a touch. He jumped the next two down at Swinley Bottom as if he was jumping for fun. It was all going well I thought to myself. The next fence came; the field of nine were bunched together. Luxembourg was still first. He jumped the next extremely well. The second horse fell and brought down the third and fourth. The ninth horse refused the fence. There was six left. Luxembourg was left three lengths clears of number 2 who was 8 lengths ahead of the remainder who were weakening rapidly. Paddy decided to kick on, He began to get tired, he came to the last fence of sixteen. He was extremely tired, he clattered the fence. The second was closing in on him on the run in. Luxembourg was idling in front. He went one way and then the other. Paddy gave him a few slaps down the neck. One hundred metres left, one furlong until the end. The second horse came closer, closer, and closer. The race went to the judge. A few minutes wait, I was trembling, shivering and Goosebumps went everywhere. The judge spoke first number 9 Luxembourg, Second Number 2 Kauto Star. I went down to pick him up, I whispered to Paddy Well Done. He was delighted. I walked him into the winners enclosure. I felt that Luxembourg was not walking as fit as usual. He was limping; we thought something must be wrong with him. He just about got into the winners enclosure. I asked the vet to look at him. The vet said he had to be put down, he could not live another hour. He was put down. I fell to the ground in complete shock. I was in tears. A puddle building up on my face. I was sweating, shivering but most of all distraught. My staff, family and I were distressed and depressed. He was the best horse I ever had for the thirteen years we have been running the stable. I thought to myself, no one can ever replace Luxembourg, he was a superior, excellent and energetic horse that will never be forgotten and always have a place in our hearts. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Miscellaneous section.

The Old Man and the Sea by Ernest Hemingway Essay Example for Free

The Old Man and the Sea by Ernest Hemingway Essay The Old Man and the Sea is a story, in my view, about man vs. the elements, individuality, and one mans obsession to dominate his world. For Ernest Hemingway far more than for most men, the specter of age was a terrible specter indeed, and the virtue of action upon which he had based his art in his life was the virtue of the young. This, I believe, pervaded the legendary figure of Ernest Hemingway as the youthful, virile adventurer, tempered with humility. Hemingway has been notably preoccupied with individualism as well as self-endurance and, in my view, no where is this more exemplified than in his novel The Old Man and the Sea. The Old Man and the Sea is basically a story about an old man who sets out in a small boat on what presumes to be a routine fishing expedition. Unexpectedly, he connected with a very large fish which precipitated a struggle which appeared interminable. The fish was a marlin, and the struggle resulted in the death and capture of this enormous fish. At that point, he secured the marlin and headed home. Unfortunately, along the way, he was besieged by sharks which he was unable to fight off. The time span in the novel The Old Man and the Sea is relatively short. The old mans name is Santiago, and he spends all of eighty-four days without catching a fish. After his first nibble from this great marlin, he struggles greatly to hang on to this fish even though every muscle in his body causes him the greatest pain à ¾ and the second night he nibbles on a small fish and sleeps for the first time, whereupon a furious jerk of the line awakens him. Its during the third day that the great marlin begins to circle the boat and, in almost no time, the sharks (beginning with a mako) begin to move in on Santiagos catch. Even after Santiago brings in the bare remains of the flesh-stripped marlin, it creates a big stir among the village fisherman, and tourists observe with detached amusement the skeletal remains of Santiagos three-day battle. They do not understand the nature or significance of Santiagos experiences. Hemingway refers to the fishing rod being part of a life-death cycle. While the rod is alone without a fish on the other end, it is dead. However, when there is a fish on the end of the line, the rod becomes a living rod. This life ends, however, when the fish is removed from the line. The struggle for life is aptly presented in this story by Hemingway through describing the struggle of a fish and a man in which the fish struggles to free himself, while the man struggles to maintain him. It is a huge fish and he puts up a great fight. Two Hearted River: Part II à ¾ Summary and Analysis. Another story regarding life and death and the struggle for life was Ernest Hemingways short story Two Hearted River: Part II. he warmth and life-giving quality of the sun is mentioned early in the story. In the morning, it is as if the grasshoppers are lifeless. It takes the warmth and life-giving quality of the sun to spring these creatures to life. One grasshopper slowly works its way out of the b ottle Nick was holding. It seemed that temporarily this grasshopper had found life. However, as it jumped into the stream, its life was over as a trout ate the small animal and killed it. Another grasshopper was taken from the bottle. It was alive and squirming in Nicks hand. Nick then took a hook and thrust it into the thorax and the abdomen of the creature, killing it. Thus, life occurs one moment and death takes over the next. Another struggle is identified by Hemingway in this story. A living trout is hooked by Nick once more. The trout puts up a desperate struggle to free himself from the hook in his mouth. However, the struggle is lost and Nick hauls in the fish. Although he is allowed to live temporarily in a small sack that is filled with water, the fate of this fish is obvious. Nick holds the fish and whacks him against a log. The life in the fish ceases. The wriggling of the body stops as he turns rigid and lifeless. The death of a tree is also mentioned in this story. A huge, living elm had been uprooted by the force of the river, and it was not dead and lifeless. The aforementioned, Two Hearted River: Part II, is a minor work by E. Hemingway. At the same time, I chose this particular story because I felt it had particular significance for the primary subject of this research paper. Published Criticism At this point, I should like to proffer some criticism of Ernest Hemingway à ¾ and at the same time attempt to relate this to the primary topic of choice, i.e. The Old Man and the Sea. Whether Hemingway every achieved an ultimate solution to the dilemma of his approach to age, virtue and boyishness is not for us to judge, although the circumstances of his death indicated that he could not and would not abide a final weakening of those powers which were so important to the protagonists of his stories. In the last decade or so of his life, however, Hemingway did find a way to cope with the fact of his own age. He would dramatize what he could not avoid. Because of his absolute youthfulness, he regards old age as an utter and complete tragedy, as it is of course the only true tragedy, and he is not going to degrade himself by maturing or anything absurd of that sort. All the same, since he has a sense of costume, he will emphasize his decline in all its hopelessness by sprouting a white beard and generally acting the part of Senex. To a large extent, I believe that this critique has to do with the old man who has to give up on catching this fish. Similarly, in my mind , there is strong metaphysical evidence in terms of the old man and his refusal to give up on a struggle which he personally acknowledges is particularly difficult due to his old age à ¾ but yet he refuses to capitulate to this inevitability. Why is it that Ernest Hemingway pursues such thematic material with such drive and vigor? I believe that the answer may be found within the man himself. It has been acknowledged by critics à ¾ almost unanimously à ¾ that much of his thematic material reflects the man himself as, in my view, do his novels and short stories, as already indicated. To this extent, I should like to offer some biography on Ernest Hemingway which may serve to illuminate this belief. Hemingway was the second of six children of Clarence and Grace Hemingway. Upon graduation from Oak Park High School in 1917, he chose journalism instead of college, and spent seven educational months as a cub reporter for the Kansas City Star. Hemingway secured a part-time job as a feature writer for the Toronto Star and, in the fall of 1920, he became contributing editor of a trade journal in Chicago wherein he met one, Hadley Richardson, whom he married in September of 1921. Together they sailed for France and, for nineteen months occupied a walk-up flat in the Latin quarter of Paris. Hemingways serious writings began tentatively with the Paris publication in 1923-24 of two slender books of pros and poetry, yet his name was still little known in the U.S. Subsequently, he divorced Hadley and moved to Key West, Florida in 1928. He remained there for twelve years and completed A Farewell to Arms. There is much to be said about this man, and his experiences in Spain represented an entire chapter unto themselves. In Cuba in 1945, Hemingway began a romantic novel of reminiscences, including The Garden of Eden which, to date, to my knowledge, remains unpublished. Considering Hemingways passion for the sea à ¾ where he spent much of his life à ¾ and fishing, the thematic content of The Old Man and the Sea, to me, underscores the thematic content of individualism, struggle against the elements, and the refusal to bend to the challenges of time and old age.