Tag: crises.

Identify at least two potential HR crises in your current workplace

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Identify at least two potential HR crises in your current workplace.

HRM 420 ENTIRE COURSE

HRM 420 Week 1 Individual Assignment Human Resource Risk Seminars (Appendix A)

Resources: Appendix A, the Internet, and helpful Web sites:

http://www.amanet.org/
http://www.skillpath.com
http://www.nationalseminarstraining.com/

Research several different HR risk management seminars

Summarize at least five different seminars (these may be presented by the same company). Identify the HR risks the seminar features. Create at least three questions per risk factor you want the seminar to answer.

Post your assignment as an attachment.
Post the Certificate of Originality available in our Course Materials forum for all Individual and Learning Team assignments

HRM 420 Week 1 DQS

DQ 1

Identify at least two potential HR crises in your current workplace.
Which crisis is most important to mitigate and why?
What are some ways that you or your employer can help to reduce the risk of a crisis?

DQ 2

Government agencies set the agenda for social responsibility with laws and regulations.
Discuss why you feel these laws and regulations are important and list potential problems with governmental control.

DQ 3

What is your definition of socially responsible risk management?
How would you go about enacting a more socially responsible risk management strategy in your current workplace?

DQ 4

What are the stated risk management goals of your current HR department?
Do you think they are realistic?
What would you change and why?

HRM 420 Week 2 Individual Assignment Risk Management Strategy

Create a PowerPoint®presentation of 8–10 slides outlining a socially responsible risk management strategy for a company with which you are familiar.

Summarize the following:

Goals of risk management
Identification applicable risk factors
Strategies for managing each risk factor
Plan for continued monitoring and adjustment
Social implications and responsibilities

Post as a Microsoft® PowerPoint® attachment.
Post the Certificate of Originality available in our Course Materials forum for all Individual and Learning Team assignments

HRM 420 Week 2 Learning Team Assignment

Resources:Week 2 Learning Team Quiz
Complete Quiz as a team
Post completed quiz in assignment section

HRM 420 Week 2 DQS

DQ 1

What is the most important thing that an employer should do when facing an OSHA inspection?
How would you ensure that act is accomplished and documented?

DQ 2

How do employment practice compliance systems (EPCS) help businesses stay compliant?
Identify at least two areas in your current employment where an EPCS is used, or could be used, effectively.

DQ 3

How does your current employer differentiate between legal liabilities, ethical liabilities, and industry standard (which may be neither legal nor ethical)?
Provide at least two examples of each.
Do you agree with these practices? Why or why not?

DQ 4

List five employer responsibilities and five employee rights.
Explain how both are a necessary component in a risk management strategy.

HRM 420 Week 3 Learning Team Assignment Legal Compliance Paper

Resources: Baderman Island Virtual Organization located on the Materials page of the University of Phoenix student Web site.
Writea 700- to 1,050-word paper in which you do the following:

Identify legal compliance challenges that could be present in the company.
Evaluate possible options to reduce the liability those compliance challenges create.
Analyze how employment practice compliance systems could assist in liability reduction.

Post your assignment as a Microsoft® Word attachment.
Format your paper consistent with APA guidelines.
Cite at least two sources. If you used an electronic source, include the URL.
Post the Certificate of Originality available in our Course Materials forum for all Individual and Learning Team assignments

HRM 420 Week 3 DQS

DQ 1

Identify at least two different employment selection processes utilized by your employer.
Which process do you find to be the most beneficial and why?
Identify potential risks associated with using this selection process, and discuss how this risk can be minimized.

DQ 2

Suppose you are a manager in an organization.
How would you assess the training and development programs within your department?
What recommendations would you propose?
Explain the importance of the changes in terms of strategy

DQ 3

How would you explain nondiscriminatory hiring practices to a new HR employee?
Provide an example to help illustrate these hiring practices.
What points would you emphasize?

DQ 4

Describe a situation where the organization you work in has an employee leave, but the organization does not have a clear succession plan.
Explain how this might affect the organization and what components are needed in a succession plan.

DQ 5

Of the four training categories found in Chapter 9 of Human Resource Management, on which category does your current employer focus their efforts?
Should this focus be changed? Why or why not?

HRM 420 Week 4 Individual Assignment Employment Selection and Training and Development Programs

Resources: Two cases regarding employment selection processes.

Write a 700- to 1,050-word paper in which you analyze the two different selection processes and strategies by addressing the following:

Clearly identify the case examples you are using.
Identify the purpose of each selection process.
Explain how to design the selection process to minimize risk.
Does the strategy minimize or increase overall risk for the company?
Offer one alternative for each selection process designed to reduce the risk to the company.

Post your assignment as a Microsoft® Word attachment.
Format your paper consistent with APA guidelines.
Cite at least two sources. If you used an electronic source, include the URL.
Post the Certificate of Originality available in our Course Materials forum for all Individual and Learning Team assignments

HRM 420 Week 4 Learning Team Assignment

Resources:Current Event
Choose a widely publicized safety violation, such as a major oil spill, toxic run-off, or a plane crash due to pilot use of drugs or alcohol. Clearly identify the safety violation, discuss the relationship between ethical behaviors and safety, and note if the legal ramifications were outlined. What might be done to prevent the violation in the future?
Developa one pagesummary
Post your assignment as a Microsoft® Word attachment.
Format your paper consistent with APA guidelines.
Citeany sources. If you used an electronic source, include the URL.
Post the Certificate of Originality available in our Course Materials forum for all Individual and Learning Team assignments

HRM 420 Week 4 DQS

DQ 1

Identify at least two health and safety programs at your current workplace or at a company with which you are familiar.
Discuss the merits of each program and identify areas of concern with regard to this week’s reading.
Do the programs work? Are they up to date? Do they meet industry and legal standards?

DQ 2

What is the most important relationship between ethics and safety?
Where could your current employer, or an employer you are familiar with, improve?
What are the consequences if they do not?

DQ 3

Imagine that you are the new safety officer at work.
What might be your first priority and why?
How could you convince operational managers to make safety a first concern?

DQ 4

Describe at least three key components of an effective health and safety program and explain why they are important.
What would happen if these components were not included in the program?

HRM 420 Week 5 Learning Team Assignment HR Management Strategy Plan

Resources:BadermanIsland Virtual Organization and Appendix C
Design an HR risk management strategy plan for your chosen BadermanIsland company using Appendix C as a guide.
Summarize the following in your plan:

Risk assessment and management program
Health and safety programs
Succession plan
Crisis contingency plan

Post your assignment as a Microsoft® Word attachment
Cite at least two sources. If you used an electronic source, include the URL.
Post the Certificate of Originality available in our Course Materials forum for all Individual and Learning Team assignments

HRM 420 Week 5 DQS

DQ 1

Identify at least two potential HR crises in your current workplace.
Which crisis is most important to mitigate and why?
What are some ways that you or your employer can help to reduce the risk of a crisis?

DQ 2

In Human Resource Management (p. 482), the three main components of disaster planning are addressed.
Which of these components is missing in your current workplace or in a workplace with which you are familiar?
What would you recommend to change this?

DQ 3

What was the most important thing you learned during this class?

DQ 4

What important question about this class remains unanswered?

Identify at least two potential HR crises in your current workplace

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Develop an evidence-based nursing response for providing health care services related to community crises.

Posted on | by KN Simon

Develop an evidence-based nursing response for providing health care services related to community crises..

compares how different communities respond to crises, describes obstacles to providing health care services related to community crises, and explains current practices for providing health care services related to community crises

Overview
Create a 10?15 slide PowerPoint presentation that compares how different communities respond to crises, describes obstacles to providing health care services related to community crises, and explains current practices for providing health care services related to community crises. Recommend an evidence-based nursing response for providing health care services related to community crises.
By successfully completing this assessment, you will demonstrate your proficiency in the following
Competency 1: Explain the factors that affect the health of communities.
Explain how a crisis situation affects community health.
Competency 3: Develop an evidence-based nursing response for providing health care services related to community crises.
Compare different approaches for responding to a community crisis.
Describe obstacles to providing health care services related to a community crisis.
Recommend an evidence-based nursing response for providing health care services related to community crises.
Explain current practices for providing health care services related to community crises.
Competency 4: Communicate in a manner that is scholarly, professional, and consistent with expectations of a nursing professional.
Write content clearly and logically with correct use of grammar, punctuation, and mechanics.
Correctly format citations and references, using current APA style.
Context
As in acute nursing, emergencies do arise in the community/public health arena. These emergencies can take the form of manmade or natural disasters. Health care professionals have had to increase their awareness of their duty to care during these situations. The need for planning and preparing for these possible events is being reinforced (Tomczyk, et al., 2008). Public health nurses bring specific skills to disaster response. Their roles can range from first responders to policy developers.
Reference
Tomczyk, D., Alvarez, D., Borgman, P., Cartier, M., Caulum, L., Galloway, C., ? Meske, D. (2008). Caring for those who care: The role of the occupational health nurse in disasters. AAOHN Journal, 56(6), 243?250.
Questions to Consider
To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.
What would you do in the event of a disaster?
What information would be critical to have, to ensure appropriate care for your loved ones?
Toggle Drawer
Resources
Suggested Resources
The following optional resources are provided to support you in completing the assessment or to provide a helpful context. For additional resources, refer to the Research Resources and Supplemental Resources in the left navigation menu of your courseroom.
Library Resources
The following e-books or articles from the Capella University Library are linked directly in this course:
Jakeway, C. C., LaRosa, G., Cary, A., & Schoenfisch, S. (2008). The role of public health nurses in emergency preparedness and response: A position paper of the Association of State and Territorial Directors of Nursing. Public Health Nursing, 25(4), 353?361.
Kagan, P. N. (2011). Catastrophe and response: Expanding the notion of self to mobilize nurses attention to policy and activism. Nursing Science Quarterly, 24(1), 71?78.
Kane-Urrabazo, C. (2007). Duty in a time of disaster: A concept analysis. Nursing Forum, 42(2), 56?64.
Rebmann, T., Carrico, R., & English, J. F. (2008). Lessons public health professionals learned from past disasters. Public Health Nursing, 25(4), 344?352.
Rokkas, P., Cornell, V., & Steenkamp, M. (2014). Disaster preparedness and response: Challenges for Australian public health nurses?A literature review. Nursing & Health Sciences, 16(1), 60?66.
VanVactor, J. D. (2011). Health care logistics: Who has the ball during disaster? Emerging Health Threats, 41, 1?7.
Internet Resources
Access the following resources by clicking the links provided. Please note that URLs change frequently. Permissions for the following links have either been granted or deemed appropriate for educational use at the time of course publication.
Federal Emergency Management Agency. (2008, January). Emergency support function #8 ? Public health and medical services annex (ESF #8). Retrieved from http://www.fema.gov/pdf/emergency/nrf/nrf-esf-08.pdf
Lee, C. H. (2010). Disaster and mass casualty triage. American Medical Association Journal of Ethics, 12(6), 466?470. Retrieved from http://journalofethics.ama-assn.org/2010/06/cprl1-1006.html
Columbia University Medical Center. (n.d.). National center for disaster preparedness. Retrieved from http://ncdp.columbia.edu/
Centers for Disease Control and Prevention. (n.d.). Emergency preparedness and response: Preparation and planning. Retrieved from http://emergency.cdc.gov/planning/
Ward, J. (2012, November 28). Guidelines for nurses: How to prepare for a natural disaster. Retrieved from http://www.nursetogether.com/guidelines-nurses-how-prepare-natural-disaster
Maurer, F. A., & Smith, C. M. (2013). Community/public health nursing practice: Health for families and populations (5th ed.). St. Louis, MO: W. B. Saunders.
Chapter 22.
Assessment Instructions
Preparation
Suppose you have been invited to participate in a roundtable discussion meeting on the development of a community response to crises. To prepare for this discussion, you have been asked to research ways that other communities have provided health care services during crisis situations, identify best practices, and develop a nursing response for providing health care services. You would be presenting your research and nursing response to the roundtable panel during the meeting.
Select two communities that have suffered a crisis of some kind within ten years of each other. For example, you might choose to look at New Orleans and Hurricane Katrina in comparison to New Jersey and Hurricane Sandy. You might address the 2011 tornado outbreak and compare the response of Joplin, Missouri with the response of Birmingham, Alabama. Or, you might choose to look at the responses to volcano eruptions in Hawaii as compared to Washington State. You are not limited to natural disasters; feel free to explore environmental disasters and outbreaks of disease. Try to choose the type of crisis situation that could occur within your own community.
Once you have selected your two communities and their comparable crisis situations, look on the Internet for scholarly journal articles on how health care professionals responded to the crises.
Requirements
For this assessment, create a PowerPoint presentation that examines provision of health care services related to community crises, from a nursing perspective. In your PowerPoint, address the following:
Compare the different approaches of two communities for responding to a community crisis.
Explain how the crisis situation in each community affected the overall health of the community.
Describe potential obstacles in your own community to providing health care services related to community crises.
Explain current practices in your own community for providing health care services related to community crises.
Recommend an evidence-based nursing response for providing health care services related to community crises.
Your nursing response does not need to be overly detailed. In real life, a nursing response would be the work of a committee or another group, based on the research and recommendations of others.
Your nursing response should provide foundational research and recommendations based on evidence. Consider things such as triage points, communication methods, caring for staff, providing basic necessities such as food and water, use of other organizations for shelter, and so on.
Use the Notes section of each PowerPoint slide to expand your points and provide supporting evidence.
Additional Requirements
Complete your assessment using the following specifications:
Include a title slide and reference slide.
Number of slides: 10?15.
At least 3 current scholarly or professional resources.
APA format for in-text citations and references.
Be creative. Consider your target audience.

Community Crises Scoring Guide
CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED
Explain how a crisis
situation affects
community health.
Does not explain
how a crisis
situation affects
community health.
Explains how a crisis
situation affects
community health, but
the explanation is
missing critical
elements.
Explains how a crisis
situation affects
community health.
Explains how a crisis
situation affects
community health, in both
the short-term and the
long-term.
Compare different
approaches for
responding to a
community crisis.
Does not describe
different
approaches for
responding to a
community crisis.
Describes different
approaches for
responding to a
community crisis.
Compares different
approaches for
responding to a
community crisis.
Compares and contrasts
different approaches for
responding to a
community crisis, and
identifies key lessons
learned that can be
applied to similar
situations.
Describe obstacles
to providing health
care services related
to a community
crisis.
Does not identify
obstacles to
providing health
care services.
Identifies obstacles to
providing health care
services, but does not
show a relation to a
community crisis.
Describes obstacles
to providing health
care services related
to a community
crisis.
Describes obstacles to
providing health care
services related to a
community crisis, and
identifies strategies for
overcoming obstacles.
Recommend an
evidence-based
nursing response
for providing health
care services related
to community
crises.
Does not
recommend a
nursing response
for providing health
care services
related to
community crises.
Recommends a
nursing response for
providing health care
services related to
community crises, but
does not provide
supporting evidence.
Recommends an
evidence-based
nursing response for
providing health care
services related to
community crises.
Recommends an
evidence-based nursing
response for providing
health care services
related to community
crises, and clearly shows
how the response will be
effective and efficient.
Explain current
practices for
providing health
care services related
to community
crises.
Does not identify
current practices for
providing health
care services
related to
community crises.
Identifies current
practices for providing
health care services
related to community
crises.
Explains current
practices for
providing health care
services related to
community crises.
Explains current
practices for providing
health care services
related to community
crises, and identifies key
areas for improvement.
Write content clearly
and logically with
correct use of
grammar,
punctuation, and
mechanics.
Does not write
content clearly,
logically, or with
correct use of
grammar,
punctuation, and
mechanics.
Writes with errors in
clarity, logic, grammar,
punctuation, and/or
mechanics.
Writes content
clearly and logically
with correct use of
grammar,
punctuation, and
mechanics.
Writes clearly and
logically with correct use
of spelling, grammar,
punctuation, and
mechanics; uses relevant
evidence to support a
central idea.
Correctly format
citations and
references, using
current APA style.
Does not correctly
format citations and
references, using
current APA style.
Uses current APA to
format citations and
references, but with
numerous errors.
Correctly formats
citations and
references, using
current APA style.
Correctly formats
citations and references,
using current APA style
with no errors.

Develop an evidence-based nursing response for providing health care services related to community crises.

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Explain how the Keynesian model of economics was applied to the economic crises of the 1970’s.

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Explain how the Keynesian model of economics was applied to the economic crises of the 1970’s..

Explain how the Keynesian model of economics was applied to the economic crises of the 1970’s.

Write an essay

 

1,250 words regarding the impact of Economic policy on the Market. Include the following:

 

1               Choose three government policies that were implemented since the 1970’s to remedy an economic crisis. Evaluate the policies’ effectiveness.

2               Explain how the Keynesian model of economics was applied to the economic crises of the 1970’s. Was it effective? Explain.

3               Explain how government creates demand to correct market failure in order to address welfare policies. Provide an example and explain your rationale.

Explain how the Keynesian model of economics was applied to the economic crises of the 1970’s.

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Msc Financial Management Services: Financial Crises

Posted on | by KN Simon

Msc Financial Management Services: Financial Crises.

Question:

Discuss about the Msc Financial Management Services for Financial Crises.

 

Answer:

Describing the new market model for online/marketing lending depicted in the article and depicting the major difference from conventional banking:

From the evaluation of the overall article, new market model for online/marketing lending measures can be identified, where relevant online lending measures are conducted by organisations. The relevant article directly indicates the possibilities that have increased the possibility of fulfilling the borrowing needs. The overall possibility of new marketplace lending directly reduces the extra cost and inefficiencies of the bank. Moreover, the article also states that online/marketing lending model mainly commenced the work after the  when the banks were not able to providing relevant provisions for the borrowers. Moreover, the financial crisis also forced the FED to reduce interest rates at zero level, which promoted the activities of online/marketing lending. Emekter et al. (2015) mentioned that due to the zero interest rates lenders were able to provide adequate loans to borrowers, where no costs is incurred from operations. From the evaluation of the article, it was also identified that total advanced outstanding increased from $1 billion in 2010 to $12 billion in 2014, which directly indicates that rising demand for the services of online/marketing lending.

Moreover, the article also depicts that Lending Club and OnDesk Capital US operators directly raised $1.23 billion from the stock market, which provided online/market lending more capital for their business. This rising trend of online/market lending mainly increases the risk, which could be identified from operations. The old ways of lending mainly has a complicated process, from which the actual credit worthiness of the individual is evaluated to identify viability of the borrower. Hence, the relevant online/market lending process directly needs only three months of banking statement for providing adequate loans to the borrowers. This mainly increases the overall business capacity of online/market lending as compared from the traditional conventional banking. Jiménez et al. (2014) mentioned that different finance providing companies after the financial crisis have sprung, which directly provides capital for different individuals.

Moreover, from the evaluation, it could also be identified that online/market-lending process has increased in recent years due to the availability of funds in the market. The article directly highlights Household or GE Capital Companies who are currently dependent on market funds to support their overall operations in US. This relevant availability of funds is mainly due to the absence of alternatives, which could provide higher returns from investment to an investor. The article also indicates negative attribute, where the history of liquidity is reminded, as shrinkage of spreads, sudden spike in loan losses, and regulations could directly liquidate or trigger a liquidity squeeze in the overall market. The identified negative attribute could directly affect operational capability of the organisation, which is providing financing support to the borrowers. An adequate example of lending club is presented, which directly depict the overall condition of companies lending money to the borrowers (Everett 2015). The company’s overall revenue was $96 million from which only $86 million came from transaction fees, whereas the organisation has an expense of $100 million. Therefore, it could be identified that if the company is not lending more money than the losses incurred by the organisation will quickly pile up and increase the insolvency condition.

However, the evaluation of the article it could be identified that Online/Market lending process is an innovative technology that have directly reduced cost and increased quickness in assigning the loan. Moreover, it is also indicated that increasing competition in the market for directly for the lending organisation to increase the risk by providing loans to adverse credit individuals. Hence, it could be identified that lending companies are currently in greater risk, which could need to insolvency condition (Guo et al. 2016).

The relevant difference between online/marketing lending and conventional banking are mainly depicted as follows.

Qualifications:

From the valuation, it could be identified that conventional banking directly increases difficulty for small businesses where their product does not qualify to provide relevant returns to the banks. Moreover, there is a need of conventional banking for the loan process, where the organisation needs to be running for at least 2 years, which will directly enable them for the loan. The adequate score of 700 or more for FICO is also required for the business for attaining for the relevant loan. However, the qualifications for the Online/Market lending are mainly lenient, where only it requires 3 months for the business to attain adequate loan. Furthermore, the Online/Market lending does not put any kind of problems, which might reduce commencement of the loan process (Subrahmanyam, Tang and Wang 2014).

Paperwork:

There are relevant paperwork’s that is conducted by banks in comparison to Online/Market lending process. The overall paperwork directly includes financial data, investment information, and business summary, which directly increases the loan completion process. Furthermore, through the traditional approach lenders need to provide all the relevant business income tax returns, legal documents and other information to the bank (Lin et al. 2013). Moreover, the Online/Market lending process does not involve high documentation, where is it requires less documents for passing the loan. For example, Fundbox invoice financing only provides online accounting services only needs 6 months of accounts for providing relevant funds to the organisation.

Funding times:

The difference between conventional banking and online/marketing lending is the overall time that is taken for providing the relevant funds to the lender after the approval. The conventional banking system could take few weeks to few months for notifying regarding the decisions taken for the loan process. This high time that is needed by the conventional Bank major difference, which could be seen from online/marketing lending process. The overall online/marketing lending process provides adequate capital for daily expenses and investment that is necessary for equipments. Therefore, it could be identified that online/marketing lending process could provide decisions as fast as one business day. For example, companies like Lending Club and OnDesk Capital directly provides lender with the loan amount in one day after scrutinising their credit rating (Ingram, Littlewood and Lau 2013).

APRs:

Moreover, one of the major downfalls for online lending is the APRs, which is relatively higher despite the union requirements and fast funding address provided online lending. Moreover, the overall online reading process could have APRs well above 90%, which could directly have impact on the operations (Gilchrist and Mojon 2014). However, conventional banks have a low rate APRs, which directly help in improving their overall credit rating for. Moreover, conventional banks can provide single digit APRs, when borrowers are qualified for the loans. For example, one of the online lending companies such as OnDeck directly provides single digit APRs the lenders who have the excellent credit scores.

The Bottom Line:

Therefore, from the evaluation it could be identified that the use of Online/Market lending process is mainly for small organisation, which are in need for capital to expand their business. Therefore, from the valuation with the identified those small businesses are not able to qualify for the traditional loan requirements. These rejected borrowers were directly using the Online/Market lending process for gaining relevant capital, which will help in their business process. However, the traditional banking approach could provide funds at lower rates, which is not possible for Online/Market lending process (Acharya, Drechsler and Schnabl 2014). Therefore, from the evaluation it could be identified that companies who needs short-term loan on high interest rates can take loan from online/market place, while the companies that needs low interest rates loan could take loan from conventional banks.

Depicting the financial risk present in online lending and stating the effects of economic financial stability if marketplace lending substantially increases:

There are financial risks that are present from the use of online lending process, which could directly affect the overall economic stability. Moreover, the financial stability of the economy mainly declines due to the risks that are involved in the online lending process. The major financial risk presented from online lending process is depicted as follows.

Credit risk:

There is relevant credit risk involved in the online lending process, as borrowers that are unqualified for traditional loans mainly select the online lending process. Moreover, the online lending system has low requirements, where maximum of the borrowers are provided loans on high interest rates. This relevant accumulation of low credit rated borrowers could eventually increase risk of the online lending company, which in turn might raise the chance of credit default (Jagtiani and Lemieux 2017). Hence, the relevant credit risk could boost the financial risk, which could be boosted by the online process companies.

Government protection:

Moreover, from the evaluation of the government protection program it could be identified that the relevant online lending process does not get the protection. This relevant non-protection could eventually reduce the overall guarantee for the online lending process. Hence, the investments in the online lending process without government protection could result in high-risk situations (Malekipirbazari and Aksakalli 2015). Therefore, it could be identified that online lending process provides loans to borrowers with high risk and low credit rating, where the default chance of the loan is relevantly high. Therefore, the high risk could result in financial risk, which might affect the stock market.

High APR:

Moreover, the online process has high APR, which result in high cost loans and forces the borrowers to pay more interest on their borrowing. However, the high APR is mainly a risk, which is directly imposed on the capability of borrowers to support their financial obligations. This relevant imposing of higher interest rate increases the financial cost for individuals, which could lead to loan default. Freedman and Jin (2017) mentioned that us of high ARP could directly result in increased cost for the borrowers, which in turn might affect their ability to support their financial obligations.

Hidden fees and terms:

There are different types of hidden fees and terms, which could be identified that online lending process. This process could directly affect the overall financial cost of the borrowers, which in turn might increase their expenses. Bertay, Demirgüç-Kunt and Huizinga (2015) stated that high hidden fees and terms could directly increases expenses of the borrowers for both late and early payment of the loan. The online lending companies have different types of terms and rights, which could affect expenses of the borrowers. This hidden cost could force the borrowers to continue with high interest loans and in turn raise the relevant chance for expenses.

Increasing fraud risk:

There is relevant risk from fraud, which could directly have negative impact on the operations of the company. These adequate rising fraud and default of high interest bearing loans could also raise the problems for the financial sector. The high defaults in loan were the main reason behind the financial crisis of 2007, which could eventually increase the relevant risk from operations (Dell’Ariccia, Laeven and Suarez 2017).

This identified risk could directly have negative impact on the overall economy’s financial stability if the practise of marketplace lending substantially increases in future. This adequate risk could also directly affect the economy, where relevant problems could be raised, which in turn might affect the capital market. DeYoung et al. (2015) argued that increment in instability of the economy during 2008 led to the financial crisis, which nearly liquidated the financial sector of the whole world.

Depicting the relevant view on the statement “…they can weather a downturn because they do not own the loans they originate”:

From the overall evaluation of the article relevant view on the statement could be identified, which directly indicates the overall perception of online lending companies. The relevant statement directly indicates that online lending companies do not have any kind of obligations against the loans, as they do not own the relevant loans. This directly states that the overall loans originated by the online lending process are directly sold in the market in form of bonds and hedging products. Furthermore, adequate statement directly indicates that online lending companies mainly transfer the overall risk from them to other investors whose money is used to finance their activities (Mills and McCarthy 2014). The statement directly justifies the current condition of the online lending companies in US, which could be identified from the article.

Hence, from the evaluation of the article it could be identified that different financing companies have taken money from the market to support the overall operations. This relevant transfer of money from investors to the financing companies is directly depicting the overall statement. The statement further states that financial lenders such as Lending Club and OnDeck Capital directly raised adequate capital from the market to support its rising capital needs. There are many instances where different lenders have relevantly taken money from the market by providing attractive return from investment. Gonzalez and Loureiro (2014) mentioned that investors use the highly risky online lending process for the investment, as there is no more lucrative options provided currently in the market. Therefore, the online financing companies get all the adequate returns from investment, which could help in improving its operational feasibility.

Furthermore, seeing the rising trend Online lending process could eventually trigger a financial meltdown if adequate measures are not taken by the companies. The relevant statement is mainly conceiving a dangerous situation in which the current online lending process is increasing the risk of potential economic crises. The current situation of the online lending process is relatively in mess, which is directly affected conventional banking system. The rising default rates in online lending process are directly affecting the conventional banking system where adequate regulation needs to be imposed. Moreover, the financing means of individuals are relatively increasing, which is forcing the online lending market to increase the operational capability. In this context, Chaibi and Ftiti (2015) stated that operations conducted by the financing companies mainly increases the risk of insolvency due to acceptance of proposals from low credit rating borrowers.

Currently from the evaluation it could be understood that the online loan providing companies are using different types of financial products to generate the relevant capital for the operation. Moreover, the online company is selling the relevant loans to investors who are willing to invest in the booming market and increase the returned from investment. However, from the studies conducted in US, it is seen that online loan providing companies are charging high amount of interest, which is drastically increasing overall chance of default among borrowers. Therefore, the relevant statement directly support the actions that is currently being conducted buy all the online lending companies.

Depicting how online/marketplace lending practices within a regulatory framework, while providing some practical recommendations:

From the overall evaluation of the article it can be seen that there are different types of regulator actions that is being imposed on the online lending companies. The adequate regulation could eventually help in controlling the online lending process and reduce the chance of an economic crisis. Moreover, it is mainly identified that the rapid growth in online lending process is mainly due to the low impact of regulations which is faced by the conventional banks. This is the main reason, which is driving the overall growth in online lending place. However some of the regulations are being imposed in the online lending process, where the US Treasury Department directly issued a request for providing all the information on online lending companies.  Moreover, the Consumer Financial Protection Bureau has started accepting complaints regarding online lending companies, which is directly implicating that the government is taking active steps to ensure safety of the US citizens (Forbes.com 2017). Furthermore, the US government is currently involved in a court case which would help in changing the interest rate that is imposed by the online lending companies. This could eventually help in maintaining a certain slab for both interest rates and credit rating for protecting the investor’s money.

Therefore, adequate regulations needs to be imposed on the online lending companies which might help in improving the financial stability of the economy and reduce defaulters. The rising Interest rates that are imposed by the online lending companies and the evaluation of their financial report directly indicated the weak financial position. Hence, the US government needs to implement adequate regulations on the online lending company for reducing the risk from investment and complying with all the financial commitments. First of all the reduction in interest rate needs to be imposed, where adequate interest rates starting from loan amount to the time needs to be calculated. Is second resolution that needs to be imposed on the online lending companies is credit rating measure. The companies are lending money to individuals who have bad credit rating and are not able to repay the loan amount and interest to the company (Ft.com 2017). Therefore, adequate credit rating slab could eventually allow the online lending companies to select investors who have adequate credit rating and are reliable to pay the loan amount. Lastly, an adequate auditing needs to be conducted of all the online lending companies, as it might help identifying whether they are complying with all the regulations imposed by the US government.

References:

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