Enterprise systems coursework Essay Example | Topics and Well Written Essays - 2000 words

Enterprise systems coursework - Essay Example Open source enterprise resource planning (ERP) software systems are important for small and medium enterprises in that it allows the business enterprise to an access the code hosted by the system and make it conform by the enterprise’s own information technology instead of making them pay extra costs to vendors for the customization and licensing. In the selection of ERP systems, it is important for the business enterprise to measure its success in terms of the savings made through the streamlining of the operations of a company through the increase in revenues and the increase of the share of the market. Small and medium enterprises have several possibilities in the implementation of electronic planning packages as they wish. They have an option of either selecting an ERP package that it desires and compare its capabilities with others. They can also develop the ERP system individually or integrate the best choices offered by the particular software provider that the business enterprise is dealing with. The selection of a viable ERP system involves several stages in the operation of a company or a business enterprise. This includes the concise analysis in the processes that pertain to the processes of the company and analysis of the concepts contained in the ERP packages. The pre-selection process involves selecting only companies that are in support of the company process, and thereafter the selection of the ERP package that will involve the use of workshops and evaluation of factors that affect the ERP selection process. This is followed by re-engineering and customization of the process that means the avoidance of resistance by staff of any changes in the ERP selection process and adapting the ERP process to the unique nature of a particular business process (Nah 221). The selection of a viable ERP system involves the involvement of employees in the organizational structure of the company. It is important for the company to recognize the knowledge th e employees possess in the running of the company and their input is important in the achievement of this, the company should assign an integral person in the running of its financial system known as the internal champion. This person is allocated the most difficult projects in the company who gets the job done irrespective of the difficulty of the task. This should be done at the beginning of the selection of the system so that the company knows whether the person is fully committed and agreeable to the project. It is important for the business enterprises to evaluate the risks that are likely to be met and if they may reoccur. This can be used by all interested parties to mitigate risks. Persons who are likely to make the company suffer many risks are also included in the risk management process thus avoiding the loss that could be suffered by the company in question. There is need to ensure management buy-in in the selection of an ERP system by communicating the scope of the proj ect and be updated of sign-offs at every step along the way in the financial management. It is also important for companies to select vendors who have sold more ERP systems as such vendors usually have more customers thus easier access to support and have the best practices for a specific industry and its practices. They also have the ability to come up with products according to the

The influence of credit risk in financial institutions Research Proposal

The influence of credit risk in financial institutions - Research Proposal Example Financial institutions primarily play a role of assisting the flow of funds from various ‘individual surplus units’ to ‘deficit units’. Financial institutions comprise of commercial banks, finance companies, savings institutions, credit unions, money market funds, mutual funds, pension funds and insurance companies (Madura, 2008). Adequate management of the credit risk in the financial institutions is a critical aspect for the growth and survival of the institutions. If a financial institution fails to control risks like that of credit risk then it can lead to insolvency (Wenner & Et. Al., 2007). The recent financial crisis had a major impact on the worldwide financial system. Managing risk and capital requirements in the various financial institutions have turned out to be an utmost necessity. Financial institutions generally have a quite complex structure related to liability. Credit risk of a financial institution is considered as a function of market val uations of the institution’s asset portfolio and its leverage (Chen & Et. Al., 2009). Thereby, the study aims to critically discuss the influence that the credit risk generally has on financial institutions. Aim of the Study & Specification of Objectives The aim of the study is to recognise the significant and influential capabilities of credit risk in financial institutions. The relevance of the study can be judged from the fact that in terms of financial risks that a financial institution face, the credit risk or default risk is considered to be one of the most significant and critical risk factors that every financial institution endeavours to mitigate to protect the financial institution and its consumers from insolvency. Objective of the study is to analyse and identify influence of different credit risks on financial institutions such as default risk; credit spread risk, sovereign risk, downgrade risk and counterparty risk. Therefore, a few questions that can be conside red are: What is the credit risk? What is the influence of credit risks on financial institutions such as commercial banks, insurance companies, savings institutions and others? What are the ways by which credit risks are being mitigated by financial institutions? In order to find answers to these questions scholarly articles, books, journals and others will be observed and used to identify the relevant aspects related to the study. Literature Review According to Investopedia (2011), credit risk can be identified as a risk if an individual or a company will be incapable to pay the principal or contractual interest on its debt obligations. This type of risk is mainly concerned with the investors who generally hold bonds within their portfolio. Government bonds, primarily issued by the federal government, are considered to have the slightest amount of default risks as well as lowest amount of returns. Corporate bonds have a tendency to have the highest level of default risks but it al so provides higher level of interest rates. Bonds that hold higher chances of being default are measured to be junk bonds, whereas, bonds that have lower chance of default are generally