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IBM organisation, headquartered in Armonk, recent york, ranks among the few businesses that has created computing and communications improvements for over a century.
integrated in 1911 because the Computing-Tabulating-Recording enterprise (C-T-R), the company's predecessors can live traced to the 1880s with inventions equivalent to time clock to record a employee's arrival and departure time on paper tape, and the punched card system that turned into used to tabulate census information.
Thomas J. Watson, Sr., a former govt at countrywide cash Register enterprise, joined C-T-R in 1914 and famously insisted on "neatly-groomed, darkish-acceptable salesmen," and an organization focal point on "gigantic-scale, customized-constructed tabulating solutions for gigantic businesses".
His son, Thomas J. Watson, Jr., modified the enterprise from maker of tabulating device and typewriters into a pioneer of the computing trade, introducing the device/360 mainframe in 1964.
these days, that focal point has broadened significantly, with products that compass from laptops to these gigantic mainframe methods, and an organization that serves each buyers and diminutive to colossal groups. IBM employs over 386,000 individuals worldwide, and, throughout 2007, recorded $ninety eight.6 Billion in income.
To enhance their assist of the Token-Ring networking technology, IBM added NetView/workstation in 1986, which improved the network management capabilities of IBM's techniques network architecture.
IBM's community management assist labor become further more desirable in 1996 with the merger of IBM and Tivoli methods, Inc., a leading provider of systems management software for disbursed client/server networks. IBM's acquisition of Tivoli prolonged its network management capabilities beyond the mainframe to multi-platform, disbursed techniques. These initiatives had been further bolstered with IBM's 2006 acquisition of Micromuse, Inc., and its Netcool line of enterprise community administration options.
The Tivoli utility solutions supplied integrated visibility, handle, and automation throughout distinctive commerce and know-how belongings, hence maximizing these assets in usher of network operations. These items address a wide selection of network administration challenges, together with:
an additional vital belt it really is supported by using the Tivoli suite of utility is the Netcool utility for provider providers, which provides precise-time efficiency and repair administration for provider suppliers. IBM claims that over 1,000 provider suppliers, together with the entire top 20, depend on this community management answer. This kit helps telecommunications, instant, cable, and web provider suppliers in meeting each their present and future provider delivery challenges.
Of special interest is the provider VoIP provider administration solution, which is designed to champion everything layers within the network and everything links throughout it-from the core network to the client's premises-as a result conveniently managing VoIP features and retaining a high trait of event (QoE) for the customer.
The device displays key performance and distinguished symptoms in true time, for metrics including utilization (busy-hour cognomen makes an attempt, minutes of use, and phone locations); VoIP first-class (MOS), convene readability index, and speech activity); cognomen signaling (call completion rate, grade of service, and submit-dial lengthen); carrier exceptional (availability, echo lengthen, and publish-dial lengthen); and subscribers (usual profits per user, situation of provider events, and open tickets), as shown in pattern 1.
A 2nd Tivoli answer, the Netcool commerce VoIP supervisor, consolidates the management of VoIP applications, servers, and the underlying networking infrastructure, from PBXs to gateways. This device is designed to meet the necessities of both medium and large organisations-in addition to managed service providers.
This providing is packaged with the Tivoli Netcool OMNIbus and Tivoli Monitoring products, and allows for network managers to extend their present monitoring capabilities to the administration of VoIP applied sciences. This reply can scale to usher commerce environments of as much as one hundred,000 IP endpoints, and offers out-of-the-box usher for each Cisco and Nortel VoIP environments.
For Cisco environments, the commerce VoIP manager helps Cisco convene supervisor and Cisco team spirit, plus edge routers, gateways, and gatekeepers. For Nortel environments, the product supports communique servers, commerce communique managers, media gateways, far off gateways, and signaling servers.
The system comprises precise-time shows with diverse charts that demonstrate network utilization, capacity, availability, and efficiency metrics, plus customizable ancient experiences. it's designed to function with red Hat enterprise Linux, Microsoft home windows Server, or Microsoft home windows XP professional working programs.
further details on the IBM architecture and products can furthermore live organize at 'http://www-306.ibm.com/software/tivoli/options/voip/" fashion="text-decoration:none">http://www-306.ibm.com/software/tivoli/solutions/voip/. Their next tutorial will continue their examination of companies' community management architectures.
writer's BiographyMark A. Miller, P.E., is President of DigiNet enterprise, a Denver-based mostly consulting engineering company. he is the author of many books on networking technologies, including Voice over IP applied sciences, and internet technologies guide, each posted through John Wiley & Sons.
Article courtesy of commercial enterprise VoIP Planet, © 2008 DigiNet enterprise, everything Rights Reserved
Mark A. Miller, P.E. is President of DigiNetB. commerce enterprise, a Denver-based mostly consulting engineering company. he's the writer of many books on networking applied sciences, together with Voice over IP applied sciences, and information superhighway applied sciences handbook, each posted through John Wiley & Sons.
in case you obtained the impact that the eServer i5 model 550 server was not going to live announced (like I did a month ago) or that it had been pushed out to October (as some company companions believed), you were, dote us, wrong. because these days IBM is indeed asserting the 4-approach tower and rack-established i5 mannequin 550 server. This recent server brings the i5 line to parity with the eServer p5 Unix servers, which can live furthermore in keeping with the Power5 processors and the Squadron server architecture.
The mannequin 550 is closely in accordance with the technology inner the model 570 that changed into fleshed out on July 13, and has a pricing and packaging way that makes it different from the low-conclusion mannequin 520 and the excessive-conclusion model 570. As I expected, the model 550 is definitely a mannequin 570 with its Summit-like clustering facets eliminated so it can not live prolonged past 4-method processing. This 4-means max restrict is crucial within the Unix midrange server market, the region pricing on the Oracle 9i and 10g databases set the pace. Oracle costs lots much less funds for databases licenses on four-way machines than it does on bins that may extend past four-means pricing, and that database can can saturate more than the Unix server itself at current fees.
Having a stand-on my own 4-means domain appeared less crucial within the i5 market, for the intuition that OS/four hundred retail outlets could simply buy a mannequin 570 machine with both two or 4 processors activated and pay a bit added for that growth skill. I absorb argued that IBM vital an i5 mannequin 550 for the exact very intuition that the p5 shoppers do: that there should soundless live a midrange domain that expenses handiest a bit greater than the mannequin 520 however offers most of the merits of the model 570; it mandatory to live in a low OS/four hundred application tier that gave DB2/400 identical pricing to Oracle measure version. here is the belly of the market, after all. In July, when I talked to IBM in regards to the roadmap, i was given the potent influence that the model 550 had been dropped or pushed out significantly. (nobody interior of IBM ever simply comes and out tells you what the blueprint is, due to the fact that plans exchange everything the time.) i was sort of grumpy about this, and noted that I believed the model 550 bought stepped on as a result of a person in IBM figured out that making OS/four hundred stores purchase a diminutive model 570 changed into going to accomplish IBM and its application companions much more funds.
it is my wager that consumers balked at the P30 software tier that the entry mannequin 570 had, and that IBM realized it needed to trap whatever thing in a lower software tier that nevertheless had extra oomph than a mannequin 520. Enter, stage right, the model 550.
The mannequin 550 is in response to the identical four-approach chassis as the model 570, although it is attainable in each desk-facet and rack configurations, while the model 570 is only accessible in a rack-established version. each machines disburse the 1.sixty five GHz Power5 processors. The model 570 is available in a version with either one or two processors within the container (that’s two or 4 Power5 cores)–that’s the mannequin 570 1/2-means and the mannequin 570-2/4-method, in IBM parlance. The mannequin 550 comes with two plenary processors within the field, and IBM activates two of the four Power5 cores within the groundwork configuration. one of those processors is activated with i5/OS, while the different is left over to elope either AIX or Linux, or to live saved for a rainy day when an i5/OS specimen is needed to live activated on it. The remaining processor cores will furthermore live activated as mandatory, and valued clientele pays $45,000 to trap a groundwork i5/OS license for those cores. including the plenary “commercial enterprise Enablement” 5250 processing faculty on the cores of the mannequin 550 fees $100,000 per core, which is just a miniature much less costly than it is on the model 570 (except on very significant mannequin 570 configurations, by which IBM simply offers it away). You absorb to license i5/OS on an activated processor core first after which add the commerce Enablement.
The model 550 spans from 3,300 to 12,000 CPWs of raw computing vigor. It spans as much as sixty four GB of main reminiscence and might encourage as much as 548 disk drives or 38 TB of disk skill. The laptop supports up to 40 logical partitions and has two HSL-2 I/O loops. via any measure of past AS/400 and iSeries servers, this four-method domain is a monster. but in comparison with up to date Xeon or RISC/Unix boxes, this computer is on par, accept as dependable with it or no longer. here's no longer a large container. What will furthermore live truthfully referred to is that the 5250 eco-friendly-monitor protocol, and the productive RPG and COBOL classes which are written for OS/400 to trap abilities of it for on-line transaction processing, accomplish this view dote a bigger box that it's.
The model 550 is in the P20 application tier, and here is enormous. That P20 tier is a lot lower than the P30 application tier for the largest two-means mannequin 520 using the identical 1.sixty five GHz and the P30 utility tier for the entry model 570 machines. This jarring change leads me to faith that midrange retail outlets absorb been balking at paying the P30 costs to ameliorate their utility, and that i am additionally guessing that application application providers are giving IBM a lot of grief since the recognition of the mannequin 550 may live substantive that they only sell utility at P20 tier prices in its region of P30 tier tiers. What i might command to the criticism that IBM is without doubt taking is that it is far superior to trap a contented consumer paying P20 expenditures than a client stirring to home windows or Unix.
The mannequin 550 supports i5/OS generic edition, which doesn't present 5250 eco-friendly-monitor processing capacity. A groundwork model 550 with two 1.sixty five GHz cores activated and i5/OS measure version on a sort of cores costs $seventy four,000; this rate doesn't, as with the different eServer i5 machines, consist of costs for groundwork reminiscence or disks. With i5/OS enterprise edition on that solitary processor core, the model 550 charges $266,000.
With the mannequin 550, massive Blue is additionally launching two recent variations, which might live in reality nothing greater than fancy methods of adage hardware discounts if machines are used for selected workloads. the primary is the model 550 Domino version, which is a mannequin 550 container operating i5/OS commonplace edition that activates that second core for i5/OS and fees most effectual $56,000 if purchasers intend to elope Domino R.6 middleware on the field. clients absorb to pomp proof of license for two Domino Server licenses with the purpose to purchase this container, and that they furthermore absorb to absorb an aggregate of 1,500 Lotus customer licenses; it can furthermore live any mix of Notes, SameTime, or QuickPlace valued clientele, and every utility client (instead of each consumer, who might furthermore absorb one, two, or three of those purchasers) is what's counted. This Domino edition container is being made purchasable only on the model 550 at present, and IBM reckons that the mannequin 550 Domino edition fees forty eight percent under buying a mannequin 550 commonplace edition and activating the 2nd core for i5/OS. (That assessment contains purchasing application renovation for each and every box for three hundred and sixty five days.)
The 2d recent i5 packaging option that IBM is adage with, and best on, the mannequin 550 is called the solution edition. This variant of the model 550 is aimed specially on the core third-celebration ERP, CRM, and SCM software suites that are written in RPG and maybe a bit Java. because IBM ought to absorb gotten some grief from impartial utility providers as it pegged the model 550 as a P20 application tier server, IBM is making it worth their while to trap enthusiastically in the back of the mannequin 550 by means of taking the enterprise edition and cutting the fee on the domain if it runs core utility suites. The reply edition requires that purchasers buy recent licenses to application from the ISVs, however I umpire there's likely a way to trap equivalent pricing on an ameliorate deal. (Most issues within the midrange are negotiable.)
while a groundwork mannequin 550 running i5/OS commerce version costs $266,000 with two Power5 cores activated and one in every of them with an i5/OS license, the solution version expenses only $206,000. The $60,000 change is not just a reduction; IBM is disposing of some aspects from i5/OS enterprise edition that don't appear to live traditional by way of ISVs, similar to DB2 Symmetric Multiprocessing, Tivoli Storage supervisor, Tivoli Monitoring, and so forth. guy Paradise, i5 advertising manager at IBM, says that the charge lower isn't just the value of the eliminated software but furthermore includes a discount on the bottom gadget. In mixture, the elimination of those software aspects and the slit on the groundwork server fee amount to a 23 % slit price. in contrast to the mannequin 550 operating Domino version, the 2nd processor is not activated for i5/OS; however, just dote the Domino edition, the reply edition doesn't encompass the cost of software application above and past the i5/OS license. here is now not the Plug ‘n Go hardware-utility software bundle that IBM offered in the early Nineteen Nineties.
For the model 550 working i5/OS solution version, Paradise says, IBM approached those OS/400 ISVs which absorb a worldwide earnings and assist organization, had signed a strategic SMB alliance with huge Blue, and absorb a huge do in groundwork of OS/four hundred customers. The ISVs who can peddle the mannequin 550 reply version alongside IBM consist of clear applied sciences, international company techniques, integrated Distribution solutions, Intentia foreign, Lawson application, ny buddies, MAPICS, PeopleSoft, and SSA world.
The eServer i5 mannequin 550 will start shipping August 31.
In next week’s theme of The four Hundred, i will Go over a few minor announcements that IBM furthermore made these days.
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Business Applications Editor
Silicon Valley is incubating green companies set up to solve some of the problems emerging in the wake of the cloud-based modernisation of enterprise IT.
One such supplier is Anaplan – which is set on breaking large companies from using surpass for financial planning and sales operations. The solid seems to live gathering momentum, with revenue growth of 134% for the first half of its fiscal year ending in January 2016.
Its chief executive officer, Frederic Laluyaux, said SAP, Oracle and IBM “have not delivered” a simplification of how IT enables commerce processes, specifically financial and sales planning. He said the advent and growth of cloud computing should absorb made this possible. He said the technology from these companies will not deliver in future either – despite statements to the wayward – because they are so wedded to their own on-premise enterprise software.
“They absorb everything failed on their covenant to deliver usable, scalable and affordable software. People want to live able to test on a diminutive scale and deploy at their own pace. The days of having to disburse tens of millions of dollars to fix something in enterprise software are over," said Laluyaux.
“The passe suppliers want to monetise every aspect of their intellectual property. They don’t believe in that. Rather, they prefer people to trap together and create their own models on their platform.
“The older suppliers fail from both a technology and a commerce perspective. There is a recent generation of decision-makers sick of the passe model.
“Any supplier following the passe model is in trouble. The passe companies are buying up companies who are in the cloud, true, but their basic approach is, ‘My database is bigger and faster than yours,’ and that is passe thinking. They are trying to consequence everything in a closed model – and so they will not live able to cope.”DataDog snaps at the heels of IBM, BMC and HP
DataDog is a recent York software-as-a-service monitoring company. Founder and CEO Olivier Pomel said that, as companies spin to cloud environments, the established services in the domain – from companies such as IBM Tivoli, CA Nagios, HP OpenView and BMC Solar Winds – are no longer difficult to displace.
He said the scale and diversity of cloud applications is now generating management headaches for user organisations in relation to the “large collections of different databases” they have. He said his company has 1,500 corporate customers. It is backed by San Francisco and Europe-based venture capital solid Index Ventures, and the company is now looking at expading into the Emea region.
It will soon open a research and progress (R&D) office in France, taking advantage of the country’s tenacious higher education tradition in engineering. Pomel is himself a product of the Ecole Centrale Paris, as is chief technology officer Alexis Le-Quoc. The R&D lab will live located in Paris’s “Silicon Sentier” quarter.
“Paris is home to prestigious universities and engineering schools, which generate top-notch maths, sciences and software engineering talent”. He said the blueprint is to trap to 50 people in the Paris centre as soon as possible.Synata: Enterprise search built for the age of cloud
Patrick White, chief executive officer of five-person San Franciscan startup Synata, is structure his company on an belt which, he said, has only recently become fertile ground for a recent venture – enterprise search. He said a resurgence of corporate IT interest in best-of-breed technologies, and the growing power of cloud applications, had created favourable conditions for a technology category undermined – in the eyes of venture capital investors – by the controversy around HP’s ill-fated acquisition of Cambridge company Autonomy. He said the debacle had “poisoned the well of enterprise search”.
Synata’s technology – based on a proprietary graph-analysis algorithm – aims at the real-time integrative search of data sources, such as email and other documents, created with both Microsoft and Google applications. It runs against Box, Google Apps, Office 365, SharePoint, Atlassian products, Dropbox, Salesforce and Zendesk.
“We direct at being the Switzerland of enterprise software,” he said, referring to his company maintaining neutrality in the puss of the competition between Microsoft, Google and other large technology companies.
“Our platform aggregates and indexes data from across enterprise services, both in the cloud and behind the firewall. Not only consequence they champion traditional search features, they furthermore promote collaboration by suggesting germane content to people from around their organisation,” he said.
He said his company’s technology promotes economic productivity by cutting time wasted by such workers as callcentre staff. One of fifty or so customers is a construction firm, which is using Synata’s software for mobility. Another is a technology company in the Bay belt using it in its service function, with ZenDesk, to provide callcentre staff with contextual information.
“It would absorb been hard to consequence what they consequence five years ago”, he added, pointing to a confluence of favourable technology developments, such as the tower of open source gigantic data technologies and cloud.
Download the authoritative guide: Cloud Computing 2019: Using the Cloud for Competitive AdvantageGone are the days when everything a network administrator had to worry about was learning and supporting a solitary OS. Now a solid may absorb Windows desktops, Linux or Apache web servers, a Unix database, PDAs running Palm O/S, and several Macs running in Marketing.
Now account the jam of a managed service provider (MSP). An MSP must design and operate a system that requires minimal customized integration no matter how involved its customers' networks may be.
"Every time you install something on their network, you can blow up the client's servers," says Jim Lancaster, president of MBD Network Services, LLC.
MBD is a network management services provider based in Dallas, Texas. The company provides network monitoring and on-site champion for 60 small- to medium-sized clients, each with a network ranging from 15 to 150 seats. Lancaster needed to Come up with a standardized way of managing that many networks without affecting the internal operations of those systems.https://o1.qnsr.com/log/p.gif?;n=203;c=204660774;s=9478;x=7936;f=201812281339040;u=j;z=TIMESTAMP;a=20403972;e=i His solution: separate the management from the network operations.
MBD addresses this situation, by installing what it calls a "BlackBox" on each client's network. These consist of Dell Optiplex workstations, running Windows 2000 and loaded with the suite of management tools that Lancaster and his team has assembled over the years. This software package monitors the health of the network and systems, reporting the data back to MBD's Network Operations headquarters (NOC).
Doing it this way provides one consistent set of software that MBD's network administrators can learn and manage. Client data is reported in a standardized manner into a solitary console where it can live viewed and analyzed. This makes it simpler and faster to deploy updates since these are sent to boxes with identical configurations. In selecting tools, Lancaster prefers open source since it allows customization towards exact needs rather than making consequence with vendor feature sets.
"The open source movement has been a huge capitalize to us," he says. "Fifty percent of their recent installations are Linux."
He furthermore finds that push technology works better than having management tools that haul the data from the remote sites. Instead, his black boxes amass the data from the paraphernalia on each network and then push it through the firewall to the NOC.
"Most of the gigantic frameworks that are in disburse with an MSP disburse haul technology and require a virtual private network (VPN) or direct connection to each client," Lancaster explains. "In diminutive networks that is not a secure way to operate and it is a headache to manage."
The BlackBoxes elope on Windows 2000 and Come with a mySQL database and software for managing event logs, virus protection and firewall events, as well as network management tools.
To centrally manage everything the Windows NT/2000 event logs, MBD uses three tools from Adiscon GmbH (Erftstadt, Germany) -- EventReporter, WinSysLog and MoniLog.
EventReporter resides on the BlackBoxes on the client sites and forwards everything Errors, Warnings and Failure Audits to a WinSysLog server in the NOC which aggregates the data from everything the clients. The MSP then uses MoniLog to capitulate a daily summary of each client's log entries. The BlackBox furthermore acts as the logging server for firewalls, most typically WatchGuard Technologies, Inc.'s (Seattle, Wash.) Firebox System.
MBD recommends that its clients disburse Symantec Corp.'s Anti-Virus Corporate Edition. For those who do, the BlackBox includes a copy of Symantec System Center, the control console for the security product.
In addition to the out-of-the-box software, the BlackBoxes furthermore contain several tools written by Lancaster. This includes a suite of Perl scripts, scheduled and elope by the BlackBox that generate snapshot reports on Windows NT/2000 servers, NetWare servers, RMON capable switches and American Power Conversion Corp. (West Kingston, R.I.) uninterruptible power supplies.
The boxes furthermore contain a custom-built routine to e-mail the backup logs from everything tape drives to the NOC, no matter what backup software the client uses, so MBD's personnel can verify that everything daily backups are completed as scheduled. Although he would dote to automate the reporting on backups, that hasn't been feasible yet due to the disparate ways that different software reports the data.
"The only way you can uncover if the backup was successful or not is by reading the log," Lancaster explains. "The theme line on the e-mail may command that it failed, but the only problem is that one file which was open wasn't backed up."
Separating Management from Network Operations
Perhaps the key to MDB's success-through-simplicity approach, though, is keeping management completely separate from network operations. While the above tools provide various management functions, network health is monitored separately.
With thousands of aggregate users to cater to, most would hope MDB to utilize one of the large framework packages for network management. However, Lancaster notes that since each network the company manages is relatively small, these products are much too expensive and cumbersome for his needs.
"We've never been in the market for a comprehensive system dote Unicenter or Tivoli," says Lancaster. "They are a massive overkill for a client with two servers and 25 desktops."
The first utensil he settled on was WhatsUp Gold from Ipswitch, Inc. (Lexington, Mass.). WhatsUp Gold scans the network's router tables and creates hierarchal maps showing everything the devices. It then monitors the Simple Network Management Protocol (SNMP) parameters on these devices and sends alerts when administrator-defined thresholds are exceeded.
While WhatsUp Gold gave MBD some of the information that it needed, Lancaster was soundless looking for a higher-level tool. This led him to Denika Performance Trender from Somix Technologies, Inc. (Sanford, Maine). Denika works with WhatsUp Gold, but automates the generation of daily, weekly, monthly and yearly historical tracking reports on items such as bandwidth consumption, disk space, CPU and reminiscence utilization.
"We supervene the International Telecommunications Union's FCAPS (Fault-management, Configuration, Accounting, Performance, Security) network management model," says Lancaster. "WhatsUp Gold addresses fault, and Denika is the performance piece, giving us the trends over time."
As Denika worked well, MDB upgraded to the very vendor's comprehensive network management suite for service providers -- WebNM xSP. Besides including copies of Denika and WhatsUp Gold, this suite contains modules for encourage desk, hardware and software inventorying, web cam, environmental monitoring and event log management. Although he decided to stick with the Adiscon products for event log management, Lancaster bought the plenary package so that he could disburse the inventory and encourage desk modules, while furthermore gaining an facile way to present involved information about network issues.
"What they were missing was a way to present data to both the clients and their own engineers," he explains. "WebNM has allowed us to trap their service to a entire recent level."
This approach furthermore enabled MBD to set up a personal champion portal for each client. Through the portal, clients can view their network documentation and contact information, check the status of any service request and read netlog reports. Only one of MBD's clients, however, currently views its performance graphs on line. This client has a WAN connecting nine locations in the Eastern U.S. and wants to track the bandwidth utilization.
The typical customer, though, doesn't necessity or want to monitor information to that degree. Most are satisfied with being able to disburse WebNM to inventory hardware/software and know that someone else is monitoring the network so that they don't absorb to.
"There is a bewildering amount of management technology available, but they are not necessary for diminutive or medium businesses," Lancaster says. "It's the fundamentals that are important, and Somix and Ipswitch address those with cost effectual tools that encourage us provide distinguished service to their clients."RELATED word AND ANALYSIS
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(New Straits Times Via Thomson Dialog NewsEdge) THEY absorb many outstanding statesman whom they revered. In my figure Six history lessons in the early 70s, one that fascinated me was Benjamin Disraeli, (British premier 1804-1881). One of his noted statements was: "What they anticipate seldom occurs; what they least hope generally happens". This quote has a lot of relevance to the art and soul of risk management because its fundamentals are not complete without the understanding of "uncertainty" or "unknown". Indeed, risk is everything about the doubt of risk occurring. If they know the risk will occur, they will not consequence the deal or execute the operation.
The fact is that they consequence not know, and only hope that it does not occur.
For this reason, they diligently apply everything the known ways of managing the doubt of risk occurring. Obviously, it is not facile to preclude the risk from occurring, especially if it is something beyond their control. But if it does occur, the negative impact would live minimised to that they could accept or live with. After all, they are not too concerned about the risk per se. Rather, their focus is on the impact of the risk that may live negative for us. If the impact is positive, or they gain from the risk, then of course that would live welcomed. WHAT CAUSES UNCERTAINTY? doubt crops up because of few factors that haunt their mindset, attitude or opinion. They include: * doubt due to penniless overall conclusion and wrong opinion: The feeling that the option or conclusion they trap would live the wrong one; * doubt due to rationale or relationship: The rationale or relationship of the issue being studied might live seen from the wrong perspective where they may absorb inadequate parameters; * doubt due to doubt in the analysis process: The model/guide-values for their evaluation of the issue may live extraneous or wrong; * doubt due to inadequate sampling: The statistics that they disburse for the assessment of the theme matter might live insufficient, unrealistic, incomplete or outdated; and * doubt due to errors and biases: The analysis done for the samplings taken might live tainted with errors and penniless human judgment.
The above five factors causing the doubt. The elements of unknown/uncertainty in us can spin haywire to their risk management programme. To minimise such unknown, it is vital to ensure that these issues are adequately addressed.
RISK OCCURS FROM THE UNKNOWN. It is not facile to manage unknown events, as some of the risks are beyond human controls, such as flood, earthquake, tornado and robbery. However, managing the negative financial or non-financial impact might live facile to strategise. For example, they can withhold everything their precious assets on higher floor, so that should a flood soundless occur after a heavy rain, the negative financial impact and damage by water would live minimised. Or they would install an warning system in their premises so that should the robbers came unannounced, they might abort the raid because the warning bell was triggered. Thus the risk of robbery is mitigated. Assuming they absorb taken the burglary insurance cover, should the robbers succeeded in carting away the valuables, they would absorb the financial loss minimised because they absorb insured the valuables and could pretension back the amounts from the insurance company.
THE PAST AS GUIDES TO spin FORWARD. Machiavelli, an Italian philosopher and statesman who lived from 1446 to 1507, once said, "Wise men say, and not without reason, that whoever wished to foresee the future might consult the past." More often than not, risk managers faith a lot on past data and historical events to chart forecast and assess the various risks inherent in any organisation. A lot of veracity prevailed in the quote by Machiavelli. In some instances, history tends to restate itself because the very benign of risk could surface again at some later time, if such risk is then not effectively managed using the lessons learnt from the past risk occurrence. RISK MANAGEMENT IS A PROACTIVE ART. Of course, they must live mindful that risk management is not about history alone. It should absorb balanced proactive feature - using the previous risk occurrences to predict what would befall in both the short and long era in the future. It is not a fallacy to situation that risk management is about stirring forward. It is about preparing and predicting the future situation of events and operations using past patterns or historical trends in supporting such predictions.
SIX WAYS TO treat THE UNKNOWN. How consequence they treat risk? There are many ways, but the more accepted options are: i) Avoid. They can simply avoid the risk and consequence not consequence the deal. But this is not really risk management since there will live nothing to manage anyway, given that the transaction or operation is aborted. But not everything is as simple as that. There are risks that they absorb to puss everyday, and as section of their way of doing the commerce and operations. ii) Share. They can partake the negative risk impact by putting up a strategic alliance, joint-venture or merging their smaller outfits to bigger outfit that can withstand more risk or cushion the negative impacts. There is veracity in the adage of "strength in unity" and the bigger the size, the stronger it should be. iii) Transfer. A expedient specimen of risk transfer is using insurance. An insurance policy taken to cover the damage and loss by fire would provide solace to the property owner as he would live able to receive the financial compensation benefits from the insurance company. However, not everything risks could live insured. They are soundless left at the lenity of the non-insurable risks. So, the necessity to ensure that they absorb a expedient risk management blueprint to address those non-insurable risks is very captious for the success of any organisation. iv) Reduce. They can reduce the likelihood of the risk to occur, and minimise the negative impact of the risk by either cutting down on their exposure or involvement in the operations.
v) Accept. Many risks that haunt us are common day-to-day events that cannot live avoided, which they address as the cost of doing that benign of business. They necessity to accept those risks as a traditional way to consequence the business. An specimen of this benign of risk is a supermarket's cashier with a minor cash shortage at the quit of the day's takings. vi) Prevent. Some forms of risk can live prevented from occurring. For example, theft of valuable asset from a tenacious latitude is a risk. One way to preclude this is to ensure that no one can enter the tenacious latitude alone, and a closed-circuit TV must live installed for monitoring purpose. There must live at least two people holding the keys and going in at any time. The writer is chief risk officer of a commercial bank and author of Enterprise-wide Risk Management Made Easy. He can live reached at e-mail: email@example.com. section two of this article will materialize next Saturday.
Copyright 2006 The recent Straits Times Press (Malaysia) Berhad. Source: financial Times Information Limited - Asia Intelligence Wire.
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