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We’re going to go back to Week 2 and revisit the Garbage Can Model of Decision Making. If you

We’re going to go back to Week 2 and revisit the Garbage Can Model of Decision Making. If you remember, the authors weren’t exactly positive or supportive of this model of decision making, yet it can be useful and can provide positive results.

Knowing what you know now, discuss how you would approach your own organizational ‘garbage can’. What would you view as the most important factor(s) in selecting the combination of problem and solution? Examine how this topic would impact your selection and matching of problem and solution, and the specific types of innovations and change projects that would be supported/not supported by the factor. When writing your response, be sure to include Darnall and Preston’s perspectives from Chapter 2 of your text.

Also, in your post you should consider these topics:

The organization itself; its innovation culture, change culture, and diversity within
The leaders, followers, and champions that are present
The breadth of impact and the knowledge transfer requirements, including stickiness of knowledge
The potential costs and benefits
Note: you can include the challenges of obtaining these numbers, as well as the challenges of generating a positive business case
The challenges of taking action
Once you have read the instructions, post your response to the prompt.

7 Macroeconomic Policy (Fiscal Policy) Student’s Name Institutional Affiliation Course Instructor Date


Macroeconomic Policy (Fiscal Policy)

Student’s Name

Institutional Affiliation




Macroeconomic Policy (Fiscal Policy)

The Covid-19 pandemic had many adverse effects on individuals and industries. As a result, governments had a role to play in managing economies. Their approaches in their capacity had to take a macroeconomic view, targeting whole economies and seeking to influence decision-making and performance. During such a critical period, some areas of concern to governments were inflation, unemployment, business cycles, and national output, which are provided for by the macroeconomics perspective into economics (McKibbin and Fernando 2021, 5). This theoretical approach helps identify the requirements of the government in dealing with the pandemic alongside the courses taken towards curbing the challenge. As the pandemic continued affecting people, some economic effects included unemployment as restrictions meant some jobs were no longer needed, inflation as people’s purchasing power decreased, poor business performance, and reduced national productivity. Governments had to implement fiscal policies that catered to the challenges identified while improving the living conditions of their citizens. Such approaches were aimed at increasing government spending and implementing tax policies to alleviate the poor conditions. Some of the achieved macroeconomic effects have their scale highlighted in Fig 1.0.

Fig 1.0 Estimates of fiscal packages scale in response to the Coronavirus pandemic in specific countries (OECD 2020)

Fiscal Policies Implemented by Governments to Deal with Coronavirus Pandemic

Governments spent on providing free access to basic needs and alleviated costs of utilities to counter the effects of inflation and unemployment. Some of the policies implemented in Afghanistan include the use of emergency funds to provide free food to the poor in Kabul and waiving electricity bills limited to US$13 for each residence (International Monetary Fund 2021). It also catered for two months of utility bills for half of the residents in Kabul. Furthermore, there was a rollout of funds through social programs in some countries to low-income households with further support for food staples. Increased spending was implemented in some countries to increase funds that companies could access in terms of loans as working capital and pay off employees (International Monetary Fund 2021). There were limitations in the interest rates of such loans, limiting the liabilities that the firms would have to incur. In Albania, the government catered for half of the wages for people in the formal sector. It paid for their expected amount towards social contributions for a particular period (International Monetary Fund 2021). Other programs worldwide saw governments increase people’s wages in specific employment areas. Unemployed people also saw increases in allowances and cushioning funds through government spending.

There were tax policies that governments implemented to reduce liabilities. Tax deferrals were executed by some nations, with certain quarters and periods having specific kinds of companies being exempted from paying profit taxes (International Monetary Fund 2021). Other countries delayed the declaration of income and business taxes paid. Some governments implemented tax holidays in industries that dealt with export and generated foreign currency, while customs duties and VAT were also suspended.

Impact on Aggregate Demand

The approach taken by governments in response to the Coronavirus pandemic through fiscal policies implementations had an apparent impact on aggregate demand. Actions such as increased spending towards availing support by paying for wages for different groups of people helped increase aggregate demand. By increasing the purchasing power of individuals affected by the pandemic, people could afford to purchase more products and services in the economy (Chugunov et al. 2021, 42). The increase was also impacted by the unemployed people who received support through allowances. Subsidies on products such as utilities were also essential in increasing the population’s purchasing power and aggregate demand. The provision of funds to low-income households ensured that they received more funds to purchase goods and services, further increasing demand in the economy. As businesses receive support in terms of more access to loans and financial help, they become more capable of increasing the demand for products and services they need. Wages transferred from the same programs also increased the purchasing power of the employees. Tax breaks and deferrals also increased aggregate demand as people had more resources to set aside for purchases. Summarily, increased spending increased the money in people’s pockets, increasing the demand for services and products. Tax policies that included deferrals and breaks reduced the population’s liabilities, increasing the money spent and increasing aggregate demand.

Impact on Individual Firms and Industries

The increased amount of funds availed to individual firms is due to an increase in aggregate demand in the market. More people were spending more, which brought about better conditions for businesses as they sold more of their goods and products. As more resources were channeled into companies, they managed to cater to the losses, therefore staying afloat. They also got to get more funds to pay off employees, thus maintaining their workforce, which is critical in further functionality. Due to the changes experienced, better finances also made firms better positioned to receive loans from financial companies, further improving their conditions.

Industries benefited from the increased aggregate demand, which raised the available revenue. Having been negatively affected by the pandemic, areas such as the food processing industry were poorly performing. An increase in the aggregate demand for products increase revenue generated. As firms got relief from the increased aggregate demand, they also raised spending amongst themselves, which further positively impacted the industries affected.

Effects of Firms’ Trading Capability

The overall effect of the fiscal policies led to better conditions for firms to trade. The pandemic had reduced their stock prices and ability to pay dividends to their shareholders. Investing in trading had also become an unattractive step for investors due to the poor performance of businesses. However, the chain reactions led to an eventual improvement in the quality of the stocks in the stock market, therefore positively impacting their ability to continue trading. Firms regained some of their capacity, making profits from increased aggregate demand for their products and services and the relief offered by the government. As a result, they became more attractive opportunities, which improved the industry.


Chugunov, I., Pasichnyi, M., Koroviy, V., Kaneva, T. and Nikitishin, A., 2021. Fiscal and Monetary Policy of Economic Development. European Journal of Sustainable Development, 10(1), pp.42-42.

International Monetary Fund (2021) Policy Responses to Covid-19., viewed 25 April 2022,

McKibbin, W. and Fernando, R., 2021. The global macroeconomic impacts of COVID-19: Seven scenarios. Asian Economic Papers, 20(2), pp.1-30.

OECD (2020) Tax and fiscal policy in response to the Coronavirus crisis: Strengthening confidence and resilience., viewed 25 April 2022,

2 Macro Economics Assignment Student Institution Department Course Instructor Date Macro Economics

We’re going to go back to Week 2 and revisit the Garbage Can Model of Decision Making. If you Business Assignment Help 2

Macro Economics Assignment







Macro Economics Assignment

Q1: How do the public’s inflation expectations and the central bank’s inflation target combine to influence actual inflation and output in the IS-MP-PC model? How does the public form inflation expectations?

Central banks utilize monetary policy instruments to lower interest rates, cut reserve requirements, or acquire government assets to bolster the economy and accomplish economic growth. Any expansionary fiscal policy will expand the liquidity in the economy, allowing more money to be spent and invested (Mellina & Schmidt, 2018). To strengthen an economy by raising the money supply, the federal reserve must ensure that the public’s inflationary pressures are stable so they don’t hoard money when the money supply is increased. As a result, investors will put their money into the economy, and consumers will spend the extra money because they have faith in the economy’s recovery.

When people consume more, they’ll want more production, which means entrepreneurs will invest in raising the quantity of output, which means the number of unemployed people will fall, and prices will fall. Inflation will be reduced when prices fall (Mellina & Schmidt, 2018). As a result, the IS-MP-PC model predicts that inflation will be lower and production will rise. IS-MP-PC is an advanced macroeconomic model in which the interaction between monetary policy (MP) and the Phillips curve (PC) is shown in a single graph.

The combination of these three curves shows inflation.

The image above shows the IS-MP-PC model with macroeconomic variables at equilibrium at point E. The product is a reasonable amount of production, and inflation (Y) is a factor (i). Public expectations and the government’s inflation aim are aligned around this level of inflation.

The Phillips arc (PC)

It represents the relationship between inflation (t) and output (t) in the Phillips curve equation (y). Inflation expectations are reflected in the PC curve, which moves right as inflation expectations grow. As a result, inflation is linked to the production of PC.

Secondly, the IS curve essentially illustrates the relationship between interest rates (r) and an economy’s production. In other words, the relationship between the rate of interest (r) and output (y) is shown by a downward sloping curve (Mellina & Schmidt, 2018). This component of the model connects the PC and MP curves. In other words, inflation is linked to PC and MP, but in this model, the economy’s borrowing cost is the only one. The nominal (rn) cost of borrowing is subtracted from the natural (r) interest rate to arrive at the real interest rate.

As a result, the services and products markets are in equilibrium at each point on the curve IS (r). The last portion of the model, MP, portrays the Federal Reserve’s actions as a curve. The Federal Reserve has used two tools: tightening or easing the monetary policy (MP). Both of these are utilized by the Federal Reserve to sustain inflation in the economy, which is the Fed’s principal goal. These instruments impact the economy’s interest rate to meet the Fed’s inflation objective. In other words, the monetary policy is changed to move the interest rate while maintaining a fixed inflation rate. For example, if inflation exceeds the desired level, the MP is strengthened to lower the economy’s money supply (MS). Interest rates rise as a result of a tightening of the MP. As a result of relaxing monetary policy in response to falling inflation, the MP will increase the quantity of money in circulation. The MP curve is shifted to the right when the MP is loosened, resulting in a decrease in the interest rate.

The Fed, for example, is trying to maintain inflation at (). As a result, the Fed expects the general public to anticipate inflation to remain at its target level. As a result, the PC’s equation predicts that the predicted inflation will be equivalent to the goal inflation. In other words, if natural production (y*) and actual output are both equivalents to the Fed’s objective inflation rate in time t, the PC shows that inflation will be comparable to that rate in time t. (y).

No output gap will occur if the (r) interest rate is equal to the difference between the nominal (rn) interests’ rate and the rate of inflation. Thus, if the public changes its inflationary expectations appropriately, this model may assist in establishing an actual inflation rate and production that is in line with the Fed’s target inflation.

Q2: Use the IS-MP-PC model to explain how an economy can end up in a liquidity trap. What policy measures can be taken to get out of it?

An economic condition known as a “liquidity trap” occurs when people keep their money in reserve instead of investing it or spending it. When borrowing costs are at 0% or below, it happens. People are reluctant to spend their money, so they keep it in their wallets or bank accounts (Arifovic et al., 2018). Consequently, central banks’ adoption of expansionary fiscal policy is ineffective in promoting economic growth.

Central banks use monetary policy to control liquidity. Lowering interest rates is their principal method of promoting borrowing. This lowers the cost of borrowing, which encourages individuals and corporations to do so for various reasons. It’s the equivalent of pressing the gas pedal to rev the engine up a notch. The automobile accelerates when you press the gas pedal.

After a severe recession, a liquidity trap is a common occurrence. Despite how much funding is available, people and companies remain scared to spend. It’s like the engine of a flooded automobile. As a result, the engine cannot perform at its full potential. Trying to force the accelerator doesn’t work.

When you become caught in a liquidity trap, precisely what occurs. Lower interest rates are the Fed’s gas and the pedal. When the Federal Reserve slams on the gas, the economy doesn’t fire up (Arifovic et al., 2018). On the other hand, businesses and families tend to hoard their money. They’re afraid to spend money. Therefore, they don’t do anything with it. Economic activity is soaring.

Interest rates must be at or near zero to trigger a liquidity trap. People assume that interest rates can only rise if they’ve been there for a long time. No one desires to be a bond owner when it occurs (Arifovic et al., 2018). A bond purchased today with low-interest rates will be less valuable when interest rates rise. Because of the greater yield, everyone will be clamoring for the bonds released at that time. The value of the low-interest bond will decrease.

Despite cheap lending rates, businesses aren’t taking advantage of the opportunity to expand. Instead, they utilize the money to purchase back stock and artificially inflate the stock market’s value. Instead of spending money on new machinery and equipment, they rely on the existing ones (Arifovic et al., 2018). Strategic alliances or leveraged buy-outs may also be used to acquire new businesses. Stock prices rise due to these actions, but the economy does not benefit.

First, the Federal Reserve boosts interest rates by a significant amount. Investment and savings are encouraged by a rise in short-term interest rates. Banks are more likely to lend when long-term interest rates are higher since they will profit more. That speeds up the flow of cash.

For the economy to get back on track, prices must decrease when consumers can’t resist spending. Consumer products and financial instruments such as stocks may be the subject of this fraud (Arifovic et al., 2018). Investors re-enter the market since they believe they can hang on to the commodity long enough to weather the downturn. The payoff in the future is now higher than the potential danger.

Q3: Discuss the theory and evidence on short-run and long-run predictability of stock prices. What does the evidence suggest for the factors determining stock prices?

As time goes on, investors learn more and more about the underlying process, and their beliefs become more and more aligned with it. As a result of this assumption, investors never “lose” knowledge throughout the payout process. Realistically, the economy changes over time. Therefore, the dividend procedure might shift as well. There are unobserved shocks in the fundamental parameters that periodically refresh the estimated risk, which we include in the model in this section (Araujo & Ferraris, 2020). Due to the section’s relevance to aggregate return time series features, we concentrate on the framework with only one hazardous asset. When looking at the stock market on a micro level, it is difficult to determine whether estimates of risk affect the short-term behavior of particular companies.

We have to do more work to determine predictability with renewal than with our simpler fundamental model. Because the relatively brief mean is now a random variable, we must differentiate between predictions based on the present mean and predictions that consider the parameter as if it were arbitrary. According to the results, both seem to have a role in empirical testing. Investors have lengthy enough experience with the process to know what dividends they can anticipate long-term despite their inability to monitor short-term changes (Araujo & Ferraris, 2020). For various reasons, allowing the deviations to be different is acceptable.

Shocks to projected dividends are likely to alter over time when the economy undergoes periods of relative calm and times of rapid change. As a result, investors’ current volatility estimate will be inaccurate if they cannot notice changes in volatility (Araujo & Ferraris, 2020). To sum things up, it is not always possible to assume that the actual variance of the true mean is always equal to the previous variance.

Q4: Describe the convergence dynamics in the Solow model and discuss its predictions for the contributions of TFP growth and capital deepening on a steady growth path.

For Solow, long-term economic development depends on how much money people save and invest. In the near term, faster government revenue and product growth may be attributed to more considerable savings and investments. Conversely, more significant levels of saving and investment have little influence on long-term growth as per the Solow growth model (Kufenko et al., 2020). Long-term economic growth is modeled using a mathematical framework. He expects that capital resources will be fully used. Based on these assumptions, he figures out what will happen as time goes on. The Solow growth model is in line with the idealized realities of economic development.

Capital’s marginal product and labor’s marginal product calculate actual interest rates in a competitive market economy. In a long-term stable equilibrium, the marginal outputs of labor and capital are equal since the capital/labor ratio is constant. Accurate interest rates and wages are thus fixed. The short-term consequence of a higher saving rate is to increase the pace of economic growth, but it has no long-term impact(Kufenko et al., 2020). The consistent capital/labor ratio rises with a more excellent value s—per capita production increases. The actual interest rate has fallen, and the real wage has risen steadily.

Long-term growth is impossible. Conditional convergence may be predicted by the Solow Growth Model, which states that nations with similar growth rates, savings rates, and capital depreciation rates would eventually reach the same steady state. A poorer country’s economy develops quicker when it follows this convergence route. The Solow Model predicts no absolute convergence for countries with varying saving rates since their steady states are different (Kufenko et al., 2020). Growth is not necessarily more robust in countries with lower beginning capital stock than in countries with more extensive capital stock when earnings are different.

Capital and labor are used as inputs in the same way by all businesses in the economy. Three variables are related to the production function equation: Y, the level of output, K, and the amount of capital or labor (K, L).

Assumption 1 of the Solow Growth Model: Production functions demonstrate constant-returns-to-scale (CRS). If we assume that the amount of invested capital and labor is doubled, we may expect a corresponding increase in production (Kufenko et al., 2020). Thus, rather than considering total production and capital stock, the numerical formulation of the Solow growth model concentrates on output and capital stock per worker.

Constant g increases in the population are a fact of life. Consequently, N’ = N(1+g) connects the current and future populations (represented by N and N’, respectively). The future population will be 102 if the present population of 100 grows at a 2% annual pace.

Everyone in the economy saves the same percentage of their income, known as “s,” and spends the rest of it. C= (1-s) Y is a consumption equation that connects output (represented by Y) with input (represented by C). Consumption equals 60 units, and saving equals 40 units if a consumer receives 100 units of output as revenue and the rate of return is 40 percent.

Q5: Discuss the leader-follower model of technological change. What are its implications for policies to boost growth in poor countries? Can you provide historical examples of dynamics that conform to the model’s predictions?

To set an inspiration for the Organization’s followers, a leader must demonstrate moral and ethical courage. To be a leader, one must demonstrate their abilities to the remainder of the team, who will help ensure the company’s long-term viability. In contrast, the idea of followership has changed dramatically in recent years, with several scholars defining this term in various ways (Norman et al., 2019). A follower may now be defined as a team member with a limited amount of power, influence, and authority concerning their superiors. Most people in the corporation are more like subordinates than executives. Until lately, the job of a follower was not associated with competence, influence, and the ability to develop the Organization’s potential.

As part of the interdependence model of leadership and followership, leaders must be aware of their surroundings and communicate effectively with others. To get all parties on board, the leader must be informed of what it will take. In this instance, the followers tend to become aware of the needs and potential of others while also understanding what inspires or upsets them. When followers engage in a conflict with other employees or the management, they are confined to the conflicts that make the follower position risk-averse and easy (Norman et al., 2019). This is the second feature of this approach. As a result, the follower comes to terms with and accepts their differences. Also, this is a valuable leadership trait since the boss cannot tolerate being unaware of the sentiments held by those working for the company’s clients or vendors.

To be a successful follower under this leadership paradigm, you must have the confidence to disagree with your superior or boss when making incorrect judgments. It’s not an easy task that requires faith and will that distinguish great leaders. The model also calls for a collaborative approach in which the followers impact the leadership on how the Organization’s goals are achieved (Norman et al., 2019). The Organization’s success is mainly due to the efforts of its followers, although the leaders take the credit. As a result, teamwork guarantees that influential leaders understand their subordinates and that subordinates learn how to work efficiently with people who bring out their best. Followers need to think critically since they can back their leaders when they’re doing what’s right and object when doing things incorrectly. Leaders must be prepared to adopt the ideology of their followers, which means they must demonstrate leadership traits like intellect, competence, and drive.


Araujo, L., & Ferraris, L. (2020). Money, Bonds, and the Liquidity Trap. Journal of Money, Credit and Banking, 52(7), 1853-1867.

Arifovic, J., Schmitt-Grohé, S., & Uribe, M. (2018). Learning to live in a liquidity trap. Journal of Economic Dynamics and Control, 89, 120-136.

Kufenko, V., Prettner, K., & Geloso, V. (2020). Divergence, convergence, and the history-augmented Solow model. Structural Change and Economic Dynamics, 53, 62-76.

Mellina, S., & Schmidt, T. (2018). The role of central bank knowledge and trust for the public’s inflation expectations. Available at SSRN 3249943.

Norman, S. M., Avey, J., Larson, M., & Hughes, L. (2019). The development of trust in virtual leader–follower relationships. Qualitative Research in Organizations and Management: An International Journal.

2 Management information system Institution(s) affiliation Name Date Describe the tools that


Management information system

Institution(s) affiliation



Describe the tools that are available under MIS to these banks and also the benefits derived from each of them.

A management information system is a common technology applied by MFIs. MIS is a computer-based application employed to acquire essential, prompt and accurate information to enable the users to make proper decisions and manage information efficiently and effectively. MIS comprises modules like human resources, financial analysis, loans portfolio tracking, internal control and accounting. Banks use MIS to achieve significant growth. It is challenging for banks to upscale efficiently and maintain transparency and accuracy of their loan portfolio without an MIS (Gomber et al, 2018). There are various Management Information System tools, and companies can employ them to better their service

Transaction Processing Systems (TPS)

A transaction processing system is a set of information that process the data operation in a database system that manages transaction programs. Breaking down these transactions by applying a unified and more straightforward approach is referred to as transaction processing. When a problem happens during transaction processing, the incomplete transaction must be rerun using TPS. TPS plays an essential role since it enables access to multiple users at the same time. TPS has abilities to hold simultaneous processes of multiple transactions. The use of TPS in the banking sector helps manage and coordinate thousands of clients’ orders. This enables them to ensure the sealing process is easy for customers and offers online options for customers. A TPS benefits the banking sector due to ease of sales since the customers can carry out transactions anywhere in the world. TPS minimizes the occurrence of errors and saves money due to the use of an automatic process. Banks are using TPS to document and make a record all their routine business transactions.

Decision Support Systems (DSS)

Decision support systems are tools employed by top managers for the purpose of decision making. DSS uses the computer, computing tools, scientific and mathematical approaches to perform analysis. The tool helps to analyze, and examine carefully all approaches it could employ in various departments. When DSS is applied in the banking sector, the companies can select an approach that is effective and efficient in terms of time, cost and both material and human efforts while achieving optimal benefits; then, the management applies that approach.

Electronic data interchange

Banks typically use this tool to ensure secure communication with central banks to ensure when sharing statistical reports and accounting data. An EDI service provides banks with a standard format for sharing payment data between computers. EDI has various benefits to the banking sector, such as automating multiple payments. EDI enables effective cash management through regular account reconciliation. It allows electronic bill representation in online banking systems (Hashim & Piatti, 2018). EDI minimizes the need for manual intervention as it highly secures the processes. It helps the banks minimize errors and enables the exchange of financial data between banks. EDI enables banks to perform their routine business transactions more accurately and efficiently

Operational Information System (OIS)

Operation information systems are approaches employed to schedule production and assembly functions. Integration of these tools enables the managers to carefully examine levels of inventory and how to schedule production functions. The operation manager manages the deployment of the workforce for the purpose of production. When effective processes are in place, the sector never encounters downtime issues.

Investigate the probabilities of their banks’ systems being compromised by hacking and the precautionary measures that system administrators need to implement in order to have a robust and protective ‘iron dome’ around these systems.

With so many individuals diverting to internet banking, the hackers are always on the search to find login details. The most surprising thing is the lengths these hackers go to access individuals’ finances. The following are ways that hackers target bank systems and individual’s bank accounts;


When individuals become savvy towards phishing tricks, hackers escalate their tactics to persuade individuals into opening their links. Recently, hackers have developed means of tricking individuals inro opening phishing emails, by hacking the solicitors’ email accounts and conveying phishing emails from legitimate address. This is hard to identify scam since the email address will be legitimate, and the hacker can even communicate with the individual on a first name basis. When a bank employee clicks on a phishing email, the attackers can gain access to the bank’s system and steal money and valuable information. They even steal customers’ sensitive data or sell it on the black market for later use.


This is referred to as network monitors, and it is software that is applied to capture keystrokes from a specific PC. This software tends to collect logins and passwords, which hackers then use to access the systems. Once they access the systems, the hackers are able to collect banks data or even steal lots of money.

Employee’s Sabotage

Discontented employee may be unhappy with the management and tries to distort the information system resources available to them as a kind of revenge. Although this kind of threat is less to occur than others, it is still a threat that companies must observe, especially when there is a strike call employees or workers are fired due to minor mistakes.

Fraud and Theft

Computer software could be misused to carry out frauds normally done by an insider who could be the worker or an individual who has access to the computer networks. When an attack comes from outside, it is normally fatal since internal systems users know the systems well and can access them with ease. Thus, it is not easy to detect them easily. Banking systems should be well equipped with preventive measures to avoid exploitation both externally and internally.

Mobile Banking Trojans

Nowadays, people can manage all their finances from a smartphone. The bank normally supplies an official app where its customers can log in and monitor their accounts. Although convenient, it becomes the main attack vector for malware authors. A malware author can create a similar bank app and uploads it to third party websites. When one downloads such an app and enters the username and password, the information is sent to the hacker (Wazid et al, 2019). Also, the hackers can replace the real banking app with a fake one. When these apps are installed, they scan the phone for banking apps.

Precautionary Measures

To secure bank and customer’s sensitive data, banks have to apply a 360-degree strategy to lower security threats that may either originate internally or externally. This means securing banking processes and internal processes associated with employees, systems, processes and vendors. The following are ways employed in the banking sector to mitigate risks.


Authentication demands that each bank transaction to happen after verifying the identity of the person requesting the transaction. Identity verification is performed to individuals who access online or mobile banking systems, those who physically visit the bank or those using debit/credit cards at ATMs and POS terminals (Bose et al, 2019). The staffs who have authorized access to banks and customer data should also verify their identity before accessing the systems. Earlier, authentication only needed provision of ID and pin or password, but nowadays, banks employ a two-factor and multi-factor approach of authentication to verify the individuals are who they say. Banks also employ biometric authentication techniques to identify customers’ identities.

Audit Trails

Banking transactions files were stored as a passbook or statement. Also, banking systems tends to leave an audit trail for each occurrence that occurs during when clients interact with the bank systems. When individuals are performing online banking or phone banking, the transactions details are recorded together with interaction information. This information is regularly backed up and cannot at any time be evacuated entirely but transferred into archives at some time intervals.

Secure Infrastructure

A secure infrastructure means the servers database systems where the data is kept, and the barriers developed to ensure data security. Production data is normally encrypted in one of the main systems. If these data are needed for testing, key data such as customer name, account number and address must be hidden. Access to the production systems is always limited (Wazid et al, 2019). Vendors assigned to handle infrastructure issues are not the one who associate with applications problems. Banks worker are normally offered a unique equipment which they cannot access any personal emails, USB ports and social websites to enhance company’s security. When using a public Wi-Fi, workers can access the bank’s network only over a private network such as a VPN.

Secure Processes

Banks have introduced various ways to make sure security is integrated and applied. This comprises Know Your Customer (KYC), which includes clients’ updates, a non-disclosure agreement which applies to vendors and employees, remote data centres and securing particular areas within the premises. When banks employ a Data Loss Prevention solution, they are able to lower insider threats and secure customers’ data like credit card numbers and names. Processes associated with local and global policies are also integrated, and risk assessments are performed to make sure that these secure processes match the needs.

Continuous Communication

Banks normally interacts with individuals s concerning systems upgrades, creating new authentication approaches and individuals’ statements are developed and sent to them. Customers can create limits and enable alerts on various issues to make sure they are updated in case an expected activity happens that is linked to their accounts. Having various communication channels, the set-up is more convenient for responding to customers’ needs and updates. Therefore, the banks should always ensure that customer data are secure.


Bose, R., Chakraborty, S. and Roy, S., 2019, February. Explaining the workings principle of cloud-based multi-factor authentication architecture in banking sectors. In 2019 Amity International Conference on Artificial Intelligence (AICAI) (pp. 764-768). IEEE.

Gomber, P., Kauffman, R.J., Parker, C. and Weber, B.W., 2018. Financial information systems and the fintech revolution. Journal of Management Information Systems, 35(1), pp.12-18.

Hashim, A. and Piatti, M., 2018. Lessons from reforming financial management information systems: a review of the evidence. World Bank Policy Research Working Paper, (8312).

Wazid, M., Zeadally, S. and Das, A.K., 2019. Mobile banking: evolution and threats: malware threats and security solutions. IEEE Consumer Electronics Magazine, 8(2), pp.56-60.

Management of Risk and Scheduling. A project’s risk response strategy outlines how

Management of Risk and Scheduling.

A project’s risk response strategy outlines how the team will respond in an emergency. Because of the potential for damage, the most common ways individuals cope with risk are to diminish or remove it entirely. If someone wants to talk about risk response strategies and plans, they are talking about the same thing. People may use the words in any context. Any business owner should create a Risk Register to keep track of potential threats. After that, a Qualitative Risk Analysis is required. The manager will select risk Response Strategies for the most severe risks.

The following are the primary Risk Response Strategies:

Avoiding risk is a priority.

Reduce the severity or likelihood of a danger

To mitigate risk, one should transfer it.

Embrace the Risks

Agree to Take a Chance

Raise the Risk

1. Avoiding Risk

One method of avoiding the risk response technique is to prevent it from occurring. The purpose of the Avoid, Risk Response Strategy is to identify and eliminate the cause of the threat.

An Example of Scope Management Risk Avoidance

The project’s needs are provided by the project’s clients and other stakeholders. Typically, people believe that these criteria will aid in achieving the project’s business goals. It is not uncommon for these responsibilities to build up, as they typically do. In other words, they are going to go over their budget and run out of time since their project’s scope will balloon. Descope or move deadlines become apparent when someone has gone beyond the project’s original size. When it comes to the restraints, though, they occasionally find themselves on the verge of breaking free. When there is a possibility that one does not have any spare time or budget to log, one should do so. They may be late if anything goes wrong.

It is now possible for anybody to devise a risk-reduction plan to reduce the project’s scope. If, for example, they go more than ten days behind schedule, this will occur. As people come to terms with this, they will be better able to manage their expectations. There is a chance that something terrible could happen. As a result, they have agreed to implement the strategy. If anything goes wrong, it will be much simpler to descope a need. Always start with the most important deliverables.

Leadership and stakeholder management are two examples of minimizing risk in managers and leaders.

Successful project managers and leaders prioritize the well-being of their teams at all times. No matter how hard a manager tries, they cannot always find the right team members. It is also a good idea for a team to have productive disputes. Whatever the case, professional disagreements may occasionally degenerate into personal conflicts. People may be unhappy with the whole company. One of the issues with lousy conduct is that it demoralizes the team. They must endeavor to minimize the influence of competing team members as much as feasible. In some instances, they can do nothing, and their relationships have reached a point of no return.

In this situation, dismissing a conflicting member of the team is necessary to prevent the demotivation of the whole group. Some members of the team may be at odds with a key stakeholder. Additionally, they will need to keep the person as isolated as possible in this case. This implies they will have to become involved in internal politics and use their leadership or policies to exert influence in most circumstances.

1.3 A Case Study in Project-Wide Risk Management

As a young guy, I dreamed of becoming a sailor. Once upon a time, I worked aboard a large cargo ship. When the rain began, people were unloading in Amsterdam. Someone had fallen from the fourth-tier container, which was 12 yards high, onto the deck, and everyone on the ship was alerted by radio within minutes of the incident occurring. Offloading was forbidden by the port authority. To bring this victim to a hospital, a helicopter was summoned. Unfortunately, the guy perished after the story. Anything like this happening on their project will be a huge setback. Avoiding these dangers is essential for them. Most of the time, delays and additional expenses pale compared to the potential harm posed by a threat.

Minimize Risk’s Impact and Likelihood

Using a risk mitigation strategy can help lessen the severity or frequency of potential danger.

An example of how Companies might mitigate uncertainty is #2.1

There are a lot of individuals in the IT sector who design solutions that no one has done before, employing techniques that have never been used this way. These kinds of endeavors are riddled with doubt. Are the project’s goals attainable? If the cornerstone technology doesn’t meet their needs, they don’t want to go into full-blown development. A Prototype or Proof of Concept is used as a starting point to reduce the danger of such a risk.

Mini-projects are part of the Risk Response Strategy, and the goal of these projects is

It is essential to have a minimum viable product.

To see whether various solutions work together.

Inquire about the capabilities of new technology.

In this method, individuals ensure that they can meet at least 80% of the criteria.

It is a fast and nasty way to get the job done quickly and cheaply. Only a tiny portion of the funds and resources have been allocated. In some instances, it may be necessary to conduct many POCs before settling on the most effective strategy. However, it’s still worth the money.

Companies may obtain client input early on, and managers can modify them to match the capabilities of the technology being considered. Managing risk does not come without a price. Risk management calls for resources and time.

#2.2 Procurement Risk Mitigation:

It is always a risk when a Third Party is engaged in a project. There are several potential dangers here:

The third-party uses an entirely new approach to project management.

• Their standards of quality are very different.

There is a disconnection between their group and the one they are working with.

• There is a firm reliance on their output.

Just think about how much more there is to learn. Business people must eliminate every conceivable danger from their side. But most of the time, they do not directly influence them. Consequently, they require a strategy for reducing risk response from the third party. They may ask for, or even include in the contract, the following:

1. A weekly progress report is required.

Managers need to attend sync meetings daily or even hourly.

3. They can come and inspect the work at any time.

In this manner, people may be alerted to potential issues before they become more serious.

#2.3 Education as a Means of Risk Mitigation

They are unable to recognize all of the potential hazards. However, it is essential to take precautions against a severe danger emerging amid the project. In an ideal situation, the project team and stakeholders would be taught about risk management in a hands-on way. People need to feel comfortable reporting new threats as soon as feasible, even if they have agreed to meet a deadline. The risk may be avoided or mitigated much more quickly if they are aware of it. Not if it has already occurred.

Risk Register Examples of Negative Risk Responses

The third strategy is to transfer the risk.

That implies they must take steps to transfer the risk from themselves to someone else.

Outsourcing is a great way to transfer risk.

Consider a worker at a furniture manufacturing firm. E-commerce people bite, and the company’s leadership decides upon mobile apps to sell things. The project has been given to them. So they’re now an IT Project Manager. Right from the bat, there are several significant threats:

They already have the know-how and engineers in place to get the project moving.

• A software development project cannot be conducted since there is no infrastructure and no processes.

In addition, their recruiters lack competence in the employment of engineers and QAs.

To avoid taking on these risks themselves, many businesses outsource them to corporations with the necessary knowledge, infrastructure, and human resources in place. Purchasing, third parties, and other new sources of risk are often introduced as a result. In reality, they’ve undoubtedly dealt with situations like this before.

The following are some secondary dangers:

Case Study No. 3.2: The Transfer of Cost-Risks

Managers might derail projects if a pricey piece of equipment is required. Alternatively, they may hire specific equipment from a company. For example, they may need to buy and keep many supplies.

This poses the risk that, if anything goes wrong, they won’t be able to cover the costs of replacing outdated equipment or supplies. They would want to transfer these risks and acquire insurance or further technical help for a relatively small fee.

An essential member of the team may have a skill set that no one else possesses.

#3.3 An Illustration of the Transfer of Risks Caused by a Lack of Knowledge

Occasionally, a project may be assigned to them that requires knowledge-based competence that neither they nor their business has. A large portion of the project doesn’t need to be outsourced. However, they are concerned about procurement, accounting, and recruitment issues. In this instance, they may be able to outsource some or all of these risks to consultants. Transfer risk response strategies include but are not limited to hiring freelancers or a people design studio.

Accept Risk and Develop a Response Strategy based on It.

The term “actively accept risk response strategy” refers to the development of a (contingency) plan and the setting aside of funds in the event of a risky situation. On the other hand, they will only take action if and when there is a danger.

Notice how different it is:

They don’t go out of their way to avoid it. As soon as anything like this occurs, they’ll react emotionally to it. Nevertheless, they plan ahead of time.

This reaction plan is used more often in the actual world than any other. Because of this, they are only allowed to employ their assigned resources if the designated risk occurs. Otherwise, it’s time to release the reserves and begin working on the project’s next phase. Why? Parkinson’s Law ensures that work will always take up all of its time. Furthermore, they are concerned about the accuracy of their risk analysis. It may give them a sense of the dangers that lie ahead.

Accepting Risk with Time Reserve: Experiment No. 41

It’s not uncommon for long-term projects to get through the winter months when individuals are more likely to develop a cold. They need to prepare ahead if they notice that specific important dates happen during certain times of the year. The easiest solution is to set aside a few minutes for them each week.

#4.2 Reserving Budgetary Reserves for Risk Acceptance

More time spent on business analysis doesn’t always assist when needs aren’t crystal clear. So, there’s a danger if the standards are vague yet the timeframes are rigid. In this scenario, they are eager to hear from customers about what they have developed. Modifications in the requirements and a minor rework are inevitable due to feedback. They may take the risk and set aside extra money for overtime so that the team can complete the necessary improvements on schedule.

5. Risk Acceptance and Reaction Strategy Acceptance

No action is required when one accepts a Risk Response Strategy as it is. Anytime there’s an issue, they will have to come up with a solution. They were able to take the impact as well.

Accepting the Risk and Working around it is an example of #5.1.

Similarly, when people own expensive machinery, they have the option of purchasing insurance to protect their investments. On the other hand, passive acceptance is unlikely to elicit such a response. If a piece of machinery malfunctions, some people may decide to improvise or abandon it. It may take longer, as well as require some manual labor. This may or may not be a viable alternative. People may also decide to raise the money for repairs on their own.

This is a strategy for dealing with risk.

Increase the level of public concern. To get the assistance of a stakeholder who can aid in the reduction or elimination of risk, take the necessary steps now. Certain dangers are impossible for anyone. There is, however, a person who can do it reasonably quickly. In other words, all that’s needed is to find him and get a little of his attention.

Negative risk-reduction strategies are shown in Chapter 2.

Make the most of a situation by putting in additional effort or altering the project’s original concept as needed:

Prepare the most experienced team members to take on risky work packages.

2. Propose a more efficient method of accomplishing the task.

3. Propose a solution for the client to sign a new contract.

To get a new project, finish your current one sooner.

Managers can enhance an opportunity by doing something to increase its likelihood or impact.

To save money, buy the equipment in advance when it’s on sale.

As soon as possible, begin negotiating the transfer of exceptional expertise to their team.

The management should offer incentives for the team to complete a project before starting another one.

A third-party benefit must be shared by both parties in order for this to happen.

Develop a relationship of mutual benefit with a third party to accomplish your objectives.

They Must Know About Project Risk Responses in Chapter 3

Is It Necessary to Develop Risk Response Plans for Every Known Threat? Is it essential for people to take action in response to each potential risk? People cannot eliminate all risks. It’s a long shot, and it’s certainly not practical. However, they have to work within the parameters of their resources (budget and time) and scope (time and scope). Risk management may be part of their overall budget.

In their company’s project management strategy, what is a risk response?

They must understand how important risk management is to their project. You can’t just deal with it on its own. Responses to Risks that Have Been Foreseen Could Include:

Deliverables, work packages, and tasks may all be added or removed from the project’s scope.

We are incorporating new resources and expertise into the project’s budget and setting aside funds for contingency plans.

Adding time to critical tasks and starting work on specific dates are examples of updating the schedule.

Bring in new workflows and processes.

5. Using a specific expert or consultant, if necessary.

It is possible to outsource a portion of the project scope.

Here’s the catch: The Project Management Plan needs to be updated with the planned responses. Their plan should show it clearly.

Consequences accompany every risk response.

Here’s something else to think about. There are ramifications to every action. As a result, they introduce new ones by frequently removing one risk.

Managers can classify risks in two ways: direct and indirect.

Secondary risks are any risks that arise from putting a risk response plan into action.

Secondly, residual risks remain after all risk response plans have been implemented. Documentation and communication with stakeholders are critical because they won’t do anything about it.

How Do You Put a Risk Response Plan into Action?

First, they must identify the most significant threats to which they must respond. The next step is to collaborate with the rest of the team and key stakeholders to develop a variety of risk response options. Put another way; each risk will necessitate additional effort, a decision, or a reserve of resources. They will be able to develop the most appropriate responses if they know their risk tolerance and thresholds. Afterward, they need to convey these options to their sponsors and customers. Possibly, they’ll need their permission. In any case, they’re required to let them know. The proposed risk response strategies should be included into the project management plan after everyone has agreed. Prioritizing risks and incorporating them into the budget, timelines, and project management plans are all possible with this strategy. This means they need to go back and reassess their plan to make sure there are no new or persistent threats. To get a good risk management plan, they may have to go through the process repeatedly.

Where do risk owners fit into the overall risk response strategy?

All of the Risk Response Plans are under the direct control of one person. Each risk must have an Owner assigned to it. The owner’s name (and contact information) was entered into the Risk Register as a result of this action. This individual is in charge of keeping tabs on the danger. The risk may begin to affect their project sooner than expected. They may overestimate the overall risk.

Consequently, the owner’s attention is focused on their assigned risk. Risk Response Plan implementation or control is the owner’s responsibility when the time comes. To a certain extent, they do the same thing as ordinary people, but on a much grander scale.

Additionally, they are responsible for monitoring and reporting the strategy’s effectiveness to the team. If something goes awry, the management should notify them of the situation. I don’t think it’s a problem if one person takes on multiple risks. It’s essential, however, that none of these threats co-occur. Otherwise, they will be unable to cope.

Overview of Project Risk Management


For now, that’s all I have to say. I suppose it wasn’t too difficult. There aren’t many options with this approach. However, it provides a framework for coping with hazards. In order to avoid having to create it. It’s not a good idea to rely on project management theory if it seems like you know a lot, but it all falls apart when you put it into practice. As a project manager, I’ve been there and done that.

This book is based on ten years of practical experience that I’ve accrued. They will be better prepared to manage projects in actual companies with real people if they take advantage of this training.