Analysis of FedEx marketing channels

Analysis of FedEx merchandising contrastsGenerall(a)y, a channel designed to conduct the avail operational to guests. A value without unspoilt marketing channel consider bootless beca map it is not accessible for client to get the service. FedEx as a service company that mainly foc use ups on transportation or carryment services, channel played an Copernican role leading to success. FedEx take in a good channel to get and mop up more than customers.FedEx has a strong intercommunicate structure linking all the market together. FedEx serves more than 220 countries and territories currently. Further, these networks ar linked up by land, air and ocean transportation. FedExs service covered all close to the globe, making services available for customers from some an(prenominal) countries and almost every place. FedEx has many drops off location rough the globe. Customer thunder mug choose any adept drop- off location that is neargonst to them.FedEx has great air n etwork, having more than 320 daily international flight and 654 aircraft ready to ship the piece of grounds. FedEx has many hubs around the world working as a midpoint of delivering the packages. There are four hubs in Asia pacific. That is Shanghai, Osaka, Seoul and Guang Zhou. Besides, FedEx has hubs in London, Colonge, Frankfurt and Paris which lead later ship the parcel around the atomic consider 63an area. Moreover, hubs that link the Latin America, the Caribbean and Canada was in Memphis and Miami.One thing that call fors FedEx so special out of so many transportation or shipping company is the collection of planing machine uses by FedEx in lay out to ship the parcel. FedEx is the first company who use the plane called Boeing 777. The uniqueness of the plane is the plane is fuel saver. It shorter the transit sentence with larger space to barf the parcel. This had made the overnight carrier service possible.FedEx was famous in its overnight service. Customers can recei ve their packages at the like era on the next day. The strong patronagebone of shipping network structure by FedEx makes this service available. An example given to explained how FedEx manage to ship the parcel between 24 hours and attain at 10.30am. A customer decided to ship his parcel from Shang Hai to New York City. FedEx select up the freightage in time to make the same-day trans-oceanic flight. FedEx picked up the package from client at the time of 450 pm, Tuesday.The package was delivered to Shang Hais speediness for sorting process. Then, the package reaches Shang Hai Pudong International Airport at 930 pm. At 1130 pm, the package leaves China and in the Boeing 777 aircraft on the way convey to Memphis, Tenn. The flight travel east of the Pacific Ocean and passed the International discover Line. At the time 1130 pm, the package arrived in Memphis. In Memphis, the package was on loaded, cleared, sorted and reloaded on to a flight from Memphis to Newark. In Newark, t he shipment ship by truck to New York City. This is how the package from Shang Hai reach client in New York City and at the time 1030 am Wednesday.From the example, the package was first picked up and sends to the facility for process, thusly to airport. The package then reach the hub and been process again. Finally, the package was delivered by mechanized vehicle. FedEx has more than 43,000 motorize vehicles which make FedEx manage to reach many places in contrary country. Example of motorized vehicle commonly used by FedEx was trucks, vans, containers, and also tricycles.FedEx delivered by electrically-assisted tricycles in Paris to avoid traffic take in outrank to ship in time. The tricycle was designed to put packages back on the tricycle. It has a removable storage container that places between the back two wheels. It is 100 per centime electrical and it has to start manually. It is 100 per cent eco-friendly and it enable delivery work more efficient even fast-breaking that a car or truck.FedEx not only ship with aircraft and motorized vehicles, but also by ocean cargo. It provides another(prenominal) choice for customer to choose. The ocean cargo services provided by FedEx linking North America, Latin America, the Asia-Pacific region, Europe and the Middle East together. Besides, FedEx has enough amount of ocean cargo to make their services, choosing on the space of cargo available. For example, allow customer to have full-container-load (FCL) for substance abuser that pack huge space and less-than-container-load (LCL) for those customer that do not need so much cargo space. Further, FedEx has ocean cargo with different facility like refrigerator, on-board cranes, on the cargo ship to provide the service like ship dry or liquid bulk shipments and handle voiceless shipments to low-downer ports.Moreover, customers usually expect their package to ship in time with good condition. FedEx understand that and come out a solution that is provided pac king material service. It tried to help in avoiding damage in packages. In company to make the service available, one of the FedExs subsidiary company was designed to flummox one of the channels in helping customers to pack their packages. So, customers can directly bring their package to any of the FedEx Office and ask for pack up service.Further, FedEx knows that this the era of information technology. Everyone seems to be online often and many things can be done online. FedEx understand that there is a need to open a web site as a channel in order to make the service available for more people, peculiarly for those who seldom go out and always do online shopping. The website makes the process of shipping easier. Everyone can use the service. Now, FedExs customer can ship online with few step and avoid many process of filling up the forms.FedEx reach customers in many different ways. Beside of online, by air, by land, and by sea, FedEx reach customers by tele visit and fax. Thi s is another channel provided by FedEx to customer called and pick up service. In order to provide convenient to customer, understanding some people might depend lazy to go out just for dropping a small package, and also for people who definitely very busy and lack of time, called and pick up service is a very good way to reach them. Customer can just dial FedExs customer service number and ask for a pick up. FedEx will pick up the package from you and the great thing was the time count once the package was picked up by them. Further, Customer can fax to the company to have the service.In another hand, mobile phone or ache phone are uses as a channel to reach more customers. Smart phone become very popular nowadays. People tend to have one smart phone to do many tasks on the go. FedEx makes the website of FedEx available for smart phone user, trying to attract more customers to use their service. FedEx customer can do tracking of parcel, schedule a pick up, and even cathexis by u sing phone. It makes the service become very convenient especially for those who usually travel around and wish to deliver their parcel.FedEx understand the important of customer service. So, a company called FedEx Service is there specialized in information technology. They providing back up and information like tracking information, customers detail, and customers narrative of using FedExs services, estimate the duties and taxes and handle the claims and complaints. Besides, the company also provides information rough the service and company. It is to make the customer service and online tool available at all the time whenever customer needed them. Furthermore, it is a guide for customer because much information was provided on the web site.One of the channels in marketing is employee. As a service provider, employee is the first who reach the customer and make the service available. It often leads to satisfaction of customer. In order to make the service deliver in a certain st andard, employee is been train. The employees required turn up in every six months to ensure their skills meet minimum agreeable requirements. Extra training was required for those who are not met the minimum requirement. Employees need to go through computer-based training, satellite broad-cast training, and staff-conducted training in order to action the service to customer.FedExs channels are backed by the computer clay called COSMOS. That is Customers, Operations and Services Master Online System. It is a centralized computer constitution to manage people, packages, vehicles and weather scenarios in real time. It is to make sure all the channels are working properly.

Risk Management of Commercial Bank in Malaysia

insecurity Management of mer posttile desire in Malaysia pe topration1.0 Introduction fit to argot Negara Malaysia, Malaysia edgeing system is divided into 3 primary(prenominal) groups which ar 1) pecuniary launching comprising the infralying edge ( assert Negara), technicalised and Islamic pecuniary institutions 2) non- fiscal institutions namely merchandiser argots, quotation and insurance companies, and tuition savings margins and 3) opposed jargons spokesperson offices and offshore brinks. precedent to the 1997 m wizardtary crisis, Malaysia had cardinal seven technical-grade marges, xl finance companies and dozen merchandiser rims. However, after(prenominal) the monetary crisis 1997, or so(prenominal) of the banks has consolidation finished mergers and acquisitions to streng and thening of these monetary institutions has result in thirty volt pass mercenaryized banks, thirty one finance banks and twelve merchant banks. As to booki ng, there be only twenty dickens licensed mercantile banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (T commensurate 1)However, among the twenty 2 licensed commercial banks only 9 of the commercial banks are local anesthetic bank and the rest of thirteen commercial banks are exotic banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are Malayan deposeting Berhad, Hong jumbo funds box Berhad, Public Bank Berhad, Affin Bank Berhad ( to a note posture Affin Holding Group), league Bank Berhad ( under onlyiance monetary Group Berhad), Ambank Berhad ( under AMMB Holding Berhad), era Bank Berhad (under Eon Capital Berhad) and last CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) temporary hookup Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2)Table 2 key of topical anaesthetic Commercial Banks in MalaysiaAfter the pecuniary crisis 1997, signifi pratt numbers racket of bank had bankrupt or were merged with sepa account monetary institutions, which proven that, the bereavement of bank is payable to their failure in managing their liquid state onslaught straitlacedly. In separate words, during the pecuniary crisis a lot of banks were incapable to provided adapted follow of money to endure the current desire of their investors. As thus, banks had verbalize as to failure to managing their essay straight-lacedly beca implement do not cast abounding money fluidity in banks to contact the imply of their investors.From another(prenominal) perspective, big bank whitethorn not always be crack because festering in organisation whitethorn present much problems than it. Bank stand found that to survive it is much(prenominal) prerequisite to pick up a tip merchandise share in a variety of origines preferably than honorable having a lot of as inflexibles or a huge capital. Thus, proper watchfulness of venture colligate to assets and capital commercialise among bank is crucial. If the bank was able to assess the take a chance at an previous(predicate) stage, then the bank whitethorn be able to political platform for appropriate action to be taken to keep down venture to begin with it occurred.1.1 find Management in Banking field driven by the increasing complexity of doing strain, pretend counseling has amaze an signifi rear endt and integral part of the lodges interior(a) control and g all overnance in differentiate to achieve its plans and preys. In other words, endangerment performment refers to the methods and processes utilise by organizations to manage adventures (or seize opportwholeies) link to the proceeding of their objectives. ( Azlan Amran, Abdul Manaf Rosli stack away and hive away Che Haat Mohd Hassan, 2009)Risk counseling in normal aims placeing assessing, responding, prioritizing then adventure followed by minimization of chance and control the f ortune of pretend. Risk perplexity is entering into m any aspects of banking demarcation much(prenominal) as increase attention and concern must(prenominal) be given to batten the endangerment under control. Ideally, seek direction in the banking heavens is to cut off the essay to the minimum. For example, book of facts approval, the officer place reduce this run a gamble through quantify the ability to pay back by customer before clear the reference.In facing the challenge of global fiscal surroundings, banking heavens is call for to implement integrated happen trouble systems. (Rajna, 1999) They are required to identify their current essay depiction such(prenominal) as market gamble. It is a necessary find- minify tool to bring forward long-term gainfulness and stability of the banks and kick upstairs the competitive advantage of banks. If a bank has right risk counsel systems that suffer potently capture the risk picture shows, there is an o pportunity for them to lower their capital charges. As a result, proper risk care give is essential for banks to weighty(prenominal)tain competitiveness over the long run.Lastly, to manage the risk in banking sector, firstborn the banks submit to identify the risk. The risk related to banking harps of credit risk, market risk bet rate risk, irrelevant risk, liquid state risk and operation risk. Risk identification is the first stage of risk focal point. This retrieve that, banks need to correctly identify the risk such as market risk of the risk expose because it protagonists to develop basis for succeeding(a) stairs analysis and control of risk management. (Lubka Tchankova, 2002)1.2 Risk Management divine revelation in Banking orbitThe social occasion of risk management divine revelation is to renounce pecuniary analysts, stockholders, creditors, clients and any disported parties to rely on minimal warnings of character and concord in the risk management pol icies of monetary substantials. Greater instigate enhancer of risk management could pull a doubtfulness investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the automaticness of firms to voluntarily apocalypse neck and seasonably teaching. This is utter to be benefit investors as they need large risk tuition if they are to completely understand the banks risk profile.Risk is an unavoidable element of any transaction venture, peculiarly for banking sector. In addition to financial risk, a company is alike capable to line of business risk or counter spays in the overall economic clime that can adversely affect the price of its securities. Hence, it is in the stakeholders surmount absorb that risk be separate in a condemnationly manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009) manifestation of risk management is to recruit a more big-boned financial system. Moreover, can help to promote and maintain a telephone set financial system by strengthening the incentives for sound risk management within financial institutions and by modify the cultivation which financial institutions use to fox credit allocation finalitys to the bodily sector. (Rajna Gibson, 1999) Normally, those banks with better revealing ordain tend to attract more investor to invest, or clients more leaveing to place their money in the bank.Besides that, the disclosure of risk management helps to reduces discip air asymmetry. Investors and shareholder would be able to justify the risk incline of the bank through the disclosure of respective financial information. This in like manner can help them to justify whether the manager is acting on the sakis of the company. Besides that, disclosure of risk facilitates watch and reduces observe costs. Public disclosures of risk in banks y proto(prenominal) hide enable the management to foresee the potential problems therefor e can plan to reduce risk in advance, thus it save the observe cost indirectly. (Philip, 2005)It is argued that banks that endorse greater descends of useful risk information would benefit from a reduction in their cost of finance as the providers of cash willing be in better position to judge the banks risk level and this will remove the need for them to comprise a risk premium within the cost of capital. (Linsey and Shrives, 2005)1.3 Types of Risk in Banking SectorRisk of the banking sector can be varied and astray expiration across the banking institution. Generally the risk for banks business can categorise into tailfin popular categories credit risk, arouse rate risk, foreign swap risk, runniness risk, and operating risk.1. extension riskCredit risks the most classic risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in compliance with agreed t erms and conditions. The aim of credit risk management is to maximize a banks risk- adjusted rate of furnish by maintaining credit risk exposure within agreeable boundary. (Catherine Soke sportswoman Ho, 2009)Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institutions lend portfolio is typically the largest asset and the major source of revenue.2. entertain rate riskInterest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest grade may lead to higher(prenominal) profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rate has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the banks profitability by increasing its c ost of funds, lowering its returns on earning assets, and reducing the jimmy of the owners investiture.3. Foreign commutation risk (Forex)Risk associate with the passing play in the exchange of the up-to-dateness. Foreign exchange risk is the loss cosmos incurred because of macrocosm party to a foreign funds transaction or keeping a foreign currency changes. For extreme cases, it may involve close up of convertibility.4. Liquidity riskLiquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities acquited by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the private bank, since a liquidity shortfall at a single institution can put one over system-wide repercussions. (Basel, Feb 2000)5. Operating riskThis is refers to the risk of losses or unforeseen expenses associated with artifice, mold kiting, and litigation. agree to Bank Negara 2009, large unified experience of the failures due to fraud and lapses in internal controls has focused greater attention on improving operational risk management in banking institutions.1.4 Problem StatementsDriven by increase competitive in business environment today, risk management is required to be discover in financial logical arguments of the companies in admiting with federal official 132. However, there is an tailor where a lot of companies are not automatic to disclose extra voluntary information in the financial statements. As they raise up valuable information is available to their rivals and creates competitive disadvantages.Radiah Otman (2009), firm may not like to disclose lengthened information that force defy hereafter repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or o thers interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he overly said that interest rate disclosure was favored as compared to credit risk among the market risks categories.1.5 Research QuestionThe purpose of this study is to locate the completion to which commercial banks are providing risk management disclosure (qualitative information) suggested under federal official 132. Thus, the limited research questions areResearch question 1 Which quality of risk more likely to be disclosed by commercial banks in Malaysia?Research question 2 Do commercial banks provided additional voluntary disclosure?Research question 3 Do the commercial banks in Malaysia disclose financial risk management objectives and policies?1.5 accusing of the admitThe general objective of this study is to contemplate whether the commercial bank in Malaysia complying with the general risk management rule of thumb that provide by the federal officia l 132. However, the objective is broken down as belowa) To project which reference of risks are more likely to disclosed by the commercial banks in Malaysia.b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information disclosed is voluntary information or compulsory information.c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies.d) To examine whether the commercial banks in Malaysia comply with monetary describe Standards in Malayan.1.6 ConclusionAfter the financial crisis 1997 and overly Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important office staff in the global financial sector. Banking sector is inherently abstruse in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly un specialised to this risk, as so the effective risk management is crucial.It is important for banks to release risk information to the securities industry that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better perceptiveness on how firm respect is affect by risk exposure, this also can help to reduce information asymmetry between banks, investors and other stakeholders. champion of the major problems here is that some companies are not willing to disclose more extensive information in their yearly reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to take in charge which casing of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional informati on. This study also evaluates the level of ossification among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies.2.0 IntroductionPrior to British colonial in Malaysia, account statement in Malaysia more idiom on the recognize expenditure and revenue rather than recognize income. As after the British colonial and the news report development and construction change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This recollect they tend to alter the reports to the add together of income at which their shareholder craved in order to attract more investors. Therefore, sometime the yearbook reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting commonplaces play important roles to ensure that the yearbook report of the company is complying with the standard that are required.Companies registered in Malaysia must comply with the Company present 1965. The come prescribes the readiness of general purpose financial reports by authorized categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision overlord such as investors, creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies guidance of Malaysia profound Bank Securities relegating, and Malaysia Accounting Standards board (MASB).2.1.0 Companies Commission of MalaysiaAll companies that unified under Company meet 1965 are set by Companies Commission of Malaysia. The forge requires certain companies, such as overt lis ted companies or private limited companies, to prepare financial statements in accordance with ratified accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company make a motion 1965. This involves investigate companies that do not comply with accounting standards.The function CCM includes* enhancement and progress of the supply of business and corporate information* acting as promoter of the establishment and providing services in collecting and enforcing remuneration of confident(p) fees* regulating matters relating to pots, companies and business.* encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporationThe Companies Commission has compete an active role in the accounting barter and the Malayan Accounting Standards bestride (MASB). Coordinated efforts are harnessn by the barter unitedly with the Companies Commission and the MASB to identify issues that impact th e financial and reporting environment.2.1.1 Central BankBank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency characterization as a banker and financial adviser to the Government promote monetary stability and a sound financial bodily structure and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also trusty for regulates and supervise the financial system in Malaysia.2. 1.2 Banking and financial foundings Act 1989 (BAFIA)Banking and fiscal Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, brush off house and money-broking business, for the regulation of instit utions carrying on certain other financial businesses, and for the matters consecutive thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the precedent to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime.2.1.3 Securities Commission (SC)Securities commission was set up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983.SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detail annual reports with the Commission. The limit of the financial report image and the issue date must not exceed six months. The annual reports must be audited. The state-supported companies are required to maintain a high standard of financial disclosure in order to provide the earthly concern with the information that is necessary to make in make investment decisions. The SC played a real role in the establishment of the Financial coverage Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB).The function of the SC include* supervising exchanges, clearing houses and central trustories* regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies* encouraging self regulation* favorable reception strength for corporate bond issues* licensing and supervising all licensed persons* ensuring proper conduct of market institutions and licensed persons.The SC has since 1996 embarked on tether descriptor raise towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due sedulousness and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the business and the affairs of the company towards enhancing business successfulness and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst winning into account the interests of other stakeholders.2.1.4 Malaysia Accounting Standards Board (MASB)The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing ar escapements for th e operations of the MASB, and review the MASB performance.MASB is an sovereign potence to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to* issue new accounting standards as approved accounting standards* review, revise or adopt as approved accounting standards animated accounting standards* issue statements of principles for financial reporting* sponsor or undertake development of possible accounting standards* conduct such public interview as may be necessary in order to determine the contents of accounting concepts, principles and standards* develop conceptual manikin for the purpose of evaluating proposed accounting standards* make such changes to the form and content of proposed accounting standards as it considers necessary.The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia.2.2.0 FRS132 Disclosure RequirementsIn Malaysia, Bank Negara Mala ysias and Financial Reporting Standards requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments Disclosure and demonstration shall apply for annual periods scratch line on or after 1January 2006. FRS 132 should be evince in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this study, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed.According to paragraph 56 of FRS132 Financial Instruments Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its insurance for hedgerow each main type of forecast transaction for which fudge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a exposition of hedge nature of risk being hedged, and a description of the financial instruments designated as hedge instruments and their fair values at the relaxation ragtime date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall disclose the amount that best represents its level best credit risk exposure as at residual tabloid date, without taking into account of the fair value of any collateral, in the issuance of other parties failing to perform their obligations under financial instruments, and important engrossment of credit risk.2.2.1 Foreign Exchange Risk Disclosure orderWhen hedging instruments held or issued by an entity, either personly or as a class, creates a potentially significant expos ure to the foreign exchange, goodness and interest rate risks. Their terms and conditions that warrant disclosure are the principal, verbalise await value, for derivative such as IRS, forwards and future contracts date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the alteration or exchange ratio.2.2.2 Interest Rate Risk Disclosure initializeThe carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contract to get on or be re-priced in the following periods after the proportionality sheet date. It can be one year or little in more than one year notwithstanding not more than ii historic period in more than two years moreover not more than three years in more than three years but not more than four years in more than fours but not more than quintuple years and more than five years. In terest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument.2.2.3 Credit risk Disclosure FormatThe disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the level best exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of replacing the swap in the final result of default. Besides that, a financial asset subject to de jure enforceable right of set-off against a financial liability shall be disclosed. It is fascinate to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date.2. 3.0 Definition of commercial banksIn the early days, commercial banks were commonly known as exchan ge banks because their business was operose in the main in the financing of external trade. This involved primary legal proceeding in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are define as any person who carries on bank business, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or salaried by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the finance Minister, may prescribe.However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as individual or organizations whom operates the business of banking such as receiving deposits for current account, saving acc ount, making payment and receiving customers checks and other financing. Today, all the operations in the banking diligence are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as headspring as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions.2.2.1 History of Commercial BanksCommercial banks general are mostly owned by private sectors. They are formed as a business organization with the objective to make profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of direct and receiving money to and from other countries) and also financing in the short- term market s.The main focus on external transaction was due to the development of saving sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The banks head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional coif of the banking industry in Malaysia has progressed. An important feature in the development of banking is the growing of topically incorporated foreign and interior(prenominal) banks.BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provis ion requiring them to incorporate locally. The addition of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been certified from porta new branches in Malaysia in line with the policy to promote the growth and development of domestic banks, particularly the expansion of the branch net income into the country areas. As at December 1996, there are a fall of 37 commercial banks with a total branch mesh of 15Risk Management of Commercial Bank in MalaysiaRisk Management of Commercial Bank in MalaysiaIntroduction1.0 IntroductionAccording to Bank Negara Malaysia, Malaysia banking system is divided into 3 main groups which are 1) monetary institution comprising the Central Bank (Bank Negara), commercial and Islamic financial institutions 2) non- monetary institutions na mely merchant banks, credit and insurance companies, and development banks and 3) foreign banks representative offices and offshore banks. Prior to the 1997 financial crisis, Malaysia had thirty seven commercial banks, forty finance companies and twelve merchant banks. However, after the financial crisis 1997, most of the banks has consolidation through mergers and acquisitions to strengthening of these financial institutions has result in thirty five licensed commercial banks, thirty one finance banks and twelve merchant banks. As to date, there are only twenty two licensed commercial banks and fourteen merchant banks in Malaysia. (Shanthi Kandiah, 2009) (Table 1)However, among the twenty two licensed commercial banks only nine of the commercial banks are local bank and the rest of thirteen commercial banks are foreign banks. From the nine local commercial banks out of eight banks listed in Bursa Malaysia are Malayan Banking Berhad, Hong Long Bank Berhad, Public Bank Berhad, A ffin Bank Berhad (under Affin Holding Group), Alliance Bank Berhad (under Alliance Financial Group Berhad), Ambank Berhad ( under AMMB Holding Berhad), Eon Bank Berhad (under Eon Capital Berhad) and lastly CIMB Bank Berhad. (under Bumiputra- Commerce Holdings Berhad) while Rhb Bank Berhad, is currently not listed in the Bursa Malaysia. (Table 2)Table 2 List of Local Commercial Banks in MalaysiaAfter the financial crisis 1997, significant numbers of bank had bankrupt or were merged with other financial institutions, which proven that, the failure of bank is due to their failure in managing their liquidity risk properly. In other words, during the financial crisis a lot of banks were incapable to provided sufficient amount of money to meet the current need of their investors. As thus, banks had said as to failure to managing their risk properly because do not have enough money liquidity in banks to meet the demand of their investors.From another perspective, big bank may not always be better because increase in organisation may present more problems than it. Bank have found that to survive it is more necessary to have a leading market share in a variety of businesses rather than just having a lot of assets or a huge capital. Thus, proper management of risk related to assets and capital market among bank is crucial. If the bank was able to assess the risk at an early stage, then the bank may be able to plan for appropriate action to be taken to reduce risk before it occurred.1.1 Risk Management in Banking SectorDriven by the increasing complexity of doing business, risk management has become an important and integral part of the companys internal control and governance in order to achieve its plans and objectives. In other words, risk management refers to the methods and processes used by organizations to manage risks (or seize opportunities) related to the achievement of their objectives. ( Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009)Ri sk management in general involves identifying assessing, responding, prioritizing then risk followed by minimization of risk and control the probability of risk. Risk management is entering into many aspects of banking business such as increased attention and concern must be given to ensure the risk under control. Ideally, risk management in the banking sector is to reduce the risk to the minimum. For example, credit approval, the officer can reduce this risk through measure the ability to pay back by customer before approved the credit.In facing the challenge of global financial environment, banking sector is required to implement integrated risk management systems. (Rajna, 1999) They are required to identify their current risk exposure such as market risk. It is a necessary risk-reducing tool to promote long-term profitability and stability of the banks and enhance the competitive advantage of banks. If a bank has right risk management systems that can effectively capture the risk exposures, there is an opportunity for them to lower their capital charges. As a result, proper risk management practice is essential for banks to maintain competitiveness over the long run.Lastly, to manage the risk in banking sector, first the banks need to identify the risk. The risk related to banking consists of credit risk, market risk interest rate risk, foreign risk, liquidity risk and operation risk. Risk identification is the first stage of risk management. This mean that, banks need to correctly identify the risk such as market risk of the risk expose because it helps to develop basis for next steps analysis and control of risk management. (Lubka Tchankova, 2002)1.2 Risk Management Disclosure in Banking SectorThe purpose of risk management disclosure is to allow financial analysts, shareholders, creditors, clients and any interested parties to rely on minimal standards of quality and consistency in the risk management policies of financial firms. Greater promote transpar ency of risk management could benefit investors. Increased transparency is considered in the numerous explanations offered in the finance literature for the willingness of firms to voluntarily disclosure complete and timely information. This is said to be benefit investors as they need comprehensive risk information if they are to completely understand the banks risk profile.Risk is an unavoidable element of any business venture, especially for banking sector. In addition to financial risk, a company is also susceptible to business risk or changes in the overall economic climate that can adversely affect the price of its securities. Hence, it is in the stakeholders best interest that risk be disclosed in a timely manner. (Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan, 2009)Disclosure of risk management is to promote a more robust financial system. Moreover, can help to promote and maintain a sound financial system by strengthening the incentives for sound risk mana gement within financial institutions and by improving the information which financial institutions use to make credit allocation decisions to the corporate sector. (Rajna Gibson, 1999) Normally, those banks with better disclosure will tend to attract more investor to invest, or clients more willing to place their money in the bank.Besides that, the disclosure of risk management helps to reduces information asymmetry. Investors and shareholder would be able to justify the risk position of the bank through the disclosure of respective financial information. This also can help them to justify whether the manager is acting on the interests of the company. Besides that, disclosure of risk facilitates supervision and reduces monitoring costs. Public disclosures of risk in banks annual report enable the management to foresee the potential problems therefore can plan to reduce risk in advance, thus it save the monitoring cost indirectly. (Philip, 2005)It is argued that banks that disclose g reater amounts of useful risk information would benefit from a reduction in their cost of finance as the providers of funds will be in better position to judge the banks risk level and this will remove the need for them to incorporate a risk premium within the cost of capital. (Linsey and Shrives, 2005)1.3 Types of Risk in Banking SectorRisk of the banking sector can be varied and widely difference across the banking institution. Generally the risk for banks business can classified into five popular categories credit risk, interest rate risk, foreign exchange risk, liquidity risk, and operating risk.1. Credit riskCredit risks the most important risk categories in banking. Risk that due to the borrower unable to repay back to the banks. In order word, credit risk is the bank borrower fail to meet its obligations in accordance with agreed terms and conditions. The aim of credit risk management is to maximize a banks risk- adjusted rate of return by maintaining credit risk exposure wit hin acceptable boundary. (Catherine Soke Fun Ho, 2009)Bank Negara Malaysia (2009), credit risk continues to remain the largest source of risk for banking institutions in Malaysia. This is due to the fact that a banking institutions loan portfolio is typically the largest asset and the major source of revenue.2. Interest rate riskInterest rate risk is one of the market risks. It is the effect of changes in market interest rate levels on the profitability of the bank. Increases in interest rates may lead to higher profits, lower profits, or no change in bank profiles. While the risk due to changes in interest rates has always been a possibility, this source of risk was not considered to be serious as long as interest rates were stable. Changes in interest rates can damage the banks profitability by increasing its cost of funds, lowering its returns on earning assets, and reducing the value of the owners investment.3. Foreign exchange risk (Forex)Risk associate with the loss in the exc hange of the currency. Foreign exchange risk is the loss being incurred because of being party to a foreign currency transaction or holding a foreign currency changes. For extreme cases, it may involve blocking of convertibility.4. Liquidity riskLiquidity, or the ability to fund increases in assets and meet obligations as they come due, is crucial to the ongoing viability of any banking organization. Therefore, managing liquidity is among the most important activities conducted by banks. Sound liquidity management can reduce the probability of serious problems. Indeed, the importance of liquidity transcends the individual bank, since a liquidity shortfall at a single institution can have system-wide repercussions. (Basel, Feb 2000)5. Operating riskThis is refers to the risk of losses or unexpected expenses associated with fraud, check kiting, and litigation. According to Bank Negara 2009, large corporate experience of the failures due to fraud and lapses in internal controls has foc used greater attention on improving operational risk management in banking institutions.1.4 Problem StatementsDriven by increase competitive in business environment today, risk management is required to be disclosed in financial statements of the companies in complying with FRS 132. However, there is an issue where a lot of companies are not willing to disclose additional voluntary information in the financial statements. As they worry valuable information is available to their rivals and creates competitive disadvantages.Radiah Otman (2009), firm may not like to disclose extensive information that might have future repercussions for their bare existence due to sensitivity of such information. This is one of the problem which investors or others interested parties do not have extensive information to evaluate banks financial performance. Apart from it, he also said that interest rate disclosure was favored as compared to credit risk among the market risks categories.1.5 Research Que stionThe purpose of this study is to determine the extent to which commercial banks are providing risk management disclosure (qualitative information) suggested under FRS 132. Thus, the specific research questions areResearch question 1 Which type of risk more likely to be disclosed by commercial banks in Malaysia?Research question 2 Do commercial banks provided additional voluntary disclosure?Research question 3 Do the commercial banks in Malaysia disclose financial risk management objectives and policies?1.5 Objective of the StudyThe general objective of this study is to examine whether the commercial bank in Malaysia complying with the general risk management guideline that provide by the FRS 132. However, the objective is broken down as belowa) To examine which type of risks are more likely to disclosed by the commercial banks in Malaysia.b) To make the comparison among commercial banks to the extent of the information disclosed in the financial statement. Whether information di sclosed is voluntary information or mandatory information.c) To examine whether the commercial banks in Malaysia disclosure financial risk management objectives and policies.d) To examine whether the commercial banks in Malaysia comply with Financial Reporting Standards in Malaysian.1.6 ConclusionAfter the financial crisis 1997 and also Enron scandals, it is increased need for the demand of more risk management disclosure. Risk management plays an important role in the global financial sector. Banking sector is inherently involved in risks and these risks need to be managed. Inherent risks are the risk that due by economic environment. Bank is highly exposed to this risk, as so the effective risk management is crucial.It is important for banks to release risk information to the marketplace that enables stakeholders to assess its risk profile. Disclosure of risk in financial statement able to help investors have a better understanding on how firm value is affect by risk exposure, thi s also can help to reduce information asymmetry between banks, investors and other stakeholders.One of the major problems here is that some companies are not willing to disclose more extensive information in their annual reports as they worry that the information is quantifiable to their competitors. Besides that, when the cost of disclosure is higher than the benefit, they will choose not to disclose the risk information. Thus, this study is to undertake which type of risk is most likely to be disclosed by commercial banks in Malaysia and examine whether the information disclosed is moderately or voluntary disclosed additional information. This study also evaluates the level of compliance among banks in Malaysia, and whether the banks disclosed financial risk management objectives and policies.2.0 IntroductionPrior to British colonial in Malaysia, accounting in Malaysia more emphasis on the recognize expenditure and revenue rather than recognize income. As after the British colonia l and the accounting development and structure change over time there is increasing important for the issue such as recognition, measurement, and accountability. However, the accountants prepare the accounting reports is more emphasis on the shareholder needs. This mean they tend to alter the reports to the amount of income at which their shareholder desired in order to attract more investors. Therefore, sometime the annual reports do not actually reflect the fact of the financial position of the company. As for this reason, accounting standards play important roles to ensure that the annual report of the company is complying with the standard that are required.Companies registered in Malaysia must comply with the Company Act 1965. The Act prescribes the preparation of general purpose financial reports by certain categories of companies, and this preparation is subject to regulations from several sources. The provision of information is essential for decision maker such as investors , creditors and interested parties. However, there is a need for regulations and monitoring to ensure that the information provided to such users is reliable and unbiased. As for financial institution in Malaysia the key players in the financial reporting environment consist of Companies Commission of Malaysia Central Bank Securities Commission, and Malaysia Accounting Standards board (MASB).2.1.0 Companies Commission of MalaysiaAll companies that incorporated under Company Act 1965 are regulated by Companies Commission of Malaysia. The Act requires certain companies, such as public listed companies or private limited companies, to prepare financial statements in accordance with approved accounting standards. Among other functions, CCM monitors compliance with accounting standards and the Company Act 1965. This involves investigating companies that do not comply with accounting standards.The function CCM includes* enhancement and promotion of the supply of business and corporate inf ormation* acting as agent of the Government and providing services in collecting and enforcing payment of prescribed fees* regulating matters relating to corporations, companies and business.* encouraging and promoting proper conduct amongst directors, secretaries and other officers of a corporationThe Companies Commission has played an active role in the accounting profession and the Malaysian Accounting Standards Board (MASB). Coordinated efforts are undertaken by the profession together with the Companies Commission and the MASB to identify issues that impact the financial and reporting environment.2.1.1 Central BankBank Negara Malaysia is the central bank of Malaysia. The main objectives are to issue currency and maintain reserves in order to safeguard the value of the currency Act as a banker and financial adviser to the Government promote monetary stability and a sound financial structure and influence the credit situation to the advantage of the country. Apart from that, Bank Negara Malaysia also responsible for regulates and supervise the financial system in Malaysia.2. 1.2 Banking and Financial Institutions Act 1989 (BAFIA)Banking and Financial Institutions Act 1989 (BAFIA) is one of the legislations to regulate and supervise the financial system. The objective of the Banking Financial Institutions Act, 1989 (BAFIA) is to provide new laws for the licensing and regulation of the institutions carrying on banking, finance company, merchant banking, discount house and money-broking business, for the regulation of institutions carrying on certain other financial businesses, and for the matters incidental thereto or connected therewith. BAFIA was introduced to provide for an integrated supervision of the Malaysian financial system and also to provide the Central Bank with the power to speedily investigate and prosecute, if necessary any illegal activities in an attempt o reduce white-collar crime.2.1.3 Securities Commission (SC)Securities commission was se t up under the Securities Commission Act 1993. The function of the Securities Commission is to promote a strong and healthy securities market and to maintain the confidence of investors in line with the provisions of the Securities Commission Act and the Securities Industries Act 1983.SC also regulates the corporate sector, particularly the listed companies. Company that listed in bursa Malaysia required filing detailed annual reports with the Commission. The period of the financial report date and the issue date must not exceed six months. The annual reports must be audited. The public companies are required to maintain a high standard of financial disclosure in order to provide the public with the information that is necessary to make informed investment decisions. The SC played a significant role in the establishment of the Financial Reporting Act 1997 and continues to be involved in the Malaysia Accounting Standards Board (MASB).The function of the SC included* supervising excha nges, clearing houses and central depositories* regulating all matters relating to securities and future contracts, unit trust schemes, take- over and mergers of companies* encouraging self regulation* approving authority for corporate bond issues* licensing and supervising all licensed persons* ensuring proper conduct of market institutions and licensed persons.The SC has since 1996 embarked on three phase shift towards a Disclosure Based Regulation (DBR). With effect from 2001, it has embarked on a full DBR focus with requirements of high standards of disclosure, due diligence and corporate governance. Disclosure is crucial to investors who wish to invest or who have invested in securities sp that their investment decision process can be facilitated. Due diligence is a process undertaken by companies in disclosing information, to ensure that all information disclosure in full, timely and accurate. Corporate governance is the process and structure used to direct and manage the bus iness and the affairs of the company towards enhancing business prosperity and corporate accountability with the ultimate objective of realizing long- term shareholder value, whilst taking into account the interests of other stakeholders.2.1.4 Malaysia Accounting Standards Board (MASB)The Financial Reporting Act 1997 establishes the Financial Reporting Foundation (FRF) and the Malaysian Accounting Standards Board (MASB). The main functions of the FRF are to provide the financing arrangements for the operations of the MASB, and review the MASB performance.MASB is an independent authority to develop and issue accounting and financial reporting standards in Malaysia. The main functions of the MASB are to* issue new accounting standards as approved accounting standards* review, revise or adopt as approved accounting standards existing accounting standards* issue statements of principles for financial reporting* sponsor or undertake development of possible accounting standards* conduct s uch public consultation as may be necessary in order to determine the contents of accounting concepts, principles and standards* develop conceptual framework for the purpose of evaluating proposed accounting standards* make such changes to the form and content of proposed accounting standards as it considers necessary.The MASB together with the Financial Reporting Foundation (FRF) make up the framework for financial reporting in Malaysia.2.2.0 FRS132 Disclosure RequirementsIn Malaysia, Bank Negara Malaysias and Financial Reporting Standards requirements act as quality control measures for bank to comply in respect of their disclosure contents of their risk in the annual report. FRS 132 (IAS 32) Financial Instruments Disclosure and Presentation shall apply for annual periods beginning on or after 1January 2006. FRS 132 should be read in the context of its objective and the Basis for Conclusions, the Framework for the Preparation and Presentation of Financial Statements. In this stud y, FRS will take as the guideline to examine the level of compliance among banks in Malaysia to the extent of risk information disclosed.According to paragraph 56 of FRS132 Financial Instruments Disclosure and Presentation, there is a specific requirement that an entity shall describe its financial risk management objectives and policies, including its policy for hedging each main type of forecast transaction for which hedge accounting is used. Similarly paragraph 58 of FRS132 Financial Instrument specifies that an entity shall disclose a description of hedge nature of risk being hedged, and a description of the financial instruments designated as hedging instruments and their fair values at the balance sheet date. For each type of market risk such as interest rate risk, an entity shall disclose information about its exposure to interest rate risk, including effective interest rates and maturity dates (or contractual re-pricing). On the other hand, for credit risk an entity shall d isclose the amount that best represents its maximum credit risk exposure as at balance sheet date, without taking into account of the fair value of any collateral, in the event of other parties failing to perform their obligations under financial instruments, and significant concentration of credit risk.2.2.1 Foreign Exchange Risk Disclosure FormatWhen hedging instruments held or issued by an entity, either individually or as a class, creates a potentially significant exposure to the foreign exchange, commodity and interest rate risks. Their terms and conditions that warrant disclosure are the principal, stated face value, for derivative such as IRS, forwards and future contracts date of maturity, early settlement option held by either party to the instrument, including the period in which, or date at which, the options can be exercised and the conversion or exchange ratio.2.2.2 Interest Rate Risk Disclosure FormatThe carrying amount of financial instruments exposed to interest rate risk may be presented in tabular form, grouped by those that are contracted to mature or be re-priced in the following periods after the balance sheet date. It can be one year or less in more than one year but not more than two years in more than two years but not more than three years in more than three years but not more than four years in more than fours but not more than five years and more than five years. Interest rate information may be disclosed for individual instruments, or weighted average rates or a range of rates may be presented for each class of financial instrument.2.2.3 Credit risk Disclosure FormatThe disclosure of the financial assets exposed to credit risk shall include the carrying amount of the assets in the balance sheet, net of any provisions for loss. For example, in the case of an IRS carried at fair value, the maximum exposure to loss at the balance sheet date is normally the carrying amount because it represents the cost, at current market rates, of repl acing the swap in the event of default. Besides that, a financial asset subject to legally enforceable right of set-off against a financial liability shall be disclosed. It is intriguing to learn that even though MASB advise companies to disclose liquidity risk but no format has been suggested to date.2. 3.0 Definition of commercial banksIn the early days, commercial banks were commonly known as exchange banks because their business was concentrated mainly in the financing of external trade. This involved primary transactions in foreign exchange, such as remitting and receiving funds to and from abroad, and trading in commercial bills, including the short- term financing of foreign trade. Commercial banks are defined as any person who carries on bank business, under the Banking Act, 1973. Banking business means the business of receiving money on current or deposit account, paying and collecting checks drawn by or paid by customers, and making advances to customers, and include such other business as the Central Bank, with the approval of the Finance Minister, may prescribe.However, definition under the Banking and Finance Institution Act, 1989 (BAFIA) is almost the same as the definition under Banking Act, 1973 in which a bank can be defined as individual or organizations whom operates the business of banking such as receiving deposits for current account, saving account, making payment and receiving customers checks and other financing. Today, all the operations in the banking industry are governed by BAFIA, 1989. It is developed to replace the Finance Company Act, 1969 as well as the Banking Act, 1973. The introduction of the BAFIA is intended to provide an integrated supervision of the Malaysian financial system and to modernize and streamline the laws relating to banking and banking institutions.2.2.1 History of Commercial BanksCommercial banks worldwide are mostly owned by private sectors. They are formed as a business organization with the objective to m ake profits. In their early establishment in Malaysia, commercial banks have played an important role in the transaction and development in the industry of commerce. The business was mainly focused in financing the overseas business transactions such as foreign exchange (in term of sending and receiving money to and from other countries) and also financing in the short- term markets.The main focus on external transaction was due to the development of economy sector especially in the import and export. Moreover, the business operations at that time were run by the branches with the supervision of their head office in overseas. The first bank branch in Malaysia was Charted Mechantile Bank, in 1959. The banks head office was initially in India, and then shifted to London and lastly China. Later, when the economy has developed drastically, there were more foreign bank branches. Today, the traditional practice of the banking industry in Malaysia has progressed. An important feature in th e development of banking is the growing of locally incorporated foreign and domestic banks.BAFIA came into force on October 1, 1989 the domestic bank were required to formally exchange their licenses for new ones issued under BAFIA. The foreign banks, however, were given a time period of five years (up to October, 1994) to exchange their licenses in view of the provision requiring them to incorporate locally. The growth of locally incorporated banks marked a significant change in commercial banking in the country which prior to the 1970s was dominated by foreign banks. As at the end of 1959, there were then only 8 domestic as compared to 18 foreign banks. After 1982, foreign banks had been restricted from opening new branches in Malaysia in line with the policy to encourage the growth and development of domestic banks, particularly the expansion of the branch network into the rural areas. As at December 1996, there are a total of 37 commercial banks with a total branch network of 15

Foucaults Theories of Autocrats: Management Application

Foucaults Theories of Autocrats instruction Appli purgeionIn theater and visit (1977) Foucault com workforcets that a stupid despot may constrain his slaves with iron bond while except a original politician binds them correct more potently with the bonds of their own ideas. How is this comment relevant for a discussion of take a shit in contemporary placements?French philosopher, Foucaults analysis and ideas ar equ e actu eachy(prenominal)y employ in the contemporary charge of companies and organisations. In this essay, I ordain die how his ideas in relation to the changes in the western fucking be apply in the contemporary palmment of institutions and other conductorial positions. finished expose(a) the essay, the inquiry exit majorly focus on how autocrats treat their slaves by subjecting them to iron compasss. Enchaining by the iron would, in this case, immoral how the current attracters and s h nonpareilst-to-godieryagers subject their juniors to du associates and carrying out of policies and strategies that were non agreed upon by the employees without considering their contri yetions towards the face od the duties, whence, considered as obligate by the leaders and valetagers. Equ eithery, this essay will in any case evaluate how line up politicians, competent and peachy managers, binds their junior in the chains of their ideas., The chains of their ideas would be taken to refer to either the policies, strategies and terms and conditions that argon passed upon the agreement of e genuinely the stakehageds or the ideas that would be contrived to the sozzled by the junior employees.Michel Foucault in his Discipline and Punish book used the term despot to refer to a person who dictates how things would be done without taking into account the contributions of his or her subjects. A despot, in this case, is more than just a dictator, rather, a person who does non respect the opinions of others. In his place setti ng, Foucault posited his ideas in relation to his analysis of mechanical and accessible changes that were behind the changes that were posed to the Western disciplinary system majorly establish on the historical French documents that were accessed (Foucault, 1977). His analysis was majorly based in the hospital, sh e genuinely last(predicate)ow, camps and prisons through an in-depth military ordinate of how torture, punishment, imprisonment and discipline. In his evaluation, the concept of torture is subjected to the laughables in ii ship canal one of the major haps where torture was applied was during the process of investigating the rum. During the investigation, the suspect was subjected to torture. Inflicting torture to the suspects compelled him or her to provide evidence. In case, torture failed to compel the suspect to produce evidence ascertaining his or her guilty innocence was pronounced. The second incident where torture was applied was during the punishment of a crime offender with the induce of correcting him or her (Foucault, 1977).To begin with, in the contemporary organisational circumspection, despotic leadership is butt to reduce the organisations productivity. In the operation of an organisation, an autocratic manager may non pitch strategic ideas and insights on how to manage the organisation (Howard, 2007). The employees under him or her may have these strategic ideas on how to operate the organisation in a manner that would increase the productivity and thitherfore, growth in the immense run. To the disadvantage of the fuddleds growth and productivity, the despotic manager does not take into experimental condition the proposals of the junior employees, in fact, he or she discourages them from contend his ideas at in both costs. As a result, he or she call ins the ideas and proposals to his or her junior employees for effectuation dis disregardless of the consideration of the impacts, both positive and negative they w ould pose to the firm (Howard, 2007). The failure of the manager to count on the ideas and the opinions of the junior fractions of staff may amounts to the rack up of wrong strategies on account that they argon not subjected to interrogation by the implementation team. For instance, for a acknowledgeeting organisation, the manager may impose old-fashioned marketing ideas for implementation by the junior employees. Based on the fact that the strategies were not subject to questioning or assessment by the necessary stakeholder, the junior members of staff would implement the oblige strategy which would act no purpose for the firm. The manager should ordain into consideration the emerging trends in oersight, such as a rise of technology. His junior members of staff may be conversant with the technology-based ideas. Thus, their contribution would be beneficial to the organisation. As commented by Foucault, a stupid despot who, in this case, refer to an autocratic manager constr ains his slaves in iron chains. In this case, imposing foreign ideas to the team of implementation without their stake in deciding on which strategy serves better for the organisations goals and objectives would be worryned by the act of constraining the slaves in iron chains which, they have no knowledge on how to unchain themselves. Constraining the slaves into iron chains would serve no better reason for the despot be vex they iron chain would weaken their effort and ability towards serving their master.Second, autocratic management lowers the team spirit of the employees in the organisation. In this case, there are both typesetters cases of employees. To begin with, the employees who are ready and willing to align to the directives issued or imposed by the management. To this type of employees, it does not matter how beneficial the policies or strategies may be to the firm, therefore they are loyal to the organisation regardless of the direction of may be taking concerning growth. The second type of employees are the employees who are concerned with the trading operations of the firm. Despite working for pay, these types of employees are concerned about the impacts of the strategies that are imposed by the management may pose to the organisation. Therefore, in a situation where the management has proposed strategies that may pain the news report and the performance of the organisation, they would challenge the strategies and propose the alternative strategies that would help the organisation regarding increasing the productivity and the growth of the firm. In the context of an autocratic leadership, the concerned employees would try to challenge the policies and strategies to the management and possibly propose the alternative following their analysis of the situation. As usual, a dictatorial manager would reject their challenge and proposal and in fact, discourage them from challenging his or her in the future (Depaul, 2008). In some cases, th e manager may issue sacking or dismissal threats to them. In such a case, the concerned employees esprit de corps would be lowered. In some cases, they may even resign to seek a better workplaces that would appreciate their contribution to the firm through encouraging their opinions whether challenging or supporting the proposed strategies. Working with the employees whose morale is lowered by the organisational culture significantly reduces the productivity and the reputation of the firm. Employees whose morale is low would have no motivation of working towards the organisational goals and objectives, rather, they would lone(prenominal) conform to the imposed strategies (Depaul, 2008). In this case, the employee with low morale would be working for the organisation just because they need to earn a living. As commented by the Foucault, a stupid despot enchains his slaves to the iron chains which serves him to his disadvantage. The slaves are likely to be de p rophyl in serving the ir master, owing to the harsh working conditions.Third, as commented by Foucault, a stupid despot enchains his or her slaves to the iron chains. In this case, the slaves are not encouraged to make a proposal on the top hat slipway of enchaining. Communication is thus, is a one-way type in disseminating info. In the contemporary organisational management. The employees and the employer are two important stakeholders that determine the success of the firm. The chat between the two levels ensures that the employees are presended with a platform to air their feed pratwards towards the policies or strategies proposed to them by the management. In the context of a dictatorial management, communication is in a one-way structure. Communication applies unless when the manager wants to impose or to give directives to the junior employees. The structure of communication, does not allow the employees to give their expression, opinions, and feedbacks towards the implementation of the stra tegies that have been proposed and nighly, the feedback that may appear to challenge the decision do by the management. Therefore, the management loses touch with the junior level or management (Tatnall Davey, 2015). The management may never learn about the negative impacts of the strategies and possible particular of a failure in the management in the future. In case, the employees may need to something from the management as an additional requirement for the implementation of the indemnity or strategy the management may appear either sensh(p) or directly reject the request. There lacks a vulgar kin between the employees and the management. Instead, the organisation faces a source relation problem that in, this case, skewed towards the management. Unfortunately, the management works towards discouraging a possible equilibrium of the power relation between the two levels. In the long run, the organisation is march to perpetually bring forth from management challenges and perhaps a collapse in the future resulting from perpetual losses.Contrary to a stupid despot, Foucault commented on how a true politician should behave. In his comment, he posited that a true politician binds his slaves more strongly with the chains that go down with their ideas. In this case, enchaining the slaves in their ideas would contemporarily mean managing the slaves, according to the management and ideas that they propose. Instead of grilling them with iron chains, a true politician should enchain them with their ideas to ensure that they are beneficial to him. Logically, if one manage people according to their ideas, despite being their boss, he or she will benefit from their labour owing to the increment in their morale based on the appreciation of their ideas in managing various situations. Therefore, both the organisation and the employees would equally benefit.Managing people according to their ideas reduces the communication gap. Through managing the people accordi ng to their proposals and ideas in the contemporary organisational management, the organisational manager creates a working surround that encourages the contributions of the employees at any point in the course of management (Iqbal, Anwar Haider, 2015). Therefore, the employees feel free with the management to turn over their ideas in the firm management whether it opposes or supports the strategies proposes by the management. Logically, the proposals may not necessarily be the beaver in the organisational management regardless of the position of the proposer. The reduction of the communication gap thus, creates a platform that encourages the discussions from all the stakeholder on what is the best for the firm (Tatnall Davey, 2015). The input of all the stakeholders is likely to come up with the best strategy that would ensure organisational growth and increase the reputation and the productivity of the firm. Additionally, the reduction of the communication gap creates a platf orm where all the employees can easily communicate with their manager regardless of their job position. In this case, the management levels would easily learn about the challenges that are faced by the junior level employees, thus, resolving them as soon as they arise. Managing employees in the context of the organisational management, according to their ideas and opinions is, hence, beneficial for the organisational growth.Similarly, the management that appreciates the contribution of all employees in an organisation significantly reduces the employee turnover. In an organisation, most employees despite working with the advise of earning a living, they similarly work to develop their career (Valcour, 2014). An organisation that appreciates the contributions of the employees regardless of their position at the organisation motivates the employees towards working to develop their careers. Employees would feel motivated if the organisation has implemented his idea as part of the sol ution to a certain problem or as a strategy to maximise their output and minimising the inputs. In the long run, appreciating the contributions of the employees and the act of involving them in making detailed decisions for the organisation enables them develop loyalty towards their employer. For an employee who has been hardworking and has been contributing positively regarding the strategy, formulation may be promoted from one job position to other. In this regard, the employees will have advanced his careers at the firm. The loyalty reduces the extents of employees resigning and dismissals due to a mutual relationship between the two levels of operation.Notably, managing the employees in their ideas creates a concept of teamwork. unity of the ideas in which organisations should strive to achieve is the culture of teamwork. Through teamwork, the organisation is in a position to solve complex managerial situations. Through teamwork, the employees can combine their knowledge, sk ills, techniques regardless of their positions in the organisation and come up with the best strategy that would enable the organisation to solve the problems that are faced. In the context where management encourages works within the principles of democracy, employee develop loyalty towards the organisation therefore, they are ready to work with other employees regardless of their level in the rank of job positions to contribute to the ultimate success of the organisation (Rosen, 2014). Unlike in the management context where the manager has the final say, the democratic organisational management encourages the employees to contribute to the ideas to the management or hold discussions within themselves or together with the levels of management to come up with the best ways of managing certain situations. It should be celebrated that in the context of a dictatorial leadership, there is ofttimes a cycle of a dictatorial level of management. For instance, most of the levels of managem ent assimilate directives from the senior management for implementation. Therefore, even if the junior level employees who are evaluate to implement that strategy report negative impacts to their immediate boss, he or she cannot report back to the senior manager because he or she would not take the challenge. Therefore, organisational management should encourage democratic leadership that creates an enabling environment for teamwork.In conclusion, as commented by Foucault, a stupid despot who, in this case, is the organisational manager enchains his slaves with the iron chains, therefore, barring them from serving him efficiently. On the other hand, a true politician chains his or her employees with their ideas and opinions which, hence mean that he manages them according to their ideas. In the contemporary organisational management, there are two types of organisational leader just as posited by Foucault in his stupid despots and true politicians analogy. The two types of organis ational managers are dictatorial and democratic. Majorly, democratic management is advantageous to dictatorial management. Through democratic management, the employees are empowered to make their contributions to the management on how they commit the firm would achieve the goals and objectives. In this case, the management creates a platform of contribution, therefore, it is an inclusive type of management. Dictatorial management, on the other hand, is a scenario where one man runs the show. Most of the employees are discouraged from making their contributions which to a larger extents affects their morale negatively, thus, reducing the productivity of the organisation in the long run.(Word count2502)References(Sr), B. H., 2007. A Study of T for each oneer-perceived Differences in the Leadership Styles of African-American and Caucasian Principals. 2nd ed. ProQuest Michigan.DePaul, V. C., 2008. Creating the Intrapreneur The attend for Leadership Excellence. 1st ed. Texas BookPros, LLC.Foucault, M., 1977. Discipline and Punish. 2nd ed. red-hot York Vintage Books.N, I. N, A. S. . H., 2015. make of Leadership Style on Employee Performance. Arabian J Bus Manag round open access journal, 5( 5 1000146), pp. 1-6.Rosen, N., 2014. Teamwork and the Bottom Line Groups Make A Difference. 1st ed. Abingdon-on-Thames Psychology Press.Tatnall, A. Davey, B., 2015. Reflections on the History of Computers in Education beforehand(predicate) Use of Computers and Teaching about Computing in Schools. 1st ed. Berlin springing cow Science and Business management.Valcour, M., 2014. If Youre Not Helping People Develop, Youre Not Management Material. Online Available at https//hbr.org/2014/01/if-youre-not-helping-people-develop-youre-not-management-materialAccessed 22 run into 2017.Richard Kuklinski The IcemanRichard Kuklinski The Iceman accessionAt 700 he his awoke by the sound of his alarm clock. It was clock to get his children ready for school. Richard Kuklinski walks down the staircase and sees his lovely family around the kitchen table. He kisses his wife Barbara on the check and continues to say good morning to his ternary children Merrick, Christin, and Dwayne.After getting ready, he drops his children off at their prestigious close schools and is off to work. To an outsider, it may seem that Richard has always bouncingd an ordinary behavior. But smallish did they know, he was a deadly and infamous murderer. He thought of cleansing as a hobby and had absolutely no compunction for the frightful and cruel deaths he caused.II. FACTUAL BACKGROUNDA. Early LifeRichard had a horrific childhood. He was born at 222 Third Street in Jersey City, New Jersey, to a Polish family and was destined to live a hard and lonely life. His family was poor and highly dysfunctional. His vex, Stanley Kuklinski, was a horrible, abusive get under ones skin that Richard would only grow to hate. His mother, Anna, had no emotional attachment to any of her children at all.Violence was a daily occurrence in the Kuklinski household. Stanley would beat Anna and her children until they bled, and the pluralitys of the approximation were always causing fights with Richard. When Richard was just five years old, Stanley beat his older brother, Florian, to death. Richard vowed that he would one day kill his father and make him keep going the way he had suffered his whole life.Richards life was an uphill booking as he grew older. He was constantly teased at school and beaten up by boys in the town. He was forced to withdraw for food and many nights he went to bed hungry. He began stealing cars at the age of thirteen and set up his only joy in life by reading crime magazines that he stole weekly. Inside, he was very lonely and grew up never knowing what love and friendship in truth meant.He was constantly tormented by a syndicate called the aim boys and never had the courage to fight back, till one day when the exhaust in his eyes took over. Richa rd unyielding to go for the head of the gang, Charley Lane. He hated Charley about as much as he hated his father and fixed to grab a bat and hunt him down. When Richard in the end found Charley he struck him in the head without hesitation.He went down like a ton of bricks and Richard became nervous. He checked for a pulse and there was none. He decided to throw Charleys dead ashes in a pond under the Pulaski Skyway. Richard had killed for the first time at age thirteen. He felt powerful and invincible. He agnise he wish cleanup.B. The Coming Up RosesRichard then developed vicious pastimes. He took great(p) joy in the cleanup of animals. He would tie two cats tails together and hang them over a peal wire and watch them claw each other to death. He also like to put stray cats in the incinerator and watch them burn to death. A strong rage grew inside Richard and he yearned to kill more and more.He went from a weak, little boy to a hard man in just a a few(prenominal) day s. Richard was very eager to fight and often picked violent fights with men in bars. He was dangerous, willing to stab or beat anyone in his way. Word spread about his fearlessness and a gang called the Coming Up Roses was looking to invite him in. Richard gladly reliable and the five boys began to terrorize the citys streets.The second man Richard killed was a cop anatomyd Doyle. He was very rowdy and a loud-mouth, Richards two least deary qualities. The two men began fighting and Richard decided to afford the bar and wait for Doyle outside. Richard unnoticeably followed him to his car, where Doyle passed out drunk. This was Richards golden opportunity. He bought a quart of gasoline and poured in all over the car. Then, he lit a match from a safe distance and threw it on Doyles lap. Richard laughed as the car exploded and Doyle burned to death. The police investigated Doyles murder but found no suspects.The Coming Up Roses gang began committing more and more crimes and had accu mulated a variety of guns, knives, and explosives. They began to receive concern from the De Cavalcantes, the most notorious mob family in New Jersey. A make man in the family, Carmine Genovese (also known as Meatball) decided to approach the gang. He had them over for dinner and asked them if they would be interested in cleanup a man for him. The gang agreed and gang member lavatory Wheeler decided to be the gunman.The gang drove to capital of Nebraska Park where the mark lived and saw him getting into his car. When it was time to shoot John became nervous and froze. Richard instantly took the gun and shot the mark in the head, parkway past as if nothing happened. Meatball was impressed and began to give the gang a lot of work.They received a lot of money and began putting to death more and more. Richard decided to move out of his mothers house and live with his new girlfriend Linda. Richard had grown to become very handsome and was grand over six feet tall. Linda was twent y five years old and want Richard until he began beating her. Then she just began to fear him.Richard began to love killing people and the idea of being able to decide when a mans life ends. He would walk through Manhattan and shoot the homeless men for fun. He killed them brutally knives jammed into the brain, slitting the throat, tying a rope around their neck and hanging them off of his shoulder as if he was a tree. The police never suspected him of anything, and thought these bums were just killing each other.Richard was now a serial killer at only eighteen years old. One day, Albert Parenti, another made man in the mob and a friend of Carmine Genovese, approached Richard. He told him that two of his gang members, John Wheeler and Jack Dubrowsi, held up a mafia burn hook game and now had to die. He wanted Richard to do the job. Richard knew if he did not kill his two friends he would be killed himself, so he legitimate the job and killed his two best friends.Linda became pregnant and Richard decided to marry her at City Hall, but Richard knew he did not love her. He had no emotional attachment to her or their child at all. Though he continued to commit various crimes, Richards business was slow. His boss, Genovese, was sent to click and Richard was forced to search for new exhorts. He contemplated killing his father, but Richard says he could never find him. On strange detail in all of Richards killings was that he would take any decoct except killing a woman or a child. He said that anyone who does doesnt deserve to live.III. KUKLINSKIS KILLINGSA. A Contract KillerAfter he was released from jail, Genovese became Richards mentor. Richard was now a genuine mafia contract killer, making a living by killing marks for the mafia. Genovese gave him many brutal jobs and paid Richard to commit several murders. His first few killings from Genovese included a man in Chicago named Anthony De Peti for not being on time with his payments, a Cop named Jim OBri an for tricking Richard into delivering heroine, and a mob boss named Arthur De Gillio.Genovese also asked for some special requests during the killings, for example, he specifically told Richard that after killing Arthur De Gillio he must take all of his credit cards and shove them up his a**. He was also told to break bones one by one to ensure the most pain in the victims.Richards killing empire expanded and he became affiliated with other mob families, such as the Ponti family from New Jersey, and the New York crime families. Because of his Polish ancestry, he was never able to become a made man in he mob, so he worked as an independent contact killer for all mob families. He was head-connected through Genovese and was raking in the money. Until one day, Genovese was shot. The murder remained dissonant and Richard was left to fend for himself.B. BarbaraThe contracts were no longer rolling in and he was forced to take a job at a truck company. There, he met Barbara Pedrici, a beautiful Italian woman. She was 18 years old and Richard was now 26. They began blethering and their boss became angry, knowing Richard was dangerous. He decided to fire him to protect Barbara. Unfortunately, his blueprint backfired. Richard asked Barbara out on a date and immediately fell in love with her, but he was still unify to Linda.Fond of Richard, Barbara was angry that he was still married and he decided to get a divorce. They began seeing each other everyday and Barbara began feeling trapped by their relationship. Richard became violent and she was too afraid to break-up with him because she thought he would kill her. She soon became pregnant and Richard and Barbara married.Barbara knew he was violent but had no idea of his many brutal killings. He deiced to try and stay away from crime, in order to protect his family. But for Richard, this proved too difficult. Barbaras uncle gave Richard a job in pick out lab, where he began pirating videos and answerually got into the obscenity industry. He teamed up with his co-workers Paul Rothenburg and Anthony Argrila, who were supposedly connected to the mob.Richard owed them a lot of money and it didnt seem as if he would pay it back soon. Argrila and Rothenburg became angry and decided to call their friend Roy DeMeo. Roy DeMeo was a murder form and a picciotto in the Gambino crime family.C. Roy DeMeoOne August day in 1973, DeMeo found Richard and confronted him about the money he owed his two partners. Richard, unaware of who DeMeo was and his mafia connections, gave him an attitude and told him to mind his own business. DeMeo left and returned minutes later with his killing team, Joe Guglielmo, Anthony Senter, and Joey Testa. Richard was surrounded with guns pointing at his head. He was armed of course but knew these men were for real. If he killed them, the mafia would kill him and his family. The four men knocked Richard down almost to a sound out of unconsciousness.Richard said, they beat me go od, but I knew if I fought back theyd kill me in an instant, so I just took it. DeMeo realized Richard had a gun and admired that he didnt use it. He took it as a sign of respect and courage. DeMeo and Richard talked over dinner at the Gemini Lounge in Brooklyn, a popular mafia hotspot. twain apologized and DeMeo said he would like to do business with Richard. In essence, this event was Richards rebirth. He was able to quit his job at the film lab and survive on killing.He was making up to $40,000 for each mark he murdered. He would also enjoy making them suffer before their death and being able to kill them up close, so he could see the look in their eyes as they died. DeMeo and Richard were a murder dream team and they made the leader of the Gambino family, Paul Castellano, very happy. Paul also promoted DeMeo to a sgarrista, and gave him more and more power in the family. As DeMeos premiere killer, this in turn gave Richard more power.His deaths were notorious in the mafia famil ies, and his methods of killing were brilliant and gruesome. He always knew where to hatch the bodies and was never a suspect in any case. By this time, Richard had three children Merrick, Christian, and Dwayne. No one knew about his business and he was well liked around the neighborhood. He seemed like an ordinary family man that would never hurt a fly.In most of the murders he committed, Richard never even knew the victims name. He only knew one thing that they must die, and this was a good plenteous reason for Richard. Some of his most famous murders were Richard Hoffman, Gary Smith, Paul Rothenburg, and Henry Marino. He also started to use poison to kill his victims and always carried around his favorite poison with him, cyanide.Through his business, Richard met another contract killer, Robert Pronge. Richard said, The two most dangerous men I ever met in my life were Roy DeMeo and Bob Pronge. Pronge was a complete psychopath. At least Roy had some semblance of being traffi c pattern, but Pronge was way out theredangerous beyond belief far more dangerous than Roy. Robert Pronge drove a Mister Softee truck, which according to Richard was purely brilliant. They became good friends and acted as if they had known each other for years. Together, they came up with diabolical ways of committing murders and making their victims suffer.This led Richard to his next murder. He had stalked the mark for weeks and finally attacked. He used a tazer gun and then continued to tie his hands and feet. He took the man and headed to the woods in Bucks County, Pennsylvania. He took the mark to a cave filled with vicious rats and secured him to the floor. He took his knife out of his sock and began to cut his face, arms, and legs just enough for the rats to smell the blood. Richard set up a video camera and left as if nothing ever happened.Two days later he returned to the cave and saw only stained leaves where the man was. He picked up his video camera and watched the vid eo. He saw the rats flock to the victim and cover his entire body. He watched them pluck off his flesh and eat them alive. He felt no remorse for the victim and decided to take the tape to DeMeo and the DeCavalcante captain who had ordered the job. They love it and praised Richard for his work. They told him if he was Italian they would sponsor him to be inducted into the mafia in a minute.D. The bigger They Are, The Harder They FallShortly After, Richard received the most important murder contract of his life the killing of Carmine Galante, the head of the Bonanno family. He was out of manipulate and killed nine Genovese sggaristas. Every mafia family plotted and worked together to plan his downfall. DeMeo knew this would be a great opportunity for himself and Richard so he made sure the plot was flawless. Of course, everything went perfectly as planned and Galante had two bullets in his head thanks to Richard.This infamous murder introduced Richard to more and more connections. He was now receiving contracts from Sammy the Bull Gravano, underboss of the Gambino family and original friend to John Gotti. Gravano now had a special piece of work to do and he knew Richard Kuklinski was the man for the job. They met in a small parking lot and Gravano told him the marks name was Peter Calabro from Saddle River, New Jersey. For Richard this was just another day another job and he completed the murder successfully on March 14, 1980. Afterwards, Richard found out Peter was cop and never trusted Gravano again.Richard became well respected in the Gambino family and became friends with the Gotti family. On March 18, John Gottis youngest son, Frank, was killed by a car driven by John Favara. Nervous, John unplowed driving and went to his home shocked and afraid. He knew his life was now over. He had just dug his own grave. Richard, the Gotti family, and a few other accomplices were sent to capture Favara and tortured him to death. They then stuffed his dead body into a cardinal gallon drum.IV. THE POLICE INVESTIGATIONA. The IcemanRichard longed to create his own mafia and started his own breaking and entering gang. His partners consisted of Al Rinke, Gary Smith, Danny Deppner, and Percy House. This gang became a very important part of Richards life and ultimately would help cause his downfall.With the help of his gang, Richard received his nickname The Iceman. Richard called his only life-long friend Phil Solimene to help him with murder of Louis Masgay. He had come up with the brilliant plan of freezing the body to slow the decomposition. By preserving the body it would then be impossible to tie back to the actual time of death. Solimene and Richard took his body and dumped it in an ice polar well in North Bergen.Though this seemed like a normal murder to Richard, it would have severe consequences. Solimemene had a big mouth and told Richards gang about the murder. They in turn told their wives and friends who told their wives and friends. R ichards secrets had finally leaked out after almost 40 years.Pat Kane was a young state trooper and was deeply devoted to his new job. He was honest, forthright, and willing to put anyone behind bars who deserved it. In October of 1982, his boss called him to his office. There were over a hundred burglaries in northern New Jersey and one burglar in the gang had been captured. It was now Kanes job to talk to him and see if his information is true.The captured burglar was Al Rinke, and he gladly named all of his accomplices in order to save himself. He told them his accomplices were Danny, Deppner, Gary Smith, Percy House, and Big Rich. He was not sure of Richards last name and did not know where he lived. Richard had always made it a point to keep all of his information a secret. Kane asked Rink to point out all the homes they robbed and Rinke willingly obeyed.By the end of their conversation, Kane had completed an indictment with 153 charges against the gang members. He watched the homes of Deppner and Smith but they had never returned. He realized this hunt for the gang would be very difficult and devoted all his time to finding them.Meanwhile, Richard was still doing well. He had completed fifteen murder contracts in the last month and his lay was still as clear as crystal. He bough a garage-warehouse in North Bergen and an entire truckload of fifty-five gallon drums to store his victims. He started dismembering the bodies and fierce them apart at the joints. He liked this method and enjoyed leaving traces of a body all around New Jersey.