Trending February 2024 # Introducing Edna 1.0 Our New Educational Chat Bot # Suggested March 2024 # Top 8 Popular

You are reading the article Introducing Edna 1.0 Our New Educational Chat Bot updated in February 2024 on the website We hope that the information we have shared is helpful to you. If you find the content interesting and meaningful, please share it with your friends and continue to follow and support us for the latest updates. Suggested March 2024 Introducing Edna 1.0 Our New Educational Chat Bot

For those of you who are not aware, we have recently launched an exciting initiative at Enterprise DNA. 

Recently, we have been working hard to create and deliver a brand-new educational chat bot. We call our chat bot Edna as a unique play on words of our company name. 

At Enterprise DNA, we have a lot of content and resources that we make available, covering nearly every area of Power BI development you could imagine, so we thought it’s a great idea to provide a way for those connected to us to navigate contents that are relevant to them. 

And with the emergence of great chat bot technology, we realised that there was a great opportunity to create virtual discussions and conversations with our connections throughout the Power BI community. 

Also, the idea of being able to pre-program a bot that is specifically targeted at helping Power BI users learn more about a whole variety of tips and techniques was a challenge that we thought was worth pursuing. 

Edna is pre-programmed to look for keywords that you enter into questions. On our current 1.0 version we don’t have any natural language programming built into the bot. We are hoping to be able to comprehend a variety of different ways you can ask exactly the same thing in the near future. 

So the best way to benefit from utilising Edna is to just type in keywords for the topics that you want to learn more about. You will find that there is extensive answers that have been created by the team at Enterprise DNA. 

We are hoping that you can use it now as an education tool, so you can use the inputs that Edna provides to learn more about Power BI and also be directed to many of our examples and resources that will enable you to master Power BI effectively. 

Edna is learning every single day. For every question you ask that Edna does not know now, we are working in the background to teach her how to answer it next time. 

Currently we have well over 3000 answers built into Edna. But this will grow quickly as more users utilise the bot as an educational and conversational tool. 

We are also continually working on the technology and upgrades to the bot. So hopefully we will be able to comprehend many different ways questions and conversations are generated on our website. 

It’s really exciting what Edna could turn into in the very near future when more and more of you connected to Enterprise DNA decide to utilise it. 

We are hugely invested in making it a success. So, I really recommend diving in and utilising her in the near future and trying to extract the education and answers that you need. 

We want to understand how users are finding it and we want to learn quickly where we can improve it, so if you have any feedback you will find a form on the Edna Web page. 

This is a really exciting development for us so hopefully you can see the significant effort we made into creating Edna. Also, definitely start utilising this resource that we have developed for you. 

Edna 1.0 is just one of the many exciting developments we’ve got going on at Enterprise DNA. I’ve enjoyed showcasing this one to you and look forward to telling you about many more in the near future. 


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A New Climate Report Finally Highlights The Importance Of Our Decisions

While the goals of the The Intergovernmental Panel on Climate Change (IPCC) report have been more or less the same since its inception in the 1990s—to underline “the importance of climate change as a challenge with global consequences and requiring international cooperation”—its exact content has varied throughout the years. The last iteration of the report, released in 2014, listed population growth as one of the major factors behind climate change, something the scientific community now adamantly rejects.

This week, the IPCC released the third and final part of the latest version of the report, which focuses on the mitigation of climate change. It brings something new to the table: the importance of shifting society’s demand for products and services, and how that can lower emissions. This is the first time that the report has zeroed in on how people’s behavior can make a difference.

“This assessment report shows that many people care about nature, the environment and other people and are motivated to engage in climate actions,” says Linda Steg, an IPCC author and professor of environmental psychology at the University of Groningen in the Netherlands. “Yet they may face barriers to act, which can be removed by actions, for example, by industry, businesses, and governments.”

Demand-side mitigation, explained

While a lot of discussion about climate change and energy use is centered around replacing the energy we use currently with a cleaner substitute, the new report shows that by 2050, demand-side strategies (or ideas and technologies that could lower how much energy is required to keep the world up and running) could cut global greenhouse gas emissions by a huge chunk. 

The report analyzed 60 actions that could reduce individual carbon footprints, and found that the largest potential existed in individual motility—demonstrating that switching from a car to walking or cycling could save two tonnes of carbon dioxide equivalent per capita per year. Other choices, such as reducing air travel, shifting to public transport, and shifting  toward plant-based diets also make an impact. Of course, none of this is particularly groundbreaking—nevertheless, it still can be expensive and incredibly difficult for individuals to take these steps without support.

[Related: Climate action is a ‘now or never’ situation, IPCC warns.]

Lowering our demand on energy also has a lot of positive outcomes. The report found that Decent Living Standards (DLS), described first in the 1993’s Human Development Report as “capability of living a healthy life, guaranteeing physical and social mobility, communicating and participating in the life of the community (including consumption),” is entirely possible under a less energy-demanding system. For people in poverty or in low-income nations, demand-side reductions could also help increase access to low-emissions energy and better housing standards.

Another crucial thing about demand-side reduction mitigation is that it’s also within “planetary boundaries,” meaning the environmental risks are significantly smaller when we’re reducing a footprint versus building the infrastructure needed to keep supplying demand, according to the report. This could potentially even make certain technologies meant for removing carbon dioxide, like Bio-Energy with Carbon Capture and Storage, less relevant, the report states.

Of course, societal changes don’t happen overnight—and in reality, people need policies and support to make climate-friendly choices easy. 

We need policies to get us there

“Having the right policies, infrastructure and technology in place to enable changes to our lifestyles and behavior can result in a 40-70 percent reduction in greenhouse gas emissions by 2050. This offers significant untapped potential,” said IPCC Working Group III Co-Chair Priyadarshi Shukla in a statement. “The evidence also shows that these lifestyle changes can improve our health and wellbeing.”

[Related: Why is it so expensive to eat sustainably?]

Still, the report leaves out a chunk of Chapter 5 that had been leaked previously to the Guardian that included information on the social science side of climate change—or basically, how politics and high-carbon industries have made it more strenuous to take climate action. Their findings demonstrate how “vested interests,” such as the fossil fuel industry, have been pushing back against climate change policy through factors like “structural barriers, an incremental rather than systemic approach, lack of coordination, inertia, lock-in to infrastructure and assets, and lock-in as a consequence of vested interests, regulatory inertia, and lack of technological capabilities and human resources.” Basically, big players know plenty about the climate problem—it’s just that they haven’t done anything about it. 

“Back in the 80s, we believed in the information deficit model of social change, and that if we could only get the information to policymakers they would do the right thing,” atmospheric scientist Ken Caldeira, senior scientist for Bill Gates’s Breakthrough Energy, told The Guardian. “And now we see that really it’s not about information deficit, it’s about power relations, and people wanting to keep economic and political power. And so just telling people some more climate science isn’t going to help anything.”

Our 16 Best Home Services Marketing Tips To Get New Customers

For home services professionals, competition can be stiff. There are a lot of providers out there, and it can be hard to figure out the best way to stand out. Plus, the way homeowners think about and search for home repair and home remodeling solutions has changed over the last decade, so it’s important that home services companies, like plumbers, roofers, general contractors, home cleaners, and more learn how to capture the attention of today’s modern consumers.

That means that in order to market your home services business effectively, there are many different factors (and marketing channels!) to consider.

That’s a lot of places people are looking for businesses like yours!

16 best home services marketing tips

Let’s walk through each home services marketing tip in detail:

1. Invest in local SEO

Internet searches are the top way homeowners are finding a home services provider, according to our national home improvement consumer study. And, when searching for home service professionals on search engines, consumers are usually taking a local approach.

Searches with phrases like “electrician near me” are a regular occurrence. After all, an electrician five states over is not going to do you any good! That’s why it’s critical for home services professionals to have a presence in local search results.

This means that your home services marketing must include a local SEO, or search engine optimization, strategy that helps you get found in search results when potential customers are looking for your services in your area.

These businesses show in organic search results for “roof repair oklahoma city.”

Local SEO is just SEO that optimizes your website and online presence for local searches. This includes adding location-specific keywords to your website, optimizing your web content for the right keywords for your services, and managing your offsite local listings (which we’ll talk about more in a bit!).

Related: Get the steps for how to do local keyword research.

4. Use video to up your game

There’s no question that video marketing delivers messages more effectively in a shorter amount of time.

Consider these stats:

Video watchers retain 95% of a message compared to 10% for those who read text.

These stats illustrate why adding video to your home services marketing mix can help you reach and convert more consumers.

Related: Get YouTube video ideas that will work for your business.

5. Boost your home services business with better reviews

Getting your business found is only half the battle. According to our home services study, 70% of homeowners rely on recommendations from family or at least one review site. Plus, research has found that nearly 90% of consumers trust online reviews.

In other words, once a potential customer knows about you, you then need to convince them that your company is better than the competition–or you won’t be on their shortlist of who to call. As a home services business, your job goes beyond promoting your business to new customers, it’s also about getting existing or former customers to publicly sing their praises about your company.

You can encourage happy customers to leave reviews for your home services business on relevant review sites like Google Business, Yelp, and Angi. And, make sure you’re responding to reviews so happy (and potentially unhappy) customers know you’re reading and considering their feedback.

6. Build a user-friendly website

See more of the best plumbing website examples here.

You also want to make sure your site is clearly laid out and that your contact information is front and center. You’d be surprised by the number of home services businesses that hide their address and phone number away on their site. Instead, make sure that your contact details are in the header or footer of every page, so someone who’s looking for home services help in a rush doesn’t have any trouble getting in touch!

7. Add live chat to your website

One way to take your website to the next level is to add live chat. Live chat can help you quickly answer questions, provide details, and collect lead information so you’re able to provide a positive user experience for potential and existing clients on your website.

People prefer to use chat and messaging rather than calling a business, so if you provide live chat as an opportunity for them to reach out, you have a higher chance of converting them into a customer.


8. Manage your business listings

For home services businesses, business listings are extremely important. Not only do they help you get seen on search engines and help your local SEO, but they also provide an additional place to collect and manage your reviews.

Start by claiming your Google Business Profile so that you appear in Maps results and have a shot at getting featured in organic search results as well as the Google 3-pack. Business listings can be tricky for home services providers–especially when you don’t have a specific business address. So it’s important to include the most accurate service area for your business to increase your chances of showing up on Google for local searches.

Sites like Yelp, Angi, and others are places where consumers turn for assistance in finding local home services providers, so you want to make sure your business is listed in these places as well.

It’s also important that your home services business information is listed accurately and consistently in local listings to provide a positive customer experience and because consistency is an important ranking factor for your local SEO. Google looks at your business information across the web to determine the trustworthiness of the information they can find about you–the more sites have consistent information, the more credible Google finds said information, which, in turn, can give you a boost in search results.

9. Don’t underestimate the power of referrals

Referrals are a great asset for any business but can be especially powerful in the home services industry. Customers are looking for a business they can trust that they know will perform the work correctly, so many turn to friends and family for suggestions. We shared this stat earlier, but it’s worth repeating here: 70% of homeowners rely on recommendations from family.

You want to be that recommendation. This means that you need to incorporate asking for referrals into your home services marketing.

We detailed how to ask for referrals here.

10. Encourage Nextdoor recommendations

Nextdoor is a website (with an app) where people can connect with their neighbors, share items for sale (like Facebook Marketplace), and, lucky for you, ask for recommendations for home services professionals. This is a great way for people to discover your business from clients who have been happy with your work in the past.

First, you’ll first want to claim your business page on the app. Anyone can mention your business regardless of if you’ve claimed your business page, but this will give you more control over what people see about your business.

Then, you’ll want to ask your happy clients to mention you on Nextdoor and make sure you’re always providing the best possible service to increase your chances of getting mentioned!

For most homeowners looking for help from home services professionals, time is of the essence. You’re generally calling a plumber with an emergency need, not something that can wait a few weeks. In fact, our home services study found that 93% of homeowners get a fix in less than one week. No wonder research shows that 50% of consumers will do business with the company that responds to them first.

12. Focus on delivering great customer service

Once you’ve gotten noticed and made contact with your prospects, you want to be sure you follow through and deliver stellar customer service. From arriving on time to the job site to speedy and seamless invoicing, being on top of your game every step of the way helps you impress customers and develop a long-term, loyal relationship.

Great customer service can help you get repeat customers and good online reviews–plus it can encourage referrals, which are all key components for a great home services marketing strategy.

When you run a home service business, beating out the competition is all about getting seen first and staying in close communication throughout the customer journey. If you can do that, you can set yourself apart from other businesses that struggle to manage their communications.

This moving company sends a regular newsletter called “Smooth Moves” filled with content that would be relevant to its audience.

14. Engage your audience on social media

If your home services business hasn’t jumped on the social media bandwagon, now is the time. Not only is social media a great place for people to connect directly with businesses, but it’s also a place they’re spending a significant amount of time.

The average user spends 142 minutes on social media each day. That’s more than two hours every day!

If your home service business is absent from social media, you’re missing the opportunity to engage with this highly engaged audience.

You can use your social media pages to share:

Updates about your business

Positive feedback or testimonials

Helpful videos you create

Educational content you write or curate

Local events or causes

Your social media posts don’t have to be fancy–they just have to be consistent and engaging.

Related: Get social media post ideas for each month of the year by checking out our free marketing calendar template!

15. Grow your audience with a social media contest or giveaway

If you’re looking for another way to use social media for your home services marketing, a contest or giveaway is always a great option.

Facebook giveaways or Instagram contests can help you grow your audience, engage with your existing fans and followers, and promote your business.

To run a giveaway for your home services business, simply identify a prize your audience would like (perhaps a discounted or free service), create your contest post including your timeline and how to enter, set the post live, and choose a winner when it’s time!

We walk through these steps in detail here.

16. Add your branding everywhere

If your home services business doesn’t already have your branding wherever you can get it, now’s the time. Home services lends itself well to branding on vehicles, uniforms, equipment bags, and more.

Make sure that your branding includes a link to your website and your phone number so it’s easy for people to find more information about your business when they see your brand out and about.

Home services marketing made easy

With the right marketing plan in place, your home services marketing can be a breeze. Focus on building an online presence and delivering an amazing customer experience to get new business for your home services company. And, don’t be afraid to try new marketing channels and tactics to help you stand out and reach a new audience.

Here’s a recap of the top home services marketing tips:

Invest in local SEO

Use video marketing

Improve your online reputation

Update your website

Deploy live chat

Manage your business listings

Get referrals

Encourage recommendations on Nextdoor

Respond to prospective customers quickly

Deliver great customer service

Stay top of mind with email marketing

Engage your audience on social media

Run a social media contest

Get your branding everywhere

Stephanie Heitman

Stephanie is the Associate Director of Content for LocaliQ and WordStream. She has over 10 years of experience in content and social media marketing and loves writing about all things digital marketing. When she’s not researching the latest and greatest marketing news and updates, she’s probably watching reality TV with her husband, reading, or playing with her two pups.

Other posts by Stephanie Heitman

5 Best Discord Bot Hosting Servers (2023)

Best FREE Discord Bot Hosting Platforms: Top Picks!

Name Supported Languages Security Free Trial/Refunds Link

SparkedHost NodeJS versions from v12 to v18, Java versions 8, 11, 16, 17 and 18, and Python versions 3.6.x to 3.11.x. DDoS protection, 2FA and sub-user access 48 hour refund policy Learn More

Xgaming Server NodeJS, PHP 7.2 ,Java (OpenJDK 8), Python 2 & 3, C#, .NET, Lua 5.3, Golang. Anti DDoS protection 7 Days Learn More

Vultr Golang,Python,Ruby,Node.js PHP DDoS protection with multiple layers of cloud firewall protection. Yes, $250 free credit for first-time users. Learn More

Something Host Python, JAVA, Golang,Node.js and PHP. Anti-DDoS protection 14 Days Learn more

PebbleHost Discord.JS, chúng tôi Python, JAVA, Node and various popular frameworks. DDoS protection, 2FA, and a 2-step mitigation process for cyber attacks. 3 Days Learn More

Expert Advice:

“You should always choose a discord bot hosting service that provides the best available hardware, reliable customer support, scalability, wide language support, DDoS protection, and more. You should select a hosting service that offers precise resource usage statistics, identifies common hosting problems, and fixes bottlenecks with ease.”

SparkedHost is one of the best discord bot hosting service providers with in-built support for Git and GitHub. Users can efficiently manage their code for the discord bot and pull its latest request from the Git repository. It provides a live statistics feature with critical information on the main panel. You can easily modify all your server parameters from a centralized dashboard.

SparkedHost’s AI-driven systems help non-programmers easily host discord bots using custom panels and various pre-installed services. This software optimizes the server and the hardware to maximize performance for hosted discord bots.


DDOS protection: It has top-of-the-line security and safety, which protect your hosted services by preventing DDoS attacks in multiple layers of security.

Dedicated IP: It allows your Discord Bot Instances, stopping rate limiting from Cloudflare and Discord.

SFTP Access: All your files and data can be transferred with easy SFTP access from one point to another point.

Subuser Access: Multiple members can manage and work on your bot with Subuser Access.

👍 Pros 👎 Cons

Its paid addon allows users to fix errors and codes, install dependencies and update syntax with better efficiency. They have slightly slow customer support compared to their market peers.

All manual tasks can be scheduled for execution at a specific time automatically.

Data Centers are located worldwide, so you get the best service anywhere.


Free Trial/Refunds: 48 hours

2) Xgaming Server – Best after-sales support

Hosting servers of this software run on high-speed network connections giving fast Internet speed and almost uninterrupted services. Its multiple data centers are spread worldwide to ensure users get the server with the lowest ping.


Isolated Servers: All game servers run in isolated Docker containers, exposing end users to a beautiful, intuitive UI.

SSL Certificate: SomethingHost will deploy a free SSL certificate with open-source software “Let’s Encrypt”.

State-of-the-Art Hardware: Servers are hosted on top-of-the-line hardware to provide ample bandwidth and low latency.

Customer Support: Customer services are available via the email ticketing system.

👍 Pros 👎 Cons

Lacks data centers in Asia and Africa.

Instant Activation and easy setup help you come online within minutes of hosting your bot.

Provides robust plans for Minecraft hosting, Rage MP, and more.


Pricing: Plan Starts from $2.58 per month.

Free Trial/Refunds: 7 Days

3) Vultr – Best for small-scale applications and beginners

Vultr is one of the best discord bot hosting providers with native DDoS protection. Its security systems add additional layers of protection to keep your hosting infrastructure online and operating optimally. The virtual private cloud (VPC) allows users to segment instances in one or more particular regional points of presence, giving immense flexibility.

Vultr’s simple interface allows you to deploy high-performance servers using an intuitive and powerful control panel. Border Gateway Protocol helps relocate traffic if any data centre is unavailable, giving uninterrupted hosting services.


Snapshot System: Its snapshot system can create copies of existing servers and automate deployments.

Easy Integration: Many Linux-based operating systems and third-party applications can easily integrate all its services.

Firewall: You can deploy its cloud-based firewall solution in your hoisted bots to protect and prevent cyber and phishing attacks.

Identity Management: Simplify management of large teams by enabling identity management systems such as Okta and OneLogin.

Flexible Operating System Choices: Spin a new instance with your preferred operating system in seconds.

Customer Support: Customer service is available through ticketing, email, and documentation.

👍 Pros 👎 Cons

Server health graphs track and determine peak load instances on your bots.

Anycast routes the traffic to the nearest server ensuring faster content delivery.

Provides applications like Docker, GitLab, WordPress, etc., for a wide range of use cases.


Free Trial: Yes, $250 free credit for first-time users.

4) Something Host – Best platform for hosting large servers with easy scalability

Something Host’s robust subdomain system supports webhooks connections and network events on port 2000 using an easy-to-use, powerful interface. Users can run and host multiple bots simultaneously with its highly optimized server-grade hardware.

It provides strong security with protection by routing all networking traffic through its active solid and passive firewalls. Its AI-enabled DDoS filters detect attacks within seconds and actively work to defend against them. This service has a customized control panel to host your services, giving you an efficient performance.


Configurable Database: You can configure your own SQLite database or JSON files easily without any issues.

Linux Support: Discord hosting runs on an emulated Linux machine, so users can run Linux commands to install tools or packages your bot uses.

Cutting-Edge Hardware: Servers are built with top-of-the-line processors in the market to provide extreme performance for hosting.

Customer Support: A team of professional experts is present 24X7 to solve all customer problems.

👍 Pros 👎 Cons

Automatic daily backups are taken on all services. No free trial is available.

GameBoost, a unique proprietary technology, allows servers to start and respond within a few seconds.

It supports Minecraft and other popular games with separate servers with discord bot hosting services.


Free Trial/Refunds: 14 Days

5) PebbleHost – Best discord bot host for beginners

PebbleHost offers state-of-the-art protection with a built-in firewall manager that helps protect your data from DDoS and phishing attacks. This service provides cutting-edge hardware with native support for Intel Xeon processors, DDR4 ECC memory, and enterprise-grade SSDs for high performance.

PebbleHosting provides a built-in unique package manager for discord server bot hosting and allows effortless installations of all services and plug-ins. Users can use 2-factor authentication protection to comply with the highest security standards. The high uplink speed with the servers worldwide helps smooth response for users with minimum ping time.


Usage Statistics: Users can monitor, measure and optimise their hardware usage of servers with live usage statistics.

Customer support: Customer support is available through the product website and a discord server.

👍 Pros 👎 Cons

Fully automatic 7-days backup with built-in git management for all users. Lacks proper variety in pricing plans.

You get 3 MySQL databases and additional free open ports for starting your bot’s development.

It has an intuitive control panel to control and manage all its services.


Free Trial/ Refunds: 3 Days


Discord bot hosting allows you to easily create, host, manage, and maintain a discord bot. You can utilise the best discord bot hosting to build custom functionalities like Discord emoji makers and voice changers. These hosting services can also be used for a wide range of other use cases.

Some of the critical parameters that must be considered while choosing free discord bot server are:

FTP Access & SSH Support: File Transfer Protocol and Secure Shell let you connect to the server securely. All your files, Software Installation, and various other configuration settings should be directly accessible through a centralised terminal.

DDoS Protection: There are various cyber-attacks on Discord servers through distributed denial-of-service (DDoS) attacks, so a good host should have the latest security standards and protection.

SSD Storage & NVMe: To ensure your server doesn’t have any bottlenecks and can handle many requests, you’ll Discord bot hosting services should have fast storage through SSD and NVMe.

Reliable Support Team: A dependable support team should be readily available if you have any problems/questions about your Discord bot hosting server.

Scalability: A good host provides services to scale up/down depending on your needs so that users can customise their server for preferred RAM, storage, CPU, etc.

Best FREE Discord Bot Hosting Platforms: Top Picks!

Name Supported Languages Security Free Trial/Refunds Link

SparkedHost NodeJS versions from v12 to v18, Java versions 8, 11, 16, 17 and 18, and Python versions 3.6.x to 3.11.x. DDoS protection, 2FA and sub-user access 48 hour refund policy Learn More

Xgaming Server NodeJS, PHP 7.2 ,Java (OpenJDK 8), Python 2 & 3, C#, .NET, Lua 5.3, Golang. Anti DDoS protection 7 Days Learn More

Vultr Golang,Python,Ruby,Node.js PHP DDoS protection with multiple layers of cloud firewall protection. Yes, $250 free credit for first-time users. Learn More

Something Host Python, JAVA, Golang,Node.js and PHP. Anti-DDoS protection 14 Days Learn more

PebbleHost Discord.JS, chúng tôi Python, JAVA, Node and various popular frameworks. DDoS protection, 2FA, and a 2-step mitigation process for cyber attacks. 3 Days Learn More

Final Verdict

We have thoroughly searched and analysed a long list of free discord bot hosting services to find the most competitive and suitable one for you. Some services are comparatively better than their peers in some key areas. Our handpicked list of discord bot hosting services will help you make the right decision for your needs.

Besides, pebblehost is the bot hosting service for all use cases due to its correct balance between features and scalability.

Risk Management In Banks – Introducing Awesome Theory

Risk!!!!!!! Whenever we hear this word, we start panicking & thinking about what type of risk it could be, i.e., a physical or financial risk. As per the survey, it’s been found that a person or an individual has always feared losing something of value, which majorly consists of finance. And if we see today, not only an individual but also organizations fear losing their money.

As we all know, no one can grow or earn more without taking risks, but due to modernization, liberalization, and growing competition, the rate of risk and uncertainty has also increased. And this has created trouble for an individual and the banking sectors and financial institutions. In order to sustain and grow in the market, banks have to mitigate or curb these risks. Thus, the risk management concept has come into the picture, providing guidelines or acting as a roadmap for a banking organization to reduce the risk factor.

Below article will focus on quotients like what risk management is. What risks do banks face, and how do they manage through the risk management process?

What is RISK Management in Bank?

We all come across the word RISK in our life but have you ever wondered where this word originates from??? What is the origin of this word??? So, firstly we will discuss…

What Is Risk?

“Risk” can be a link to the Latin “Rescum,” which means Risk at Sea. Risk can be defined as losing something of value or something which is weighed against the potential to gain something of value. Values can be of any type i.e. health, financial, emotional well-being, etc. Risk can also be an interaction with uncertainty. Risk perception is subjective in nature, people make their own judgments about the severity of a risk, and it varies from person to person. Every human being carries some risk and defines those risks according to their own judgment.

What is Risk Management?

As we all are aware, what is the risk? But how can one tackle risk when they face it?? So, the concept of Risk Management manages the risk or uncertain event. Risk Management refers to the exercise or practice of forecasting the potential risks, thus analyzing and evaluating those risks and taking some corrective measures to reduce or minimize those risks.

Today, many organizations or entities practice risk management to curb the risk they can face in the near future. Whenever an organization makes any decision related to investments, they try to find out the number of financial risks attached to it. Financial risks can be high inflation, recession, volatility in capital markets, bankruptcy, etc. The quantum of such risks depends on the type of financial instruments in which an organization or an individual invests.

So, in order to reduce or curb such exposure of risks to investments, fund managers and investors practice or exercise risk management. For example, an individual may consider investing in fixed deposits less risky as compared to investing in the share market. As investment in the equity market is riskier than the fixed deposit, thus through the practice of risk management, equity analysts or investors will diversify its portfolio in order to minimize the risk.

How Important is Risk Management for Banks?

Until now, we have seen how risk management works and how important it is to curb or reduce risk. As risk is inherent, particularly in financial institutions, banking organizations, and even in general, this article will deal with how Risk Management is important for banking institutions. To date, banking sectors have been working in a regulated environment and were not exposed to the risks much. Still, due to the increase of severe competition, banks have been experiencing various types of risks, such as financial and non-financial risks.

The function and process of Risk Management in Banks are complex, so the banks are trying to use the simplest and most sophisticated models for analyzing and evaluating the risks. Banks should have the expertise and skills to deal with the risks involved in the integration process. In order to compete effectively, large-scale banking organizations should develop internal risk management models. At a more desired level, Head office staff should be trained in risk modeling and analytic tools to conduct Risk Management in Banks.

Risk Management in Indian Banking Sector

The practice of Risk Management in Banks is newer in Indian banks. Still, the risk management model has gained importance due to the growing competition, increased volatility, and fluctuations in markets. The practice of risk management has resulted in increased efficiency in governing Indian banks and has also increased the practice of corporate governance. The essential feature of the risk management model is to minimize or reduce the risks of the products ad services which are offered by the banks therefore, in order to mitigate the internal & external risks, there is a need for an efficient risk management framework.

Indian banks must prepare risk management models or frameworks due to the increasing global competition by foreign banks, the introduction of innovative financial products and instruments, and increasing deregulation.

Classification of Risks in the Banking Sector

      1. Credit Risk

Credit risks involve borrower risk, industry risk, and portfolio risk. As it checks the creditworthiness of the industry, borrower, etc.

It is also a default risk, which checks the inability of an industry, counterparty, or customer who is unable to meet the commitments of making a settlement of financial transactions.

Internal and external factors both influence the credit risk of a bank portfolio.

Internal factors consist of a lack of appraisal of the borrower’s financial status, inadequate risk pricing, lending limits are not defined properly, absence of post-sanction surveillance, proper loan agreements or policies are not defined, etc.

Whereas external factor comprises trade restrictions, fluctuation in exchange rates and interest rates, fluctuations in commodities or equity prices, tax structure, government policies, political system, etc.

How do banks manage this risk?

Top management consent or attention is crucial in order to manage credit risk.

The Credit Risk Management Process includes the following:

In a loan policy of banks, the risk management process should be articulated.

Through credit rating or scoring, the degree of risk can be measured.

It can be quantified by estimating expected and unexpected financial losses, and even risk pricing can be done on a scientific basis.

A Credit Policy Committee should be in each bank to review the credit policies, procedures, and agreements. It thus can analyze, evaluate and manage a bank’s credit risk on a wide basis.

     2. Market Risk

Earlier, majorly for all the banks managing credit risk was the primary task or challenge.

But due to the modernization and progress in the banking sector, market risks started arising, such as fluctuations in interest rates, changes in market variables, fluctuations in commodity prices or equity prices, and even fluctuations in foreign exchange rates, etc.

So, it became essential to manage the market risk too. Even a minute change in market variables results in a substantial change in the economic value of banks.

Market risk comprises liquidity risk, interest rate risk, foreign exchange rate risk, and hedging risk.

How do banks manage this risk?

The major concern for the top management of banks is to manage the market risk.

Top management of banks should clearly articulate the market risk policies, agreements, review mechanisms, auditing & reporting systems, etc. These policies should clearly mention the risk measurement systems which capture the sources of materials from banks and thus has an effect on banks.

Banks should form Asset-Liability Management Committee, whose main task is to maintain & manage the balance sheet within the risk or performance parameters.

In order to track the market risk on a real-time basis, banks should set up an independent middle office.

The middle office should consist of members who are market experts in analyzing the market risk. The experts can be: economists, statisticians, and general bankers.

The members of the middle office should be separate from treasury departments or in the daily activities of the treasury department.

    3. Operational Risk

Managing operational risk has become essential for better risk management practice.

Operational risk arose due to the modernization of the banking sector and financial markets. It gave rise to structural changes, an increase in the volume of transactions, and complex support systems.

Operational risk cannot be categorized as market risk or credit risk. This risk can be related to the settlement of payments, interruption in business activities, and legal and administrative risk.

As operational risk involves risk related to business interruption or problem, this could trigger market or credit risks. Therefore, operational risk has some sort of linkage with credit or market risks.

How do banks manage this risk?

Measuring operational risk requires an estimation of the probability of operational loss and the potential size of the loss.

Banks can make use of analytical and judgmental techniques to measure operational risk levels.

Risk of operations can be audit ratings, data on quality, historical loss experience, data on turnover or volume, etc. Some international banks have developed rating matrices similar to bond credit ratings.

Operational risk should be assessed & reviewed at regular intervals.

For quantifying operational risk, Indian banks have not evolved any scientific methods and are using a simple benchmark system that measures business activity.

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First Impressions Of Firefox 1.0 Preview Release

First impressions of Firefox 1.0 preview release

Firefox is my second choice for a web browser. Opera comes first. No doubts about that. But Firefox in itself is a pretty decent browser. My requirement from a browser has risen with my long time usage of Opera so I just cannot move on to Firefox. Especially when it is not even in a final version. Till now at least.

Firefox today got a preview release for the version 1. Not officially released yet but still it was an offer I was too reluctant to pass by. Downloaded and installed over my previous installations. First impression after installing? I made a big mistake. More than half of my extensions were disabled as they were not supported. Even my favorite theme was disabled… I was back to a boring looking featureless browser. Damn. Rolling back sounded like a worse option, so continued with the preview release.

3 things impressed me in this release. Though, still not entirely good enough for me to think about using it as a primary browser. Let me discuss in details.

Speed is good but features?

The browser is indeed very fast. Not in loading which surprisingly is slower than Opera on my machine. The rendering speed is blazingly fast… faster than opera perhaps but I am not going to use stopwatches. But well, apparently I do not like the idea of a bare-naked browser with extensions providing the required clothing. Moreover, with every version seemingly breaking existing extensions and skins (might change in the final release and later versions), I certainly think twice before upgrading. And when I do (as I did today), most of the time I have to start from scratch.

RSS integration

Firefox is supposed to be just a browser. So, how come it now supports RSS feeds! I am not complaining for the additional feature though… my problem is that the support is uninspiring. I love the RSS detector that shows a lovely icon in the status bar. However, it functions only when the site has a Meta tag pointing to the feed. Something like this:

Find Facility

Ok, forgive my innocence but I failed to notice the new Ctrl-F menu. And I cannot seem to make the famous Find as you Type functionality work anymore. Maybe, they disabled it with the popularity of GMail and shortcuts taking over the web that I believe conflicted with Firefox find as you type. Apparently, I do like the ctrl-f toolbar even though it does not seems to auto close by itself. Keyboard shortcuts can be complicated for new guys and this toolbar let me highlight a particular word. Not as good as a dedicated toolbar as it does not do multiple word highlighting and does not do search engine searches.

New Toolbar for Popup Blocking

Overall Opinion

It is of course a very important upgrade. But someone like me who wants features and stability out of the box would keep on using it as a second choice browser for sites that fails to work in opera. I just hope they improve on the RSS integration because it is not much fun unless it is implemented properly.

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