Excersise 1 Essay

Submitted By kapustinamd
Words: 2333
Pages: 10

Lincoln University, Oakland, CA

Ethical Degree in Financial Industry

Research Proposal
BA306- Business Research Methodology

Presented to
Prof Aytian

Team 2: Badamkhand Namsrai
Evgeny Miropolski
Marina Kapustina
Md. Kamal Hossain
Ranjeth Paulson
Shankar Thapa

Spring 2012
Table of Contents Introduction 2 Purpose 5 Review of literature 6 Definition of Terms 7 Problem Statement 7 Research objectives 9 Research Design 9 Methodology and Data collection 9 Data Analysis and Expected results 10 11 Researcher or research staff qualifications 12 Project timeliness and budget 14 Timeliness: 14 Budget: 14 Overview of expected results 15 Bibliography 15

In the last three decades, we have experienced certain increase in the frequency of financial crises that affected most of the globe. In retrospective, scientists trace their origin to small groups of decision makers that basically "gamble" with extremely sensitive financial systems and set up a chain of events that result in severe worldwide financial crisis. It seems they do not understand the full magnitude and sensitivity of the environment they operate in because they ignore ethical guidelines.
In the last of couple centuries, the global financial system has grown more and more sophisticated as the methods of communications evolved. Therefore, those financial systems have become highly interdependent. Since the introduction of the internet in the beginning of 1980’s to the wide population, financial systems have become a global issue. Over that time, financial systems evolved as well, it got enlightened and established itself as a scholar industry. It constantly changes and evolves into something different, mostly on a daily basis, becoming impossible to predict its behavior even in the short run.
Keeping this in mind, we need to remember those financial systems have profound meaning to the general population and impacts almost everything around us though most people neglect it simply because they don’t have much interaction with it. We need to remember that we are not wondering around with golden currency since almost all of our financial transactions are made through the very same financial systems named “The Banks”.
Generally Banks as they are are much respected businesses that basically live on the interest that they collect for their services and their work usually considered conservative and dull, that of cores until someone makes a little mistake that the very next day turns out to have vast nationwide or even global ramifications, all for the sake of profit. Then the government is intervenes and executes monetary protocols to save the day as a result of which we are ending up paying for it all in many forms. And there we are, facing an impossible and outrageous paradox, where the so called “for profit” business makes huge mistakes on the expenses of the general population, because when banks gamble right they enjoy fat bonuses but when they gamble wrong the population faces the loss. Those financial institutions are controlled and monitored by the government. But how can we really control an environment that constantly changes and is evolving? We can’t. Not really, because tomorrow, some midlevel executive in some bank will find an original way of bending those regulations, which no one ever could have imagine in their wildest dreams possible, and gamble with a 50% chance of securing a bonus and a 50% chance of catalyzing the next financial crisis.
Throughout a relatively short piece of history under discussion, we witness too many crises originated in the financial industry which effects could be felt way beyond the scope of that industry. According to the International Monetary Fund (IMF), there have been a growing number of financial crises in the world all of which were against the common belief of modern scientists and economists that stated: “Such events, according to our bell curved