Research in business Assessment
Assessment task 3 requires the preparation of a full project proposal that should contain the following components:
A detail statement of the problem that you would like to investigate.
Research aim, objectives and research questions: What are the potential research objectives and questions that can address the problem?
Justification and potential output of the research project: Why is your chosen project important both theoretically and practically? What are the potential outputs and outcomes of your research?
Conceptual framework: An analysis of the literature relevant to the research topic that will give you the conceptual basis for conducting this research.
Methodology: Based on the conceptual framework, research aim(s) and objectives, you need to provide a detail description of the data collection methods and tools, data sources and the methods/tools that you will use to analyse the data.
Organisation of the study, project budget and schedule: Write the names of the chapters/sections of your research report, and briefly discuss what you will write in those chapters/sections followed by a brief description of budget for conducting this study and project schedule i.e., Gantt Chart.
This is an individual research task. You are required to demonstrate your understanding of the relevant body of works to a real-life business research. We expect you to read and reflect on at least twenty four recent refereed journal articles on your topic supported by any other evidence or information that can help refine the problem of your research, formulate conceptual framework and the methods of data collection and analysis. Please see detailed guidelines about specific research requirements on the unit Moodle site. You can write 3000 words maximum for this assignment.
Money and capital Assessment:
The task requiresstudents to research the story of Nick Leeson and write a reporton his futures trading and fraudulent activities which led to the collapse of Barings. Also included in this report will be explanations and discussion related to risk management and the fundamentals of futures contracts.
The technical questions have been sourced from Chapters 1 and 19 of the prescribed textbook (8th or 7th edition).
The report must be confined to:
9pages of text (i.e. no more than 3,000 words) in report format, plus
1 page for references (use only APA referencing) AND
1-2 pages for appendices
In summary marks are awarded for:
clarity of explanations demonstrating a well-planned report
useful paraphrasing from research material including the textbook
accurate APA referencing including in-text referencing and a reference list.
concise descriptions and correctness of responses
supported content with any diagramsor figures where applicable
demonstrations of your research initiativewith discerning references to the Nick Leeson story, Barings and related technical issues from newspaper articles, journals, professional publications and web resources (i.e. extracts from podcasts, YouTube clips, financial institutional websites, the movie ‘Rogue Trader’ etc.)
Assignment Task:
Case Study: In the mid 1980s, Nick Leeson landed a job as a clerk with royal bank Coutts, followed by a string of positions with other banks, he ended up at Barings, quickly making an impression, and promoted to the trading floor.Before long, Nick was appointed manager of a new operation in futures markets on the Singapore Monetary Exchange (SIMEX) and was soon making millions for Barings by betting on the future direction of the Nikkei Index. His bosses back in London, who viewed his large profits with glee, trusted the whizzkid. Leeson and his wife Lisa seemed to have everything: a top salary with bonuses of up to £150,000, weekends in exotic places, a smart apartment, frequent parties and to top it all they seemed to be very much in love.However, the futures trading orchestrated by Nick was in effect fraudulent and Barings wasn’t aware that it was exposed to any losses. [Source: Nick Leeson, Biography http://www.nickleeson.com/biography/]
Task:Demonstrate your understanding of money and capital markets and financial institutional risk. You are required toresearch and report on the Nick Leeson story and provide explanations for related issues such as the importance of institutional capital and risk management and the fundamentals of futures contracts.
Source material via Google, YouTube and / or academic and professional articles, and conduct comprehensive research on the Nick Leeson story and how his actions bankrupted the 150 year old institution, Barings. Begin your research with this YouTube Clip - The Nick Leeson Interviewhttps://www.youtube.com/watch?v=-KrIiZDgeLU after which you may enjoy watching the film ‘Rogue Trader’ to get a ‘Hollywood’ version of the events.
Then in report format:
Provide a background to the Nick Leeson story in relation to the Barings saga
Central to the story are futures contracts. Define a futures contract and describe the basic principles behind the use of futures contracts to manage risk exposures.
For investors and borrowers considering setting up a risk management strategy using futures contracts, there is a basic rule that determines the timing of the various buy/sell transactions.
Explain this rule [examples from the Nick Leeson story will be highly regarded].
Outline the procedure involved in buying a futures contract.
Indicate the implications of being long or short in a futures contract.
What are the procedures for closing out these positions prior to delivery?
Describe how the Barings management failed in their duty.
Explain why risk management is important to the long-term survival of a corporation including:
Define and explain the nature of risk and the purpose of risk management.
Discuss who is responsible for the establishment of risk management objectives, policies, procedures and strategies in a corporation.
In light of the Nick Leeson case:
Comment on the logic and reasons why risk must be identified, measured and managed.
Briefly explain the main functions of capital.
Provide an overview of the Basel II capital accord framework of three pillars which established the minimum capital required by a bank and incorporates risk components: credit risk, operational risk and market risk (i.e. define credit risk and explain how a bank calculates its minimum capital requirement.
Briefly describe / compare the different types of acceptable capital under the Basel II and Basel III capital accords.
Criteria
Measures of Excellence
HD D C P US F
Introduction The introduction provides a very clear purpose which ensures all areas relevant to the task are clearly outlined. In particular, the report demonstrates an ability to a) unpack the question and articulate the key concepts and b) provides an overview of the response to the question. 5 4 3 2 1 0
Organisation and structure
The ideas are arranged in an extremely logical, structured and coherent manner. Transition statements are clearly used as a guide from one section to the next. Arguments are logical, clear and convincing; establishing clear links between the literature, the argument, findings and conclusions. 5 4 3 2 1 0
Content / Knowledge 1
The Nick Leeson Story and how Barings management failed in their duty
In relation to Content / Knowledge 1, there is an excellent standard of analysis, appreciation and definitions of concepts. In particular, the report demonstrates a balanced and insightful level of detailed knowledge of core concepts by providing a very high level of analysis; research and examples, in a superior and supportive manner. 20 16 8 4 4 0
Content / Knowledge 2
Futures contracts – rules and usages
In relation to Content Knowledge 2, there is an excellent standard of analysis and appreciation and definitions of concepts. In particular, the report demonstrates a balanced and insightful level of detailed knowledge of core concepts by providing a very high level of analysis; research and examples in a superior and supportive manner. 10 8 6 4 2 0
Content / Knowledge 3
Risk management, purpose and responsibilities In relation to Content/Knowledge 3, there is an excellent standard of analysis and appreciation and definitions of concepts. In particular, the report demonstrates a balanced and insightful level of detailed knowledge of core concepts by providing a very high level of analysis; research and examples in a superior and supportive manner.
10 8 6 4 2 0
Content / Knowledge 4
Capital adequacy and overview Basel II and III In relation to Content/Knowledge 3, there is an excellent standard of analysis and appreciation and definitions of concepts. In particular, the report demonstrates a balanced and insightful level of detailed knowledge of core concepts by providing a very high level of analysis; research and examples in a superior and supportive manner.
10 8 6 4 2 0
Sources/
Evidence
Literature Supporting the Explanations and Scenarios
The student’s arguments are well researched and articulated.The student utilises current, appropriate and credible sources which strongly support the student’s’ argument and explanations. In particular academic and/or professional publications and/or media articles or source material [i.e. prescribed text plus at least 8 additional sources] have been wisely used to support the key points made in the report.
10 8 6 4 2 0
Referencing
Referencing accurate – per APA Reference Guide 5 4 3 2 1 0
Appendices Favourable attention has also been given to the Appendices and has been effectively used to present material that supports the discussions i.e comparison of ideas, chronological chart of key events. 10 8 6 4 2 0
Presentation Mechanics Quality of writing at a very high standard. Paragraphs are cohesive. Sections flow. The use of headings and sub-headings is effective and enhances readability. Correct grammar, spelling and punctuation. 10 8 6 4 2 0
Conclusion/ summarisation The document presents a clear summary of the ideas presented; drawing clear and well thought-out conclusions which wrap succinctly back to the directions outlined in the introduction. 5 4 3 2 1 0