Paper about Finance Debt, Derivative, and speculation on financial Essay

Paper about Finance Debt, Derivative, and speculation on financial instruments - Essay Example Debt financing is a tool employed by firms to raise capital and expenditure funds through sale of bonds, notes or bills to investors who may be institutions or individuals. The buyers are promised repayment of the principal plus interest on their investment and as such are creditors to the selling firms. The term ‘debt financing’ may carry some negative look but this tool of financing is really helpful in raising starting business to run operations. Even firms with very healthy balance sheets resort to raising working capital through debts. It is also known as leverage in financial terms. When used well debt financing may help firms take advantage of lower interest rates from financial institutions and as such obtain cheap capital. The firm has therefore obtained capital readily, is repaying at lower interest rates and the repayment is spread over a period of time. If carefully employed debt financing is a sure way to obtain capital and maintain ownership. After the obtaining funds from the lender the only obligation is to repay back with interest. The borrower has the advantage as they invest the funds in their business without any interference. Firms also enjoy the benefits of tax deductions on the borrowed funds as well as the interest hence if carefully invested debt financing is a cheap source of capital. However debt financing may come with negative effects if misused; the borrower is obligate to repay regardless of the macro-economic environment hence it can result in to bankruptcy and legal suits. The borrowed funds also have to be repaid with interest and it affects a company’s credit score. Another financial tool in the world of business involves financial derivatives. This instrument of finance is associated with an indicator of finance or a commodity and through these certain financial risks

Computer Incident Response Teams Are Needed for Controlling the Impact Research Paper

Computer Incident Response Teams Are Needed for Controlling the Impact of a Security Breach - Research Paper Example CIRT or Computer Incident Response Teams are especially those kinds of teams that are formed for the purpose of minimizing and controlling the impact of a security breach or other emergency (Brussin, Cobb, & Miora, 2003). They are also known as CERT (Computer Emergency Response Teams) and CSIRT (Computer Security Incident Response Teams), but they basically attempt to do the same in case of a computer security threat. This question can only be truly answered by predicting the trends in intrusion and the level of threats expected. Usually, the answer is yes to the above question since an organization rather be safe than sorry! With the increasing number of viruses, spyware, backdoors in the systems being detected, having a CIRT is a must for any organization having informational data on the computers. Before assigning the team and its task, the management needs to make a proper business plan in case of an incident. The plan includes all the details about the CIRT and all the information that the CIRT need to know. Furthermore, for the plan to be successful, the strategy must be feasible, approved and legally reviewed. "It is critical that practice emergencies are staged and response times measured. This would require financial and executive/upper management support and commitment to the CIRT need". (RHE, 2004) Policies regarding the computer system must be in place beforehand. The breach would usually occur when that policy is not obeyed, thus it is imperative to have policies so that the root cause of the problems can be found. These policies need to be documented and provided to every member of the organization so that everyone is aware of security guidelines and the procedures for emergency situations. (Lucas & Moeller, 2003)