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000-034 IBM Tivoli Monitoring V6.2.2(R) Fundamentals

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: 101 Real Questions

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IBM IBM Tivoli Monitoring V6.2.2(R)

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VoIP network management With IBM | killexams.com Real Questions and Pass4sure dumps

IBM company, headquartered in Armonk, long island, ranks among the few agencies that has created computing and communications improvements for over a century.

included in 1911 as the Computing-Tabulating-Recording company (C-T-R), the firm's predecessors can be traced to the Eighteen Eighties with inventions reminiscent of time clock to checklist a worker's arrival and departure time on paper tape, and the punched card equipment that become used to tabulate census information.

Thomas J. Watson, Sr., a former govt at national money Register enterprise, joined C-T-R in 1914 and famously insisted on "neatly-groomed, dark-acceptable salesmen," and a company center of attention on "tremendous-scale, customized-built tabulating solutions for large agencies".

His son, Thomas J. Watson, Jr., modified the company from maker of tabulating gadget and typewriters right into a pioneer of the computing industry, introducing the gadget/360 mainframe in 1964.

today, that focus has broadened greatly, with items that latitude from laptops to these huge mainframe programs, and a corporation that serves each consumers and small to massive organizations. IBM employs over 386,000 people worldwide, and, during 2007, recorded $ninety eight.6 Billion in salary.

To enhance their help of the Token-Ring networking expertise, IBM delivered NetView/computer in 1986, which elevated the network administration capabilities of IBM's systems network architecture.

IBM's community administration guide work changed into extra more advantageous in 1996 with the merger of IBM and Tivoli techniques, Inc., a leading issuer of programs administration utility for disbursed client/server networks. IBM's acquisition of Tivoli prolonged its network administration capabilities past the mainframe to multi-platform, allotted methods. These initiatives have been extra strengthened with IBM's 2006 acquisition of Micromuse, Inc., and its Netcool line of commercial enterprise community administration options.

The Tivoli utility solutions provided integrated visibility, control, and automation throughout numerous company and know-how belongings, therefore maximizing these property in help of community operations. These products handle a wide variety of community management challenges, together with:

  • Asset management: proposing a comprehensive view of all asset types across the enterprise, together with construction, amenities, transportation, and IT.
  • carrier administration: permitting corporations to extra with no trouble and correctly bring IT services together with technique and operational management items and most appropriate practices consulting features.
  • Server, community and gadget management: enabling an conclusion-to-conclusion view of the IT infrastructure for useful resource allocation, monitoring, and provisioning.
  • Storage administration: addressing the needs for attainable and authentic guidance.
  • protection management: aiding the crucial e-business challenges of automated id management and security adventure administration.
  • Mainframe administration: monitoring the health and applications for IBM z/OS and OS/390 programs.
  • another vital area that is supported by the Tivoli suite of application is the Netcool utility for service providers, which offers precise-time efficiency and service management for provider providers. IBM claims that over 1,000 carrier providers, together with all of the proper 20, count on this network management solution. This kit helps telecommunications, instant, cable, and information superhighway service providers in assembly each their latest and future service start challenges.

    Of special hobby is the service VoIP provider administration solution, which is designed to help all layers within the network and all links throughout it-from the core network to the client's premises-as a consequence quite simply managing VoIP features and preserving a high quality of experience (QoE) for the customer.

    The system monitors key performance and quality symptoms in true time, for metrics including utilization (busy-hour call attempts, minutes of use, and speak to locations); VoIP great (MOS), call clarity index, and speech pastime); call signaling (name completion cost, grade of service, and post-dial delay); service pleasant (availability, echo delay, and publish-dial extend); and subscribers (average salary per consumer, state of service routine, and open tickets), as proven in figure 1.

    A second Tivoli answer, the Netcool business VoIP manager, consolidates the administration of VoIP purposes, servers, and the underlying networking infrastructure, from PBXs to gateways. This gadget is designed to satisfy the requirements of each medium and large enterprises-in addition to managed provider providers.

    This offering is packaged with the Tivoli Netcool OMNIbus and Tivoli Monitoring products, and permits network managers to prolong their latest monitoring capabilities to the administration of VoIP technologies. This solution can scale to help enterprise environments of as much as a hundred,000 IP endpoints, and provides out-of-the-container help for both Cisco and Nortel VoIP environments.

    For Cisco environments, the enterprise VoIP supervisor helps Cisco name manager and Cisco cohesion, plus edge routers, gateways, and gatekeepers. For Nortel environments, the product supports communication servers, enterprise conversation managers, media gateways, far off gateways, and signaling servers.

    The system comprises real-time shows with multiple charts that reveal community utilization, ability, availability, and efficiency metrics, plus customizable old reports. it is designed to function with pink Hat enterprise Linux, Microsoft home windows Server, or Microsoft windows XP professional operating methods.

    additional particulars on the IBM architecture and items will also be found at 'http://www-306.ibm.com/software/tivoli/solutions/voip/" trend="text-decoration:none">http://www-306.ibm.com/utility/tivoli/options/voip/. Their next tutorial will continue their examination of providers' community administration architectures.

    author's BiographyMark A. Miller, P.E., is President of DigiNet service provider, a Denver-based mostly consulting engineering company. he's the writer of many books on networking applied sciences, together with Voice over IP technologies, and web applied sciences instruction manual, each posted by John Wiley & Sons.

    Article courtesy of commercial enterprise VoIP Planet, © 2008 DigiNet company, All Rights Reserved

    Mark A. Miller, P.E. is President of DigiNetB. business enterprise, a Denver-based consulting engineering company. he is the author of many books on networking technologies, together with Voice over IP applied sciences, and internet technologies handbook, each published via John Wiley & Sons.


    IBM Launches "competent for IBM energy & environment" Validation for company companions | killexams.com Real Questions and Pass4sure dumps

    Effort to aid purchasers establish options With precise-World, Documented power and atmosphere merits

    ARMONK, the big apple -- (MARKET WIRE) -- 02/05/09 --  IBM (NYSE: IBM) today introduced a new technical validation application to assist consumers effectively establish IBM enterprise associate choices that are designed and verified to give energy and environment benefits.

    the new "competent for IBM energy & ambiance" technical validation -- a first-of-its-form within the IT trade -- is designed to support IBM business companions validate, market and promote options bearing a special mark that assures shoppers the product or carrier has been carefully evaluated and proven to in the reduction of environmental influence according to precise-world client use.

    competent for IBM energy & atmosphere is open to any of IBM's almost a hundred,000 enterprise partners and is targeted to those which advance utility, hardware or features solutions that consist of IBM expertise or services and demonstrate consumer-documented, measurable sustainability benefits.

    IBM's validation process requires items and capabilities to fulfill stringent standards that tackle the reduction or use of elements akin to power, water and paper materials. These requirements, established by using the IBM power & atmosphere evaluation Board, are according to IBM's lengthy background of environmentally responsible practices in its personal operations, as well as wide experience in assisting customers worldwide handle energy, ambiance, and sustainability considerations and alternatives. All submissions may be reviewed by way of this board and IBM's corporate Environmental Affairs, which is offering assistance and input to the program.

    "We developed this application to help purchasers reduce in the course of the litter of self-labeled 'green solutions' and identify items and capabilities that present customer-documented environmental merits," mentioned Jim Corgel, standard manager of IBM independent utility vendors and developer members of the family. "This new software showcases solutions that are already reducing environmental influence within the box and should aid their company companions more desirable place themselves to satisfy valued clientele' power and ambiance desires."

    company partners that acquire the validation can market their providing as "able for IBM energy & environment" and take part in IBM-pushed advertising alternatives that consist of on-line marketing campaigns, talking alternatives, and free hobbies for customers and potentialities showcasing their in a position for IBM energy & ambiance solutions at any of the 42 IBM Innovation facilities international.Validated: capable for IBM power & EnvironmentAPC by means of Schneider electric powered, a world chief in crucial vigor and cooling functions, is one of the first business partners to get hold of the competent for IBM power & environment validation. The enterprise's InfraStruXure(R) facts core structure options thoroughly combine power, cooling and environmental administration inside a rack-optimized design. InfraStruXure important works with IBM Tivoli Monitoring utility to supply determination-makers extra visibility and handle of their IT infrastructure's energy consumption to aid enrich power efficiency.

    Combining APC InfraStruXure structure with IBM BladeCenter servers in the course of the IBM Scalable Modular information core offering, Rhode Island-based mostly Bryant institution decreased its electricity usage from 603,593 kWh to 480,000 kWh per year, saving over $18,000 yearly. moreover, the university consolidated its facts facilities from three places to one, decreasing the mandatory cooling ability from forty three to 25 tons.

    "IBM's ready for power & environment program is a compelling third-birthday party validation of the proven energy reduction advantages supplied by way of their InfraStruXure structure," mentioned John DiPippo, senior vice chairman of statistics center features, solutions and utility at APC. "With so a great deal hype around 'green,' it is vital for their potential clients to know they could confidently purchase InfraStruXure with IBM's validation."

    IBM Premier enterprise accomplice pink Hat has obtained the capable for IBM energy & atmosphere validation for its solution of crimson Hat commercial enterprise Linux 5 working on zVM and IBM gadget z mainframe. BNZ, one of latest Zealand's greatest fiscal functions providers, selected these technologies for its entrance-end IT ambiance to assist meet its company intention to turn into carbon impartial with the aid of 2010.

    because migrating to this solution, BNZ has reduced its datacenter footprint with the aid of 30 % by means of consolidating 131 sun Sparc systems and recorded a 33 p.c discount in heat output and a 38 % reduction in vigour utilization. apart from environmental advantages, BNZ plans to get hold of can charge benefits with approximately 20 p.c return on its investment anticipated over the life of the platform.

    additionally, IBM company companion KLG Systel Ltd. of India also has obtained validation for its energy administration device connectgaia.com it really is developed on IBM's open requisites-primarily based SOA structure, together with IBM WebSphere Portal and DB2 database utility.

    This internet-based providing enables energy buyers to MEASURE, VISUALIZE, ANALYZE, control AND shop(TM) electricity as hobbies take place right through their business. The gadget combines superior metering, sensors, digital inputs and digital outputs to assist customers akin to Aggressive Electronics develop into more energy productive with the aid of matching their cooling load to the IT gadget heat output on a real-time groundwork, decreasing overall energy use. Implementation of the gadget has helped save the company 12,252 kWh of annual power utilization and receive a return on its funding in just five months.IBM power & EnvironmentThe ready for IBM power & environment validation offers an opportunity for its enterprise companions to be a part of with IBM in providing more advantageous power effectivity and other environmental merits for valued clientele. moreover its enterprise associate group, IBM additionally actively gives elements to developers and works with dozens of bigger education institutions all over to promote next technology purposes and the abilities indispensable to boost power and atmosphere expertise options. as an instance, IBM developerWorks hosts The eco-friendly IT file, an internet repository for IT experts interested in learning about adding power efficiency into their options.

    With improved intelligence being infused into the style the world works, IBM is establishing new how you can help purchasers handle energy, ambiance, and sustainability concerns and alternatives. IBM's products and functions are focused not simplest on enhancing the direct power consumption and associated CO2 emissions of counsel know-how itself, but additionally making use of IT to aid remedy the area's energy and climate challenges.

    starting from energy-efficient IT hardware and energy-administration application to the clever Utility network Coalition, water management solutions, "greener" deliver chain choices, photo voltaic-energy research, carbon management consulting, smarter transportation methods, and extra, IBM's initiatives are responding to reaching international sustainability dreams in line with the company's core price of "innovation that concerns."

    IBM business companions can nominate solutions for the ready for IBM energy & environment validation athttp://ibm.com/isv/tech/validation/power.For more assistance on IBM's ideas and solutions to help construct a better planet, consult with:http://www.ibm.com/ibm/ideasfromibm/us/smartplanet/20081106/index.shtml.For greater tips on IBM's solutions to help purchasers go "eco-friendly andbeyond," see http://www.ibm.com/ibm/eco-friendly/index.shtml.


    000-034 IBM Tivoli Monitoring V6.2.2(R) Fundamentals

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    000-034 exam Dumps Source : IBM Tivoli Monitoring V6.2.2(R) Fundamentals

    Test Code : 000-034
    Test Name : IBM Tivoli Monitoring V6.2.2(R) Fundamentals
    Vendor Name : IBM
    : 101 Real Questions

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    Open source network monitoring and management tools | killexams.com real questions and Pass4sure dumps

    Andrew R. Hickey, Senior News Writer

    Network monitoring and management applications can be costly and cumbersome, but recently a host of companies have sprung forth offering an open source alternative to IBM Tivoli, HP OpenView, CA and BMC -- and they're starting to gain traction.

    The major commercial software vendors, known as the "big four," are frequently criticized for their high cost and complexity and, in some cases, are chided for being too robust -- having too many features that some enterprise users may find completely unnecessary.

    Many of the open source alternatives are quick to admit that their solutions aren't for everyone, but they bring to the table arguments in their favor that networking pros can't ignore, namely low cost and ease of use.

    "Open source is a huge phenomenon," Zenoss CEO and co-founder Bill Karpovich said. "It's providing an alternative for end users."

    Zenoss makes Core, an integrated IT monitoring product that lets IT admins manage the status and health of their infrastructure through a single Web-based console. The latest version of the free, open source software features automated change tracking, automatic remediation, and expanded reports and export capabilities.

    According to Karpovich, Zenoss software monitors complete networks, servers, applications, services, power and related environments. The biggest benefit, however, is its openness, meaning that users can tailor it to their systems any way they choose.

    "It's complete enterprise IT monitoring," Karpovich said. "It's network monitoring and management, application management, and server management all through a single pane of glass."

    Flexibility includedSome users have said the Tivolis and OpenViews of the world are hard to customize and very inflexible, but open source alternatives are often the opposite. They are known for their flexibility. "You can use the product as you want," Karpovich said.

    Nagios developer Ethan Galstad said flexibility is a major influence on enterprises looking to move ahead with an open source monitoring project. Nagios makes open source software that monitors network availability and the states of devices and services.

    "You have as an end user much more influence on the future of the feature set," Galstad said, adding that through the open source community, end users can request a feature they want, discuss the pros and cons and, in many cases, implement that feature within a relatively short time.

    And for things that Nagios and other open source monitoring tools don't do, end users can tie the tools in with other solutions to create the environment they want.

    "There are a lot of hooks," Galstad said.

    Another big concern for enterprises is the high cost of network management and monitoring solutions, where a large chunk of money is spent and not all features are used. With open source, Karpovich said, "you're not wasting a lot of money."

    Galstad agreed, adding that enterprises can save a bundle on licensing fees by implementing open source monitoring tools

    Along with Zenoss and Nagios, other open source network monitoring and management tools are gathering steam. The likes of Groundwork OpenSource, Hyperic and Qlusters offer open source alternatives. Some vendors have gained enough popularity that they are now being billed the "little four."

    Functionality variesKarpovich is quick to note, however, that the "little four" designation doesn't necessarily mean the vendors offer as much functionality as their non-open rivals. He plays by the "80-20 rule."

    "We'll do 80% of what they do," he said. "We never do everything they do because a lot of it is irrelevant."

    Ofer Shoshan, founder and CEO of Qlusters, maker of OpenQRM, an open source application and network management and monitoring tool, said recent interest in open source comes from growth in the industry and tools that can handle bigger deployments.

    "In the past, most of the open source tools were aimed at small installations; they were not enterprise grade," Shoshan said. "They were unreliable, unstable and couldn't manage large numbers of systems."

    Support is an issueSome open source monitoring tools offer a level of support now and can support large installations, but still there is some level of apprehension on the part of network pros that putting an open source -- instead of commercial -- tool in charge of their monitoring may not be the best choice, mainly because of a lack of service and support.

    "No serious CIO would risk his job deploying a solution that doesn't have service and support," Shoshan said. "He would have to be crazy. And many open source solutions out there didn't have enterprise-grade support and service."

    Galstad added that this lack of a "security blanket" could prompt some end users to shy away from open source alternatives.

    "There is no one person or one company to choke if something goes wrong," he said. "You might not be able to get the help that you need."

    "But for those who are willing to do a little research and work on their own," Galstad continued, "they're much more comfortable with digging into the problem and finding a solution."


    Tools for managing the desktop | killexams.com real questions and Pass4sure dumps

    Tools for managing the desktop
  • By Barbara Depompa Reimers
  • Aug 09, 1998
  • As federal agencies struggle to gain better control over the desktop computers on their networks, they are increasingly choosing products and services to help give them a global, enterprise view of all systems, down to the desktop level.

    The trend toward improving desktop systems management has become increasingly important as federal and private-sector organizations strive to maintain and upgrade ever-growing numbers of PCs. Also, the biggest savings possible today often come from improving desktop systems management.

    "With the total cost of ownership of a single PC hovering in the $10,000 range, any tools that help reduce that cost must be considered," said Joe Quigg, senior vice president of Computer Associates International Inc.'s Federal Division, Islandia, N.Y.

    Analysts say there are a variety of tasks required to adequately manage desktop systems in any organization. Among the key jobs are:

    * Asset or inventory control, which examines the precise content of each desktop computer, down to the operating system and chip level.

    * Automated software distribution, which delivers software programs and upgrades to users automatically from a centralized location.

    * Well-organized help desks, which provide support when something on a system goes awry.

    * Centralized backup and recovery, which, although not really a systems management issue, is nonetheless critical to maintaining PCs in any organization, said Jonathon Eunice, an analyst for Illuminata Inc., a consulting firm in Nashua, N.H.

    In a few cases, the struggle to adequately maintain PCs can become so great that some federal agencies decide to throw in the towel— passing control of desktop systems to third parties via seat management contracts. Typically, seat management contracts encompass a number of information technology services, including hardware and software acquisition, asset management, desktop and network management, operations management, support services and technology refreshment, among others.

    Federal users admit that seat management contracts do alleviate many of the headaches of PC ownership. That's because these desktop outsourcing contracts enable agencies to focus on their core missions. "We look exclusively to OAO [Corp.] to handle any problem JPL has regarding desktop systems," said Richard R. Green, program manager for desktop and network services at NASA's Jet Propulsion Laboratory in California

    But whether they decide to buy systems management software or outsource the entire desktop management task, vendors, analysts and current federal users say there are several options organization must consider when selecting a desktop management solution. That's because the leading suppliers offer a variety of approaches to help alleviate the desktop systems management headache.

    JPL's seat management contract covers 8,600 Mac and PC systems and includes options for managing Unix and network systems as needed in the future. OAO, Greenbelt, Md., is currently using Command/Post from Boole & Babbage Inc., San Jose, Calif., to manage JPL's desktop systems.

    Command/Post manages service levels; it doesn't perform desktop administration. "It's the operations of desktop systems that [are] important to us, especially when those systems contain mission-critical applications," said Saverio Merlo, senior vice president of marketing at Boole & Babbage.

    "Unlike Tivoli [Systems Inc.], CA and others, they don't focus on desktop management itself, only in the context of the desktop as a link in the chain. In their offering, service levels are determined by the weakest link in the chain," Merlo said.

    According to JPL's Green, OAO brings innovative systems management approaches that would have been difficult for JPL to implement but that are relatively easy for the contractor to add, such as remote network management and advanced systems administration. OAO officials said the company provides a complex integration of the best-of-breed tools to manage systems for their clients. "Many organizations throw money at tools, but it really takes three key things— people, processes and tools— to successfully manage all of the systems on a network," said Ed Blanchard, vice president of the Desktop Networking Service Division of OAO.

    For OAO, the first two components are as important as the third. "A fool with a tool is just a faster fool," Blanchard said.

    In all, JPL's seat management contract features 44 metrics by which OAO's performance is measured.

    Before JPL decided to outsource desktop systems management, Green maintains that such an ad hoc collection of computers made it difficult for anyone at JPL to get a clear picture of desktop computing costs. "But they know those costs were higher than what JPL is currently spending on this contract," Green said. By charging a fixed unit price to each user for each desktop computer, "it's quite visible now what each system really costs. And this helps users make informed decisions about adding more computers," he said.

    It's a Modular World

    But among those organizations that choose to continue supporting their systems in-house, some believe a modular approach to systems management is best. That's the reason the federal Drug Enforcement Administration (DEA) chose Tivoli's TME to help manage all its systems. The agency is convinced that Tivoli, Austin, Texas, offered the best systems management solution "because it's structured to enable us to choose the modules they need to put into place and still add other products, even from other suppliers as required for special security purposes, for example," said Ned Goldberg, chief of operations and support for the DEA's IT organization.

    The DEA has 5,000 nodes in a shared desktop environment, located in 450 sites throughout the world. But by 2002, the plan is for every desktop in the agency to have a PC, which would increase the total to 10,000 systems.


    Managing uncertainty | killexams.com real questions and Pass4sure dumps

    Managing uncertainty. Check it out:

    (New Straits Times Via Thomson Dialog NewsEdge) THEY have many outstanding statesman whom they revered. In my Form Six history lessons in the early 70s, one that fascinated me was Benjamin Disraeli, (British premier 1804-1881). One of his famous statements was: "What they anticipate seldom occurs; what they least expect generally happens". This quote has a lot of relevance to the art and soul of risk management because its fundamentals are not complete without the understanding of "uncertainty" or "unknown". Indeed, risk is all about the uncertainty of risk occurring. If they know the risk will occur, they will not do the deal or execute the operation.

    The fact is that they do not know, and only hope that it does not occur.

    For this reason, they diligently apply all the known ways of managing the uncertainty of risk occurring. Obviously, it is not easy to prevent the risk from occurring, especially if it is something beyond their control. But if it does occur, the negative impact would be minimised to that they could accept or live with. After all, they are not too concerned about the risk per se. Rather, their focus is on the impact of the risk that may be negative for us. If the impact is positive, or they gain from the risk, then of course that would be welcomed. WHAT CAUSES UNCERTAINTY? Uncertainty crops up because of few factors that haunt their mindset, attitude or opinion. They include: * Uncertainty due to poor overall decision and wrong opinion: The feeling that the option or decision they take would be the wrong one; * Uncertainty due to rationale or relationship: The rationale or relationship of the issue being studied might be seen from the wrong perspective where they may have inadequate parameters; * Uncertainty due to doubt in the analysis process: The model/guide-values for their evaluation of the issue may be irrelevant or wrong; * Uncertainty due to inadequate sampling: The statistics that they use for the assessment of the subject matter might be insufficient, unrealistic, incomplete or outdated; and * Uncertainty due to errors and biases: The analysis done for the samplings taken might be tainted with errors and poor human judgment.

    The above five factors causing the doubt. The elements of unknown/uncertainty in us can turn haywire to their risk management programme. To minimise such unknown, it is vital to ensure that these issues are adequately addressed.

    RISK OCCURS FROM THE UNKNOWN. It is not easy to manage unknown events, as some of the risks are beyond human controls, such as flood, earthquake, tornado and robbery. However, managing the negative financial or non-financial impact might be easy to strategise. For example, they can keep all their precious assets on higher floor, so that should a flood still occur after a heavy rain, the negative financial impact and damage by water would be minimised. Or they would install an alarm system in their premises so that should the robbers came unannounced, they might abort the raid because the alarm bell was triggered. Thus the risk of robbery is mitigated. Assuming they have taken the burglary insurance cover, should the robbers succeeded in carting away the valuables, they would have the financial loss minimised because they have insured the valuables and could claim back the amounts from the insurance company.

    THE PAST AS GUIDES TO MOVE FORWARD. Machiavelli, an Italian philosopher and statesman who lived from 1446 to 1507, once said, "Wise men say, and not without reason, that whoever wished to foresee the future might consult the past." More often than not, risk managers rely a lot on past data and historical events to chart forecast and assess the various risks inherent in any organisation. A lot of truth prevailed in the quote by Machiavelli. In some instances, history tends to repeat itself because the same kind of risk could surface again at some later time, if such risk is then not effectively managed using the lessons learnt from the past risk occurrence. RISK MANAGEMENT IS A PROACTIVE ART. Of course, they must be mindful that risk management is not about history alone. It should have balanced proactive feature - using the previous risk occurrences to predict what would happen in both the short and long period in the future. It is not a fallacy to state that risk management is about moving forward. It is about preparing and predicting the future state of events and operations using past patterns or historical trends in supporting such predictions.

    SIX WAYS TO TREAT THE UNKNOWN. How do they treat risk? There are many ways, but the more popular options are: i) Avoid. They can simply avoid the risk and do not do the deal. But this is not really risk management since there will be nothing to manage anyway, given that the transaction or operation is aborted. But not everything is as simple as that. There are risks that they have to face everyday, and as part of their way of doing the business and operations. ii) Share. They can share the negative risk impact by putting up a strategic alliance, joint-venture or merging their smaller outfits to bigger outfit that can withstand more risk or cushion the negative impacts. There is truth in the adage of "strength in unity" and the bigger the size, the stronger it should be. iii) Transfer. A good example of risk transfer is using insurance. An insurance policy taken to cover the damage and loss by fire would provide comfort to the property owner as he would be able to receive the financial compensation benefits from the insurance company. However, not all risks could be insured. They are still left at the mercy of the non-insurable risks. So, the need to ensure that they have a good risk management plan to address those non-insurable risks is very critical for the success of any organisation. iv) Reduce. They can reduce the likelihood of the risk to occur, and minimise the negative impact of the risk by either cutting down on their exposure or involvement in the operations.

    v) Accept. Many risks that haunt us are common day-to-day events that cannot be avoided, which they address as the cost of doing that kind of business. They need to accept those risks as a normal way to do the business. An example of this kind of risk is a supermarket's cashier with a minor cash shortage at the end of the day's takings. vi) Prevent. Some forms of risk can be prevented from occurring. For example, theft of valuable asset from a strong room is a risk. One way to prevent this is to ensure that no one can enter the strong room alone, and a closed-circuit TV must be installed for monitoring purpose. There must be at least two people holding the keys and going in at any time. The writer is chief risk officer of a commercial bank and author of Enterprise-wide Risk Management Made Easy. He can be reached at e-mail: jerwin001@hotmail.com. Part two of this article will appear next Saturday.

    Copyright 2006 The New Straits Times Press (Malaysia) Berhad. Source: Financial Times Information Limited - Asia Intelligence Wire.



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