American Gov1 Research Paper Example | Topics and Well Written Essays - 250 words

American Gov1 - Research Paper Example set out to prove this point and to have schools become integrated under the protection of the fourteenth amendment of the United States Constitution. The ruling of Brown v. Board of Education was the integration of public schools. This decision was important because it redefined what was or was not equal in the eyes of the law. The case and the final outcome brought to light the ill-interpretation of the Constitution. The thirteenth amendment had originally been construed to mean that equality from the view of the law could still be met through equal but segregated facilities (Patterson 2001). However, Brown was quick to point out the inaccuracy of the interpretation. They did this by making use of the fourteenth amendment, which speaks of complete and equal protection under the law. This meant that segregated educational facilities went against this law. The thirteenth amendment had been interpreted specifically to meet the needs of one group, yet the fourteenth amendment helped to show how the interpretation was inaccurate. Brown v. Board of Education impacted Americans as it meant that schools would no longer be segregated. America was slowly but surely becoming an equal and accepting country toward its own people, and the result of this case increased their efforts. Also, African-American children would be allowed to receive their education with students from other ethnic backgrounds. These students would get the exact same treatment and experience as their white counterparts. They were finally being treated with the equality that America had been boasting about for

Case Study: Audit Processes of a Computer Company

Case Study: Audit Processes of a Computer Company Introduction Internal auditing is a consulting activity on a company that is independent. It aims at helping a company/ form evaluate its managerial system, identify issues in the firm and control the process of governance. Therefore an internal audit helps in supporting the board in their duties of completing important businesses in the company. The main issues faced by the auditor is whether research and development costs expensed in establishing technological feasibility were properly expensed or capitalized when appropriate. A good audit plan when implemented improves business performances and increases sales in a company. Definitions An internal audit is a tool used in firms to evaluate how effective its management system is and its quality. An internal auditor is any person who is qualified enough to have a responsibility of performing the audit process Nonconformance is the situation where the practice of a company is in disagreement with the standard practices KCN Analysis of the Audit Strategies Section Purpose Audit Strategy OBJECTIVES OF THE ENGAGEMENT This lists the services to be provided by the audit firm to KCN. The aim of this process is to define Keyton Computers Networks Inks internal audit for the purpose of evaluating the companys effectiveness.This is the audit of KCNs financial statements for the year ended December 31, 2015, and the issuance of a letter of engagement. BUSINESS AND INDUSTRY CONDITIONS To evaluate KCNs business and the industry it operates in KCN sells and services micro-computers, networking hardware and software to different businesses. PLANNING MEETINGS Shows the meetings that have been made with the clients and CPA team One meeting so far held with client and one with engagement team OWNERSHIP AND MANAGEMENT Shows/ indicates who owns and manages the company. Owners: Terry Keystone, Mark Keystone, John Keystone, Keith Young, and Rita Young. Managers: Terry and Mark Keystone OBJECTIVES, STRATEGIES AND BUSINESS RISKS This establishes clients goals, how they planned to achieve it, and the commensurate risks, and how they planned to overcome these risks. The main aim is to increase revenues 110% and increase net income to112% for each of the next 3 years.   To achieve this there will be need to: (1) advertise aggressively, sell to customers with higher risk profiles, and to develop new software.    The primary risks involved are not being able to produce the desired results and exceeding increased sales with credit losses. Another possible risk is not producing products in the software development. MEASUREMENT AND REVIEW OF FINANCIAL PERFORMANCE These are the ways used for performance evaluation. The procedures include inventory and receivables turnover, aging of accounts receivable, and the total inventory balance. PROCEDURES TO ATTAIN AN UNDERSTANDING OF CLIENT AND CLIENTS OPERATING ENVIRONMENT This tells the procedures to be done so the auditors can understand the client and the clients environment. For this audit strategy, the auditor needs to 1) review the prior years audit, 2) make inquiries from management, 3) analyze KCNs minutes of its board of directors meetings, 4) evaluate performance reports, 5) analyze company website, 6) appraise industry reports, and 7) assess business newspapers including the Wall Street Journal. AUDIT APPROACH This defines the general plan to be taken. Just like last years audit, the accountants assigned to KCNs audit have to make a plan about the companys tests of controls to gauge whether its control risks are below the maximum for the identified assertions. SIGNIFICANT RISKS Primary risks identified by the auditors. The primary risks involved are not being able to produce the desired results and exceeding increased sales with credit losses. Another possible risk is not producing products in the software development, and analysis of the quarterly results showed significant bonuses awarded to officers. SIGNIFICANT ACCOUNTING AND AUDITING MATTERS This are matters of concern in accounting and auditing Two primary concerns exist: whether accounting for extended warranties is done properly and cost of software. PLANNING MATERIALITY The auditor computes the materiality threshold. Review of sales, total assets, and pretax net income, to plan for materiality, $70,000 was established as the measure. SCHEDULING AND STAFFING PLAN This is the audits schedule. It also identifies the human resources assigned to the engagement. This includes the target dates for each major section of the audit starting from the interim audit work up to the updating of the management letter.The firm budgeted 118 hours for the engagement. KCN Risks RiskImplications and Response The primary risks involved are not being able to produce the desired results and exceeding increased sales with credit lossesthrough the extension of credits to high risk customers This increases the risk of bad debt expense misstatement and the corresponding allowance. The auditors can revise their estimates on the value of an account, and ignore the procedures previously done. Bonuses for the clients officers There could be an increase in the risk of quarterly results misstatement to extract the maximum bonus for officers.Also this motivates the officers to work more for more bonuses. The auditors may respond by reducing the number of the staff as long as they can handle their duties, to reduce number of people receiving bonuses. KCN Capitalization of Software Development Costs For KCN, the auditor has to determine whether research and development costs including those expended to establish technological feasibility have been properly booked as expenses or capitalized wherever appropriate.The audit firm will then identify the point of feasibility for the software product.The primary risks involved are not being able to produce the desired results and exceeding increased sales with credit losses by selling to high risk customers. The implication of this factor is that it creates a chance for misstatement of bad debt expense and the allowance for bad debts. Moreover, auditors will either increase or decrease their evaluation of the worthiness of the accounts receivable and avoid relying on previously done procedures. KCN Ratio Analysis Keystone Computers Networks, Inc. Analytical Review of Financial Ratios For the Period Ended December 31, 20X5 Details of Computations of 2005 ratios Ratio analysis may be difficult when there are no major changes in ratios.   However, the following might be considered: Number of Sales in Accounts per day Changes in credit policy and customer mix Improved economic conditions Exaggerations of sales Understatement of purchases Turnover of Inventory Change in the policy of the inventory exaggeration of inventory Understatement of the commodities bought by the company As KCN competes with companies that are much larger than itself and some even older in the computer and software business, the economic pressure is a lot. Whether bor not the company succeeds depends on how it handles the competition, for example, being able to attain and maintain a qualified market. This may increase its growth in the software sector by up to 6%. Conclusion The audit process is an important part of a company. Using the ratios and factors above, the Keyton company auditing process was carried out.   The increased profitability level resulted to a number of ratios with significant changes.As mentioned in the first part of this discussion paper, the auditor needs to determine whether research and development costs are properly expenses or capitalized when appropriate. The auditors determined that accounting for research and development was followed and all it needs to do is to identify when the software product became technologically feasible. As stated above, implementing these policies from the auditors reports will increase the sales for example, up to 6% in software alone. This supports our thesis statement. References Chesler, L. (1981). Baseline audit plan. Santa Monica, Calif. Kagermann, H. (2008). Internal audit handbook: Management with the SAP-Audit Roadmap. Berlin: Springer. Pickett, K. H. S. (2006). Audit planning: A risk-based approach. Hoboken, N.J: Wiley. Why did the Compromise Fall in 1860? Why did the Compromise Fall in 1860? During the beginning of the nineteenth century, the relationship between North and South deteriorated over the issue of territorial expansion. In 1850, the issue of slavery was slowly dividing the North and South sections of the United States; both factions were of similar origins and had a myriad of common bonds. Frantic efforts at compromise were launched such as the Kansas-Nebraska Act of 1854 and The Missouri Compromise of 1820. However, the sectional rift only increased with the Brooks-Sumner incident and any chances of compromise were terminated with the Supreme Court decision of the Dred Scott case in 1859. The two powerful parties of the Second American Party System, the Democrats and the Whigs, were dumbfounded and could not find a solution to the slave question, which ultimately lead to their destruction. From their remains rose two new political parties, the Republican Party and a southern party devoted to the defense of slavery. Their battle in the election of 1860 would decide the future and fate of the United States. By 1860 all attempts at compromise had failed, and within a year the nation was in the midst of a bloody Civil War that would cost over 600,000 American lives and divided many families in the process. The types of economies that developed in the three regions of the United States in the first half of the nineteenth century had a powerful impact on political goals and decisions. The South grew important cash crops such as cotton, tobacco, sugar, and rice. The North was far more industrialized than the South or even the West, having shifted from mercantile capitalism. At the same time the West shifted from subsistence farming to commercial agriculture and produced more foodstuffs, such as corn and wheat, than the other two regions. The North came to rely more and more on western foodstuffs and in return, westerners became consumers of northern industrial and commercial products. By the 1850s the North and West were economically joined, and the Norths economy was rapidly evolving into a modern-day industrial and commercial system. In the South, cash crops such as rice and tobacco were grown extensively. Yet no commodity was more important to the South than cotton. One southern politi cal leader was so certain that the rest of the nation depended on the Souths cotton production that he declared, Cotton is King! Cotton was one of the most important commodities in the world in the nineteenth century; many factories in the Northern states as well as European countries such as Great Britain and France needed cotton for their important and prosperous textile industries. Yet this was all done on the backs of abused slaves who worked tirelessly night and day to pick the cotton of their masters plantations. In the early 1800s Northerners were content to allow slavery to reside in Southern states. Only when Southern leaders sought to expand slavery did many Northerners become concerned. The Missouri Compromise of 1820 was an attempt to maintain the balance in the Senate between slave and Free states. Senator Henry Clay, known as the Great Compromiser, worked out a compromise in which Maine would enter the Union as a free state while Missouri would be admitted into the Union as the northernmost slave state. As a result of the compromise, slavery was then prohibited north of the 36 °30 parallel making a clear distinction between the northern and southern states. This boundary would then later be challenged by events such as the Dred Scott case, yet it marvelously managed to avert war for forty years, and thus set it aside for a later generation to fight, but the damage to American nationalism helped to erode the so-called Era of Good Feelings in which the popular James Monroe presided as president. During 1828, Congress passed a tariff that protected Northern industries but had the unwanted consequence of driving up domestic prices. This, while beneficial to the growing industry in the North, greatly crippled the South who suffered as their economy largely depended on the import and export of domestic goods. As a result, this new bill outraged Southerners who began calling it the Tariff of Abominations. South Carolina spearheaded Southern concerns by citing the doctrine of nullification, which allowed individual states to nullify proclamations of the federal government that would be found to be unconstitutional or inhibit the states rights. The issue of nullification was taken up in the Senate in the famous Webster-Hayne debate in which Daniel Webster of Massachusetts, the Senates leading orator, responded by challenging the Souths apparent willingness to subvert the Union for regional economic gain. In doing so, he broadened the debate beyond land, tariffs, and slavery to a co nsideration of the very nature of the federal republic. In 1832 Congress modified the tariff of 1828 by retaining high duties on some goods, but lowering others to rates held before the treaty. A South Carolina convention, under the leadership of current vice-president John Calhoun, later that year adopted an Ordinance of Nullification, voiding the tariffs of 1828 and 1832 in the state. The claim was that because the South tended to export food and import manufactured goods these tariffs were abusive and unfair; this new Ordinance supported free trade and generally opposed protective tariffs. The South Carolina state legislature funded a volunteer army and threatened secession if the federal government tried to force the state to comply with the tariffs. President Jackson, though an advocate of states rights, responded forcefully and threatened to invade South Carolina if its leaders refused to participate in the collection of tariff duties. To the ambitious malcontents in South Car olina, he proclaimed emphatically, the laws of the United States must be executed. . . . The Union will be preserved and treason and rebellion promptly put down. Jacksons proclamation stimulated an outburst of patriotism all over the country, isolating South Carolina from the rest of the Union. President Andrew Jackson asked Congress to grant him the authority to use military force to collect tax revenues and to subdue South Carolina. Congress complied by passing the Force Bill of 1833; the bill gave the President the authority to close ports or harbors at his will. This in turn would require opponents to the tariff to travel a distance to carry out any threats or insurrection against federal facilities. Hostile acts against government facilities or personnel would then be considered pre-meditated and blatant. Fortunately, however, the president never had to resort to military action. The crisis was averted when Congress passed a bill that reduced the productive tariff the following year. These events were dubbed the Nullification Crisis and the Compromise of 1833. Though war was averted, South Carolina now became the hotbed of southern dissent. The crisis of 1850 may never have occurred if a more common resource was discovered in California. But since gold was so rare, and therefore very valuable, Californias population skyrocketed. By 1850 over 100,000 hoping-to-strike-it-rich settlers, also known as forty-niners, flocked to California in hopes of attaining vast wealth in the gold that was said to be so abundant there. Without waiting for federal approval, the inhabitants of California called a convention, framed a constitution that prohibited slavery, and applied to Congress for admission as a state without first becoming a territory, this was made possible due to the vast influx of people who had emigrated there from the east of the United States as well as those who had immigrated from other countries. California had become very populous. The questions of whether California should be admitted as a free state and slavery should be allowed in New Mexico and Utah, two other territories asking to be allowed into the Union a t the time, generated a great deal of controversy both within Congress and throughout the nation. President Taylor supported Californias admission. Though the slaveholding president supported the proposal, other slaveholders throughout the country did not follow suit. Many southerners quickly threatened that they would secede from the Union if California was admitted as a free state. The Great Compromiser Henry Clay then once again stepped into the fray and proposed a compromise to this problem; this would be known as the Compromise of 1850. The compromise itself was more a series of bills than an actual compromise, these bills included among other things, that California would enter the Union as a free state; a more stringent Fugitive Slave Law of 1850 was guaranteed to be rigidly enforced. The law itself was already present, but it was rarely followed due to it being so poorly enforced as well as fierce opposition from Northerners who refused to hand in runaway slaves to the ever unpopular slave hunters; a settlement of the boundary between Texas and New Mexico; an indemnity to be paid to Texas for the relinquishment of its claims to a large portion of New Mexico; the slave trade would be banned in Washington D.C. (District of Columbia) though the ownership of slaves would not be abolished in the capital. This idea arose mainly because in this time period many European nations, with which the United States of America did business with, had already abolished slavery throughout their country, and it would leave an unfavorable impression on a foreign diplomat to see slaves which were no longer allowed in their own country, still present in another with whom they were considering associating themselves with ; the Mexican Cession, or the land taken from Mexico as a result of Americas victory in the Mexican-American War, would be divided into two new territories, New Mexico and Utah. Both territories would determine the status of slavery in their areas by popular sovereignty. Popular sovereignty was a system that would determine whether the state or territory would be free or would allow slavery by mean of holding local elections in said state or territory, Democrats would advocate popular sovereignty during the election of 1860. The compromise was made official with the signing of President Millard Fillmore. This passage by Congress delayed the onset of the Civil War for more than eleven years. The Bleeding Kansas period came about due to the Kansas-Nebraska Act. Democrat and Illinois Senator Stephen Douglas introduced the Kansas-Nebraska Act to further the construction of a Transcontinental Railroad to Chicago despite being warned by Frederick Douglass that the bill was an open invitation to a fierce and bitter strife. For the Bill to pass he needed the votes of southern Democrats, who were unwilling to support him unless the new Territories needed to accomplish it were open to slavery. Douglas thought that by proposing that the status of slavery in the new territories be governed by the principle of popular sovereignty, he would satisfy both pro and anti slavery factions. However, his bill in effect, repealed the Missouri Compromise of 1820, which barred slavery north of latitude 36à ¯Ã¢â‚¬Å¡Ã‚ ° 30. This brought as consequence that the Southern Whigs voted with southern Democrats in favor of the measure, and the northern Whigs rejected it, creating an irreconcilable spl it that left Whigs unable to field a presidential candidate in 1856. In the congressional elections of 1854, the southern Democrats became the dominant voice both in congress and within the party due to the split with the northern Democrats. The Cotton Whigs, who had economic ties with southern slave owners, were convinced that the bill would encourage antislavery feelings in the north. They urged southern politicians to vote against the bill, but were utterly ignored. This convinced them that compromise with the South was impossible and the nation watched horrified as the residents of Kansas slaughtered each other in pursuit of sectional goals that increasingly seemed to represent the divisions of the country. Since popular sovereignty would decide Kansass fate, it seemed that the majority of Kansas antislavery farmers would align Kansas with the Free states. Proslavery sympathizers in neighboring Missouri were not about to stand by while their neighbor cast its lot with the free s tates on account of its land being fertile and perfect for growing and farming cotton, the white gold of the South. Soon, border ruffians crossed into Kansas with the intention of making it a slave state. Border ruffians terrorized Kansas and intimidated others to vote proslavery with vicious threats and cast fraud ballots during elections to help elect their candidates into office. In response, Northern opponents of slavery like the New England Emigrant Society began sending supporters to Kansas. Fighting soon erupted as advocates of slavery created a government in Lecompton, Kansas and their opponents established an antislavery government in Topeka. Shortly thereafter, proslavery forces massacred citizens of the antislavery town of Lawrence. In retaliation, a violent abolitionist named John Brown organized his own massacre of five suspected proslavery advocates at Pottawatomie Creek in 1856. The Democratic President Pierces decision to remain aloof from the events in Kansas furthe r damaged what was left of his partys cohesion. In the ensuing months it seemed as if Kansas would enter as a free state, but a new problem arose; enter President James Buchanan. The newly elected President Buchanan accepted the proslavery Lecompton Constitution, which would admit Kansas as a slave state. Certain democrats then agreed to unite with the young Republican Party in 1858 to oppose the Lecompton Constitution, their efforts were not in vain and Kansas was ultimately accepted into the Union as a free state. The election of 1856 attracted one of the highest voter turnouts in American history. Ordinary citizens were sharing the politicians concerns about the growing sectional rifts in the nation. The northern turnout also showed that the threat posed by expansion of slavery was greater than that posed by new immigrants. In 1856 the people of the United States heard about the looting and burning in Kansas, about John Browns massacre at Pottawatomie, and about the Sumner-Brooks incident on the senate floor, ostensibly causing the unprecedented voters outpour. In the latter incident, Senator Charles Sumner of Massachusetts suffered permanent injuries from an attack by Congressman Preston Brooks of South Carolina. Using abusive and accusatory language in his The Crime Against Kansas speech, Sumner had singled out for ridicule Senator Andrew Butler of South Carolina. Sumners rude and personal attack suggested that the senator was drooling. South Carolina, Sumner cried, had sent to the Senate a Don Quixote who had chosen a mistress who, though polluted in the sight of the world, is chaste in his sight- I mean the harlot, Slavery. Talk of sexual connection between white Southerners and slaves was always explosive. Senator Butlers nephew, Preston Brooks, did not bother to challenge Sumner to a duel. Brooks said that the Yankee would never give satisfaction and would therefore refuse or flee from the challenge. Instead, Brooks strode into the Senate chamber and, finding the Massachusetts lawmaker alone, brutally beat Sumner with his cane, nearly ending his life. In Brooks mind, he was simply avenging an intolerable affront to his uncles honor. Each man found his action perfectly justifiable and the action of the other outrageous. So far had the behavioral codes of the North and the South diverged, and their attitudes were mirrored by their respective sections. The nation lay as divided as the senators. President-elect James Buchanans support for a pro-southern decision by the Supreme Court further aggravated sectional differences. In Dred Scott vs. Sandford, a southern-dominated Supreme attempted, in vain, to solve the political controversy over slavery. Scott, a slave, had been taken by his owner to Illinois, a Free State, and Wisconsin Territory north of the Missouri Compromise line. During that time, Scott married another slave and had a daughter who was born in free territory, then returned to Missouri, a slave state. Once in Missouri Scott sued for his freedom and that of his wife and daughter on the grounds that residence in free lands had made them free. Chief Justice Roger B. Taney declared the Missouri Compromise unconstitutional asserting that the federal government had no right to interfere with the free movement of property throughout the territories. Taney dismissed the Dred Scott case on the grounds that only citizens could bring suits before federal courts and that b lack people were not citizens. The five southern members of the Supreme Court concurred with the decision along with one Northerner, Robert Grier. President-elect Buchanan had pressured Justice Grier into supporting the majority. Clearly as a sectional decision, Southerners expressed satisfaction and support for the Court, Northerners disagreed. They found themselves questioning the power of the Supreme Court to establish the law of the land. The racist attitude of the Supreme Court was a bitter blow to the free blacks in the North. The South was overjoyed with the Courts ruling. The North was outraged; Northern Democrats like Senator Steven Douglas of Illinois found it increasingly difficult to reconcile their support of popular sovereignty in the Dred Scott decision. Under Douglass definition of popular sovereignty, it was always the white majority that would make decisions about black mens freedom. Lincoln responded to this definition by stating that for a man to rule another man without his consent was tyranny. Lincoln succeeded in pressing Douglas on the issue of slavery in the territories after Chief Justice Taneys Dred Scott decision. Lincoln used this opportunity to attack Douglass popular sovereignty idea. For how could the people of a territory vote against slavery, if Chief Justice Taney said that every American had a right to carry his property with him? In response, Douglas introduced his Freeport Doctrine. The doctrine was dubbed after the Illinois town where Lincoln and Douglas had met for one of their debates. The doctrine said slavery could not exist without friendly legislation to support it. Anti-slavery voters could simply refuse to pass such laws and slavery would effectively be kept out of the territory. Douglas concluded then that popular sovereignty was entirely consistent with Chief Justice Taneys ruling. However, the Freeport Doctrine alienated many Southern Democrats. Douglas had actually stated the essence of the doctrine previous t o the debate at Freeport, but its prominent public assertion at Freeport contributed, along with other political disputes, to antagonizing those in the Southern United States who were demanding ever-increasing protections for slavery, and who subsequently insisted on the repudiation of the Freeport Doctrine in order to block Douglas presidential bid in 1860. Containing slavery became important to Northerners, who believed that as slavery expanded, Northern industrial capitalism would become limited. To fight this fear a new political party emerged in the 1850s, the Republicans, whose political goals were free labor, free soil, free men. The industrial capitalists, owners of the Norths factories and workshops had the most to gain by containing the spread of slavery and expanding capitalism. For example, as capitalism expanded, they hoped to expand the labor pool, by supporting a loose immigration policy, which in turn would drive down the wages that they would have to pay for workers. Just as the planters dominated the South, the industrial capitalists profoundly influenced the Norths political, economic and cultural system. In addition, their political and economic objectives often clashed with those of the Souths planter class. In the South, militant political leaders, referred to as fire-eaters due to their adamant nature to raise cont roversial disputes, especially with their northern counterparts. These fire-eaters chafed at the notion of containing slavery, let alone abolishing it entirely, naturally bringing about disputes between the two. These clashes were mostly due to slavery as the industrial capitalists wanted to expand the white labor pool and southern plantation owners wanted to keep their slave force. Though compromises such as the Missouri Compromise, the Kansas-Nebraska Act, and the myriad of bills proposed by Henry Clay in the Compromise of 1850, it helped to divert attention from the topic and to try and appease both sides, but conflict was inevitable. As discussed earlier, both the North and the South consisted of entirely different ideals and culture by the nineteenth century. These divisions were brought to light in both the violence of the Brooks-Sumner incident and the racist decision of the South-dominated Supreme Court during the Dred Scott case. By the time Abraham Lincoln, the sixteen pre sident of the United States of America, took office the southern had already seceded from the Union. There was no longer room for compromise, Lincoln was given two options; to allow the Union to crumble or fight to preserve it. They thought themselves to be to economically powerful, politically influential, and the North and the rest of Europe too dependent on their White Gold for slavery to be abolished. They were wrong.

Disneyland Essay examples -- Disney Amusement Parks essays research pa

Disneyland   Ã‚  Ã‚  Ã‚  Ã‚  The greatest place on the face of the earth is Disneyland. Nowhere else has the magic that a day at Disneyland possesses. From my childhood to my adulthood, I have never experienced a day at Disneyland that didn't put enough joy in my heart to far exceed the admission price. Rides, shops, shows, and characters. These are just a few of the many great aspects of a wonderful place called Disneyland.   Ã‚  Ã‚  Ã‚  Ã‚  Disneyland has always been a very special place to me. My parents took my family there for the first time when I was about three. To this day I still remember shaking Mickey Mouse's hand, giving Goofy a hug, and meeting all of the rest of my favorite Disney characters. It was a truly euphoric experience to meet stars of all my favorite cartoons that I so loyall...

Parole

Parole Kristofer Allison November 14, 2011 CRJ 210 Probation and Parole Parole by definition is the â€Å"conditional early release from prison or jail, under supervision, after a portion of the sentence has been served. † This practice assumes that the offender successfully demonstrated conformity to the rules and regulations of the prison environment and shows an ability to conform to society's norms and laws. The word, parole, derives from the French â€Å"parol† meaning â€Å"word of honor† and references prisoners of war promising not to take up arms in current conflict if released.How that concept came to apply to the early release of convicted, often violent, offenders is less clear. The first documented official use of early release from prison in the United States is credited to Samuel G. Howe in Boston (1847), but prior to that, other programs using pardons achieved basically the same outcome. In fact, as late as 1938, parole was simply a conditional PA RDON in many states. In China, prisoners are often granted medical parole or compassionate release, which releases them on the grounds that they must receive medical treatment which cannot be provided for in prison.Occasionally, medical parole is used as a no-publicity way of releasing an accidentally imprisoned convict. The Chinese legal code has no explicit provision for exile, but often a dissident is released on the grounds that they need to be treated for a medical condition in another country, and with the understanding that they will be reincarcerated if they return to China. Parole in Italy is called Liberta condizionata. It is covered by Article 176 of the Italian Penal Code.A prisoner is eligible if he has served at least 30 months (or 26 years for life sentences), and the time remaining on his sentence is less than half the total (normally), a quarter of the total (if previously convicted or never convicted) or five years (for sentences greater than 7. 5 years). In 2006, 21 inmates were granted liberta condizionata. So parole is very hard to get in that country. In New Zealand, inmates serving a short term sentence (of up to 2 years) are automatically released after serving half their sentence, and there is no parole hearing.Inmates serving sentences of more than 2 years are normally seen before the parole board after serving one-third of the sentence, although the judge at sentencing can make an order for a minimum non-parole period of up to two-thirds of the sentence. Inmates serving life sentences usually serve a minimum of 10 years, or longer depending on the minimum non-parole period, before being eligible for parole. It should be noted, however, that parole is not an automatic right, and for the year ending 30 June 2010 more than 70% of parole hearings were declined. Many sentences include a a specific non-parole period.In the United States, courts may specify in a sentence how much time must be served before a prisoner is eligible for parole. This is often done by specifying an indeterminate sentence of, say, â€Å"15 to 25 years†. The latter type is known as an indeterminate life sentence; in contrast, a sentence of â€Å"life without the possibility of parole† is known as a determinate life sentence. In most states, the decision of whether an inmate is paroled is vested in a paroling authority such as a parole board. Mere good conduct while incarcerated in and of itself does not necessarily guarantee that an inmate will be paroled.Other factors may enter into the decision to grant or deny parole, most commonly the establishment of a permanent residence and immediate, gainful employment or some other clearly visible means of self-support upon release (such as Social Security if the prisoner is old enough to qualify). Many states now permit sentences of life imprisonment without the possibility of parole (such as for murder), and any prisoner not sentenced to either this or the death penalty will eventuall y have the right to petition for release The Parole Board for England and Wales was established in 1968 under the Criminal Justice Act of 1967.It became an independent executive non-departmental public body (NDPB) on 1 July 1996 under the Criminal Justice and Public Order Act 1994. The Parole Board's role is to make risk assessments about prisoners to decide who may safely be released into the community on parole The Parole Board must act in accordance with the type of sentence levied. Just like the United States, England uses indeterminate sentences. These include life sentence prisoners (mandatory life, discretionary life and automatic life sentence prisoners), Her Majesty's Pleasure detainees, and prisoners given indeterminate sentences for public protection (IPP).The Parole Board also considers whether prisoners are safe to release into the community once they have completed their tariff (the minimum time they must spend in prison) and also whether the Secretary of State is just ified in recalling them to prison for a breach of their life license conditions (the rules which they must observe upon release). They also use determinate sentences. These include discretionary conditional release (DCR) prisoners serving more than 4 years whose offence was committed before 4 April 2005 and prisoners given extended sentences for public protection (EPP) for offences committed on or after 4 April 2005.The Parole Board considers whether these prisoners are safe to release into the community once they have completed the minimum time they must spend in prison and also whether the Secretary of State is justified in recalling them to prison for a breach of their parole license conditions (the rules which they must observe upon release). This was just a sample of parole systems throughout the world. We can see that each country has some sort of parole system in their justice system. It seems that the countries of England and the United States parole systems mirror themselve s.They also seem to have the fairest justice systems. Work Cited Probation, Parole, and Community Corrections, 3rd Edition. 3rd ed. , Dean J. Champion, Dean J. , Prentice Hall, 1999. http://www. paroleboard. govt. nz/about-us/cases-and-eligibility. html â€Å"China Grants Convicted Scholars Medical Parole†. The Chronicle of Higher Education. http://chronicle. com/weekly/v47/i47/47a04501. htm. Retrieved 2008-01-13 Bilton, A. C. and Bottomley, A K. 1971. ‘About parole’. Prison Service Journal, No. 1 (N. S. ), 6-7

The Impact of Instant Messaging in the Financial Services Industry: Benefits, Challenges and Recommendations

January 2009 Executive Summary Unfortunately, while Instant Messaging (IM) systems have the ability to change the way financial service companies interact for the better, many of today’s implementations pose problems and challenges to address. IM technology has the benefits of gathering input from many different people in dispersed locations. This adds speed and ease to workplace communication, and presence detection eliminates the time typically lost to missed telephone calls and wasted trips to see colleagues. Speed and efficiency are increased from knowing the status of financial transactions in real-time. A main challenge in financial compliance is the regulatory financial framework, which forces financial service companies to archive IM conversations. Poor management in security and retention controls increases the legal risk and personal accountability to corporate officers. Consumer-grade IM has potential for security breach and the leak of corporate data which can be particularly devastating to financial service companies. IM is widely used to distribute research, negotiate prices, execute orders, and stay in touch with clients and colleagues. It provides a direct mode of communication with co-workers, clients and other broker-dealers that enables far closer and more personal relationships. Imposing an IM ban could result in the loss of clients and valuable employees to competitors who are more tolerant of the use of IM in the financial markets. Key recommendations include: Installing an enterprise-grade IM system for all employees in the firm. The addition of consumer-grade IM for client facing employees to keep client loyalty. Educating employees on a company IM policy including regulatory guidelines and using IM for personal use. Enforcing rules through software that monitors and records IM conversations, and also through disciplinary action. Forming a management team to coordinate a strategic IM plan that meets all regulatory and legal needs and effectively solves the challenges and problems discussed. Continuously investing in new technology, updating IM policy, and educating employees to meet long-term regulatory and security requirements, and issues regarding the future direction of the firm. Introduction Instant Messaging (IM) was the first mass based communication application rolled out by users, rather than management who saw immediate business value in this new form of communication. Financial Industry and Government regulators have clarified IM as a form of real-time written correspondence that creates a business record. This paper seeks to explain the risks and problems IM brings to the financial services industry and challenges for management, such as determining the effect on employee productivity. This paper reviews the benefits IM brings to the financial services industry, in the form of improved communication, collaboration, efficiency, monetary benefits and information archiving. It also discusses the problems and challenges that management should be aware as well as the impact on the business, and makes recommendations for addressing these issues and achieving benefits for financial service companies. The Potential Benefits that can be gained from IM Enhanced collaboration There are many arguments for the use of IM as a communications tool in the business environment, including improved brainstorming capabilities and the ability to multitask. Many workers today use the telephone and IM simultaneously, so they can chat with each other privately while, for example, on a group call to a client. Ellen Isaacs (2005), reports that â€Å"users like that they could respond to quick IM questions from co-workers while engaged in another task, such as talking on the telephone, or processing documents or email. Studies note the ability to multitask is a major benefit of IM in the workplace. Current theory emphasises the value of informal social interactions for exchanging information, collaborating, and initiating spontaneous interactions (Cross & Parker, 2004). IM suggests that systems that depict social cues facilitate information and social interactions, enhancing performance. Over time, people develop comfortable working relationships through prior collaborat ion and through socialising. IM has proven its overwhelming value when it comes to gathering input from many different people in dispersed locations. For example, in financial trading, UBS has created over 5,000 group channels around certain topics like foreign exchange, equities and fixed income. Pritchard (2006) reports that if something's happening in European equities, or in foreign exchange, someone can put it on the chat line and other traders can see it instantly. Improved efficiency Processes that were once agonizingly slow and inclined toward misunderstanding and errors can now be accomplished in record time. Handel (2002) reports how this has led to increased popularity among workers because it adds speed and ease to workplace communication, and eliminates the time typically lost to missed telephone calls and wasted trips to the office of a co-worker who is absent or otherwise occupied. It is clear that IM can be an efficient, thought-provoking communications tool, not only within the office but as a bridge between geographically dispersed locations. Jim Craige (2006) at UBS Investment Bank explains how in fixed income trading, having a secure connection to a network of dealers with whom he's in constant contact lets him take care of business faster, as â€Å"it drastically cuts down on the time it takes† to know the status of transactions. Improved communication IM differs from email, primarily in that its focus is on the immediate delivery of messages. Many also acknowledge the tool as less intrusive and a time saver when compared to the telephone due to the ability to detect the presence of other users. Users can set status messages telling others whether they are available or not, which adds to IM’s value as a skilful means of communication. There is often some type of icon next to the name of their buddy to determine how long the person has been online, and if they are actively messaging or â€Å"away† from their desk. From the author’s experience, this saves on making unnecessary phone calls if you can see that the person you want to speak to is not at their desk. It can be decided whether to contact the person later or send an email, voicemail, or other message that the recipient can respond to later. In other instances, help consists of referrals to others who can provide answers or help solve problems. UBS formed a help desk channel for IT where employees could input trouble tickets (a specific IT problem) through a chat system and then receive real-time feedback on the status of their ticket. IM offers a way to quickly resolve questions and issues as they arise. Cost Benefits IM has proven return on investment benefits in certain situations, such as conferencing. Group members can be conferenced in to a conversation from around the world, which saves on long distance calls and travel expenses. Diseconomies of scale in distance can be solved through IM, due to increased collaboration and the cut in communication costs (Cameron & Webster, 2004. ) According to Saeedi (2005), Morgan Stanley saves $18 million annually by relying more heavily on IM than phone calls, plus another $98 million per year in trimmed travel costs, as there is diminished need for face-to-face meetings. Many analysts see IM as stimulating positive change in organizations because of its rapid diffusion, diminishing costs, and ease of use (Jones, 1998). Information Archiving Archiving IM meetings and conversations has become an essential business process for financial companies, since IM users don’t generally just chat, but they also exchange documents, contracts, trade details and other financial information. Starner, T. (2004) says how â€Å"Instant messages are business records, just as e-mails are business records. † This enables employees to go back and review crucial information (they may have forgotten) that is needed for themselves or that is requested from them. Financial institutions are wary because of regulations where in some areas such as trading they cannot use instant messaging without logging and archiving them. There is also scope for managers to review IM conversations and therefore ensure productivity is not being compromised by personal IM use, and that disclosure and industry regulations are being followed. The challenges and problems with the implementation of IM Compliance Compliance regulations, such as Sarbanes-Oxley, have forced companies to archive IM conversations. This is because an IM conversation is still regarded as a sort of document. Sarbanes-Oxley regulation requires an annual evaluation of internal controls and procedures for financial reporting, as well an assessment for the effectiveness of these controls. As IM is involved in this process, these communications need to be logged, archived and available upon request. Many IT units are having difficulty managing several IM systems installed without their knowledge that are used for both personal and important business communications. For example, Thomas Weisel Partners LLC in San Francisco tried to shut down the use of America Online Inc. ‘s Instant Messenger, Microsoft Corp. s MSN Messenger and Yahoo Inc. ‘s Yahoo Messenger after the 11th September terrorist attacks. However, due to resistance from users, the company was forced to adopt monitoring software instead. Managers are in agreement that in financial services, client facing employee’s need the more popular systems to communicate with customers, so efforts to implement a standard IM p roduct rarely work. Beth Cannon, a former Chief Information Officer at a brokerage explains that â€Å"it comes down to some of our institutional customers who required IM as the method to communicate with them. When a client insists on using a specific consumer-grade IM and management who choose to shut it down, they create the possibility of losing that client. However, if they keep it then they open up the company to risks, as well as additional costs in monitoring, archiving and enforcing policy on the technology. The problem of resistance to the removal of the multiple IM systems can be circumvented to a large degree through the use of monitoring software. More vendors of all sizes, such as Stellar Technologies Inc. are scrambling to build robust tools to monitor IM for financial firms, which must meet new government regulations requiring that electronic conversations be monitored and recorded. When organisations implement information management solutions, they must ensure ade quate management controls. Grace Financial report that their administrative tools are great for inputting problematic key words and reviewing highlighted logs. On the other hand, they also report that they have had limited, if any, issues with misuse – just increased software costs. However, they find that it has come in most useful for reviewing conversations where there is a problem with a client order. There is a significantly increased legal and security risk from lack of user management, security and records retention controls for employee use of instant messaging technologies. Following the lead taken by the New York Attorney General, the SEC (Securities Exchange Commission) has already issued some multimillion dollar fines for non-compliance of regulation (Ministries, J. 2002). In May 2002 Merrill Lynch agreed to pay a $100mm penalty resulting from hyping stocks that internal communications revealed that they knew to be bad. However as part of the settlement Merrill Lynch set up a proper system for logging and monitoring IM. With IM becoming such a popular communications tool, it's reasonable to assume that conversations conducted will, at some point, contain information that is company confidential. Therefore an IM system is needed that provides security for messages as they are transmitted, even if all such transmissions will be within the company’s own network. Goldman Sachs has spent considerable financing on ‘Bond. Hub’ which delivers secure messaging beyond firewalls of new fixed-income product issues. This new software could only be implemented with complete security as they wish to protect their extremely valuable client list. The security of ‘Bond. Hub’ has kept control with the dealers and protects access to the high-value content. The right solution of IM security will depend largely on the value of the data, and the company’s view of risk. Unmonitored, uncontrolled consumer-grade IM, such as Yahoo Messenger and MSN Messenger are essentially open channels between corporate networks and the outside world. This involves an amount of risk that most business leaders are unwilling to accept. â€Å"Instant messaging could be fine between two companies if the data being exchanged is very insensitive,† says Miles Clements, a project manager at an Information Security Foundation. â€Å"But a trader should not be able to use IM to trade with another bank. † It is argues by security experts that free consumer chat programs can tear gaping holes in security efforts. This is mainly because consumer-grade IM allows unlimited numbers of people to connect directly to a corporate network. † This was made evident in a case that occurred at the beginning of 2001, where a hacker stole logs from an instant messaging client belonging to the CEO for a company called eFront which specialises in financial services software. The hacker posted the logs to several places on the Web, thereby creating one of the worst possible corporate nightmares. These logs included sensitive company data regarding business partners, employees and affiliate websites. After the posting of the logs, several members of the senior staff for eFront resigned. There are reports already of cybercriminals and hackers exploiting the growing popularity of IM by using it to introduce viruses or other malicious software into financial firms. The Vice President of a top investment bank had his computer infected by a virus and found that his entire ‘buddy’ list had been sent a record of all his IM conversations. He was fired because of negative comments he'd made about his colleagues in what he thought were private IM conversations. Obviously, for the firm in question the logs leaked several confidential facts that were hurtful to the company’s reputation and future business deals. In spite of this, virus attacks are not yet frequent on IM applications, but the latest threat is likely to send worry in to the mind of IM users and the financial service firms that employee them. IT departments need to take a strong lead on securing IM through many different approaches. However, an outright ban on running IM software is unlikely to succeed or risks damaging productivity by closing down a useful communications channel. It seems that financial companies need to act to assess the state of IM use within their organizations and put into place the necessary measures to make sure their IM use does not run afoul the compliance requirements and vital security needs of the financial services industry. From the author’s own experience at Morgan Stanley, employees have to view and learn several materials and then take a test on the dangers of IM, in order to educate users on correct use and also place more legal obligation on the employee and take it away from the company. Employees can frequently disclose information when they are conducting several different IM conversations at once, and accidentally send a message to the wrong person. Inside information, prospecting information etc. can be leaked in these ways fairly easily, with no malevolent intention on the part of employees. This author has experienced the simplicity of replying in the wrong IM conversation when several conversations windows are open. The leak of valuable corporate data can be particularly devastating for financial service companies. Computer experts have warned that a lot of leaks are actually intentional and that financial service professionals are increasingly using untraceable electronic instant messaging systems to communicate sensitive information secretly. The Financial Services Authority said there had been concerns about instant messaging for some months. However, the City watchdog said its existing rules covering conflicts of interest were sufficient to cover such new forms of communication as IM. In the US, securities regulators have cracked down on the use of instant messaging, when the National Association of Securities Dealers told its members they must save instant messages for three years or restrict employees in using the technology. There is the impression that some companies have banned the use of IM technology. On the other hand, Mr. Palmer of Kroll Ontrack, said it was reasonably easy to place a device on a computer server to divert the messages and search for information. If IM technology is to be allowed then employees need to be advised of its use, due to the interception of private information. There is a mixed view on IM security; however there are solutions to plugging leaks and enforcing policy to keep employees in line with company policy. Productivity Instant Messaging can be a productivity-enhancing tool for efficient financial communications with co-workers, clients, customers, vendors, and the like. Although, Nehra (2005) explains that various reports describe how productivity may be adversely affected by employee abuse or overindulgence in personal instant messaging communications. This presents the major challenge with implementing IM technology into the workplace. One thing that has kept deployment of instant messaging at investment banks a low priority among business managers is the perception that it can distract workers from more critical tasks, says Kim Cross, a VP at Morgan Stanley Investment Management. Many financial companies believe instant messaging detracts from employee productivity and introduces new temptations to converse with others beyond their job duties. From the author’s experience at Morgan Stanley, IM offers the opportunity to converse quickly and continuously with friends in a secret manner that the telephone does not allow and this can decrease productivity significantly. However, a study by the Radicati Group looked at the time it took employees to complete two typical daily tasks—both with and without IM—and found that companies could save an average of 40 minutes a day per user with IM. They estimated that a financial services organisation with 5,000 people could see a $37. 5 million a year savings in productivity. Limitations and communication consequences are a definite cause for concern when implementing a new IM system. Possible decreased worker productivity, a lack of direct communication among colleagues, and misinterpretations can be common place when using instant messaging. Additionally, IM does not give the same personal verbal delivery that direct communication gives. From the author’s experience at Morgan Stanley, IM does not always give the same authority or conviction that a ‘real’ conversation over the telephone permits and so may not make clear enough the importance of particular requests. Although IM may have been initially frowned upon, some managers look at this communication as team building â€Å"because it enables peers to bond and form stronger working relationships. † (Robbo, R). However not all sources concur. Shiu, E. (2004), suggests that in fact, 32% of those individuals who use IM in the office acknowledge that IM can encourage workplace gossip, and 29% note that IM has been a distraction at some point in the past. These extensive risks still do not change the opinion of most executives, who are in agreement, that blocking IM entirely is not an option. The question is how to bring out the benefits of consumer IM while ensuring it is properly managed, secure and compliant. The impact of IM when implemented in financial service organisations The primary reason that IM has been such a success in the business environment is that its benefits, even when weighed against the risks, are both immediate and tangible. Industry-wide effects Centrally managed IM deployments have just begun to take hold in business, says Aberdeen Group analyst Dana Gardner. The rapid increase in the adoption of IM is linked to the fact that recent university graduates have developed a strong affinity for IM. Although there is a strong concern over the security of consumer-grade IM, managers have to accept that IM is a preferred communication technique of young employees. Clients want to use IM and so employers have to set-up and integrate IM in to their firm’s communication network. The clients of broker-dealers will also deal with their competitors, and they don't want systems that only allow them to deal with one company so firms need to meet the IM requirements of clients. Top investment banks now share directories to create an open messaging environment for broker-dealers to communicate with each other and to customers. It even opens up the ability for customers to communicate with other customers. Barriers in the industry have come down as customer and broker-dealers are commingling in one giant address book. IM provides a direct mode of communication with co-workers, customers and vendors that enables far closer and more personal relationships than is available in virtually every other means of electronic communications. This could have the negative effect on the industry of making information more transparent and therefore increase price transparency and negatively affect profit. On the other hand, the increase in real-time communication links to other broker-dealers and clients could mean a larger more liquid market. Performance of employees Business IM allows employees to be more efficient in their work output. Data shows that IM users engage in multi-tasking at a rate considerably higher than non-IM users. In a recent survey, 91% of IM users reported that while participating in IM sessions they also perform additional tasks either most or all of the time (Haskin, D. 2004). However it can be argued that users tend to chat often, setting aside legitimate business tasks in the process. Some employees find it hard to concentrate when messages are continually popping up on screen. If the user has their presence detection on, then colleagues and clients will believe that their message has been received and read, therefore attention needs to be given to each instant message. This could mean an overload of information for the user, continually distracting them from their primary tasks and therefore decrease their performance. However, the more successful employees could use the multitasking capability of IM to take on even more work, and show up the less successful employees. This in turn could create the effect of preventing those less successful employees from wasting time using IM for personal use. The multitude of information sources that broker-dealers have competing for their attention could definitely result in a negative impact on performance, as incoming messages add to the pile of e-mail, news summaries, and other data that competes for the users productive time. Therefore management needs to maintain whether some users perhaps require IM and others do not, and if they do, to enforce rules and policies to battle the challenge of productivity. This policy along with many other things, would need to drive home this point that the organisation provides IM to boost business productivity, not as a diversion from work. It needs to be instilled into employee’s that policy will be enforced to coerce users from personal IM use. Given the chatty nature of IM, some would argue that it is bound to have a negative impact on performance, as employees chat about personal matters throughout the workday. Although personal chat with other employees throughout the day could help forge more inter-firm relationships, and this ollaboration could have a positive impact on overall company performance as more and more employees in different teams are being brought together. Therefore the firm needs to find a way to manage this balance between business and personal conversations. This seems unlikely to be controlled to a large extent and so a large amount of trust will be left with the employee. Internal and External Relationships IM appeal s to broker-dealers because they feel that IM delivers a necessary advantage that e-mail and the telephone cannot match, which is speed. They believe that they will not get clients if they do not use the technology. Banning IM seems a possible solution to the risks of IM, however it may not be so easy to enforce. Many broker-dealers facing the financial markets, where seconds make the difference between profit and loss, may be reluctant to part with consumer-grade IM. The impact of banning consumer-grade IM across the board may trigger a revolt among employees and the clients they are in regular IM contact with. Therefore imposing an IM ban could result in the loss of valuable employees to competitors who are more tolerant of the use of IM in the financial markets. As discussed in the previous section, personal use of IM can be used to help forge relationships with colleagues. These same personal conversations can be transferred to those employees who are client facing and used as ‘business’ conversations in order to build and maintain relationships with clients. The fact that IM conversations can be left open so that brokers can maintain an on and off dialogue throughout the day with their client adds significant value. Previously a broker could not call up a client to, for example, make a flippant remark on current news but this can now take a few seconds to write it in an open IM window and their client could view this while multitasking. This casual dialogue can help maintain client loyalty with is the crux of sales in the financial services industry. Not surprisingly, the vast majority of employees believe that the use of IM within their organisation improves productivity, external relationships, and their efficiency. More significantly, however, is that even business managers and IT personnel who are aware of the risks posed by IM, overwhelmingly favour its use noting that the added â€Å"real† business performance more than offsets the potential risks. Management Recommendations Managing the problems and challenges associated with implementing IM This author recommends a dual approach in response to the challenge of the multitude of IM programmes in the company. Primarily, installing an enterprise-grade IM system (an internal instant messaging system where messages can be encrypted) for all employees. Then employees can be allowed to communicate confidential information internally, but only in the guidelines of the company’s written policy. The second approach is to allow client-facing employees consumer-grade IM who insist they need it to keep client loyalty, even though consumer IM tools travel across the public Internet (not encrypted). Monitoring and security can then be focused more on these employee’s who potentially open the organisation to security breaches such as eavesdropping, accidental confidential information loss, and also the risk of intentional information leaks. This can be further facilitated by the installation of content filters to capture messages that use potentially problematic words like â€Å"rumour†. Then these IM conversations can be reviewed to ensure that neither laws nor corporate policies are broken. Achieving the business benefits of IM Instant messaging use is recommended to communicate instantaneously with other brokers, dealers, clients and other third parties so that client loyalty is increased through immediate responses and colleagues can get answers from client questions in real time. IM should be used as a less intrusive method of avoiding tasks, as a broker can use IM simultaneously with chatting on the phone and e-mailing. IM presence detection should be used so that it is possible to see whether clients are online and open to chat and brokers can determine whether they are available to incoming IM transmissions. This can be reflected through IM settings such as â€Å"away† and â€Å"in a meeting† which lets the user know that the instant message may be read or acted upon. In addition managers can quickly see who is online at the office at any given time. Employees can also be strategic in the way they contact their colleagues by first checking they are online before, for example, calling them. IM should be used to avoid the cost of travel and group conference calls through multiple people joining in on real-time IM conversations. Also whilst travelling, employees can engage in IM conversations with clients and colleagues to facilitate the efficiency of information flow. All conversations should be logged for at least three years due to compliance so that after the instant message vanishes, after it is read, and its window closes, employees can go through archiving and find the message again if they did not note important information from the conversation that they need. Further to this archiving should take place to meet industry regulations and as possible evidence to future litigation. Controlling the transition and longer term issues Once the extent of employee’s IM use is identified, the transition should be controlled through developing a strategic IM management plan. A team should be formed, comprising of risk management, compliance and litigation in order to structure a companywide policy so the firm meets finance regulations, and information security needs. Senior Management should lead the IM management controls through bridging the gap between problems and recommending effective tools to manage those risks, such as retention and archiving tools as previously discussed. New financial regulations would need to be adhered to in existing business activity and also reviewed in new financial markets. Therefore future investment in new technology is vital to help maintain IM use and abuse. The firm will need to develop effective, accessible IM tools to meet future needs of broker-dealers who rely on IM for internal and external communication. Employees need to be trained and kept up to date with regulatory guidelines and retention rules. Long-term issues of security will need to be constantly addressed. Those employees who are using consumer-grade IM offer the constant possibility of data theft and electronic eavesdropping. IM needs to be constantly updated with the latest antivirus software to protect from viruses and other threatening security breaches that might be able to penetrate the firms firewall. Finally, if the direction or structure of the firm changes then IM policy must be changed to meet this. References Electronic journals Mearian, L. (2004) IM Spread Causing Management Headaches. Computerworld. [online] 38(49), 7. Available from: http://proquest. umi. com/pqdweb? index=35=759250251=1& sid=6=3=PROD=PQD=309=PQD=1231380861=5238 [Accessed 4 January 2009] Cameron, A. F. & Webster, J. (2004) Unintended consequences of emerging communication technologies: Instant Messaging in the workplace. 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