The Credit Risk Of Banks Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2138 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The aim of the study is to assess the credit risk management of major banks in Mauritius. This chapter presents the review of related research of the component credit risk management. Banks main activities and operations are based on the management of wide range of equity capital, assets and liabilities. Don’t waste time! Our writers will create an original "The Credit Risk Of Banks Finance Essay" essay for you Create order Greuning, H.V and Bratanovic, S.B (2003) pointed out that Adequate risk management is therefore a must and forms part of effective banking operation. Common cited risks include; operational risk, liquidity risk, interest rate risk and credit risk. All these risks arise while banks perform their most fundamental and traditional role of lending and borrowing. According to the consultative paper issued by the Basel committee on bank supervisions (1999), credit risk continues to remain one of the biggest sources of risk for banking institutions throughout the world. This is due to the fact that loan portfolio of banks is the largest asset and the main source of revenue. Also, credit risk is associated with potential fluctuations of the stream of cash flows of an asset. It is often pointed to be responsible for bank failure. Hence, to improve their credit risk management, monitoring and assessment, banks have been using a number of tools and methods over the past 20 years. Improving actual systems and implementing new systems to evaluate certain types of loan more efficiently, objectively and accurately to better mitigate credit risk and improve portfolio performance is an ongoing process in the banking sector of Mauritius. (John B 2011) said that credit risk is one of the oldest and most major forms of risk faced by banks as financial intermediaries. Since this particular risk has the power of wiping out enough of a banks capital to force it into bankruptcy, managing this kind of risk has always been one of the predominant challenges in running a bank smoothly. (Broll, Pausch and Welzel, 2002). 2.1 The Credit Risk of Banks 2.1.1 Another Definition The Monetary Authority of Singapore (2006) defined credit risk as the risk derived from the doubtfulness of an obligors capability to perform its contractual obligations, where the term obligator refers to any party that has a direct or indirect obligation under a contract. It also state that credit risk could rise from both on and off balance sheet transactions. Moreover, financial instruments like; options, futures, swaps, foreign exchange, guarantee and others also contribute to credit exposure of banks. (Blommertein 2005) defined credit risk as the possible loss, known as probability of default, that could arise if the counterparties fail to meet their financial obligations, not only in present time but in future time also. Credit risk is also known as default risk or counter party risk. According to the BCBS (2001), it is defined as the possibility of losing the outstanding loan partially or totally, due to credit events. Credit risk therefore measures the portion of the loan that is exposed to default risk (Basu, 1997, 2002a). (Andrew 2002) add that credit risk is the risk that a counterpart defaults and the bank losses all its market position or that part which is irrecoverable. 2.1.2 Categories of Credit Risk To gain a better understanding on the nature of credit risk, it is necessary to introduce the types of credit risk involved in financial activities before any further discussion. Concerning the categorizing of credit risk, different authors have expressed various criteria. Horcher (2005), who defines six types of credit risk, including default risk, counterparty pre-settlement risk, counterparty settlement risk, legal risk, country or sovereign risk and concentration risk. However, since legal risk is more likely to be considered as independent or belonging to operational risk nowadays (see HSBC 2006 annual report, Casu, Girardone and Molyneux 2006, etc) and concentration risk, together with adverse selection as well as moral hazar d, is more reasonably to be thought of as an important issue in managing credit risk rather than a type of the risk itself (see Duffie and Singleton 2003), in the following illustration, only the rest four kinds of credit risk mentioned by Horcher (2005) will be touched upon. Default Risk According to Horcher (2005), traditional credit risk relates to the default on a payment, especially lending or sales. And a likelihood of the default is called the probability of default. When a default occurs, the amount at risk may be as much as the whole liability, which can be recovered later, depending on factors like the creditors legal status. However, later collections are generally difficult or even impossible in that huge outstanding obligations or losses are usually the reasons why organizations fail. Counter Party Pre-Settlement Risk Pre-settlement risk arises from the possibility that the counterparty will default once a contract has been entered into but a settlement stil l does not occur. During this period, a contract has unrealized gains, which indicates the risk. The potential loss to the organization depends on how market rates have changed since the establishment of the original contract, which can be evaluated in terms of current and potential exposure to the organization (Horcher 2005). Counter Party Settlement Risk According to Casu, Girardone and Molyneux (2006), settlement risk is a risk typically faced in the interbank market and it refers to the situation where one party to a contract fails to pay money or deliver assets to another party at the settlement time, which can be associated with any timing differences in settlement. Horcher (2005) points out that the risk is often related with foreign exchange trading, where payments in different money centers are not made simultaneously and volumes are huge. The case of the small German bank Bankhaus Herstatt, which received payments from its foreign exchange counterparties but had yet to make payments to counterparty financial institutions on the shutting down date, can serve as a typical example for the failure caused by settlement risk (Heffernan 1996). Country or Sovereign Risk Country risk arises due to the impact of deteriorating foreign economic, social and political conditions on overseas transactions and sovereign risk refers to the possibility that governments may enforce their authority to declare debt to external lenders void or modify the movements of profits, interest and capital under some economic or political pressure (Casu, Girardone and Molyneux 2006). Then as Horcher (2005) has concluded, since evidence shows that countries and governments have temporarily or permanently imposed controls on capital, prevented cross-border payments and suspended debt repayments etc, problems arise for issuers to fulfill obligations in such environment. Also financial crisis may precipitate sometimes. 2.1.3 Identifying Credit Risk Exposures in Banks Generally, credit risk is related to the traditional bank lending activities, while it also comes from holding bonds and other securities. Basel (1999a) reports that for most banks, loans are the largest and most obvious source of credit risk; however, throughout the activities of a bank, which include in the banking book as well as in the trading book, and both on and off the balance sheet, there are also other sources of credit risk. Various financial instruments including acceptances, interbank transactions, financial futures, guarantees, etc increase banks credit risk. Therefore, it is indispensable to identify all the credit exposures the possible sources of credit risk for most banks, which can also serve as a starting point for the following parts of this work. A. On-Balance Sheet Exposures Loans According to Saunders and Cornett (2006), the major types of bank loans are commercial and industrial (CI), real estate, consumer and others. Commercial and industrial loan s can be made for periods from a few weeks to several years for financing firms working capital needs or credit needs respectively. Real estate loans are primarily mortgage loans whose size, price and maturity differ widely from CI loans. Consumer loans refer to those such as personal and auto loans while the so called other loans include a wide variety of borrowers such as other banks, nonblank financial institutions and so on. Credit risk is the predominant risk in bank loans. Over the decades the credit quality of many banks lending has attracted a large amount of attention. The only change is on the focus of the problems from bank loans to less developed countries and commercial real estate loans to auto loans as well as credit cards, which is an American example. Since the default risk is usually present to some degrees in all loans (Saunders and Cornett 2006), the individual loan and loan portfolio management is undoubtedly crucial in banks credit risk management. Nonper forming Loan Portfolio According to Hennie (2003), nonperforming loans are those not generating income, and loans are often treated as nonperforming when principal or interest is due and left unpaid for 90 days or more. Thus the nonperforming loan portfolio is a very important indication of the banks credit risk exposure and lending decisions quality. Debt Securities Besides lending, credit risk also exists in banks traditional area of debt securities investing. Debt securities are debt instruments in the form of bonds, notes, certificates of deposits, etc, which are issued by governments, quasi-government bodies or large corporations to raise capital.1 In general, the issuer promises to pay coupon on regular basis through the life of the instrument and the stated principal will be repaid at maturity time. However, the likelihood that the issuer will default always exists, resulting in the loss of interest or even the principal to banks, which can be a damaging impact. B . Off-Balance Sheet Exposures Since the 1980s, off-balance sheet commitments have grown rapidly in major banks, among which there are swaps, forward rate agreements, bankers acceptances, revolving underwriting facilities, etc. (Hull 1989). Those commitments give rise to new types of credit risk from the possibility of default by the counterparty. In this section, some of the off-balance sheet credit exposures will be introduced, among which the first one is related to derivative contracts. Derivatives Contracts According to Saunders and Cornett (2006), banks can be dealers of derivatives that act as counterparties in trades with customers for a fee. Contingent credit risk is quite likely to be present when banks expand their positions in derivative contracts. Since the counterparty may default on payment obligations to truncate current and future losses, risk will arise, which leaves the banks unhedged and having to substitute the contract at todays interest rates and price s. This is also more likely to happen when the banks are in the money and the counterparty is losing heavily on the contract. Comparatively, the type of credit (default) risk is more serious for forward contracts and swap contracts, which are nonstandard ones entered into bilaterally by negotiating parties. While trading in options, futures or other similar contracts may expose banks to lower credit risk since contracts are held directly with the exchange and there are margining requirements. However, the credit risk is also not negligible. Guarantees and Acceptances Bank Guarantee is an undertaking from the bank which ensures that the liabilities of a debtor will be met, while a bankers acceptance is an obligation by a bank to pay the face value of a bill of exchange on maturity (Basel 1986). It is mentioned by Basel (1986) that since guarantees and acceptances are obligations to stand behind a third party, they should be treated as direct credit substitutes, whose credit ris k is equivalent to that of a loan to the ultimate borrower or to the drawer of the instrument. In this sense, it is clear that there is a full risk exposure in these off balance sheet activities. Interbank Transactions Banks send the bulk of the wholesale dollar payments through wire transfer systems such as the Clearing House Interbank Payments System (CHIPS). The funds or payments messages sent on the CHIPS network within the day are provisional, which are only settled at the end of the day. Therefore, when a major fraud is discovered in a banks book during the day, which may cause an immediate shutting down, its counterparty bank will not receive the promised payments and may not be able to meet the payment commitments to other banks, leaving a serious plight. As pointed out by Saunders and Cornett (2006), the essential feature of the above kind of settlement risk in interbank transactions is that, banks are exposed to a within-day, or intraday, credit risk that does not ap pear on its balance sheet, which needs to be carefully dealt with. Loan Commitments A loan commitment is a formal offer by a lending bank with the explicit terms under which it agrees to lend to a firm a certain maximum amount at given interest rate over a certain period of time. In this activity, contingent credit risk exists in setting the interest or formula rate on a loan commitment. According to Saunders and Cornett (2006), banks often add a risk premium based on its current assessment of the creditworthiness of the borrower, and then in the case that the borrowing firm gets into difficulty during the commitment period, the bank will be exposed to dramatic declines in borrower creditworthiness, since the premium is preset before the downgrade.

Essay about Of Mice and Men By John Steinbeck - 3008 Words

Of Mice and Men By John Steinbeck 1. How significant is the theme of loneliness in Of Mice and Men? 2. To what extent is it correct that The Great Gatsby, Death of a Salesman and Of Mice and Men explore important, but different aspects of ‘The American Dream’? 3. What is the importance of dreams and dreaming to the success of Of Mice and Men? A. Background Information Describe the historical background to the novel i.e. the USA in the mid/late 1930’s The USA of the mid and late 1930 was still suffering from the Great Depression. Many thousands were unemployed and had lost their homes. These people would often wander around the country, searching for jobs and a place to rest. John Steinbeck clearly outlines†¦show more content†¦Even though George seems rather annoyed it is obvious that he does not really mean what he says. George then tells Lennie about their shared dream of buying a piece of land on which they plan to farm and keep rabbits. The next morning visit the nearby ranch in order to ask for a job. George fearing the boss’s reaction to Lennie tells him not to say a word. As soon as they are hired, they get to know Candy, and old â€Å"swamper† with an even older dog and Curley, the boss’s mean son. As soon they are alone in their bunkhouse Curley’s wife appears, whom he had just married, and flirts with them. The other workers soon return from the fields for lunch and George and Lennie meet Slim, the most popular worker on the farm. George and Slim have a short conversation in which Slim comments on the rarity of George and Lennie’s friendship. When Carlson, another worker, joins in he suggests that Candy’s old, smelly dog should be shot and Candy could have one of Slim’s newly born puppies. George confides in Slim how often Lennie has gotten them both in trouble for example when he touched a woman’s dress and was accused of rape. Slim lets Lennie have one of his puppies and allows him to enter the barn where the puppies all are. Carlson meanwhile still tries to convince Candy to kill his dog and at last he succeeds telling him that death would be a welcome relief for the suffering animal.Show MoreRelatedOf Mice and Men by John Steinbeck973 Words   |  4 PagesIntroduction: I. Background A. John Steinbeck was born on February 27th, 1902 in Salinas, California. 1. Salinas River was one of the few centers for shipping, farming, and agriculture a. John Steinbeck worked as an employed laborer, digging canals and working beside men similar to characters in his novels. 2. In a discussion John Steinbeck said, I worked in the same country that the story is laid in. The characters are composites to a certain extent. Lennie was a real person. Hes in an insaneRead MoreOf Mice and Men, by John Steinbeck842 Words   |  4 Pages it was not uncommon to become morosely secluded while working. Men would go far away from their families in search of any jobs they could get, with only themselves to confide in; colleagues only filling in the void of friends and family partially. Naturally, John Steinbeck’s novel Of Mice and Men, written during this period, would reflect this fact as a major aspect of the story. Loneliness would become the sinew of Of Mice and Men, manifested in some of the story’s main characters: Candy, CrooksRead MoreOf Mice and Men by John Steinbeck1358 Words   |  6 Pagesthis expression to stress the fact that there are and will be difficulties in life. John Steinbeck, in his novella Of Mice and Men, does not fall short of the same views. It takes place in the year 1937, a period associated with the Great Depression, and illustrates the hardships of the time, and more so those that laborers such as George and Lennie experience. Life proves to be full of disappointments for both men who are victims of harsh circumstances in more ways than one. The two have a dreamRead MoreThe And Of Mice And Men By John Steinbeck1549 Words   |  7 PagesThis essay will be exploring the role of women in the texts ‘DNA’ by Dennis Kelly and ‘Of Mice and Men’ by John Steinbeck. Both texts are quite dissimilar for the most part, with ‘DNA’ being a contemporary play, dealing with problems faced by modern youth groups and ‘Of Mice and Men’ being a classic novella. Set in the 1930’s, the novella tells a story of two migrant workers who flee to Salinas, California, for work. In spite of this, both explore the presentation of female characters similarlyRead MoreOf Mi ce And Men By John Steinbeck894 Words   |  4 PagesOf Mice and Men Essay John Steinbeck once said, â€Å"A journey is a person in itself; no two are alike. And all plans, safeguards, policing, and coercion are fruitless. We find that after years of struggle that we do not take a trip; a trip takes us†. In his novella, Of Mice and Men, two men go on an unexpected journey in search for their dream of happiness. There are many themes that come from their journey such as, the gilded American dream, the bond of male friendships, the power of women and femininityRead MoreOf Mice And Men By John Steinbeck1433 Words   |  6 PagesI am writing a literary essay on the novella, Of Mice and Men by John Steinbeck. I will be responding to the question describe an important character and explain how the character helped you understand an important message. In the novella, Of Mice and Men, written by John Steinbeck, two characters, Crooks and Curley’s wife, help me understand the message ‘Discrimination isolates people’. The book takes place in Soledad, California, mid 1930’s, during the Great Depression, at a time when discriminationRead MoreOf Mice And Men By John Steinbeck1747 Words   |  7 Pages Of Mice and Men is a tragedy And The Pearl is a parable. Author s Name John Steinbeck -Title of Work #1: Of Mice and Men -Genre: Tragedy -Evidence of Genre (explain what makes the work an example of the genre): Tragedy is a branch of literature that uses a serious and dignified style the sad or unfortunate events encountered or caused by a heroic individual. In Of Mice and Men George and Lennie face a lot of tragic events. -Complete Summary of Work: Of Mice and Men is theRead MoreOf Mice And Men By John Steinbeck1354 Words   |  6 PagesThe novel ‘Of Mice and Men’, written by John Steinbeck, is set near the Salinas River in California, America during the Great Depression between 1930-1939. The Great Depression was a distressing time in the history of America as the unemployment rate was high which in turn led to poverty and hunger. During this time, many struggled to find work and this steered them to travel long distances, often without having anyone to talk to. Dreams were crafted by this travelling workforce and were somethingRead MoreMice Of Men By John Steinbeck785 Words   |  4 Pages It was an hopeless time period. For George in steinbeck s book mice of men by John Steinbeck,it was the great depression.This was a time period of a deep and dark economic downturn that affected the whole country. While the story focuses on George and Lennie s struggles through this hopeless time.They were best buds that got along great. They went to farm to farm as migrant works to get there pay. George had to take care of Lennie throughout the book and pick up the pieces, but lennie was a kindRead MoreOf Mice And Men By John Steinbeck1400 Words   |  6 PagesOf Mice and Men, it is not just a band! Of Mice and Men was originally a short novel written by John Steinbeck in the 1930s. Regardless of the shortness in length, though, it is a rather deep and emotional book with quite a few messages behind the fictional storyline. These messages, however, cannot be discovered right off the bat. To genuinely absorb the messages Steinbeck teaches and actually understand the meaning behind them, one must read the book in its entirety. Steinbeck educates readers

Terrible death of Abraham Lincoln Free Essays

When Lilacs Last in the Dooryard Bloom’d by Walt Whitman expresses the terrible death of   Abraham Lincoln. â€Å"And the great star early droop’d †¦. † taken from the second line of the poem demonstrates the reference to President Abraham Lincoln with â€Å"Great Star† as the representation being the 16th president of the United States. We will write a custom essay sample on Terrible death of Abraham Lincoln or any similar topic only for you Order Now Whitman’s yearly reminder of Lincoln’s death is symbolizes by the blooming of the lilacs in April which justify the same month in which Lincoln was assassinated. Whitman makes use the imagery of lilacs to successfully convey the vigor of the poem. Lilacs here emphasize the things about the death and elegy of Lincoln. The first one is that the lilacs symbolize sorrow in the beginning but currently represent closure. It means the death of the president brought them sadness but the lilacs place on the coffin gives them hope because it is a symbolic gesture of honor and respect. It also signifies that even though the flower is rotten, again and again there will be new lilacs when spring comes. Just like Lincoln, through his elegy his memories will be revived. The turning point of this poem which was written by Whitman deals with death and acceptance of it. This line explains it â€Å"I leave thee lilac with heart-shaped leaves; I leave thee there in the door-yard, blooming, returning with spring†. He proves his optimistic outlook here. Lilacs also indicate the repeated sequence of life. Whitman perceives from the lilacs, that passing away is an unavoidable factor of this cycle. The images of the lilac represent love, hope, life, despair, and rebirth. They also serve as a channel that leads Whitman to understand death. Through this poem, Whitman honors Lincoln as a magnificent leader and a noble person. Aside from this, it is also important because it provides end for the nation in bereavement. Above all, the poem of lamentation efficiently shows that Lincoln’s heritage will always be reborn among the blossoming lilacs when spring returns. In my own opinion, Whitman changes poetry forever by having a concrete representation of his feeling about the person whom he adores and respects too much. The way he delivers the details of his poem, it shows that the whole nation involves here and he tries to comfort all of them even himself. In that aspect, it’s very hard for a poet or writer to address wholeheartedly the entire story of the person being emphasized. Because it may lead him to the wrong motives and implications, it can be a big issue to the readers or listeners, it maybe biased and more on criticism. But as he connects one line of the poem to the other, we will notice the strong feeling of Whitman that he is affected by the tragedy happened to the president. And he tries his best to put the details into figures of speech so that the true essence of poetry will not be erased. I do believe that Whitman change poetry forever by simply putting his heart in his poem, his true feeling and the lesson that he learns after making the whole poem. How to cite Terrible death of Abraham Lincoln, Papers

Working Towards Safer Relationships for Abuse- myassignmenthelp

Question: Discuss about theWorking Towards Safer Relationships for Physical Abuse. Answer: Introduction Family violence, also referred to as domestic violence, can be described as an act of violence caused by one family member against another. According to the Australian Department of Human Services, it refers to any conduct which is threatening, controlling, coercive and violent intended to instil fear on a household member(Australian Government Department of Human Services, 2017). It may be verbal abuse, emotional abuse, physical abuse, psychological, financial, and sexual among other forms. A study conducted by the Australian Bureau of Statistics in 2012 revealed that one in every eleven people has been a victim of domestic violence since the age of fifteen(ABS, 2013). Further narrowed down, this reflected one in every six women and one in every twenty men. Of importance to note is that no single cause can be attributed to family or domestic violence; however, various factors raise red flags and have been noted as common risk factors for the vice. Alcohol and drug use, experiences of childhood abuse, financial stress and a weak social support system have illuminated a strong positive correlation with domestic violence(Mitchell, 2011). Family violence can lead to a lot of detrimental effects, the worse being homicide; further, it has adverse effects on mental and physical health, child development, as well as other economic impacts on the family and society alike. The following essay aims to examine the current efforts meant to reduce the impact of family violence on individuals and society alike and identify possible recommendations that would lead to the development of a more effective program driven by the principles of social justice and an adherence to human rights in the fight against family violence. An Examination of the Challenges Facing Current Efforts to Reduce Family Violence The current approach, though effective to a certain extent is still riddled with defects. The programs adopted lack clear focus on prevention measures and are more equipped in dealing with the aftermath of family violence(Rayns, 2015). As such, there are few programs that offer services to convicted parties or that monitor possible cases and engage measures of prevention before actual violence or consequences such as those aforementioned manifest. Additionally, the philosophy behind most programs is flawed as it is based on the notion that violence or abuse on a domestic level is as a result of patriarchal ideologies. Most scholars and reformists identify women and children as the victims and men as the perpetrators. This approach shuts out a significant percentage of victims and perpetrators left with little to no recourse in the event they experience violent behaviour from a family member. Previous assumptions attributed female to male family violence as a result of self-defence; however, research continues to show that this is not always the case(Barnett, Miller-Perrin, Perrin, 2011). Another challenge emanating from the current programs and approaches undertaken to curb family violence is underreporting. As previously mentioned, data monitoring and sharing are a key component in combating the vice; it ensures relevant institutions have sufficient information to formulate strategies and allocate resources to dealing with family violence(Humphreys Stanley, 2015). However, data is only available and relevant if it is reported and in most cases, family violence incidents go unreported. This is particularly a challenge with abuse and neglect where children are the victims(Finkelhor, 2005). Reports show that despite the high number of incidents of child abuse reported, the numbers are much higher and more cases of abuse and neglect go unreported. A Proposal for a Family Violence Reduction Program Having considered the current situation on the ground and the challenges facing the fight against family violence, the following segment aims to propose a program that would reduce the impact of family violence. The proposal would serve as a recommendation on ways to mitigate the challenges mentioned above guided by the principles of social justice and adherence to basic human rights and the aim to promote safety and prevent further family violence. The action areas present an integrated approach to combating family violence as the success of one area depends on the success of the others so as to achieve the overall objective. The key action areas that will guide strategy development proposed in this program for the reduction of family violence include: A philosophical shift, Prevention measures, Establishment of a database, Early intervention strategies, Victim protection measures, Rebuilding victims lives, and, Perpetrator involvement, accountability and rehabilitation. Freedom from any form of violence is a fundamental human right; it is recognised under the right to life, freedom of expression, right to be free from torture and the right to the highest attainable standard of mental and physical health among others. Although most focus is towards womens rights in this regard, as a fundamental human right, these liberties should be enjoyed by all. This essay recognises that an effective program would require a shift in the current underlying principles and philosophies guiding program development. As such, programs aimed at eradicating family violence should adopt a less gendered approach in order to ensure violence that is meted out on male victims is also considered. As aforementioned, the current approach considers family violence as a product of the patriarchal underpinnings of current society where men are seen as the perpetrators and women the victims(Barnett, Miller-Perrin, Perrin, 2011). However, as studies have shown, this is not always th e case. Therefore in order to be effective in achieving its objective, the program should be based on an all-inclusive, non-gendered philosophy. Additionally, another challenged arising from current approaches to combating family violence is that they tend to consider the aftermath and are less prevention focused. In order to be effective in the overall reduction of family violence incidents, it is paramount to nip the issue in the bud. As such, strategies should be formulated that focus on prevention measures(Rayns, 2015). Effective prevention measures will require the involvement of all key stakeholders which includes community leaders, the government and the workforce. Family violence is a social problem and has come to be rightfully recognised as such. The strategies that are in place at the moment are as a result of government and community initiatives which have led to the development of social strategies that aid in the prevention of violence and the protection of women and children who are the most common victims. Further, there has been a rise in the establishment of centres aimed at creating a safe harbour and suppo rt system for victims as well as advocating for their rights and protection from relevant institutions(Hart, 1995). This has evolved from merely offering shelter and counselling to victims to being the drivers for reform. With this in mind, the current program should endeavour to further exploit and expand the involvement of communities through community leaders. Supporting community leaders and strengthening the community capacity through awareness and training programs will contribute greatly to early detection and prevention of family violence that in turn contributes to a reduction of its impact on the community. Further, setting up an effective and secure data collection and monitoring system is paramount to ensuring a successful and effective program is put in place; it provides the necessary evidence for the development and assessment of strategies. As aforementioned, underreporting cases has been identified as another challenge towards the fight against family violence(Humphreys Stanley, 2015), as such, it is a significant factor to consider and address in the development of an effective program. Reporting cases of abuse creates a database which aids institutions in developing effective combative strategies; the more accurate and conclusive the data, the more effective the strategy. With this in mind, any program which aims to be effective in this era will rely heavily on social justice to ensure effective data collection. This is achievable by ensuring more community involvement and awareness in matters of family violence and therefore ties in with the proposal to ensure increased engag ement of communities and community leaders the ultimate goal being early detection and prevention. Another action area the program will consider in order to minimise the effects of family violence on potential victims is integrating early intervention measures into the program. Early intervention measures include improving the response models of relevant players in the implementation of the program. That is the intervention of community leaders and organisations, intervention of the police and justice systems, intervention of key players in the workforce and education systems among others. The public health perspective to abuse and neglect recognises that early intervention is one of the key components to a holistic approach in violence prevention and reduction particularly against children(Fawcett Waugh, 2008). Early intervention relies greatly on a well-informed and up to date database. The database guides key players in identifying risk factors, persons at risk and signs of possible violence thus allowing for early intervention to prevent violence, further violence and the imp acts thereof. An equally important strategy that the program aims to consider is the protection of victims of domestic violence. Protection is vital especially at areas of first contact; victims who feel secure are more comfortable and open to participating in any civil or criminal proceedings that may arise(Hart, 1995). Participation is not merely a procedural requirement but rather has proven to contribute to the psychological healing of the victims. As such in order to encourage reporting, expand the database and promote restorative justice the program should ensure it secures the protection of victims. This strategy will also require community involvement and awareness as community centres are usually the first places of contact with family violence victims. The program should, therefore, provide training avenues for communities so as to equip them with the necessary knowledge to effectively support victims thus creating a safe harbour for more victims to open up about their plight leading to the collection of more data which ensure more effective future programs. The program would be incomplete without the inclusion of a strategy that aid victims to rebuild their lives once they have been separated from the violent environment and received justice through available legal channels. The rebuilding strategy should include support programs that avail mental, physical, financial, legal, emotional support which may be necessary for victims to regain their quality of life. The services offered in this regard should be tailored to meet the needs of victims guided by the information gathered from data collection and monitoring. Further, the programs should be flexible so that they can be adapted to meet the needs of each individual victim. The purpose of this stage in the program is to enable the victims to heal and move on with their lives. Research shows that victims of abuse or violence have significantly higher levels of emotional and mental health challenges and distress as compared to other individuals(Fawcett Waugh, 2008). In children, this ca n lead to developmental issues such as anxiety, depression as well as challenges in school(Richards, 2011). As such, the program should ensure victims receive counselling, financial support, medical support and any other assistance necessary to ensure they heal and rebuild their lives. The final strategy to consider in ensuring the development of an effective program for the reduction of family violence is ensuring perpetrators are held accountable and rehabilitated for their actions where possible. This strategy aims to ensure that perpetrators are identified and held accountable for their action. Further, it is concerned with reducing the rate of recidivism; that is, ensuring perpetrators do not repeat offences after conviction or rehabilitation. Additionally, it aims to ensure that the rehabilitation systems are alive to the issues contributing to family violence and are well equipped to tackle these issues so as to ensure adopted change programs are effective. This is a proactive approach towards the reduction of family violence(Rayns, 2015), it enables reformists to collect vital data that would aid them in identifying risk factors and patterns that would ensure prevention measures are undertaken before it is too late. Perpetrator involvement in the reduction strategy also promotes restorative justice as mentioned above. Conclusion In conclusion, it is evident that the proposed program should consider a change of philosophy and adopt a more restorative and social justice approach bearing in mind fundamental human rights. A change of philosophy refers to a shift from the current mindset that family violence is strictly a product of the patriarchal underpinnings of society. In order to effectively combat the vice, it is important to keep in mind that men, as well as women, can be both victims and perpetrators. Additionally, in order to encourage reporting, the program should ensure effective community involvement by creating awareness and availing training to community-based programs on how to identify and deal with risk factors and support victims. Early intervention frameworks should also be considered by re-evaluating and strengthening response strategies with regard to the police, educational institutions, workplaces and community settings. Of equal importance is the protection strategies adopted by the progr am, they should be tailored to ensure the victim feels safe and comfortable and supported so as to encourage them to seek justice and to rebuild their lives. The program should also invest in support programs and services that are tailored to meet the needs of victims as a whole and at their individual levels. Finally, in order to adopt a more preventive approach, the program should consider more offender engagement for purposes of rehabilitation as well as data collection to prevent future incidences through early identification of risk. The program proposed above presents an integrated approach to family violence reduction as the success of one strategy depends on the effective implementation of the others. References ABS. (2013). Personal Safety Survey, Australia. Canberra: Australian Bureau of Statistics. Australian Government Department of Human Services. (2017). Family and Domestic Violence. Retrieved September 26, 2017, from https://www.humanservices.gov.au/individuals/subjects/family-and-domestic-violence Barnett, O. W., Miller-Perrin, C. L., Perrin, R. D. (2011). Family Violence Across the Lifespan: An Introduction (3rd ed.). London: Sage Publications Inc. Fawcett, B., Waugh, F. (2008). Addressing Violence, Abuse and Oppression: Debates and Challenges. Oxon: Routledge. 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