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by 趙永祥, 2017-05-24 06:59, 人氣(71)




"Learn from yesterday, live for today, hope for tomorrow."


Benjamin Franklin began and ended each day with a question: "What good shall I do this day?" in the morning, and "What good have I done this day?" in the evening.

In fact, many great thinkers embraced the idea of constantly questioning things.

As Albert Einstein reportedly said, "Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning and learning."

Of course, getting into the habit of self-reflection is easier said than done, as we often prefer to avoid asking ourselves the tough questions. As philosopher and psychologist John Dewey explained in his 1910 book, "How We Think," reflective thinking involves overcoming our predisposition to accept things at face value and the willingness to endure mental unrest.

But enduring this discomfort is well worth the effort, as it can result in the confidence boost necessary to perform better in our work and daily lives.

To help kick start your habit of self-reflection, here are nine daily questions you can start asking today:

'If today were the last day of my life, would I want to do what I am about to do today?'

In 2005, about a year after he received his pancreatic cancer diagnosis, Apple's then-CEO Steve Jobs told Stanford's graduating class that, for 33 years, he would look in the mirror every morning and ask himself, "If today were the last day of my life, would I want to do what I am about to do today?"

If the answer was "No" for too many days in a row, he says he know he needed to change something.

"Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure — these things just fall away in the face of death, leaving only what is truly important," Jobs explained. "Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart."

'How do I see myself ?

"This questions gets at your likely unspoken beliefs about who you are," writes Wanleo.comfounder and CEO Deena Varshavskaya on Quora.

She says that changing how you see yourself in various situations can also change your actions and, ultimately, who you are.

"An example: if you see yourself as an unproven entrepreneur, the focus of your actions will be to prepare for later when you are more proven. By changing this to start looking at yourself simply as a hard working and capable entrepreneur, you can change what actions you take, who you chose to speak to, and so on," she writes 

'What is my biggest strength?'

VaynerMedia CEO and cofounder Gary Vaynerchuk writes on Quora that asking this question is the key to loving your job.

As he explains, so many people have jobs they hate because they haven't found their true passion yet. "They are good at a few things, so that's what they do here and there, but they aren't sure what that one big thing they want to do forever could be," he says.

"Stop doing stuff you hate. Nail down your strengths so you can discover your passion," he advises.


'What pain do I want in my life?'

Happiness requires struggle, as well as an understanding of what we are willing to struggle for, writes self-development blogger Mark Manson.

"What determines your success isn't 'What do you want to enjoy?' The question is, "What pain do you want to sustain?' The quality of your life is not determined by the quality of your positive experiences but the quality of your negative experiences. And to get good at dealing with negative experiences is to get good at dealing with life," Manson explains.

'What was different then from now?'

If you're struggling to start a new habit, "Better Than Before: Mastering the Habits of Our Everyday Lives" author Gretchen Rubin suggests thinking about a time in the past when you successfully changed your behavior.

Asking yourself, "What was different then from now?" can help you figure out what factors helped you successfully change your behavior in the past so that you can emulate them going forward.

"If you set it up in a way that's right for you, you're going to have much better success," Rubin told psychologist Ron Friedman at the Peak Work Performance Summit.

'How are you doing everyday?'

Quora user Michael Hopkins writes: "It's silly, but it all started when I watched an episode of 'The Tick' where the Tick travels on a quest inside his own mind to seek the answer to any one question. When he finally meets his inner being, and can ask any question he wants, he asks something like, 'How are you doing?'

"I took from that a very profoundly meaningful lesson: At the center of each of us, this is the most basic and truest and most important question. It leads to so many internal conversations that we would all be better off having with ourselves each day."


'Why so serious?'


"I tend to fuss over little things and don't feel quite alright until I get them done in the manner I desire," writes Quora user Soham Banerjee. The question is a good reminder to us all not to take life so seriously all the time and can help put things in perspective.

"And also, asking that question in the Joker's voice is fun," he notes.

'What went well today?'

Harvard Business School professor Francesca Gino and her colleagues asked workers to spend 15 minutes at the end of their workdays writing about what went well that day, and they found that the journaling employees had 22.8% higher performance than those who didn't ponder on their workday.

As former Tech Insider reporter Drake Baer points out, reflecting on the day's successes can help you incorporate those lessons into the next day. "It's like the process of 'iteration' that startup folks are always talking about. You introduce a stimulus, gather the data of your experience, and then improve from there," he writes.

It's worth noting that study participants didn't simply think about what went well, but wrote their responses down. "It's very easy to deceive yourself if you're just thinking about it," Gino notes, "but when you write things down on paper, it's easier to identify what's helpful."

'Do I pick partners and friends who support me, challenge me, encourage me, and help me grow?'

Quora user Nela Canovi says: "There is a saying that we are the average of the five people we spend the most time with. Think about the people in your life. Are the people close to you helping you grow as a human being? Or do you spend time with people who don't respect their own time (and therefore won't respect yours), who drain your energy, who are negative and only like to complain, and who exemplify a 'fixed mindset' instead of a 'growth mindset' so that at the end of the day you struggle to understand why you don't feel happy and energized around them?

"Be selective about who you keep in your inner circle of friends. Surround yourself with people based on your common interests, your values, the things you consider important to your personal growth, as well as how you value time, knowledge, and friendship."


Arranged by Professor Chao


by 趙永祥, 2017-03-15 18:03, 人氣(57)



FRM Case Study introduction & and writing notifications


Company Background and Risk Goals: 


Zions Bancorporation is a financial services company that operates six bank charters across the 

western United States. With the diverse, broad services that it offers, comes a complicated risk profile. 

One of the main questions of management was what type of technology system would fit the company’s 

needs and facilitate meeting Sarbanes-Oxley Section 404 requirements. Zions came up with three goals 

for its risk framework:

  • Allow Zions to effectively manage risk and cut losses
  • Increase shareholder value and customer service
  • Meet regulatory requirements

The overarching goal was also to fit this all into one system with a common framework in order to suit 

management’s plans.

System Requirements

Zions enlisted the input of a multitude of internal groups to help develop the requirements 

the new risk system would need in order to be successful. Since Zions deals with banks, 

it also worked closely with the Federal Reserve Bank and the U.S. Office of the Comptroller. 

One of the key groups was the Internal Audit department, who provided feedback on many 

areas such as functionality, methodology, and user guidelines. After gathering all necessary 

feedback, the following requirements were established:

  • Automated ERM system
  • Use of a variety of risk tools
  • User-friendly screen designs
  • Broad reporting applications for all departments
  • Automatic alerts
  • Web-based, scalable system
  • Data feeds from multiple systems

This list provided a building block for Zions’ risk management system. The company enlisted 

the help of an outside software vendor for development, Providius Software Solutions, Inc.

Risk Avenues

Zions management studied the COSO Internal Control-Integrated Framework when deciding 

on how to approach risk management, and it based its own framework on that model. 

There are four steps to the Zions risk management process:

1. Determine objectives and risks


2. Identify controls and assess their strength


3. Develop actions necessary to eliminate gaps in control


4. Establish accountability and sustainability


The business-line users determine the objectives and identify the risks associated with those 

objectives. The risk management system calculates the inherent risk score for analysis. 

This step helps with the evaluation of the company’s risk levels. The same business-line users 

then populate the system with controls and ratings. These controls are either preventive 

or detective. The risk management system then calculates control and residual risks scores 

to identify risk exposures.

Management can then use these analyses to demonstrate that the internal controls are effective 

and should meet the Section 404 requirements. Internal audit still needs to review the controls 

and provide feedback internally. If any control exposures exist, managers put developed actions 

into place to close those holes. In order to create greater management involvement, Zions uses 

its risk system for online certifications and for management approvals on controls and actions. 

The Zions systems can provide custom reports and graphics to allow the users to quickly identify 

potential issues.

https://erm.ncsu.edu/library/article/technology-support-erm


Notifications

Be sure to take your time to read the attached file in order to prepare 

your final reportFRM Case Study

by 趙永祥, 2017-03-07 19:50, 人氣(82)

     What are the main meanings of Portfolio theory

The theory that holds that assets should be chosen on the 
basis of how they interact with one another rather than how 
they perform in isolation. According to this theory, an optimal 
combination would secure for the investor the highest possible 
return for a given level of risk or the least possible risk for a given 
level of return. Although individual investors can use some of the 
ideas of portfolio theory in putting together a group of investments, 
the theory and the literature relating to it are so complex and 
mathematically sophisticated that the theory is applied primarily 
by market professionals. 

Also called modern portfolio theory.


portfolio theory

 the study of the way in which an individual investor may theoretically achieve the 
maximum expected return from a varied PORTFOLIO of FINANCIAL SECURITIES that has attached to it a given level of RISK.

Alternatively, the portfolio may achieve for the investor a minimum amount of risk 
for a given level of expected return.Return on a security comprises 
plus or minus any 
or loss from holding the security over a given time period. 
The expected return on the collection of securities within the portfolio is the 
weighted average of the expected returns on the individual INVESTMENTS 
that comprise the portfolio. The important thing, however,is that the risk attaching 
to a portfolio is less than the weighted average risk of each individual investment. 



As part of the continuing series on Modern Portfolio Theory, we will providing weekly updates to track our model portfolio’s performance.  As illustrated below, we will be tracking the performance of three portfolios.

Two of these portfolios will be optimized based on the theory of mean variance optimization (Markowitz’s Modern Portfolio Theory) and one is allocated based on a traditional approach of a mix between equity and debt.  At the beginning of each week we invest $1,000 based on the allocation of the three portfolios and compare the results at the end of trading on Friday.  Check back often to see how the optimized portfolio’s fared!

Portfolios that will be compared based on performance and risk/reward.  Based on Markowitz's modern portfolio theory (mean variance optimization)

Portfolios that will be compared based on performance and risk/reward. 

Based on Markowitz’s modern portfolio theory (mean variance optimization)

For an easy-to-follow guide for building the optimized portfolios in R based on Markowitz’s Modern Portfolio Theory (mean variance optimization), please refer to Chapter 5 in the series.

Portfolio Composition

The table below summarizes the three tracking portfolios, as of May 28, 2013, using data from the past two years.

PortfolioSPYEFAIWMVWOLQDHYGStd.DevExp.Returnsharpe
Optimized – Short Selling &amp No Max0.87-0.13-0.22-0.330.620.180.00350.00060.18
Optimized – No Shorting &amp 75% Max0.15-0.00-0.00-0.000.750.100.00320.00030.10
Traditional0.300.200.150.100.150.100.01060.00030.03

As can be quickly gleamed from the table, both optimized portfolios have a much higher Sharpe Ratio.  The Sharpe Ratio is the portfolio’s return over its standard deviation and can be used as one measure of performance.  The higher the Sharpe ratio, the higher the return to the portfolio’s variance.  A high return coupled with a low Sharpe ratio could imply that the returns were achieved with too much risk–a potential indication of volatile returns in the future.  (Of course, past performance is no guarantee of future performance and correlations between the securities can quickly change.)

Efficient Frontier - Short Selling with No MaxEfficient Frontier - No Shorting and 75 Max