Energy Risk Management - 1692 Words

Social Innovation Centre Risk Management for Energy Efficiency Projects in Developing Countries _______________ Paul KLEINDORFER 2010/18/TOM/ISIC Risk Management for Energy Efficiency Projects in Developing Countries 1 Paul Kleindorfer * * The Paul Dubrule Chaired Professor of Sustainable D evelopment, Distinguished Research Professor at INSEAD Social Innovation Centre, Boule vard de Constance, 77305 Fontainebleau , France and Anheuser-Busch Professor Emeritus of Man age ment Science and Publi c Pol icy, The Wharton School of the Universi ty of Pennsylvani a Ph: +33 (0) 1 60 72 91 28 Email: paul.kleindorfe r@insead.edu A working paper in the INSEAD Working Paper Series is intended as a means whe†¦show more content†¦Introduction This report considers the role of risk management i n promoting profitable energy efficiency (EE) projects in industrial enterprises in developing co untries. The paper focuses on developing countries in the middle range of development (e.g., with per capita income greater than $2,000 per annum) where there is a significant industrial sector, although many of the issues here would apply to other countries, both above and below this level of development. 4 The key question posed here is how to improve the payoff in economic and environmental terms from cost- effective energy efficiency projects and initiative s. The starting point for this report is the maxim, by now well known in the development literature and is the banner for this entire report, that ther e are many profitable EE projects in nearly every industrial enterprise that are simply not implement ed. Four problems are often identified as the culprits for failing to harvest such projects: 1) lack of a rational and feasible approach to finance these projects; 2) lack of a rational internal mana gement approach in the enterprise to package these projects in such a manner that they can be id entified and implemented while the â€Å"plant is running†; 3) the high perceived risk of these proje cts; and 4) the fact that management is often simply unaware of the existence of EE projects of v alue. 5 This paper is primarily focusedShow MoreRelatedAnalysis On Risk Management By Contractors Who Work On Energy And Utility Construction Projects Essay1990 Words   |  8 Pagesresearch takes a case study approach. 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The And Its Effects On The Human Body - 831 Words

Implanted biomaterials provoke an inflammatory response, known as the foreign body reaction {Daghighi, 2014 #119}. Following formation of adsorbed protein layer, a cascade of inflammatory processes occurs on the biomaterial surface and the extent of these events depends on the implantation procedure, target tissue/organ and properties of the adsorbed protein layer {Anderson, 2008 #54}. The presence of specific adsorbed proteins (especially vitronectin) in the layer influences the inflammatory cell interaction with biomaterials and subsequent inflammatory responses {Brodbeck, 2003 #56;Jenney, 2000 #55;McNally, 2008 #504;Wilson, 2005 #57}. Currently, expression of at least 11 integrin subunits has been identified in immune cells {Luo, 2007†¦show more content†¦Interestingly, it has been shown that fibrinogen-mediated acute inflammatory responses to implanted biomaterials are induced by the RGD sequences in fibrinogen {Tang, 1996 #297}. The discovery of numerous resident tissue macrophages (OsteoMacs) on the endosteum and periosteum of bone may impact the bone formation process and is likely to play an important factor in the future design of implant materials for bone {Pettit, 2008 #233}. As mentioned above, the onset of inflammatory response is associated with bleeding at the fracture site that results in the development of a local hematoma. Inflammatory cells like polymorphonuclear leukocytes infiltrate the hematoma and tissue adjacent to the site of implant placement and secrete cytokines and growth factors {Anderson, 2011 #499;Forster, 2012 #321;Brodbeck, 2005 #500}. This process is controlled and regulated by various chemotactic and chemokinetic factors inherent in the inflammatory response {Ziats, 1988 #501}. This acute phase resolves between a few hours to days and progresses to a type of inflammation characterized by chronic infiltration of macrophages and lymphocytes, which interplay to regulate their adhesion to the surface of the biomaterial and their proliferation {Anderson, 2011 #499;Hu, 2001 #49;Luttikhuizen, 2006 #472;Brodbeck, 2005 #500}. Integrins mediate adhesion of monocytes and macrophages to adsorbed conditioning films on implanted biomaterial sur faces containing fibronectin {Keselowsky,

Negotiation/Dispute Resolution - Viking Investments free essay sample

The purpose of this paper is to analyze a complex negotiation between Pat Olafson (Viking Investments) and Sandy Wood (WoodCrafters), from the perspective of Sandy. More specifically, this paper is written from the perspective of Sandy’s legal counsel. It is intended to provide Sandy with support and guidance for his negotiations with Pat. This negotiation holds critical significance for Sandy’s future, as a business owner, a homeowner, and an employer. As Pat Olafson’s business seems to be thriving, Sandy finds himself at a critical impasse in his professional career. His business relationship with Pat has become one of financial dependence. There are three major financial issues, which Sandy must resolve in a timely fashion in order to avoid having to file for bankruptcy. These three issues include a renegotiation of lease terms, agreement on who is responsible for a lumber change order, and agreement on terms for the payment of $200,000 worth of loan principle. Sandy’s attorney will be addressing the following major topics: Negotiation Preparation Interest-Based Bargaining Assessment of Opposing Party Negotiating Goals/Strategy Interest-Based Bargaining Given the complex and potentially contentious nature of this negotiation, it seems to lend itself well to Interest-Based Bargaining. Given the harsh facts that Sandy is faced with regarding his company’s financial position, it is possible that Sandy and Pat’s reservation points lack positive overlap or that this negotiation will involve no more that a small amount of bargaining surplus. Furthermore, although Sandy is facing some very contentious issues, there are obvious benefits to maintaining a positive long-term relationship with Pat and Viking Investments. Therefore, applying a traditional negotiating style or a distributive negotiating style to this negotiation would likely be an ineffective approach for Sandy to take. In other words, with such a small amount of pie on the table, attempting to slice the pie isn’t likely to go in Sandy’s favor. A better approach would be to focus on the underlying interests of both parties and attempt to expand the pie. If understood and practiced by both parties, Interest-Based Bargaining seems to be an appropriate means to this end. In Interest-Based Bargaining, the following concepts are used to review and analyze each negotiation: Interests Options Standards People Alternatives Closure Interests Sandy’s main underlying interest going into this negotiation is the financial health of both his company and his family. He is on the verge of bankruptcy, which would cause him to have to close his company’s doors and sells his house. He has 25 employees, which he would like to keep employed. He has a home/investment property that he would like to hold onto until the housing market rebounds. Options- Sandy’s potential options are very limited at this point. Pat effectively holds the key to Sandy’s financial future. If Pat refuses to negotiate reasonable terms to any of the major issues in this negotiation, Sandy will have no choice but to file for bankruptcy. People- Pat Olafson is a local investor and real estate developer. In comparison to Sandy, Pat has been very financially successful. Their relationship seems to be multi-layered. Pat plays the role of bank, landlord, and client to Sandy and WoodCrafters. While not illegal, or even immoral, allowing one person, or entity, to have so much control over your business life isn’t the wisest decision. In addition, the combination of Pat’s success and Sandy’s hardships seems to have caused Sandy to be jealous of Pat’s success. It would be in Sandy’s best interest to recognize that his perception of Pat bears no significance on this negotiation. Sandy would be best served by leaving his perceptions behind and keeping his emotions in check. Alternatives- Sandy’s alternatives are have become extremely limited. Because of the $200,000 loan he took from Pat several years, his current credit status with other potential lenders, and the short time-frame in which he must pay for the lumber ($700,000), Sandy’s only real alternative to negotiating at this point would be to file for bankruptcy. One additional factor to this alternative is Sandy’s house. Payment for the lumber change order is due within 15 days, and if payment to the lumber supplier is even 1 day late, all of WoodCrafter’s assets, plus Sandy’s personal residence (and associated equity), will be seized. Effectively, Sandy’s alternative to negotiating some reasonable settlement terms regarding the main three issues at stake (loan, lease, and change order) would be to file for bankruptcy and start over from scratch. His business would be dissolved, employees laid off (likely never to return), his investment property would be lost, and his family would be without a home. In this instance, Sandy does not really have a reasonable BATNA (best alternative to negotiating). If Sandy were to walk away from the negotiating table without having secured an agreement with Pat, he would be committing to start his business and personal life over from scratch. Unfortunately, Pat holds the majority of the power in this negotiation. The contract language regarding the large change order is in Pat’s favor and Sandy legitimately owes Pat $200,000 worth of loan principle, which Pat has the right to demand at any time he sees fit. The one saving grace regarding Sandy’s BATNA (or lack thereof) is the fact that Sandy’s BATNA (bankruptcy and loss of his home/equity) would also negatively impact Pat as well. If Pat and Sandy cannot reach an agreement, Pat would also suffer along with Sandy. Pat would not receive his loan principle, he would lose a tenant, and he would likely no longer have the option of hiring WoodCrafters for his future carpentry work. Closure This is a very precarious situation for Sandy. The stakes are extremely high and nearly everyone who Sandy cares about in his private and professional life will be affected by the outcome of this negotiation. It is absolutely critical that Sandy puts himself in the appropriate mindset for this negotiation. Sandy needs to clear his mind of the details associated with how the events leading up to this negotiation transpired. He must be able to envision an amenable agreement settlement between Pat and himself prior to sitting down to the negotiating table. Pat may or may not want to quibble over the details regarding exactly what took place to get both parties to this point. Sandy will need to be prepared to discuss those details in a respectful manner, but also redirect the conversation to the most important issue, which is that if an agreement cannot be met, Sandy will be forced to file for bankruptcy. Sandy’s bankruptcy would have a lot of negative consequences for both individuals and their respective companies. Pat is a businessman. He will likely understand the consequences of Sandy’s potential bankruptcy. Because of this, this is one of the very few situations where sharing your BATNA would be recommended. Pat holds the majority of the power over Sandy. The only incentive that Pat will have to agree to the terms necessary to allow Sandy the time he needs to pay his outstanding bills is that the only other alternative is catastrophic for Pat as well. Therefore, in order to close a deal with Pat, it is recommended that Sandy lay his cards on the table. Assessment of the Opposing Party (Pat Olafson) As previously stated, Pat Olafson is a businessman. He seems to have a diverse portfolio of investment and development projects. The most critical concept that Sandy must keep in mind is that Pat Olafson is motivated by profit. Pat’s underlying interest, and his main decision making motivation, is driven by his desire to achieve financial success. Because of this fact, it is very likely that Pat will be able to recognize the pitfalls of not reaching reasonable terms for the three main issues at stake. Although Pat is likely not aware of it at this time, he too does not have a favorable BATNA. Because not being able to reach agreement with Sandy would mean that Sandy would file bankruptcy and Pat would likely not receive the $200,000 worth of loan principle that he is owed, Pat is  unlikely to have a better alternative to negotiating some terms of payment for the outstanding balance. It is important that Sandy does not misconstrue the fact that Pat does not likely have a feasible BATNA for power. Pat will be learning for the first time that his $200,000 receivable is in jeopardy. Like most highly successful businessmen, Pat has the potential to allow his ego to guide his decisions. While Sandy’s bankruptcy would hurt Pat’s bottom line, the consequences would not be nearly as significant to Pat as they are to Sandy. Therefore, it is important that Sandy keeps in mind who he is dealing with. If disrespected, Pat may be capable of allowing his narcicism to kick-in and opting to allow Sandy to experience failure out of an odd/twisted sense of moral principle. It is strongly advised that Sandy treads lightly when discussing the issue of bankruptcy, loss of his home/equity, etc. Rather than threatening Pat with the possibility of not being able to pay back the loan principle, it is advised that Sandy expresses his concerns for both parties in a sympathetic manner. While Pat does not necessarily need Sandy to succeed, there are very few quality carpenters left in the area, as a result of the poor economy. Pat may be able to find another tenant for his building. He may even be able to find another contractor to provide his carpentry services, but he will not be able to recover his $200,000 in loan principle if he cuts ties with Sandy. In addition, given their history, Pat may care for Sandy as friend. He may think of Sandy as someone whom he’d like to continue to do business with if possible. Negotiation Preparation/Approach In order to prepare for the negotiation with Pat Olafson, Sandy Wood must take the following steps: Prepare a clear and concise spreadsheet explaining his financial situation, and Adopt a respectful, non-jealous, and open-minded point of view. There are multiple issues to be discussed between Pat and Sandy. Each situation has its own set of circumstances and a significant amount of history. Sandy can expedite the negotiations by bringing a well-crafted spreadsheet to the conversation, which outlines the specific numbers involved with each of the three major issues at stake. It is important that this spreadsheet is drafted in a manner that shows both Pat’s numbers as wells Sandy’s numbers. Pat will not be receptive to any exhibits that seem to be biased towards Sandy’s position. Below is an example of a spreadsheet that, if prepared prior to negotiations, and shared with Pat, could help explain Sandy’s position: It is clear from Sandy Wood’s characterization of his relationship with Pat Olafson that there is a significant amount of history between the two parties. They have been doing business with each other for a number of years, through good times and bad times. Both parties seem to have a mutual respect for one another, however, there also seems to be some resentment between the parties as a result of their business dealings. Certain disagreements exist between the parties due to unfortunate misunderstandings. It is absolutely critical for Sandy Wood to approach this negotiation as though those personal disagreements did not exist. Who is right or wrong, moral or immoral, is entirely irrelevant at this point. The main factors for Sandy to keep in mind are The contract says that change orders must be approved in writing, and Both parties need to reach an agreement regarding the lease, the loan, and change order in order to avoid serious financial loss. Sandy can help his cause by treating Pat with respect and expressing appreciation for his generosity and continued business. Focusing on a desire to maintain a quality business relationship in the future is the best course of action. Negotiation Strategy

The Advantages and Disadvantages of Winning the Lottery free essay sample

The Advantages and Disadvantages of Winning the Lottery Have you ever wished that you had won the lottery? The lottery can change your life forever but it can also be changed in unexpected and drastic ways. The possibilities of what happens after you win the lottery are in your hands. You could lose your friendships and family members trust or maybe you could be intelligent with the money youve won and create for yourself endless possibilities, one this is for sure your privacy is going to be diminished. Its all up to us and how we want to peruse the rest of our life after we won the jackpot. When we win the lottery the first and only thing is in our mind is the money. We are so oblivious to anything else that we shut them out of our lives for a long period of time. Due to these actions we may break bonds and weaken our relationships with family members. We will write a custom essay sample on The Advantages and Disadvantages of Winning the Lottery or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Eventually someone that was your best friend will now be just an acquaintance. You may think that close family relationships will last forever, but this isnt always true. Even family members will begin to forget or maybe even despise, you due to the fact that all you care about is the money and not about anything else. But this doesnt have to be the case. All you have to do is recognize them for who they are and what they truly mean to you. If you truly are an money wise person than the possibilities are endless. Money doesnt buy you happiness but they might demolish any boundaries that you may have had before. This doesnt mean that you should buy a big house and a nice car and buy whatever you want; all it means is if you are smart and you dont go straight out on a shopping spree that money will last forever. If you invest and save (by not quitting your job) you can have a lifestyle without limitations and you can do whatever your heart and mind desires. You dream of having endless possibilities which you do, after a while though when you win the lottery your life will be turned upside down for awhile; media, news reporters, etc. will be crowding over you like honey attracts flies . They ( the media, news reporters, etc) will follow you almost everywhere to figure out what type of a person you really are . The lack of privacy is unbearable for some. This can lead to other isadvantages such as the high chance of bankruptcy, due to your high media profile. The lack of privacy has even led to some people killing themselves. This will go on for some time, so dont expect youll have such a quiet life in the beginning of you lotto experience. The lottery is a tricky thing. It appears so good to you with its flashing headlines One thousand dollars for life or Dream big, live big but really is it that great? Its all about the choices you make and how you carry through will them afterwards. So now you tell me is it really worth it?