10Oct/16

Accidents at Work Cost the British Economy 5.6 Billion Pounds

A recent report from the Health & Safety Executive (HSE) estimates the cost of accidents at work in British businesses on the British economy. However, it goes further than simply stating a headline figure, it identifies which parties are incurring these costs, the extent to which these are financial or human costs and how costs are attributed to workplace accidents and injuries of differing severities.

The Executive estimates that the cost to the economy of workplace accents, and the injuries that are sustained by workers as a result, as being in the region of £5.6 billion. For the purposes of clarity that is £5.6 billion each and every year. HSE estimate that each year there are 622,000 reported accidents at work. Of these, in the average tear 151 workplace accidents will lead to a fatality. In 169,000 cases workers end up taking seven or more days off work. In a further 453,000 cases workers will take six or less days off work. The result is an estimated 4.7 million working days being lost (based on figures for the year 2013/14).

The total cost of £5.6 billion to the British economy, fatal accidents account for £0.2bn, accidents and injuries leading to six or less days off work cost £0.4bn and those resulting in seven days or more costing the economy £5bn.

HSE identifies these costs as being born by employers, the state and the individuals involved the accident and left injured. Costs born by individuals include loss of earning, administration and costs associated with healthcare. For employers, costs include loss of productivity, payment of insurance premiums and statutory/contractual sick payments. The government also includes costs associated with providing healthcare through the NHS, as well as lost tax revenues and increased welfare payments.

The average fatal accident will cost the economy an estimated £1,557,400. Of this, there is a monetised human cost of £1,113,000 born by the victim and their family, as well as actual financial costs of £204,000. For employers and the State, there is no human cost but each bears an average financial cost of £129,00 and £111,400 respectively.

In relation to accidents at work causing injuries that lead a worker to take seven or more days off, the injured person will bear a monetised human cost of £19,800, but will interestingly be an average £810 better-off as a result of receiving accident at work compensation. In comparison, employers will bear a cost of £4,800 and the government £5,700.

Injuries with the lowest average cost on the British economy are understandably those that result in workers having six or fewer days off work. In such cases workplace accidents, costs to the employer are approximately £110, the State £380 and the worker involved a direct financial cost of £40 and human cost of £380.

The report by HSE and the statistics it outlines, and which are discussed above, will provide support to the argument that, despite the wide-spread bad press, negative connotations and significant legislation impacting on their ability to operate profitably, personal injury lawyers are actually providing an important service in ensuring individuals injured in an accident at work are compensated for their losses, pain and suffering.

For more news regarding accidents at work see http://www.compensationlatest.co.uk

Here you will also find all the latest news on a number of other areas of the personal injury, medical negligence and compensation claim industries.

You can also upload your own articles onto the website in support of your own SEO activities and so as to communicate your expertise and experience.Simply visit the website and submit your content to the Editor using the e-mail address clearly supplied throughout the site.

The site offers the benefit of being purely dedicated to the latest news relevant to the industry, making it a valuable source of potential back-links to your own website and landing pages.

18Mar/16

What is the best age in binary options?

When trading corredores de opciones binarias an important criterion is the expiry time (in English expiry date), so the actual run-time spans of the trade. It called therefore usually age limits because after this time has elapsed the option “expires”, so either is in the money or not. One speaks of a term more bonds for example.

Basically, the age limits vary depending on the broker and platform and are often dependent on the selected base values. Would you trade options with extremely short decay times 60 seconds options, then you can make this with all basic values and not with all brokers. Usually you can choose between a variety of age limits and the decision has major impact on your performance. It depends on different factors andgenerally you should choose the shorter expiry times short your trading strategy is aligned.

Types of expiration times

Good broker such as OptionFair, Broker BDSwiss or Anyoption give the possibility to choose among different age limits you. It is important to understand that there can be large differences between the brokers. So you will find no option at Anyoption with lower age than 15 minutes, at BDSwiss, on the other hand, you can also trade with 60seconds. But not only the options with short expiration times are interesting, but also the longer-term. Let’s take a look at it:

Short-term expiration times

Most binary options, which are traded nowadays fall into these categories, and are less than an hour. The trend is even more and more towards options 60 seconds, very much short but no longer is. To deal with such options at all makes sense, it makes little sense to rely on longer-term indicators and for example see the moving averages of the last 30 days.

It is important to understand that although more often can be traded and so that larger profit opportunities, but are also much riskier below-the-line options with suchshort decay times. Suppose you properly assess the market and know that EUR/USDwill go down. Action you with an option of just 60 seconds but might that you end up out of the money because the trend still not noted down, even after 45 minuteshowever.

Medium-term options

Medium-term options range from one hour to a full day. The trading of options it’snot only on the technical data, but also on fundamental data. You must also consider what happens on that day whether messages are expected, whether there are crises anywhere, whether it be published company data, etc.

Long-term options

The age of long term binary options extends from one over several days and weeks.Longer-term trading than a week has become rather uncommon for binary options- to ungeduldid, most traders are easy. Long-term options is essentially the same aswhen medium-term: you must take on the technical as well as on the fundamental aspects. In technical analysis, you should still longer-term set your indicators and focus not only on price movements within a few hours.

Before it crashes on the binary options trading, it is important to understand the principle of the age limits and to understand what impact these have on the necessaryanalyses. The shorter the age limits, the notice must your analyses look.

18Jan/16

Opportunity Cost: The Hidden Drain on Profit

When a business owner looks at a Profit & Loss Statement it’s pretty clear which items impact the cost of doing business: payroll; rent; utilities; purchase price of inventory; etc.

What’s more difficult to see is what accountants and business consultants call “Opportunity Costs.” The World English Dictionary defines opportunity cost as: “the money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative.” In other words, if you decide to pursue Option B, you lose any benefit that would have accrued from Options A or C.

As an executive or owner, you want to minimize Opportunity Costs. You do so by assessing the benefits and down side for EACH of the options before you. This enables you to get a clear picture of each possibility and empowers you to select the option that best satisfies your immediate (and possibly mid-term) needs. Once that decision is made, move forward.

For some reason, when it comes to business financing, the majority of owners and senior executives overlook the assessment of Opportunity Costs. Why? I believe it’s because they tend to weigh the definable cost of money more heavily than all the other costs associated with business financing.

Let me explain. Opportunity Costs are not restricted to monetary or financial costs. They rightfully also include:

Sales not pursued (because cash is not available to cover associated costs – yielding lost profit)
Vendor discounts not taken (yielding lost profit)
Lost time (time spent pursuing one financing alternative when a different alternative could have been consummated more quickly – this means the executive’s time is squandered which can result in lost profit)
Emotional impact on the owner(s), the owners’ family, employees and their families (stress associated with business finance issues has implications on many levels)
These are very real yet non-tangible things and because they are non-tangible the tendency is to either ignore or discount their impact on the company’s financial health. That’s a huge – yet understandable – mistake.

It’s understandable because virtually all financing institutions (both traditional and non-traditional) will focus on the numbers when underwriting a transaction. They must do so because they are assessing risk. Therefore it only makes sense that the borrower would focus on “the numbers” as well. That is to say, the tangible cost of money.

Unfortunately, only focusing on the numbers almost always means overlooking Opportunity Costs – costs that can be substantial. I’ve seen far too many owners delay action for weeks in an attempt to save a quarter of a percent in the cost of money. Frequently the delay resulted in lost revenue and profit that was an order of magnitude larger than the cost of money. To use an old adage, they were penny wise but pound foolish.

It’s not necessarily easy to assess Opportunity Cost in a financing situation. That’s because most banks/financing companies won’t assist in the analysis. After all, they want to close the deal so they’ll be pitching the advantages of their specific course of action – regardless of whether it’s the optimum solution for you at that time.

It’s up to the owner/executive to assess his/her Opportunity Costs. The optimum decision might mean paying a slightly higher cost of money in order to get funds soon enough to take advantage of an opportunity. After all, what good is saving $1,000 on cost of funds if you lose out on $10,000 in additional profit?

There are quite a few options for business financing. They include:

bank loans (either direct or SBA guaranteed)
personal credit (credit cards; home equity; etc.)
borrowing from friends and family
selling shares of the company (diluting equity)
invoice factoring
merchant account financing
crowd funding
various forms of asset based lending
Some of these can be immediately disregarded based on understanding where you stand in the credit world. For example:

If your company is less than 2 years old you won’t get a bank loan
If you company provides a consumer product or service you won’t have Accounts Receivable to factor
If your personal credit is bad you chances of borrowing are very slim to nonexistent
Once you are able to determine which options are available to you, it’s time to assess both the hard cost the Opportunity Cost associated with each option to determine which one give you the greatest immediate advantage. Once you know that, embrace the option and build your business.

11Dec/15

The Complete Cost of Filing Bankruptcy – Beyond Financial Cost

Have you been thinking about filing bankruptcy? Are you curious about what will happen if you go forward with your thought to liquidate a large portion of your debts? If so, here are some answers.

Effects to Your Credit Report

If you file bankruptcy, it will show up on your credit. A chapter 13 bankruptcy will stay on your record for seven years. A chapter seven bankruptcy will stay on your record for 10 years.

Credit Cards Closed

Any credit card that you have when you file will be closed. Therefore, if you still want a credit card, you will have to reapply for one once your bankruptcy is discharged.

Credit score

Your credit score will drop tremendously (if it was high). Also, it will take some consistent credit building moves to pull it back up.

Mortgage

If you do not own a home when you file, you will have to wait three years after your bankruptcy’s discharge date. Therefore, buy a house before filing or make plans in your budget to rent or move in with your parents.

Your Possessions

Any possession that you put up as collateral for a loan can be taken from you after filing bankruptcy. In order to close the case on your liquidation, you will have a meeting of the creditors day in court. If the creditors show up that day, they may ask for the items that you put up for collateral to pay off the loans.

Left Over Debt

There is a possibility that you will still have debts to pay after filing. Your student loan debt is an example of a credit that cannot be liquidated through bankruptcy.

Public Record

Last but not the least, your bankruptcy will be a part of your public record. A chapter seven bankruptcy can remain on your public record for 20 years.

26Nov/15

How A Minor Weakness In The Design Of A System Nearly Led To A Big Financial Scandal

When looking at the Financial Risk, it is important to remember that Fraud is not the only risk in this category. Errors of all kinds can have serious financial consequences. In this article I will tell the story of an unfortunate sequence of events leading to a highly embarrassing outcome. The one good thing about it was that the financial cost was minimal. The damage to the organisation’s reputation was the real loss. I will point out some of the failings and how they could have been avoided, as I see things. Perhaps you will think of some others. You may also notice that those same shortcomings could have left the organisation vulnerable to a fraud.

It happened in the early 1970’s when many organisations were just beginning to use computers for their principal financial functions. In this instance the function in question was creditor payments. The whole system had been reviewed including the manual operations which linked to the computer. Like most IT functions at that time, a batch input system was introduced. A payment slip was stuck onto each invoice to be paid. A number identifying the creditor had to be entered on the slip as well as the invoice number, an expenditure code and the amount. It then had to be signed by an authorised person to certify that it was to be paid.

Completed invoices were bundled together into a batch on the front of which a batch-header form was attached giving a batch number and the total of the amounts to be paid, which was produced by using an adding machine. The batch was then passed to the IT department where all the information on the creditor payment slips and the batch header was input. The totals had to agree and the other details had to be valid. The computer then generated a listing of all this data and produced the cheques and remittance advices. An independent group of people, know collectively a Despatch, checked that the cheques agreed with the list before putting them into envelopes, and… despatching them. Where more than one payment was being made to a creditor, the computer combined them onto one cheque but showed the separate amounts on the remittance advice.

A period of parallel running had apparently proven that the system worked properly. The problem which defied the system concerned a credit note. The arrangement was that a credit note should be treated in the same way as an invoice but a negative amount shown on the creditor slip. Usually a credit would be attached to an invoice from the relevant creditor, but that was not considered essential as the computer would automatically deduct the amount from anything being paid to that creditor in the same run, which usually included several batches. The thing nobody had thought of was how to deal with the situation where a credit note went through the system in a week when there was no invoice against which it could be offset. Inevitably, like most unforeseen circumstances, it occurred in due course.

The computer, unable to produce a cheque for a negative amount, deducted the figure from the highest number it could process. The system was designed to prevent any payment of a million pounds or more from going through. In the event of a genuine million pound payment being necessary it would have been handled manually. Thus a cheque was produced for a million pounds less a penny less the amount of the credit note. The credit note was for less than a pound. The creditor took a photocopy of the cheque and sent it to the local paper. He framed the original. Had he tried to bank it, it is possible that it would have been queried at that stage. It is also possible that he could have been charged with fraud, as he must have known he was not owed anything like a million pounds. The resulting furore and internal enquiry left a lot of blood on a lot of carpets. You might have a view on whose it should have been. The programmers and systems analysts were asked why they had not thought of the eventuality which did in fact occur. So was the system owner, the creditor payments manager. It should have been possible to arrange for unaccompanied credit notes to be rejected. The cheque list could have been checked against the actual invoices. Someone should have noticed that the total far exceeded the batch total. Someone might have used their “common” sense and queried a payment of nearly a million pounds, especially as the creditor did not supply goods of anywhere near that value.

Perhaps you need to review your financial systems, online and offline, to ensure they are (still) fit for purpose.

After studying Economics and Accountancy at Bristol University, John worked in accountancy and audit in several types of local authority. He is currently self-employed as JHM Risk Management Services, offering risk management and liability claims-handling services to businesses and other organisations, to enable owners and managers to save time and stress as well as money. John is a member of CIPFA, is a Registered Risk Practitioner with ALARM, and is a Specialist Member of the Institute of Risk Managers.