Business Paper on Role of Torah and Risk Management

Role of Torah and Special Covenant

God and the Jewish people share a bond of love which is manifested through the enactment of covenants. These covenants were mainly to guide the Jews and their on-going generations regarding various factors that enhanced their relationship with the creator (Watts, 2014). As such, the covenants acted as the key pillars of Judaism and have represented the Jewish people and facilitated the spread of the word of God across the globe. Torah is the primary scripture in the Jewish Bible and is an essential document of Judaism. Torah refers to the five books which were supposedly written by Moses and the books are Genesis, Exodus, Leviticus, Numbers, and Deuteronomy (ZetterHolm, 2016). The Mosaic covenant between God and Moses found in the books of Exodus and Deuteronomy entails the foundations of the written and oral Torah.

In this agreement, God assures the Israelites that He will make them His treasured possession among all the people of the world. Furthermore, He promises to make Israel a kingdom of priests and a holy land based on their loyalty to the commandments (Watts, 2015). The commandments provide the framework for believers on all the issues pertaining to godliness, including how they are to relate to their colleagues, and the ways of serving their mighty God. The Law was presented as a spiritual hedge to prevent the Israelites from being like the other nations which were sunk in idolatry. Consequently, any disobedience to Torah leads to the annulment of God’s blessing resulting in punishments like the occurrence of various diseases.

Risk Management

The current marketing risks in U.S.A and foreign nations are related to the ever-changing prices of commodities because of the differential costs of production. The volatile costs of commodities lead to a depreciation in the monetary value causing a reduction in purchasing power. This facilitates inflation in the country negatively impacting numerous sectors of the economy and social life (Miecinskiene & Lapinskaite, 2014). A change in the price of the world’s essential products such as oil influences the prices of locally produced or imported merchandise. Moreover, the increase in the value of taxes imposed on produced goods promotes changes the prevailing market prices.

A substantial rise in commodity prices leads to inflation which can negatively affect various sectors of the economy which promotes slow economic growth. As such, financial managers can integrate various strategies to curb the risks and enhance development (Frankel, 2017). Some of the techniques include increasing government expenditure to increase the availability of money in the market, thus reducing the prices of commodities in the long run. Additionally, lowering the level of taxes imposed on raw materials assists in decreasing the costs of production which aids in controlling the market prices of products.

Interest rates can have a significant impact on a financial institution since they can lead to low level of consumer transactions in form of savings and loan acquisitions. A change of the interest rate by the central bank affects the capital cost which in turn impacts the rate of investment and consumption (Khan & Sattar, 2014). Similarly, an increase in the interest rate on acquired loans negatively affects the degree of loan applications by the customers resulting in a low performance by the firm.  However, the financial organization can integrate the interest rate swap technique as a way of mitigating the risks associated with these rates. The interest rate swap enables the entity to understand how much of the prevailing rate risk it can sustain, determine when the hedge will begin, and the period over which it will be effective.

 

 

 

References

Frankel, J. (2017). How to cope with volatile commodity export prices: Four proposals (No. rwp17-033). Retrieved from: https://growthlab.cid.harvard.edu/files/growthlab/files/frankel_wp335.pdf

Khan, W. A., & Sattar, A. (2014). Impact of interest rate changes on the profitability of four major commercial banks in Pakistan. International Journal of Accounting and Financial Reporting4(1), 142-154. Retrieved from: https://pdfs.semanticscholar.org/60fb/4b9fbc447f4066a1954f965245451cfad8fe.pdf

Miecinskiene, A., & Lapinskaite, I. (2014). The research on the impact of the changes of commodity price level in the world commodity exchanges on variation of general price level. Economics & Sociology7(4), 71. Retrieved from: http://www.economics-sociology.eu/files/09_71_Miecinskiene_Lapinskaite.pdf

Watts, J. (2014). From ark of the covenant to Torah scroll: ritualizing Israel’s iconic texts. Retrieved from: https://surface.syr.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1080&context=rel

Watts, J. (2015). Iconic scriptures from Decalogue to Bible. Mémoires du livre/Studies in Book Culture6(2). Retrieved from: https://www.erudit.org/en/journals/memoires/2015-v6-n2-memoires02039/1032712ar/

ZetterHolm, K. H. (2016). Jesus-oriented visions of Judaism in antiquity. Scripta Instituti Donneriani Aboensis27, 37-60. Retrieved from: file:///C:/Users/Apee%20and%20Family/Downloads/66568-Article%20Text-79582-1-10-20171025.pdf