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Dorothy Buckhanan Wilson Installed as International President of Alpha Kappa Alpha Sorority, Incorporated

Dorothy Buckhanan Wilson Installed as International President of Alpha Kappa Alpha Sorority, Incorporated

Charlotte, NC (BlackPR.com)

Dorothy Buckhanan Wilson of Milwaukee, Wisconsin, a business executive, was installed as the 2014-2018 International President of Alpha Kappa Alpha Sorority, Incorporated (AKA)

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Nielsen Expands Communications Leadership Team with Key Media Relations Hire

Nielsen Expands Communications Leadership Team with Key Media Relations Hire

New York (BlackPR.com)

New York (BlackPR.com) -- Nielsen today announced that Andrew McCaskill has joined Nielsen as Senior Vice President, Corporate Communications. He will report to Chief Communications Officer Laura Nelson.

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Voter Suppression: It’s Mobilization Time

Voter Suppression: It’s Mobilization Time

Written by Peter Grear

With this article we will start detailing the ingredients of a revisable action plan that needs comments and revisions as we move toward the Tuesday, November 4, 2014 General Election.  

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Las Vegas Comedian James Bean's Candid Account Of His Struggle With Suicide

Las Vegas Comedian James Bean's Candid Account Of His Struggle With Suicide

WHEN THE HUMOR IS GONE

James Bean has shown insight and understanding of the darkest moments of many people’s lives as well as ideas on how one could begin to create a life worth living even out of the depths of despair.” -– Rhonda Duncombe, LMFT, LADC

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Voter Suppression: NC Black Republican Advisory Board

Voter Suppression: NC Black Republican Advisory Board

Written by Peter Grear

Educate, Organize and Mobilize: I confess that I’m amazed. The Republican National Committee and the Republican Party of North Carolina announced last week that they have launched theNorth Carolina Black Advisory Board (BRAB) 

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Tips for Managing Stress in Your Life

Tips for Managing Stress in Your Life

Written by State Point

Stress is not only unpleasant; it can be overwhelming, ultimately preventing you from solving the problems that caused the stress in the first place. But getting focused can help you feel happier and be more successful professionally, financially and in your relationships, say experts.

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Voter Suppression: Defeating it requires two massive efforts

Voter Suppression: Defeating it requires two massive efforts

Written by Peter Grear

For black voters, Benjamin Jealous expressed what I believe to be the critical message for black voters when he said that the best way to overcome massive voter suppression is through a massive wave of voter registration.  Thankfully, the NAACP is putting this theory into action through the Youth Organizing…

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Black Women are Taking Care of Business

Black Women are Taking Care of Business

Written by Freddie Allen

Instead of breaking the glass ceiling, Black women have increasingly started making their own. According to the Center for American Progress, an independent, nonpartisan progressive institute, Black women are the fastest-growing group of entrepreneurs in the country.

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Voter Suppression: Is it partisan?

Voter Suppression: Is it partisan?

Written by Peter Grear

Educate, Organize and Mobilize: I’ve been doing commentaries on our Campaign to Defeat Voter Suppression since November, 2013.  Because the right to vote is fundamental to our democracy, I’ve tried to promote a non-partisan theory of voter enfranchisement. 

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Why vote? ALEC and the Doctrine of Exclusion

Why vote? ALEC and the Doctrine of Exclusion

By Peter Grear

Educate, Organize and Mobilize: Frequently, in going forward it is imperative to examine your history.  In 1638 the Maryland Colony issued a public edict encouraging the separation of the races that became the public policy of America. 

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Download Greater Diversity News Digital PDF Edition for FREE

Download Greater Diversity News Digital PDF Edition for FREE

FREE Full PDF Edition includes stories not featured on the website

The FREE Full PDF Edition includes stories not featured on the website. No paper, no hasel, read on your laptop or mobile devices. 

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Economic Crisis Highlights Risk Management’s Importance to Lifespan of a Business

Written by Virginia Commonwealth University on 03 July 2009.

Economic Crisis Highlights Risk Management’s Importance to Lifespan of a BusinessRisk management is not a flashy business topic – after all, making money is more exciting than saving it. Still, managing risk and avoiding problems is every bit as critical to the health of a business as creating revenue, according to a VCU professor.

Etti Baranoff, associate professor of insurance and finance in the VCU School of Business and the author of the 2003 textbook, “Risk Management and Insurance,” says the current economic turmoil demonstrates the possible consequences of relegating risk management to a place of insignificance in a business culture. Too many businesses and others failed to practice conscientious risk management in recent years, as the economy boomed and the housing market exploded, and the result was what Baranoff calls “a colossal crisis.”

Baranoff, who has completed a new version of her textbook with co-authors Pat Brockett and Yehuda Kahane, says that businesses that lose sight of risk management principles simply will not be sustainable – it is only a matter of time before their behavior catches up with them.

“If you don’t know how to manage risk for your business, then it becomes a case of one day here, one day gone,” Baranoff said.

Baranoff said sturdy risk management is not necessarily complex. It is a matter of practicing basic due diligence. For instance, the many businesses that invested in the various financial instruments built on questionable home loans overlooked something simple: loans should not be given to people who cannot afford to pay them back.

“It’s amazing what some financial institutions ignored,” Baranoff said. The result, she said, was “a party of consumption with no end.”

Baranoff researches the insurance industry and notes the particularly surprising behavior of a number of insurers. In managing risk on the loss side – earthquakes, hurricanes, fires, etc. – insurers use “unbelievable models, fantastically sophisticated models” to predict the potential losses of catastrophes and to be prepared for them. However, she said many insurers did not utilize the same caution and foresight when managing opportunity risk – the risk that their assets carried. Instead, those insurers operated on the assumption that the inventive financial instruments that had been created to produce revenue mitigated risk and did not require the basics of underwriting and risk management.

The insurers were wrong not to understand that “if the models are created on foundations that are faulty – like not having the proper underwriting – then you are negating their ability to make sure a business is sustainable,” Baranoff said.

Baranoff is a five-time winner of the prestigious Shin Research Excellence Award from the International Insurance Society. Her most recent Shin-winning paper, "Mortgage-Backed Securities and the Capital of Life Insurers: Was the Industry prepared for the Credit Crunch of 2007-08?," was co-authored with Thomas Sager, professor of statistics at the University of Texas at Austin. The paper's findings indicate that many life insurers were unprepared for the problems that emerged from mortgage-backed securities.

In particular, the award-winning paper demonstrated that some insurers reduced capital as they accumulated mortgage-backed securities, as though acquiring the securities raised the quality of their investment portfolios. This shows that these insurers, who typically engage in risk-reduction measures that would run counter to this, bought into the belief that these securities were of a high quality.

The study, which was released in the summer of 2008, also suggested that the full implications of the mortgage-backed securities problems on the insurance industry had not yet been seen – a view that proved prescient with the high-profile struggles of large life insurers.

Baranoff hopes the lessons of the current economic downturn reverberate and risk management assumes a more prominent place in business boardrooms in the future – as well as in business education.

“When people are taking a very high level of risk, then they must understand that everything could collapse,” Baranoff said.

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